Peel Mining (ASX:PEX) has gained in Monday trade on news its drilling campaign at Wagga Tank project south of Cobar in western New South Wales unearthed significant zones of new mineralisation, further boosting the project’s potential.
Drilling in the Corridor Zone, located between Wagga Tank and Southern Nights, has returned wide, high grade intercepts highlighting the potential for a link between the two deposits.
High-grade results included 2.1m at 4.7% copper, 129 g/t silver, 0.15 g/t gold, 0.4% zinc, 0.5% lead from 530.2m and 9m at 7.6% zinc, 4.7% lead, 0.1% copper, 153 g/t silver, 0.46 g/t gold from 501m (including 2.8m at 21.6% zinc, 12.7% lead, 0.4% copper, 441 g/t silver, 1.23 g/t gold from 505.1m).
This is a very exciting development, offering potential to infill the zone between Wagga Tank and Southern Nights, and further enhancing the development prospects of the project,” Peel Mining Managing Director Rob Tyson.
“VMS and Cobar-style mineral systems are renowned for clustering and stacking and we see every chance that this will be the case here – we look forward to completing follow-up drilling in due course.
“In the meantime, we are continuing with resource upgrade drilling at Wagga Tank and Southern Nights to advance these deposits towards development,” he added.
In late August, Peel resumed drilling at Wagga Tank-Southern Nights following release of the Indicated and Inferred Mineral Resource Estimate for Southern Nights-Wagga Tank of 4.1 million tonnes at 5.1% zinc, 1.9% lead, 71 g/t silver, 0.28% copper and 0.32 g/t gold.
The drilling comprises around 10,000m of RC/diamond drilling primarily designed to develop higher confidence resources and to progress the project towards development.
Drilling is now focused at Wagga Tank and Southern Nights with two multi-purpose (RC/diamond) drill rigs onsite
Drilling at Wagga Tank deposit is around 60% complete with initial results received of 20m at 1.52 g/t gold, 4 g/t silver, 0.2% copper, 0.4% lead from 80m.
Drilling is continuing at Wagga Tank and Southern Nights and assay results will be reported as they become available.
Shares in Peel were trading 10% higher at c32c in Monday trading.