Peel Mining
ASX ANNOUNCEMENT 28 APRIL 2016
PEEL EXTENDS APOLLO HILL WITH NEW HIGH GRADE GOLD HITS
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New drilling at Apollo Hill intercepts multiple high-grade gold hits, including:
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8m @ 6.39 g/t Au from 71m (incl. 3m @ 15.6 g/t Au from 74m) and 10m @ 4.23 g/t Au from 94m (incl. 5m @ 6.31 g/t Au from 95m) in PARC036
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1m @ 7.51 g/t Au from 246m and 1m @ 42.8 g/t Au from 287m in PARC034
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1m @ 8.09 g/t Au from 47m in PARC037
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1m @ 5.2 g/t Au from 95m, 1m @ 19.6 g/t Au from 142m and 1m @ 8.50 g/t Au from 162m in PARC038
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High-grade intercepts in PARC036 extends the Apollo Hill Main Zone mineralisation by up to 250m along strike SE, remaining open to the SE
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Results indicate good potential to add to existing 505,000 oz inferred resource
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Metallurgical testwork nearing completion
Peel Mining Ltd is pleased to advise that recent drilling at its 100%-owned Apollo Hill gold project near Leonora WA, has returned multiple high grade gold drill intercepts. Drilling was designed to assess the potential to expand Apollo Hill's existing JORC inferred resource estimate of 17.2 million tonnes at 0.9 g/t Au for 505,000oz of gold (using a 0.5 g/t Au cut-off; see ASX release dated 9.9.2011 - "48% Jump in Apollo Hill gold resource to 505,000oz"). These drilling results extend the Apollo Hill Main Zone mineralisation by up to 250m along strike south-east, remaining open to the south-east, and importantly indicate good potential to add to the existing 505,000 oz inferred resource.
The programme of work comprised 7 new RC drillholes (PARC033 to PARC039) and an extension to an existing RC drillhole (PARC031) for 1,803m. The programme aimed to extend the limits of known mineralisation of the Apollo Hill Main Zone, both laterally and at depth, as well as infill an area of sparse drilling in the south-eastern portion. Encouragingly, significant mineralised intercepts were returned from multiple drillholes.
Drillholes PARC036 and an extension to PARC31 were designed to test for mineralisation beyond the south-eastern limits of the current resource domain. Encouragingly, both drillholes returned extensional mineralisation with PARC036 returning 8m @ 6.39 g/t Au from 71m (incl. 3m @ 15.6 g/t Au from 74m) and 10m @ 4.23 g/t Au from 94m (incl. 5m @ 6.31 g/t Au from 95m) whilst PARC031 returned 28m @ 0.86 g/t Au from 207m, indicating good potential to extend the Apollo Hill resource further to the south-east.
Drillholes PARC037 and PARC038 were designed to infill an area of sparse drilling in the south-eastern portion of the Apollo Hill Main Zone mineralisation. Both drillholes intersected zones of gold mineralisation with PARC037 returning 1m @ 8.09 g/t Au from 47m and 1m @ 4.77 g/t Au from 120m whilst PARC038 returned 5m @ 1.56 g/t Au from 19m, 1m @ 4.4 g/t Au from 53m, 1m @ 5.20 g/t AU from 95m, 1m @ 4.23 g/t Au from 113m, 1m @ 19.55 g/t Au from 142m and 1m @ 8.50 g/t Au from 162m.
Drillholes PARC033, PARC034 and PARC035 were all drilled to test for downdip extensions to the Apollo Hill Main Zone mineralisation. All drillholes intercepted multiple gold mineralised zones with PARC033
returning 10m @ 0.76 g/t Au from 214m, PARC034 returning 5m @ 1.71 g/t Au from 209m, 1m @
7.51 g/t Au from 246m and 1m @ 42.77 g/t AU from 287m, and PARC035 returning 12m @ 0.85 g/t Au from 258m.
Drillhole PARC039 was designed to test for mineralisation beyond the north-western limits of the current resource domain, however only minor mineralisation was returned.
Multiple gold mineralisation events are interpreted to have occurred at Apollo Hill during a complex deformational history with gold mineralisation accompanied by quartz veins and carbonate-pyrite alteration associated with a mafic-felsic contact. Mineralised intercepts reported above are interpreted to be close to true widths.
Planning for follow-up work is now underway.
In addition to recent drilling at Apollo Hill, an additional phase of metallurgical testwork has been underway since early 2016 and is now nearing completion. This testwork has comprised: column leach (simulated heap leach) and associated tests on 4mm and 8mm crushed and agglomerated products; agitated leach tests at P80 sizes of 300um, 150um and 75um with, and without, upfront gravity gold; gravity recoverable gold; and a standard bond ball mill work index for milling to a P80 of 75um. Results remain pending and will be reported when finalised.
Figure 1: Apollo Hill Drill Plan
For further information, please contact Rob Tyson on +61 420 234 020.
Figure 2: Apollo Hill Oblique Section
Apollo Hill RC Drill Collars
Hole ID
|
Northing
|
Easting
|
Azi
|
Dip
|
Final Depth (m)
|
PARC033
|
6774265
|
371454
|
225
|
-60
|
322
|
PARC034
|
6774106
|
371669
|
225
|
-60
|
322
|
PARC035
|
6774198
|
371595
|
225
|
-60
|
298
|
PARC036
|
6773804
|
371679
|
225
|
-60
|
160
|
PARC037
|
6773890
|
371595
|
225
|
-60
|
160
|
PARC038
|
6773973
|
371648
|
225
|
-60
|
240
|
PARC039
|
6774678
|
370891
|
225
|
-60
|
178
|
PARC31
|
6773977
|
371764
|
215
|
-60
|
322
|
Apollo Hill RC Drilling Significant (>0.5 g/t Au) Assay Results (1m intervals)
Hole ID
|
From (m)
|
To (m)
|
Au (g/t)
|
PARC033
|
15
|
16
|
0.60
|
37
|
38
|
0.52
|
50
|
51
|
0.82
|
53
|
54
|
1.70
|
83
|
84
|
0.62
|
93
|
94
|
0.86
|
94
|
95
|
1.39
|
142
|
143
|
0.74
|
145
|
146
|
0.51
|
146
|
147
|
0.51
|
160
|
161
|
0.50
|
183
|
184
|
0.62
|
185
|
186
|
1.06
|
214
|
215
|
2.38
|
217
|
218
|
1.06
|
218
|
219
|
0.77
|
219
|
220
|
0.52
|
222
|
223
|
1.55
|
223
|
224
|
0.68
|
231
|
232
|
0.89
|
238
|
239
|
0.92
|
245
|
246
|
0.55
|
249
|
250
|
0.57
|
250
|
251
|
1.13
|
252
|
253
|
0.72
|
256
|
257
|
0.65
|
257
|
258
|
0.56
|
263
|
264
|
2.30
|
268
|
269
|
1.30
|
280
|
281
|
0.79
|
288
|
289
|
0.59
|
297
|
298
|
0.81
|
304
|
305
|
0.53
|
PARC034
|
71
|
72
|
1.26
|
103
|
104
|
3.01
|
142
|
143
|
0.71
|
146
|
147
|
0.84
|
Hole ID
|
From (m)
|
To (m)
|
Au (g/t)
|
PARC034
|
154
|
155
|
1.28
|
155
|
156
|
1.97
|
209
|
210
|
0.57
|
210
|
211
|
2.14
|
212
|
213
|
1.34
|
213
|
214
|
4.37
|
222
|
223
|
0.50
|
237
|
238
|
2.07
|
242
|
243
|
0.67
|
246
|
247
|
7.51
|
253
|
254
|
1.74
|
256
|
257
|
0.85
|
281
|
282
|
0.77
|
287
|
288
|
42.8
|
302
|
303
|
1.53
|
PARC035
|
46
|
47
|
0.53
|
149
|
150
|
0.56
|
160
|
161
|
1.60
|
173
|
174
|
0.94
|
185
|
186
|
1.21
|
188
|
189
|
0.78
|
222
|
223
|
3.14
|
245
|
246
|
0.65
|
253
|
254
|
1.44
|
258
|
259
|
1.45
|
259
|
260
|
2.05
|
260
|
261
|
0.50
|
261
|
262
|
0.90
|
264
|
265
|
0.60
|
265
|
266
|
1.33
|
266
|
267
|
1.06
|
268
|
269
|
0.57
|
269
|
270
|
0.94
|
277
|
278
|
1.39
|
279
|
280
|
0.69
|
292
|
293
|
0.72
|
293
|
294
|
0.58
|