Peel Mining Ltd (ASX:PEX) has confirmed the discovery of strong gold mineralisation associated with a new high-grade zone at the Southern Nights deposit within the Wagga Tank-Southern Nights Project in NSW.
From August through December 2019, a program of about 11,000 metres of reverse circulation/diamond drilling, primarily designed to develop a higher confidence resource, was completed at Wagga Tank-Southern Nights.
A new high-grade zone at the southern end of the Southern Nights deposit has returned further strong assay results including some of the highest-grade gold mineralisation intersected at Southern Nights to date:
- 35 metres at 6.3% zinc, 2.59% lead, 105 g/t silver, 0.24% copper, 1.87 g/t gold from 232 metres (including 5.9 metres at 17.13% zinc, 8.34% lead, 376 g/t silver, 0.26% copper, 7.6 g/t gold from 232.8 metres) in WTRCDD238.
Mineralisation open to the south
Peel Mining Managing Director Rob Tyson said: “The high-grade gold associated with the mineralisation in drill hole WTRCDD238 is a very welcome development for the Southern Nights system, all the more exciting as this area remains completely open to the south.
“More importantly, a recent review of resource upgrade drilling indicates good infill and extensional coverage has been established, supporting an update of the Mineral Resource Estimate.
“We look forward to providing an updated resource this quarter.”
Drill results cross-section
Southern Nights infill drilling results continue to add confidence to the geological model. Assay results recently received include:
- 23.2 metres at 7.72% zinc, 3.33% lead, 48 g/t silver, 0.1% copper, 0.24 g/t gold from 272.8 metres (including 10.8 metres at 13.1% zinc, 5.22% lead, 91 g/t silver, 0.12% copper, 0.33 g/t gold from 273.5 metres) in WTRCDD235; and
- 41 metres at 4.72% zinc, 1.04% lead, 35 g/t silver, 0.28% copper, 0.4 g/t gold from 259 metres (including 13 metres at 8.65% zinc, 1.5% lead, 28 g/t silver, 0.4% copper, 0.38 g/t gold from 278 metres) in WTRCDD239.
Resource upgrade due this quarter
The review of the results indicates adequate drilling has now been completed to commence resource estimation work with an upgraded resource anticipated for March quarter 2020.
This resource will form the basis for further concept study work to progress the project towards development.