Peel Mining Limited has reported a significant upgrade to its Wagga Tank Mineral Resource Estimate, enhancing the South Cobar Project’s global resource base and advancing its pre-feasibility study with promising cost and timeline benefits.
- Wagga Tank resource upgraded to 3.56Mt at 1.82% CuEq, adding substantial copper, gold, silver, lead, and zinc
- South Cobar Project global resource now totals 22.91Mt with 235kt copper and 271koz gold
- Pre-feasibility study largely complete, incorporating Wagga Tank to potentially reduce capital costs and development time
- Exploration at Wagga Tank and nearby Chuchi target continues with high-grade intercepts
- Company ends quarter with $2.62 million cash and receives $500,000 NSW Government funding
Wagga Tank Resource Upgrade Strengthens South Cobar Project
Peel Mining Limited has announced a substantial upgrade to the Mineral Resource Estimate (MRE) at its 100%-owned Wagga Tank deposit, located approximately 130km south of Cobar in New South Wales. The new pit-constrained MRE totals 3.56 million tonnes grading 1.82% copper equivalent (CuEq), incorporating copper, gold, silver, lead, and zinc. This upgrade adds approximately 21,100 tonnes of copper and 72,500 ounces of gold to Peel’s resource base.
When combined with the existing Southern Nights resource, the South Cobar Project’s global resource now stands at 22.91 million tonnes containing roughly 235,000 tonnes of copper and 271,000 ounces of gold, alongside significant silver, lead, and zinc credits. This represents a meaningful expansion of Peel’s asset base in a region known for its copper-gold mineralisation.
Pre-Feasibility Study Nears Completion with Potential Cost Benefits
The company’s pre-feasibility study (PFS) for the South Cobar Copper Project is largely complete, focusing on a standalone 1.1 million tonnes per annum processing scenario for the Mallee Bull and Wirlong deposits. Importantly, Peel is now evaluating the incorporation of the Wagga Tank resource into the PFS, which management believes could significantly lower upfront capital expenditure and shorten the project’s development timeline.
Ongoing investigations into alternative processing options, including leveraging existing nearby infrastructure, aim to simplify permitting and reduce complexity. These efforts underscore Peel’s strategic approach to optimising project economics and advancing development readiness.
Exploration Momentum at Wagga Tank and Chuchi Target
Exploration activities continue to gather pace, with further drilling and metallurgical testwork planned at Wagga Tank to extend and better define the resource. Peel is also advancing exploration at the nearby Chuchi target, approximately 1.5km south of Wagga Tank. Chuchi hosts two distinct styles of high-grade gold-copper and zinc-lead-silver mineralisation, supported by strong geophysical and geochemical anomalies.
Previous drilling at Chuchi has intercepted impressive grades, including intervals of over 7g/t gold and 3.5% copper. The prospect’s geological setting, a rhyolite flow dome complex, combined with a large multi-element soil anomaly and coincident geophysical signatures, suggests potential for a significant mineralised system. Peel has designed RC drilling programs to test this potential in the near term.
Curnamona Project Farm-In Progresses
Peel’s Curnamona Project in Broken Hill, NSW, remains under a farm-in and joint venture agreement with Red Hill Minerals Limited. Red Hill is progressing exploration activities, including airborne geophysical surveys and soil sampling, to refine target models. Peel is funding 25% of a recent tenement acquisition that expands the farm-in area, reflecting ongoing commitment to advancing this project.
Financial Position and Government Support
Peel Mining closed the March quarter with $2.62 million in cash. Post-quarter, the company received $500,000 from the New South Wales Government’s Critical Minerals Activation Fund, supporting the South Cobar PFS. This funding underscores governmental backing for critical minerals projects in NSW, which are vital for future economic and technological development.
Director remuneration payments totaling approximately $213,000 were disclosed for the quarter, reflecting ongoing corporate governance transparency.
Bottom Line?
Peel Mining’s resource upgrade and advancing studies position South Cobar for a potentially leaner, faster development path, but upcoming metallurgical and processing decisions will be pivotal.
Questions in the middle?
- How will alternative processing solutions impact the capital intensity and timeline of the South Cobar Project?
- What are the next steps and timelines for drilling and metallurgical testwork at Wagga Tank and Chuchi?
- How might Red Hill Minerals’ farm-in progress influence Peel’s strategic focus and funding needs?