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Peel Mining confirms mineralisation with final batch of assays

Peel has received all assays from 2016 drilling at Wagga Tank.
Peel Mining confirms mineralisation with final batch of assays
Peel has the largest single company holding in the Cobar Superbasin

Peel Mining (ASX:PEX) has received assays from its completed 18 hole drill program at its recently acquired 100%-owned Wagga Tank Project near Cobar in western New South Wales.

Initial drilling by Peel commenced in the December quarter for a total of 18 reverse circulation holes and 5 diamond tails for 4,788 metres.

All assays have now been received and have confirmed the historical drill results that featured strong evidence of a zinc-lead-silver-gold-copper mineralised system.

Results include 27 metres at 10.00% zinc, 6.41% lead, 89 g/t silver, 0.42 g/t gold, 0.21% copper from 240 metres and mineralisation remains open along strike and at depth.

Seven drill-holes require diamond extensions with drilling anticipated to recommence late March or early April.


Drill result details

Results are part of Peel’s maiden drilling program at Wagga Tank, designed to confirm the presence of high grade base and precious metal mineralisation originally identified in the 1970-80s.

Significant new high-grade mineralisation and extensions to existing high-grade mineralisation have been identified, with results including:

- 27 metres at 10.00% zinc, 6.41% lead, 89 g/t silver, 0.42 g/t gold, 0.21% copper from 240 metres including 10 metres at 19.39% zinc, 12.35% lead, 171 g/t silver, 0.67 g/t gold, 0.30% copper;
- 16 metres at 3.27 g/t gold, 0.35% copper, 1.1% zinc, 0.57% lead, 12 g/t silver from 226 metres including 10 metres at 4.27 g/t gold, 0.37% copper, 0.88% zinc, 0.52% lead, 13 g/t silver; and
- 13 metres at 3.34 g/t gold, 0.83% copper, 0.77% zinc, 0.28% lead, 20 g/t silver from 299 metres including 6 metres at 6.90 g/t gold, 1.28% copper, 0.62% zinc, 0.21% lead, 29 g/t silver.

All assays for Peel’s maiden Wagga Tank drilling program completed prior to end calendar 2016, have now been reported.

Drilling at the Wagga Tank is anticipated to resume upon completion of drilling currently underway at the company’s 60%-owned Wirlong copper prospect.

The activity at Wirlong is expected to finish late March to early April.


Background

Peel’s projects cover more than 5,000 square kilometres across New South Wales and Western Australia.

Projects include:

- Mallee Bull: An advanced copper polymetallic deposit that remains open in many directions;
- Cobar Superbasin: Farm-in agreement that offers funded strategic greenfields exploration potential along with the new Wirlong copper discovery;
- Wagga Tank: A polymetallic VHMS-type deposit with many significant intercepts;
- Apollo Hill: Exploration project that hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike; and
- Attunga: A high grade tungsten deposit.


Wagga Tank

Wagga Tank is 100% owned by Peel and was acquired for $40,000 and a 2% net smelter royalty.

It is a volcanic-hosted massive sulphide (VHMS) deposit located on the western edge of the Cobar Superbasin, 45 kilometres from Mallee Bull.

The deposit has had 42 historical holes drilled into it from 1989 including:

- 32 metres at 3.00 g/t gold, 24 g/t silver from 10 metres;
⁻ 20 metres at 3.11 g/t gold, 63 g/t silver from 28 metres;
⁻ 30 metres at 1.93 g/t gold 24 g/t silver from 8 metres;
⁻ 25.9 metres at 8.74% zinc, 3.39% lead, 82 g/t silver from 141.6 metres;
⁻ 15.7 metres at 10.39% zinc, 4.43% lead, 69 g/t silver from 215.6 metres;
⁻ 18.15 metres at 5.86% zinc, 3.00% lead, 32 g/t silver, 1.01 g/t gold from 222.85 metres;
⁻ 24 metres at 2.73% copper, 0.56 g/t gold, 13 g/t silver from 86 metres;
⁻ 20.3 metres at 2.17% copper, 0.76 g/t gold, 9 g/t silver from 184.4 metres; and
⁻ 13.55 metres at 4.6% copper, 1.14 g/t gold, 470 g/t silver from 119.75 metres.


Analysis

The final batch of assays from the 2016 drilling program at Wagga Tank supports the emergence of the Wagga Tank VHMS deposit as a significant zinc-lead-silver-copper-gold mineralised system.

Results to date are encouraging with confirmation of very high-grade zinc-lead-silver rich massive sulphide style mineralisation, and strong gold-copper mineralisation, at relatively shallow depths.

Whilst further drilling is required, Peel believes that the intersection of several strong gold-copper intervals possibly represents a previously unrecognised feeder structure to the historically reported oxide gold mineralisation.

Notwithstanding the required drilling of the oxide gold zone; the strong gold-copper intervals intersected by Peel are open down-dip and along strike and require follow-up drilling beyond the completion of Peel’s maiden 18-drillhole program.

Shareholders continue to be leveraged to news flow from proven exploration targets that are advancing towards development in the Cobar Superbasin.

Peel has a track record of operating with low overheads and investing capital into the ground with circa 18,000 metres of drilling in 2016.

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