Peel Mining Ltd (ASX:PEX) has received more drill results from its 100%-owned Wagga Tank/Southern Nights project south of Cobar in western New South Wales.
Drilling has revealed another high-grade target in The Bird/Fenceline prospect and has further increased the economic potential of the Southern Nights prospect.
Results continue to confirm Peel’s view that it has discovered a large or camp-scale base metal-rich mineral system comprising multiple high-grade deposits.
Significantly, the company also believes the deposits to be clustered within close proximity of one another.
Southern Nights extended to 700 metres, remains open in all directions
Shares jumped 9% to 71.5 cents in early trade.
The latest batch of assays from Southern Nights have extended the high-grade mineralised strike length to over 700 metres.
Importantly, it remains open in all directions.
New high-grade zinc-rich mineralisation from the southern end of Southern Nights includes:
• 12 metres at 16.11% zinc, 5.41% lead, 151 g/t silver, 0.44 g/t gold from 215 metres;
• 15 metres at 4.81% zinc, 2.31% lead, 0.61% copper, 66 g/t silver, 0.59 g/t gold from 234 metres; and
• 18 metres at 4.41% zinc, 1.57% lead, 19 g/t silver, 0.12 g/t gold from 274 metres.
Drill results from The Bird/Fenceline reveal potential
Initial drill results from The Bird/Fenceline prospect have confirmed an additional high-priority target with high-grade lead-silver-gold mineralisation.
Highlights from the latest assays included:
• 24 metres at 12.55% lead, 0.2% zinc, 68 g/t silver, 2.49 g/t gold from 118 metres including 13 metres at 21.49% lead, 0.27% zinc, 120 g/t silver, 4.36 g/t gold;
• 6 metres at 11.69% lead, 0.4% zinc, 39 g/t silver, 1.38 g/t gold from 91 metres including 3 metres at 20.95% lead, 0.61% zinc, 66 g/t silver, 2.08 g/t gold; and
• 2 metres at 7.48% zinc, 4.49% lead, 36 g/t silver, 0.21 g/t gold from 137 metres.
Survey suggests The Bird/Fenceline has size potential
Recently completed induced polarisation (IP) surveying at The Bird/Fenceline has revealed an anomaly that appears associated with the sulphide mineralisation.
The anomaly covers more than 2.5 kilometres along strike, with a significant chargeable zone at its northern end.
This area will be targeted by first-pass reverse circulation drilling in the coming weeks.
READ: Peel Mining intersects best ever high grade zinc intersection at Southern Nights
Drilling is ongoing, first-pass metallurgical test work is underway
Reverse circulation and diamond drilling at the Wagga Tank/Southern Nights project is ongoing.
Upcoming drilling will be designed to continue to test for strike and dip extensions and to test other targets in the general Wagga Tank area.
Additional surface geophysical surveys are also planned to assist with targeting.
First-pass metallurgical test work is underway with follow-up work expected to commence during the next quarter.