Peel Mining Ltd (ASX:PEX) has revealed an updated indicated and inferred resource estimate for its 100% owned Wagga Tank and Southern Nights deposits in the Cobar Basin of western NSW.
Southern Nights and Wagga Tank mineral resource estimate as at March 2020
Notably, the 30% increase in resource tonnage to 4.95 million tonnes and 161% increase in indicated classification to 2.95 million tonnes provide Peel with a solid foundation to immediately commence scoping studies to advance the potential development scenarios at Wagga Tank-Southern Nights.
Activities currently underway include ongoing metallurgical test work, geological/structural studies, pre-development environmental baseline work, and drill planning targeting potential extensions to mineralisation.
The Wagga Tank-Southern Nights mineral system remains open along strike and down dip.
Southern Nights long section showing indicated and inferred blocks within mineable shapes. The resource has been reported within mineable shapes generated at AU$80/tonne NSR (net smelter royalty) with a minimum mining width of 3 metres and includes internal dilution.
Peel managing director Rob Tyson said: “This resource upgrade is another important step for Peel as it continues towards unlocking the next mine development opportunity within the Cobar Basin.
“The advancement of the Southern Nights-Wagga Tank mineral resource utilising contemporary metal pricing, marketing and metallurgical assumptions, presented as a Net Smelter Return, as well as underground mining assumptions is an important move towards our goal.
“Encouragingly, the resource quality has improved significantly with nearly 3Mt reporting to the Indicated classification.
“We will now move to scope out the project to better understand the potential development opportunities available.”