Hub & Spoke Strategy Paying Off In NSW
Peel Mining Limited (ASX:PEX) has reported further strong resource definition drill results from the May Day deposit. May Day is part of Peel’s 100%-owned South Cobar Project, centred around 100km south of Cobar in Western NSW.
Managing Director, Rob Tyson, said drilling at May Day is part of the company’s “Hub & Spoke” strategy to advance each of the company’s deposits to mineable resources, to achieve critical mass in support of a new substantial centrally located processing plant.
May Day is contained within ML1361, part of Peel’s 100%-owned South Cobar Project. May Day is viewed as having potential to provide open-pittable gold-rich starter mineralisation to Peel’s Hub and Spoke development strategy.
The May Day resource definition drilling programme, which was completed in December 2020, was designed on an approximate 25x20m basis to enable an updated estimation of a primarily Indicated classified mineral resource, within an optimised pit shell. Deeper, higher grade mineralisation may allow for the definition of potential underground resources.
Mr Tyson said the latest assay results show further strong, continuous, and wide gold-polymetallic intercepts, confirming substantial true width (~25m) at relatively shallow depths. A high-grade core proximal to the hanging wall is evident with an approximate true thickness of up to ~12m. Resource drilling at May Day is now completed in advance of an anticipated Mineral Resource Estimate (MRE) update in the first quarter of 2021. Assays are pending for the balance of completed drilling.
At Wirlong copper deposit, resource definition drilling has now resumed following a pause for the Christmas/New Year period. Assay results for previously announced Wirlong drilling remain pending.
“The latest May Day assays continue to show strong gold intercepts over good true widths, as well as yielding substantial mineralisation at depth which remains open down dip. May Day offers excellent future exploration potential including for deeper underground resources,” Mr Tyson said.
With drilling completed prior to Christmas, we now look forward to receiving the final assays and commencing resource modelling in anticipation of publishing an updated mineral resource estimate.”
Peel recently reported an in-pit maiden Inferred MRE for May Day of 1.13 Mt at 1.3 g/t Au, 19 g/t Ag, 0.74% Zn, 0.50% Pb, 0.09% Cu (1.8g/t gold equivalent) containing 47,200oz gold, 680,000oz silver, 8,320t zinc, 5,640t lead, 1,020t copper (65,100 oz gold equivalent). The MRE has been reported in accordance with the JORC Code (2012 Edition) using a 0.65g/t AuEq cut-off grade.
The resource definition drilling programme comprised a total of 45 RC drillholes for a total of 8,984m and 14 diamond drillholes for a total of 1,631m. Finalised assay results have been returned for 30 drillholes, while results have been partially received or still pending for 28 drillholes. One drillhole has been used for metallurgical testing purposes.
May Day mineralisation is shear-hosted/related with primary sulphides comprising pyrite-sphalerite- galena-chalcopyrite. Newly received assays show further strong, continuous, and wide gold- polymetallic intercepts, confirming substantial true width (~25m) at relatively shallow depths. A high- grade core proximal to the hanging wall is evident with an approximate true thickness of up to ~12m.
Mr Tyson said these results compliment previously received assays which also confirmed good down-dip continuity (minimum 180m down dip continuity from the base of the pit) of the May Day mineral system.
