Peel Mining Ltd (ASX:PEX) has received a strongly mineralised intercept that establishes a link between the Wagga Tank and Southern Nights zinc-rich base and precious metals deposits in central New South Wales.
A new hole about 300 metres south of Wagga Tank and about 500 metres north of Southern Nights was designed to test a chargeable induced polarisation (IP) geophysical target.
It was intended to intercept the target at about 300 metres below the surface but a deviation resulted in the hole penetrating deeper.
The target was intercepted at about 415 metres below the surface, which is one of the deepest to date in the project area.
This hole highlights the potential for down-dip mineralisation continuity, similar to that of other Cobar-style deposits where mineralisation is renowned for vertical continuity.
A zone of about 13 metres of massive to semi-massive pyrite-chalcopyrite-sphalerite-galena mineralisation was intercepted from about 436 metres.
Shares up 11%
Shares jumped 11% to 65 cents in early trade.
The zone is immediately along strike from Wagga Tank and Southern Nights, and coupled with other holes in the intervening area, provides a link between the two deposits.
Assays are expected in about three weeks.
Follow-up drilling in the corridor, which has at least a 2-kilometre strike extent, is planned in coming weeks.
Peel’s tenements in the Cobar Superbasin Project.
Wagga Tank is about 130 kilometres south of the mining centre of Cobar.
High-grade Southern Nights results
At Southern Nights, Peel has received further high-grade zinc-lead-silver-gold results.
Best results are 9.3 metres at 10.24% zinc, 0.44% lead, 0.31% copper, 23 g/t silver and 0.32 g/t gold from 261.9 metres, and 17 metres at 2.80% zinc, 0.96% lead, 0.21% copper, 469 g/t silver and 0.91 g/t gold from 181 metres.
As of April 16, 77 reverse circulation (RC) drill holes, 47 RC/diamond drill holes, 1 diamond drill hole and 335 RAB/aircore drill holes had been completed.
Drilling is continuing and is focused on extensional work.
Peel is also undertaking follow-up drilling at Fenceline/The Bird prospect targeting extensions to previously intersected mineralisation.
The work is also testing IP chargeable anomalies away from any previous drilling.
First-pass drilling returned significant results, similar to those historically reported, that have confirmed the prospect’s potential.
Geophysical survey work
Peel is also continuing with IP geophysical surveys in the Wagga Tank/Southern Nights project area and an in-depth review of geophysical data is nearing completion.
First-pass metallurgical test work is continuing with follow-up work expected to start this quarter.