Peel Mining Ltd (ASX:PEX) has increased the width and depth of mineralisation at its polymetallic Wagga Tank project in New South Wales which includes the Southern Nights prospect and its zinc-rich thick mineralisation.
An 18.2-metre thick intersection from the prospect had graded 40.3% zinc, 15.7% lead, 0.97% copper, 356 g/t silver and 2.77 g/t gold from 182 metres.
The company believes the interception to be the highest grade zinc it has seen during its history.
Peel Mining managing director Rob Tyson spoke to Proactive Investor’s Stocktube video channel last week about the company’s latest drilling campaign, confirming three drill rigs were on site at the project.
Tyson said: “June’s when we mooted to put out a maiden resource and we’re on track, on budget and timing.
“We’ve got three drill rigs on site, so we want to make sure we get there with time to spare.”
Two rigs are being worked day and night at the project south of Cobar, while a third is drilling up intersections at night when temperatures are cooler.
The first JORC resource statement for the project is expected by June quarter 2019.
West Perth-based Peel Mining has already received results from work completed up to the Christmas period.
The assays featured multiple new thick, high-grade zinc-lead-silver mineralised intercepts from the Southern Nights Central Zone, expanding the geometry of the known zinc-rich mineralisation.
Peel Mining MD Tyson told Stocktube: “We got … more strong results that are continuing to provide confidence and comfort that this is the real deal.
“We’ve (also) got a nice zone of very high-grade mineralisation taking shape.
“The new drill holes, we had three intercepts that came in (and these) have shown that the mineralisation continues at depth, which is great, and that’s very much Cobar-style type mineralisation.”
The metalliferous Cobar Basin has been one of the nation’s most important mining fields since the Great Cobar copper deposit was discovered there almost 150 years ago in 1870.
Cobar deposits tend to be large, are commonly high grade and contain base and precious metal deposits.
They tend to have depth extent but can sometimes have a small footprint at the surface.
Peel Mining’s highlighted assays from drilling at the Southern Night prospect’s central zone have helped build a picture of a coherent body of high-grade mineralisation.
Highlighted results have included:
40 metres grading 10.2% zinc, 2.83 % lead, 0.61% copper, 49 g/t silver, 1.04 g/t gold from 365 metres, including 16.21 metres at 16.91% zinc, 5.01% lead, 0.43% copper, 87 g/t silver, 0.98 g/t gold from 366.23 metres;
26.63 metres grading 5.39% zinc, 1.36% lead, 0.2% copper, 48 g/t silver, 0.34 g/t gold from 217.37 metres, including 12 metres at 9.28% zinc, 1.99% lead, 0.19% copper, 59 g/t silver, 0.37 g/t gold from 218 metres.
Drilling in and near copper mineralisation returned:
53 metres grading 7.43% zinc, 3.46% lead, 1.48% copper, 114 g/t silver, 1.47 g/t gold from 218 metres, including 18.1 metres at 20.37% zinc, 9.77% lead, 0.36% copper, 238 g/t silver, 1.09 g/t gold from 218 metres; and
20.65 metres grading 9.92% zinc, 4.83% lead, 0.51 % copper, 104 g/t silver, 0.53 g/t gold from 355.35 metres, including 8.29 metres at 16.91% zinc, 10.26% lead, 0.7% copper, 210 g/t silver, 0.63 g/t gold from 355.35 metres.
St Barbara Limited is the company’s largest shareholder with 17.9% of the company on September 25.
The substantial bloc holding of Hampton Hill Mining NL and associates came next, with a collective 17.9% stake on the same day.
This was broken down into Perth Capital Pty Ltd (i)’s 7.01%, Hampton Hill Mining NL’s 5.33%, Perth Capital Pty Ltd (ii)’s 3.05% and Wythenshawe Pty Ltd’s 1.6% and Warramboo Holdings Pty Ltd 0.97%
Point Nominees Pty Ltd came next by size, at 7.94%, while one more company made up the significant shareholder list, Ariki Investments Pty Limited (i) with 5.59%.
The company’s top shareholders had 61.55% of the company on the September date.
Among the shareholders were MD Rob Tyson, Jonathon Tyson & Chris Tyson, holding a collective 2.53% in two separate stakes.
Peel Mining spent $2.1 million on exploration and evaluation in December quarter 2018, to use $3 million in total on operating activities.
The company used $3 million for investing activities and directed $8.4 million towards financing activities to end December 31 with $6.5 million cash.
In its December quarter cashflow report, the company estimated its cash outflows for the March quarter would be $2.4 million.
— with Danielle Doporto, Tharun George
Update: This story has been updated with results from Peel Mining's quarterly cashflow report for the December quarter.