Peel Mining Ltd (ASX:PEX) had discovered a new high-grade zone at the Southern Nights deposit during ongoing resource upgrade drilling at the Wagga Tank-Southern Nights project south of Cobar in western NSW.
Two drill holes at the southern end of the base and precious metals deposit have returned very high-grade massive sulphide intercepts, in an area with only limited drilling.
This area is around 500 metres south of the Southern Nights Central Zone near the boundary of the existing resource model and remains open to the south.
“Quality and scale”
Peel Mining managing director Rob Tyson said, “The new high-grade intercepts at the southern edge of Southern Nights continue to underline the incredible quality and scale of these mineral systems.
“The latest intercepts are on the edge of the current resource model offering excellent exploration upside.
“Most importantly, this mineralisation adds further weight to the future development prospects of the project, highlighting the opportunity to increase the grade and tonnage profile of the deposit.”
Similar to Central Zone
The results are similar to the intercepts returned from the Southern Nights Central Zone.
One hole returned a 6-metre sphalerite-galena rich massive sulphide interval from about 234 metres downhole, with further disseminated and stringer zinc, lead and copper sulphide mineralisation extending to the end of hole.
The other returned multiple intervals of massive and stringer sulphide mineralisation from between around 233 metres to 264 metres downhole, with locally intense sphalerite-galena mineralisation.
Assays from both are pending.
Three areas targeted
In late August, drilling at Wagga Tank-Southern Nights resumed, comprising around 10,000 metres of RC/diamond drilling primarily designed to develop higher confidence resources and to progress the project towards development.
This has targeted Wagga Tank, Southern Nights and the Corridor Zone between Wagga Tank and Southern Nights.
Ongoing work at Southern Nights
Initially planned drilling at Wagga Tank and the Corridor Zone is complete with drilling now focused on the Southern Nights area.
This resource upgrade drilling is expected to continue until shutdown for the Christmas and New Year period.
During this period, a review of drilling results with regards to geological modelling and associated confidence will be undertaken to determine further drilling requirements in advance of resource modelling and estimation.
Encouraging results
Elsewhere at Southern Nights results were recently received from several holes targeting infill and extensions at the northern end of the Central Zone.
These include:
- 10.66 metres at 4.27% zinc, 1.32% lead, 242 g/t silver and 0.24 g/t gold from 390.11 metres, including 5.22 metres at 7.39% zinc, 2.25% lead, 454 g/t silver and 0.44 g/t gold from 390.11 metres; and
- 6.6 metres at 4.37% zinc, 2.02% lead, 26 g/t silver and 0.13 g/t gold from 367.9 metres, and 6.04 metres at 3.89% zinc, 0.23% lead, 0.21% copper, 10 g/t silver and 0.46 g/t gold from 381.46 metres.
Wagga Tank drilling is now completed with results received so far adding confidence to the current geological model.
Wagga Tank results
Better assay results include:
- 17.4 metres at 7.41% zinc, 3.2% lead, 184 g/t silver, 1.54% copper and 2.85 g/t gold from 249.5 metres;
- 13.47 metres at 4.4% zinc, 1.65% lead, 16 g/t silver, 0.63% copper and 1.36 g/t gold from 268 metres;
- 18 metres at 1.35% copper, 0.39 g/t gold and 18 g/t silver from 140 metres, and 4 metres at 8.08% zinc, 4.47% lead, 110 g/t silver, 0.85 g/t gold and 0.24% copper from 240 metres; and
- 8 metres at 1.23% copper , 1.32 g/t gold and 38 g/t silver from 179 metres, and 2 metres at 24.19% zinc, 5.02% lead, 79 g/t silver, 0.12 g/t gold and, 0.37% copper from 225 metres.
Data is being reviewed in advance of planning additional drilling in this area.
In the Corridor Zone the best results were 24 metres at 1.00% copper, 27 g/t silver and 0.22 g/t gold from 531 metres, including 9 metres at 1.64% copper, 43 g/t silver and 0.25 g/t gold from 540 metres.
Additional drill holes are being planned to test for further extensions of the Corridor Zone mineralisation.