Quarterly Activities Report
DECEMBER 2015 QUARTERLY REPORT 29 JANUARY 2016
Peel Mining Limited
ASX code: PEX ACN: 119 343 734
Unit 1, 34 Kings Park Rd West Perth, WA 6005
Ph: (08) 9382 3955
E: [email protected] Web: www.peelmining.com.au
Contact: Rob Tyson
Managing Director [email protected]
About Peel Mining Limited:
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The Company's five projects cover more than 4,000 km2 of highly prospective tenure in NSW and WA.
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Mallee Bull is an advanced copper- polymetallic deposit that remains open in many directions.
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Cobar Superbasin Project Farm-in Agreement with JOGMEC offers funded, highly-prospective and strategic greenfields exploration potential.
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Apollo Hill hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike.
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Attunga Tungsten Deposit is a high grade tungsten deposit.
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132 million shares on issue for $20m Market Capitalisation at 29 Jan 2016.
Highlights for December quarter 2015
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RC/diamond drilling at Mallee Bull returns multiple new extensional mineralised intercepts:
o 62m @ 3.15% Cu, 42 g/t Ag, 0.28 g/t Au from 465m, including 34m @ 4.6% Cu, 63 g/t Ag, 0.44 g/t Au from 475m in MBRCDD050
o 5m @ 2.1% Cu, 59 g/t Ag, 0.72 g/t Au from 385m, 4m @ 1.18% Cu, 23 g/t Ag,
0.12 g/t Au from 398m, 4m @ 1.87% Cu, 18 g/t Ag, 0.87% Pb, 0.22% Zn from 403m in MBRCDD051
o 13m @ 0.86% Cu, 33 g/t Ag, 1.39 g/t Au, 0.34% Pb, 0.68% Zn from 407m in MBRCDD050W1
o 4m @ 1.52% Cu, 111 g/t Ag, 0.21 g/t Au, 2.52% Pb, 4.2% Zn from 197m in MBRC052
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Second stage of exploration activities for the Cobar Superbasin Project under the JOGMEC MoA continued with RC/diamond drilling at Wirlong, Red Shaft and Valvoline prospects.
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New high-grade copper discovery confirmed at Wirlong with multiple significant mineralised intercepts returned including:
o 9m @ 8.0% Cu, 17 g/t Ag, 0.21 g/t Au from 616m (incl. 2.82m @ 21.85% Cu, 46 g/t Ag, 0.62 g/t Au from 619.68m), 38m
@ 1.18% Cu, 4 g/t Ag from 450m in WLDD001
o 4.9m @ 4.3% Cu, 13 g/t Ag from 402.1m (incl. 0.9m @ 19.5% Cu, 58 g/t Ag from 402.1m), 22m @ 1.0% Cu, 4 g/t Ag from 332m in WLRCDD015
Plans for March quarter 2016
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RC/diamond drilling and geophysical surveys continuing at Wirlong
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RC drilling and metallurgical testwork at Apollo Hill
Exploration
Mallee Bull Project: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 50% and Manager, CBH 50%).
Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation.
The Mallee Bull project is a 50:50 Joint Venture with CBH Resources Limited (CBH). A maiden JORC compliant Mineral Resource estimate was completed in May 2014, and comprises 3.9Mt at 2.3% copper, 32 g/t silver and 0.3 g/t gold. Details can be found in the announcement released 27 May 2014; "High Grade Copper Resource at Mallee Bull".
Figure 1: Mallee Bull Drill Plan
Drilling
The December quarter saw the completion of seven drillholes (total 3,405m) and a diamond tail on hole 4MRC021 (initially RC drilled to 270m in 2012) testing for new mineralisation near the northern edge of the current Mallee Bull resource model, where substantial zinc-lead and copper-rich mineralisation has been defined to more than 500m below surface. Assay results have been received for all holes and highly encouraging intercepts returned, indicating greater strike continuity of copper mineralisation than previously assumed.
MBRCDD049, the first hole of this program, was designed to test for mineralisation at between 300- 400m below surface and is located ~120m further north than previous deep drilling. Multiple intervals of quartz-sulphide (chalcopyrite-pyrrhotite) stringer/breccia style mineralisation was intersected from
~350m down hole, including 5m @ 1.01% Cu, 12 g/t Ag from 371m, 2m @ 1.91% Cu, 23 g/t Ag, 0.25 g/t Au from 392m and 3m @ 2.42% Cu, 74 g/t Ag, 0.29 g/t Au, 0.87% Pb, 0.22% Zn from 403m.
MBRCDD050 was drilled to test for mineralisation between 400-500m below surface and about 80m further north than previous deep drilling. A very broad interval of significant quartz-sulphide (chalcopyrite-pyrrhotite) stringer/breccia style mineralisation was intercepted; 62m (~40m true width)
@ 3.15% Cu, 42 g/t Ag, 0.28 g/t Au from 465m, including 34m (~22m true width) @ 4.6% Cu, 63 g/t Ag, 0.44 g/t Au from 475m. This broad mineralised interval is significantly wider than the 3m footwall stringer interval previously modelled for this area.
MBRCDD051 was designed to test for mineralisation at between 350-450m below surface and about 80m further north than previous drilling. Multiple strong intervals of the stringer/breccia mineralisation similar to holes MBRCDD049 and MBRCDD050 were again intercepted from about 375m down hole, including 5m @ 2.1% Cu, 59 g/t Ag, 0.72 g/t Au from 385m, 4m @ 1.18% Cu, 23 g/t Ag, 0.12 g/t Au from 398m, 4m @ 1.87% Cu, 18 g/t Ag, 0.87% Pb, 0.22% Zn from 403m.
MBRCDD050W1 was completed to target ~80m down dip from MBRCDD050, and intersected ~13m of pyrite-pyrrhotite-chalcopyrite massive sulphide mineralisation: 13m @ 0.86% Cu, 33 g/t Ag, 1.39 g/t Au, 0.34% Pb, 0.68% Zn from 407m. The true width of this mineralisation is interpreted to be ~9m. Correlating with the "hanging-wall domain" present at Mallee Bull, this mineralisation occurs about 50m further north than the current modelled boundary position for this type of mineralisation. No significant stringer mineralisation was intercepted.
Holes MBDD026/026W1 were drilled to test for mineralisation at ~500m below surface and about 40m further north of drillhole MBRCDD050. Minor stringer mineralisation was intercepted from ~419m, including 2m @ 2.33% Cu, 46 g/t Ag, 0.62 g/t Au from 422m.
RC drillhole MBRC052 was also drilled along the northern edge of the Mallee Bull resource, testing beneath the high grade T1 Zn-Pb-Ag-rich mineralisation. Results again were highly encouraging, including a 4m intercept @ 1.52% Cu, 111 g/t Ag, 0.21 g/t Au, 2.52% Pb, 4.2% Zn from 197m.
RC drillhole 4MRC021, initially drilled by Peel in 2012, was extended by 126.4m with a diamond tail, aiming to target potentially deeper mineralisation however no significant additional mineralisation was intersected.
Geophysics
Downhole EM surveys of holes MBRCDD049 and MBDD026/026W1 were completed in November 2015, with four anomalies evident in the latter holes. Whilst the first anomaly at 360m is considered consistent with Mallee Bull, preliminary interpretation indicates the conductive source(s) of the anomalies between 450-600m are possibly orientated sub-parallel to the hole and highlights the potential for additional mineralisation further north of Mallee Bull.
Additional geophysical activities at Mallee Bull comprised of a Deep Ground Penetrating Radar (DGPR) survey over the deposit, as part of a trial to test the efficacy of the technology at depths far exceeding conventional GPR (which only has a depth range of 10-20m) for a fraction of the cost of seismic surveys. A response was confirmed over the Mallee Bull deposit, although further review of the data will be conducted to determine the effectiveness of the technique for application on Peel's tenure.
Figure 2: Section 6413470N looking North