Peel Mining Ltd (ASX:PEX) has received strong polymetallic results, including up to 9.02% copper, from infill drilling at the Gilgunnia project, 100 kilometres south of Cobar in western NSW.
The company has completed a 16-hole reverse circulation (RC) and diamond drilling program for 4,581.4 metres targeting the Mallee Bull ‘Cobar-style’ polymetallic discovery.
As well as copper, the program also returned strong assays for zinc, lead, silver and gold.
READ: Peel Mining continues to receive positive polymetallic assays from New South Wales
Initial interpretation of the results indicates that the area of interest shows continuity of the Mallee Bull lode mineralisation.
Best intersections include: 11 metres at 9.02% copper, 114 g/t silver and 0.37 g/t gold from 296 metres; and 14.15 metres at 4.27% copper, 51 g/t silver and 0.25 g/t gold from 262 metres.
The intervals from these two drill holes rank as the best copper mineralised intercepts returned from between around 180-300 metres below surface.
True width on mineralised intercepts is estimated to be around 80% of the downhole width.
Other significant results were: 5 metres at 11.09% zinc, 5.48% lead, 32 g/t silver and 0.14 g/t gold from 305 metres; and 16 metres at 2.19% copper, 49 g/t silver, 0.38 g/t gold from 237 metres, including 9 metres at 2.69% copper, 67 g/t silver and 0.43 g/t gold from 242 metres.
Ore to be milled at Endeavor
Drilling was undertaken as part of a pre-feasibility study (PFS) investigating the conceptual development of the upper portion of Mallee Bull as a ‘dig and truck’ operation.
It also provided additional geotechnical information and material for further metallurgical test work.
Mined ore would be milled at JV partner CBH Resources Ltd’s (ASX:CBH) Endeavor mine around 150 kilometres away, where surplus milling capacity exists.
The PFS is based on underground mining of the high-grade Silver Ray zinc-lead-silver lens, followed by development of an exploration decline to around 300 metres below surface.
READ: Peel Mining’s drilling continues to extend zinc-rich polymetallic project in New South Wales
Mineralisation between around 180-300 metres below surface will be assessed for its potential to add further ore to the mineral inventory.
Recently received assays are being interpreted in anticipation of updating the relevant portion of the mineral resource model.
Once complete, the new model will be the subject of mine design and scheduling to enable completion of the PFS, which is expected this quarter.