Peel Mining (ASX:PEX) has received positive flotation test work results using drilled high grade zinc-lead-silver at the 50% owned Mallee Bull deposit near Cobar in New South Wales.
The metallurgical drill hole at Mallee Bull’s T1 lens returned the best zinc-lead-silver intercept to date of 13.5 metres at 21.1% zinc, 14.1% lead and 268 g/t silver from 82 metres.
The positive metallurgy results support Peel’s view that T1 potentially represents an attractive early production opportunity that can be pursued ahead of the main Mallee Bull development.
An infill drilling program at T1 has today commenced comprising circa 27 drill holes for 4,000 metres.
This drilling along with additional metallurgical test work will underpin a prefeasibility study into the potential early development of the T1 lens.
Metallurgy results
The metallurgical flotation test work at T1 represents the first test work focussed on the significant T1 zinc-lead-silver mineralisation.
Preliminary metallurgical results have shown excellent overall metal recoveries of up to 90.3% zinc, 92.3% lead, and 82.3% silver.
The full elemental analysis remains pending, which will include gold mineralisation.
Ongoing flotation test work, particularly with respect to selectivity between lead and zinc, is anticipated to improve on these results.
Gold analysis is to be included in this work. Further results are expected during the current quarter.
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.
Mallee Bull
The Mallee Bull project is a 50:50 joint venture with CBH Resources Ltd and is Peel’s most advanced asset.
A maiden JORC resource was released in May 2014 of 3.9 million tonnes grading 2.3% copper, 32 g/t silver and 0.3 g/t gold.
Since then, a number of highly mineralised extensional intercepts have been drilled and extensional work programs are continuing at Mallee Bull.
In May 2015, the T1 near-surface high-grade zinc-lead-silver-gold discovery was made.
The T1 target returned shallow, high-grade mineralisation including:
⁻ 12 metres at 35.1% lead-zinc, 308 g/t silver, 1.59 g/t gold from 83 metres;
⁻ 7 metres at 34.1% lead-zinc, 203 g/t silver, 0.58 g/t gold from 71 metres; and
⁻ 10 metres at 23.4% lead-zinc, 322 g/t silver, 1.28 g/t gold from 106 metres.
T1 is defined as massive and stringer sulphide mineralisation, varying from 2-20 metres true thickness, commencing at ~50 metres below surface, extending to at least 120 metres below surface, and with a known strike extent of ~60 metres.
In September 2016, a significant copper intercepts discovered Mallee Bull North, located 300 metres from Mallee Bull.