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Peel Mining (ASX:PEX) finds high-grade results from Wagga Tank-Southern Nights

Mining
ASX:PEX      MCAP $78.44M
19 December 2019 15:00 (AEST)

Peel Mining (PEX) has confirmed the discovery of a new high-grade zone to the south of the Southern Nights deposit within the Wagga Tank-Southern Nights project.

In late August, a resource upgrade drilling program of approximately 10,000 metres began. Drilling is designed to develop a Mineral Resource Estimate which is expected in the March quarter 2020.

So far, drilling at Wagga Tank and the Corridor Zone is now complete, with further drilling on the main Southern Nights area subject to a review over the holiday season.

Recently received assays have confirmed new high-grade mineralisation located approximately 500 metres south of the high-grade Southern Nights Central Zone.

Drill holes WTRCDD229 and WTRCDD238 returned mineralisation similar to that in the Southern Nights Central Zone.

Hole WTRCDD229: 44 metres at 7.39 per cent zinc, 2.95 per cent lead, 76 g/t silver, 0.43 g/t gold, 0.1 copper from 233 metres (including 5.95 metres at 35.5 per cent zinc, 16.9 per cent lead, 447 g/t silver, 0.97 g/t gold 0.37 per cent copper from 233.88 metres).

Assay results are still pending for drill hole WTRCDD238.

“These intercepts will add important tonnes and grade to the upcoming resource update whilst offering future exploration upside through step-out drilling,” Managing Director Rob Tyson said.

During the Christmas and New Year period, a review of drilling results will be undertaken to determine further drilling requirements before resource modelling and estimation.

Elsewhere at Southern Nights, significant mineralisation continued at a number of holes.

Results include 40.4 metres at 7.25 per cent zinc, 3.34 per cent lead, 95 g/t silver, 0.89 per cent copper, 0.87 g/t gold from 352 metres (including 13.75 metres at 14.27 per cent zinc, 8.13 per cent lead, 208 g/t silver, 1.04 per cent copper, 0.42 g/t gold from 353.1 metres) in hole WTRCDD222.

Hole WTRCDD227 also returned significant results: 33.8 metres at 8.99 per cent zinc, 2.53 per cent lead, 65 g/t silver, 0.46 per cent copper, 0.67 g/t gold from 221 metres (including 15.75 metres at 17.04 per cent zinc, 4.77 per cent lead, 106 g/t silver, 0.69 per cent copper, 1 g/t gold from 222.25 metres).

Drilling at Wagga Tank have also generally confirmed the grade and continuity of mineralisation and the modelled geometry of the deposit.

Peel Mining is up 4.26 per cent with shares trading for 24.5 cents each at 12:19 pm AEDT

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