Peel Mining Ltd's (ASX:PEX) shares have soared 47% to $0.33 in morning trade with 1.3 million changing hands, as the latest results support the potential of the wholly-owned Wagga Tank project hosting a major high-grade mineral system.
Wagga Tank is a polymetallic VHMS-type deposit, and is located in a key mining district south of Cobar in western New South Wales.
While the drilling results are pending, XRF results include:
- 21 metres at 24.5% zinc, 8.6% lead and 102g/t silver from 194 metres; and
- 70 metres at 4.8% zinc, 1.0% lead and 18g/t silver from 128 metres.
Drilling is part of a follow-up program of four reverse circulation holes.
Of these, three intersected broad zones of strongly anomalous zinc-lead-silver mineralisation, and two intersected very high-grade zinc-lead-silver-rich sulphides, including massive sulphides.
Importance of Southern Nights prospect
Today's results are from the Southern Nights prospect, located 1 kilometre south of the high-grade zinc-lead-silver-gold-copper Wagga Tank deposit.
The discovery of this near-surface, zinc-rich mineralisation supports the company’s view that the Wagga Tank/Southern Nights area has the potential to host a major, high-grade, base/precious metals mineral system.
Analysis
The tenor of mineralisation discovered at Southern Nights ranks as the best zinc-lead-silver mineralisation encountered to date by Peel.
The assays will then show if it ranks as the number one intercept since the company’s inception.
Peel will now place priority attention on Wagga Tank/Southern Nights over the coming weeks and months as drilling continues.
The forward plan includes at least another ten reverse circulation holes in the near term.