Peel Mining Ltd (ASX:PEX) is leveraged to a review by Talisman Mining Ltd (ASX:TLM) of prospects in the Lachlan Copper-Gold Project of New South Wales which has identified targets for follow-up.
A portion of the areas reviewed to the southeast of mining centre Cobar is held by Peel and is subject to a farm-in agreement with Talisman.
The tenement is east of Peel’s primary areas of focus within the Cobar region in central New South Wales.
READ: Peel Mining leveraged to exploration upside as partner begins work
Talisman has completed a comprehensive compilation and review of historical drilling and other existing exploration data across its wholly-owned and joint venture tenure.
The review has highlighted that there has been no coordinated, systematic regional exploration across the tenement package.
Until now the package has been fragmented and under the control of multiple exploration companies.
First pass exploration work
In addition to the review, Talisman, in association with SRK Consulting, has undertaken a regional structural and geological interpretation as part of first pass exploration work.
This included a detailed geological review of major mineral deposits in the district, which has provided insight to the major regional controls on mineralisation.
The review by Talisman Mining encompassed tenements southeast of Cobar.
Talisman recently completed its second field visit to undertake reconnaissance field mapping and rock-chip sampling over known prospective areas.
Several priority areas identified
As a result of work to date, Talisman has highlighted several high priority areas for initial focus where more detailed geological interpretations have been completed or are underway.
Talisman intends to build a strong database of soil sampling, auger sampling, geological and structure mapping and geophysical surveys to develop and prioritise targets for drilling.
Under the farm-in agreement, Talisman has the right to earn up to 75% of two granted exploration licences through spending a total of $700,000 over five years.
The Cobar region is a richly mineralised district that hosts several base and precious metal mines including the CSA, Tritton and Hera/Nymagee mines.
READ: Peel Mining intersects best ever high grade zinc intersection at Southern Nights
Peel recently intersected high-grade zinc at the Wagga Tank/Southern Nights project in this area.
Results include 46 metres at 17.01% zinc, 9.57% lead, 272 g/t silver and 1.22 g/t gold from 201 metres at Southern Nights, which is the company’s best-ever intersection.