Peel Mining Ltd (ASX: PEX) has revealed the maiden resource for its 100% owned Wagga Tank and Southern Nights deposits in the Cobar Basin of western NSW.
The maiden resource provides Peel with a solid foundation to immediately commence scoping studies to advance the potential development scenarios at Wagga Tank-Southern Nights.
Peel managing director Mr Rob Tyson said: “The high-grade Maiden Resource at Wagga Tank-Southern Nights is a pleasing addition to Peel’s Cobar Basin assets.
“Peel’s exceptional exploration team were able to deliver this major resource in less than 2 years from discovery and at a fraction of the cost of many of our peers.
“A great deal of knowledge has come from this work and the potential for the project to grow is excellent.”
“It is worth noting that the scale of resource at Wagga Tank-Southern Nights is similar to that of other Cobar Basin mines at the time they were brought into production – mines that have gone on to become world-class operations.
“We now look forward to advancing Wagga Tank-Southern Nights’ development scenario studies to ultimately complement our pending development of Mallee Bull.”
About 28% of the resource tonnage and 45% of the contained metal tonnage was classified at an indicated level with the respective balances being classified at an inferred level.
The resource includes a high-grade estimate of 1.8 million tonnes at 9% zinc, 3.6% lead, 116 g/t silver, 0.19% copper and 0.29 g/t gold, or 15% zinc equivalent.
Zinc equivalent assumptions
Current activities underway at the project include detailed metallurgical test work, ongoing geotechnical studies, pre-development environmental baseline work, new geophysical surveys and drill planning targeting potential extensions to mineralisation.
The Wagga Tank-Southern Nights system remains open along strike and down dip with exploration to expand the resource now underway.