As well as providing resource growth potential, the new results in the Corridor Zone also highlight the possibility of a link between the Wagga Tank and Southern Nights deposits.
The company has received final results for two holes in this zone with both returning multiple zones of significant mineralisation.
Shares up 10%
Shares have been up more than 10% to an intra-day high of 32 cents.
Peel Mining managing director Rob Tyson said, “This is a very exciting development, offering potential to infill the zone between Wagga Tank and Southern Nights, and further enhancing the development prospects of the project.”
Best results from WTRCDD141:
- 2.1 metres at 4.7% copper, 129 g/t silver, 0.15 g/t gold, 0.4% zinc and 0.5% lead from 530.2 metres; and
- 58.3 metres at 5.4% zinc, 2.3% lead, 0.1% copper, 24 g/t silver and 0.31 g/t gold from 546.7 metres, including 13.1 metres at 11.1% zinc, 5.7% lead, 0.05% copper, 52 g/t silver and 0.51 g/t gold from 553.9 metres.
Better WTRCDD141W1 results are:
- 9 metres at 7.6% zinc, 4.7% lead, 0.1% copper, 153 g/t silver and 0.46 g/t gold from 501 metres, including 2.8 metres at 21.6% zinc, 12.7% lead, 0.4% copper, 441 g/t silver and 1.23 g/t gold from 505.1 metres;
- 17 metres at 1.3% copper, 25 g/t silver, 0.14 g/t gold, 0.1% zinc and 0.1% lead from 510 metres;
- 47 metres at 6.3% zinc, 2.8% lead, 0.05% copper, 24 g/t silver and 0.28 g/t gold from 573 metres; and
- 53 metres at 3.4% zinc, 1.9% lead, 0.1% copper, 24 g/t silver and 0.46 g/t gold from 626 metres.
In late August, drilling at Wagga Tank-Southern Nights resumed, comprising around 10,000 metres of reverse circulation (RC)/diamond drilling primarily designed to develop higher confidence resources and to progress the project towards development.
Since recommencement, drilling has targeted Wagga Tank and the Corridor Zone.
Importantly, strong new mineralisation has been confirmed in Corridor Zone, highlighting the potential for interconnected mineralisation between the Wagga Tank and Southern Nights deposits.
Further analysis will be undertaken to determine the best location to target with follow-up drilling in this exciting area.
Southern Nights drilling
The drill rig from the Corridor Zone has relocated to Southern Nights to focus on infill and extensional drilling in the main resource area.
Tyson said, “VMS and Cobar-style mineral systems are renowned for clustering and stacking and we see every chance that this will be the case here - we look forward to completing follow-up drilling in due course.
“In the meantime, we are continuing with resource upgrade drilling at Wagga Tank and Southern Nights to advance these deposits towards development.”
Drilling at the Wagga Tank deposit is about 60% complete with initial results received from WTRCDD213 including 20 metres at 1.52 g/t gold, 4 g/t silver, 0.2% copper and 0.4% lead from 80 metres.
This drilling has been designed to test for north-south extensions to the existing resource, test for shallower up-dip extensions to the resource and to provide infill drilling to improve the confidence of the resource.