Resource Expansion Potential Grows as Peel Mining Intersects Shallow High-Grade Mineralisation
Peel Mining's December 2024 quarterly report reveals exceptional high-grade copper, gold, silver, lead, and zinc intercepts at Wagga Tank, highlighting significant potential for resource expansion within open-pittable depths. Concurrently, fieldwork advances at the Curnamona Project and a solid cash position underpin the company's growth trajectory.
- Phase 2 drilling at Wagga Tank yields multiple high-grade polymetallic intercepts
- Notable assays include 119m @ 3.17% Cu, 1.49g/t Au and 20m @ 800g/t Ag with associated base metals
- Mineralisation styles intersected span oxide, supergene, and primary sulphide zones
- Curnamona Project airborne survey completed by Red Hill Minerals under farm-in JV
- Strong cash balance of $3.67 million supports ongoing exploration and development
Robust Drilling Results at Wagga Tank
Peel Mining Limited’s December 2024 quarterly report underscores a successful Phase 2 reverse circulation (RC) drilling campaign at the Wagga Tank-Southern Nights deposit, part of its 100%-owned South Cobar Project in New South Wales. The drilling program, comprising 11 holes totaling 1,920 metres, confirmed the presence of high-grade polymetallic mineralisation across multiple styles, including oxide gold and silver, oxidised supergene copper-gold-silver, sulphide supergene copper-lead-silver-gold, and primary sulphide zinc-lead-copper-silver-gold.
Among the standout intercepts, hole WTRC279 returned an impressive 119 metres grading 3.17% copper, 1.49 grams per tonne (g/t) gold, and 15 g/t silver from 57 metres depth. Another highlight, WTRC273, intersected 20 metres at an extraordinary 800 g/t silver, 4.02 g/t gold, 1.59% copper, 2.26% lead, and 0.70% zinc from 120 metres. These results, alongside other significant intercepts such as 44 metres at 4.78% zinc and 3.78% lead in WTRC270, demonstrate the deposit’s rich polymetallic nature and potential for resource growth.
Expanding Resource Potential and Geological Insights
The drilling notably extended mineralisation beyond the current resource model, with several intercepts occurring outside the existing resource boundaries and at relatively shallow depths conducive to open-pit mining. The presence of strong oxide and supergene mineralisation near surface enhances the economic attractiveness of the project. Peel Mining’s integration of geophysical surveys, including a Mise-A-La-Masse (MALM) survey, has successfully guided drill targeting, revealing resistivity and chargeability anomalies that suggest further mineralisation extensions, particularly to the north of recent drilling.
These findings build on the previously reported combined Indicated and Inferred Resources of 6.83 million tonnes at 3.92% zinc, 1.52% lead, 0.24% copper, 62 g/t silver, and 0.30 g/t gold, reinforcing Wagga Tank-Southern Nights as a significant polymetallic VMS-style system within Peel’s portfolio.
Progress at Curnamona Project and Regional Exploration
Beyond Wagga Tank, Peel Mining has advanced field activities at the Curnamona Project under a farm-in and joint venture agreement with Red Hill Minerals Limited. Red Hill completed a comprehensive 1,875 line kilometre airborne magnetotelluric survey over the northern Broken Hill tenements, aimed at mapping structural geology and cover thickness to refine drill targets. Early-stage soil sampling and community engagement have also been undertaken, setting the stage for upcoming exploration phases.
Additionally, Peel’s regional exploration at the Nombinnie prospect, located 23 kilometres southeast of Wagga Tank, returned rock chip samples with high-grade gold assays up to 53.2 g/t and anomalous base metals, further highlighting the prospectivity of Peel’s tenement holdings in the Cobar region.
Financial Position and Development Pathways
Peel Mining closed the quarter with a healthy cash balance of $3.67 million, providing a solid financial foundation for ongoing exploration and pre-development activities. The company continues to progress its South Cobar Copper Project pre-feasibility study, focusing on the Mallee Bull and Wirlong copper projects, with government funding support pending finalisation.
Environmental approvals for underground exploration at Wirlong have been secured, allowing for decline construction and drilling, while Peel is finalising the acquisition of Vivigani Station, which covers the Southern Nights portion of the Wagga Tank prospect, securing critical land access for future operations.
Collectively, these developments position Peel Mining to leverage its recent drilling success and regional exploration momentum towards resource expansion and project advancement.
Bottom Line?
Peel Mining’s December quarter results set a strong foundation for resource growth and project development, with upcoming assay results and feasibility milestones poised to shape its next phase.
Questions in the middle?
- How will the pending assay results from recent drilling influence Peel’s resource estimates and mine planning?
- What are the timelines and funding strategies for advancing the South Cobar pre-feasibility study to a definitive feasibility stage?
- How might Peel’s joint venture with Red Hill Minerals accelerate exploration success and potential resource discoveries at Curnamona?