Peel Mining Limited (ASX:PEX) has discovered a new high-grade zone to the south of the Southern Nights deposit from an ongoing resource upgrade drilling program at its 100%-owned Wagga Tank-Southern Nights project in New South Wales.
The new high-grade zone has been located ~500m south of the high-grade Southern Nights Central Zone in an area with only limited drilling, near the boundary of the existing resource model.
Peel Mining Managing Director Rob Tyson said drillholes WTRCDD229 and WTRCDDD238 intercepted significant zones of very high-grade zinc and lead mineralisation, akin to the intercepts returned from the Southern Nights Central Zone.
In late August, Peel resumed drilling at Wagga Tank-Southern Nights with a programme comprising ~10,000m of RC/diamond drilling primarily designed to develop higher confidence resources and to progress the project towards development.
Since recommencement, drilling has targeted Wagga Tank, Southern Nights and the Corridor Zone (located between Wagga Tank and Southern Nights). Initially planned drilling at Wagga Tank and the Corridor Zone is now complete, with drilling now focused on the Southern Nights area.
The new high-grade intercepts at the southern edge of Southern Nights continue to underline the incredible quality and scale of these mineral systems,” Mr Tyson said.
“The latest intercepts are on the edge of the current resource model offering excellent exploration upside. Most importantly, this mineralisation adds further weight to the future development prospects of the project, highlighting the opportunity to increase the grade and tonnage profile of the deposit.”
Mr Tyson said resource upgrade drilling of the Southern Nights deposit is progressing with drilling expected to continue until shutdown for the Christmas and New Year period.
During this period, a review of drilling results with regards to geological modelling and associated confidence will be undertaken to determine further drilling requirements in advance of resource modelling and estimation.