Peel Mining Ltd (ASX:PEX) has increased its JORC resource estimate by 65% to 175,000 tonnes of copper equivalent for the 50% owned Mallee Bull deposit near Cobar, New South Wales.
The updated resource measures 6.76 million tonnes at 1.8% copper, 31 g/t silver, 0.4 g/t gold, 0.6% lead and 0.6% zinc or 2.6% copper equivalent.
This results in contained metals measuring 119,000 tonnes copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000 tonnes zinc and 38,000 tonnes lead.
Rob Tyson, managing director, commented: “The updated mineral resource estimate for Mallee Bull demonstrates the significant exploration success achieved over the last three years.
“This success is highlighted by the addition of lead and zinc mineralisation into the estimate, underpinned by the discovery of near-surface, high-grade zinc-lead-silver mineralisation at T1.
“T1 is now the focus of activity where pre-feasibility work is investigating the potential for an early production opportunity.”
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.
Since its maiden resource of May 2014, 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.
Analysis
Peel’s focus at Mallee Bull is now firmly set on T1 where pre-feasibility work is investigating the potential for an early production opportunity.
Infill, metallurgical and geotechnical drilling is nearing completion at T1 with assays pending.
Metallurgical test work is continuing, which builds on from the positive flotation test work results received in May.
These early 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.
Peel expects to complete the pre-feasibility study by end September quarter, and provided the findings are positive, will proceed with a definitive feasibility study shortly thereafter.