2fd45298-de5a-42e4-9e71-62d8c072c671.pdf
ACN 119 343 734
Annual Report 2015
Corporate Directory
Directors
Simon Hadfield Non-executive Chairman
Rob Tyson Managing Director
Graham Hardie Non-executive Director
Company Secretary Ryan Woodhouse
Registered Office
Unit 1, 34 Kings Park Road west PeRth wA 6005 telephone: +61 8 9382 3955
Facsimile: +61 8 9388 1025 email: [email protected]
Stock Exchange Listing
securities of Peel Mining Limited are listed on the Australian securities exchange (AsX)
AsX Code: PeX
ACN
119 343 734
Share Registry
Link Market Services Limited
Level 4,
152 st Georges tce PeRth wA 6000
telephone: +61 1300 554 474
Facsimile: +61 8 9287 0303 www.linkmarketservices.com
Auditors
BDO Audit (WA) Pty Ltd
38 station street
sUBiACo wA 6008
Website
www.peelmining.com.au
Contents
Chairman's report 1
Review of operations 2
schedule of tenements 17
Directors' report 18
Consolidated statement of profit and loss and other comprehensive income 26
Consolidated statement of financial position 27
Consolidated statement of changes in equity 28
Consolidated statement of cash flows 29
Notes to the consolidated financial statements 30
Directors' declaration 46
Auditor's independence declaration 47
independent auditor's report 48
Additional AsX information 50
Corporate governance statement 58
Peel mining limited AnnuAl RepoRt 2015
Chairman's Report
Dear Fellow Shareholders
Peel Mining Limited has once again delivered outstanding results in 2015 to buck the trend in another tough year for the resources sector.
Late in the year the company announced spectacular Zn-Pb-Ag near-surface intercepts at its Mallee Bull deposit, located in the Cobar district of New South Wales. After establishing a maiden inferred resource of 3.9 million tonnes at a 2.7% copper equivalent for the project in the previous year, the Company along with its 50/50 joint venture partner, CBH Resources Limited, has spent the current year seeking to increase the scale of the deposit with a combination of geophysics and drilling.
The deposit is known for its high grade mineralisation and has once again shown its potential with intercepts including 12 metres @ 20.30% zinc, 14.81% lead, 0.54% copper, 308 g/t silver and 1.59 g/t gold from 83m. This near-surface mineralisation has greatly enhanced the open-pit mining potential of the system.
During the year Peel was pleased to announce it had executed a Memorandum of Agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC), to earn 50% of certain exploration ground in its Cobar Superbasin Project, also located in the Cobar District of NSW. The deal will see JOGMEC spend up to $7,000,000 on exploration over the next five years to earn its interest. The deal will see Peel's exploration activities fully funded in the area at a time where funding in the resources sector is difficult.
Exploration under the farm-in commenced in November and by year end the first $1,000,000 had been spent on exploration. This exploration focused on the highly prospective Sandy Creek tenement which contains the Sandy Creek, Red Shaft, Wirlong prospects. Maiden drill programs at both Red Shaft and Wirlong produced highly encouraging results including 15m @ 0.86 g/t Au from 7m in RSRAB035 and 4m @ 3.04% Cu, 12 g/t Ag, 0.19% Zn from 196m in WLRC005. At Wirlong strong geochemical anomalies with coincident alteration zones have now been extended to over 2.5km and remain open to the north and south. These initial results show the potential of these prospects and will once again be a focus for exploration in the upcoming year.
Throughout the year, your Company continued exploration at its 100% owned Apollo Hill gold project near Leonora in Western Australia. Peel has continued to consolidate its land position at Apollo Hill with the pegging of new tenure to the south of the main prospect. Exploration of this new tenure discovered the Mud Hut and 40G prospects, which were identified with geochemical sampling, values from which included 42.0 g/t Au, 10.9 g/t Au and 7.39 g/t Au. This was
followed up with a RAB drilling program in the June quarter producing anomalous values with better intercepts including 2m @ 1.32 g/t Au from 16m and 2m @ 2.11 g/t Au from 22m in 40GRAB12 and 1m @ 1.09 g/t Au from 18m in 40GRAB17. The results of the drilling continue to confirm that the areas prospectivity, and will be followed up with drilling along strike and at depth in due course.
I would like to thank Peel's Managing Director Mr Rob Tyson and our technical and practical team for their efforts throughout the year to further advance our key projects. I would also like to thank my fellow non-executive director Graham Hardie for his hard work and input.
It has been another trying year for investors in the resources sector, however we believe if we continue to systematically explore our projects it will give us the best chance for success in the field and subsequently consequently the share price for our investors.
Yours Sincerely,
Simon Hadfield
Chairman
29th September 2015
Peel mining limited AnnuAl RepoRt 2015 1
Review of Operations
Background
At September 2015, Peel held three key mineral projects comprising granted exploration licences and licences under application.
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Gilgunnia (EL7461 and ML1361), in 50:50 joint venture with CBH Resources Limited, a wholly-owned subsidiary of Tokyo Stock Exchange-listed Toho Zinc, contains the Mallee Bull copper-polymetallic discovery and the May Day polymetallic deposit. The tenure also hosts the historic Gilgunnia and 4-Mile goldfields. Exploration activities during the reporting period led to the completion of a maiden resource estimate at Mallee Bull. During the year, geophysical target drilling uncovered near surface, very high grade zinc-lead-silver-gold mineralisation at the T1 prospect above Mallee Bull.
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Cobar Superbasin Project (CSP) is a package of tenements (ELs and ELAs) covering more than 3,200km2 of prospective stratigraphy within the Cobar Basin. The tenements are considered prospective for Cobar-style and VHMS polymetallic deposits. The package includes EL7403 immediately north of Mallee Bull, which contains the Sandy Creek, Redshaft and Wirlong prospects. During the year, a farm-in agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC) was executed for the Cobar Superbasin Project with an initial $1 million dollars of exploration expenditure spent. JOGMEC can earn up to 50% of certain tenements by funding up to $7 million of exploration expenditure.
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Apollo Hill contains two significant gold deposits - Apollo Hill and the Ra Zone - for an inferred resource estimate of 505,000 oz gold. These deposits exhibit the hallmarks of a major mineralised Archean system, showing extensive hydrothermal alteration and deformation. With continued drilling, Peel aims to update the resource model at Apollo Hill with an increase in contained ounces and strengthen the potential for future economic extraction. During the year, the company added to its land holding in the area including the Apollo Hill South tenement where rock chip sampling results included 42.9 g/t Au and 10.9 g/t Au.
Details on Assets
Gilgunnia/Mallee Bull Project
The Gilgunnia/Mallee Bull project, located about 100km south of Cobar in western NSW, contains the Mallee Bull copper-polymetallic discovery, the May Day polymetallic deposit and the historic Gilgunnia and 4-Mile goldfields. Peel and CBH Resources Limited are in a 50:50 Joint Venture over the tenement.
Mallee Bull is interpreted to be located in a favourable geological and structural position; it is situated in the suitably
high-stress environment of the 'nose' of an anticline, and occurs in a geological sequence of turbidite and volcaniclastic sediments which are thought to be age equivalent to the Chesney and Great Cobar Slate Formations found in the immediate Cobar region. Mineralisation occurs either as massive sulphide or breccia/stringer styles within a package of brecciated volcaniclastic and turbidite sediments comprising siltstones and mudstone, and is interpreted to occur as a shoot-like structure dipping moderately to the west.
Exploration over the reporting period has focused on the Mallee Bull copper-polymetallic deposit, where an Orion 3D IP and MT resistivity survey and 3D inversion modelling of airborne magnetic survey delineated multiple chargeable IP and magnetic anomalies. Three of these anomalies where followed up with diamond and reverse circulation (RC) drilling, with the T1 target returning near surface, very high grade zinc-lead-silver-gold mineralisation.
Mallee Bull Discovery
In late 2010, an airborne electromagnetic geophysical survey (VTEM) was flown over the May Day and 4-Mile/Butchers Dog areas, resulting in the recognition of a coincident late time conducting anomaly and magnetic high. The Mallee Bull anomaly is proximal to the historic 4-Mile goldfield area; a series of surface and underground gold workings located about 10km east of the May Day deposit. A subsequent ground-based geophysical (fixed-loop TEM) survey confirmed the existence of a moderate-strong conductor and in March 2010, a programme of three RC drill holes for a total of 663m targeting the geophysical anomaly was completed. This drilling resulted in the discovery of strongly anomalous polymetallic (gold-silver-copper-lead-zinc) mineralisation in all three drill holes.
Systematic exploration followed involving several rounds of additional drilling (4 more RC drill holes plus a diamond tail) and several down-hole geophysical (DHEM) surveys. This work culminated in discovery drill hole 4MRC007 intersecting multiple zones of strong copper-dominated polymetallic mineralisation including massive sulphides. In late August 2011, Peel announced that drill hole 4MRCDD006 intersected a 10m zone of massive sulphide averaging more than 20% combined lead-zinc plus silver-gold, and a 6.65m semi-massive zone averaging better than 3% copper plus silver-gold. Mineralisation included chalcopyrite, sphalerite, galena, pyrrhotite, pyrite, and arsenopyrite.
2 Peel mining limited AnnuAl RepoRt 2015