Peel Mining
ASX ANNOUNCEMENT 28 OCTOBER 2015
EXPLORATION UPDATE - SIGNIFICANT NEW COPPER INTERCEPT AT MALLEE BULL; DRILLING CONTINUING
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Drillhole MBRCDD050 intercepts 60m zone of significant copper mineralisation on northern edge of current mineral resource boundary; mineralisation remains open
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Follow-up wedge Diamond drillhole targeting for possible down-dip extension underway
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Exploration at Cobar Superbasin Project ongoing including commencement of ~6,000m RC and Diamond drilling programme
Peel Mining Limited (ASX: PEX) is pleased to advise that extensional drilling at its 50%-owned flagship Mallee Bull project near Cobar in Western NSW, has returned a significant new copper mineralised intercept on the northern edge of the current mineral resource model. A follow-up wedge Diamond drillhole targeting possible down dip extension (~80m down dip) is now underway. Exploration at Cobar Superbasin Project is also ongoing including the commencement of a 6,000m RC and Diamond drilling programme. Further details can be found below.
Figure 1 - Strong chalcopyrite pyrrhotite mineralisation at ~485m in MBRCDD050
Mallee Bull
Drillholes MBRCDD049 to MBRCDD051 (for a total of 1,561.7m) were recently completed as part of a program designed to test for additional/extensional mineralisation at Mallee Bull. Substantial zinc-lead and copper-rich mineralisation occurs on the northern edge of the current mineral resource model where it has been defined to more than 500m below surface and remains open. MBRCDD049 to MBRCDD051 were designed to test along strike to the north from previously identified mineralisation.
MBRCDD049 was designed to test for mineralisation at between 300-400m below surface and about 120m further north than previous drilling. MBRCDD049 swung about 25m further south than originally planned and intercepted multiple intervals of quartz-sulphide (chalcopyrite-pyrrhotite) stringer/breccia style mineralisation commencing at about 350m downhole. Assays remain awaited, however it is expected that downhole intervals 371-376m, 392-396m, and 403-406m will contain significant copper mineralisation. The true width of these intervals is expected to be about 70% of downhole widths.
MBRCDD050 was designed to test for mineralisation at between 400-500m below surface and about 80m further north than previous drilling. MBRCDD050 intercepted a 60m downhole (40m true width) interval of significant quartz-sulphide (chalcopyrite-pyrrhotite) stringer/breccia style mineralisation
commencing at about 467m downhole which included a strongly mineralised 47m interval (31m true width) commencing from 475m (see MBRCDD050 drillcore photos in Appendix 1). Assays remain awaited however it is expected that significant copper results will be returned. The true widths of these intervals are significantly wider than the 3m footwall stringer interval previously modelled for this area. Mineralisation remains open to the north and down dip.
The nearest down dip mineralised interval is that contained within MBDD010 which returned 32m @ 3.62% Cu, 46 g/t Ag and 0.21 g/t Au from 634m downhole (~16m true width) which is located about 150m downdip and 30m south of MBRCDD050. Wedge Diamond drillhole MBRCDD050W1 is now underway and is targeting ~80m down dip from the interval in MBDDRC050.
MBRCDD051 was designed to test for mineralisation at between 350-450m below surface and about 80m further north than previous drilling. MBRCDD051 intercepted multiple intervals of quartz- sulphide (chalcopyrite-pyrrhotite) stringer/breccia style mineralisation commencing at about 375m downhole. Assays remain awaited however it is expected that downhole intervals 385-390m, 396- 402m, 461-467m, and 483-488m will contain significant copper mineralisation. The true width of these intervals is expected to be about 60% of downhole widths.
Peel is encouraged by the thicker than expected mineralised interval in MBRCDD050 which possibly indicates greater strike continuity of copper mineralisation than previously assumed. Further drilling along with downhole EM is planned to investigate this potential.
Cobar Superbasin Project
Field activities at the Cobar Superbasin Project, subject to a farm-in agreement with JOGMEC, are continuing. The second stage of exploration under the JOGMEC agreement comprises $1.5 million expenditure. Ongoing and planned activities include high-resolution airborne magnetics, moving loop EM (MLEM), and downhole EM (DHEM) surveys, along with an approximate 6,000m RC and Diamond drilling programme.
Drillholes WLRCDD010 and WLRC011 to WLRC015, all at Wirlong, have recently been completed or are still underway. These drillholes follow-on from WLRC008 and WLRC009 where strong base metal results were recently returned. Drill targets at Wirlong include geochemical and geophysical anomalies. No results are available at the time of reporting. Analysis of the geophysical data is also continuing.
RC and/or Diamond drilling at the Red Shaft and Sandy Creek prospects is planned to follow on from Wirlong.
For further information, please contact Rob Tyson on +61 420 234 020.
Competent Persons Statements
The information in this report that relates to Exploration Results is based on information compiled by Rob Tyson who is a fulltime employee of the company. Mr Tyson is a member of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Tyson consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance quality control (QAQC) measures.
Appendix 1 - MBRCDD050 significant sulphide interval