Peel Mining jumps 60pc after results confirm NSW zinc discovery
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Investors stood back and applauded today as Peel Mining confirmed a new zinc-rich discovery in NSW.
Peel unveiled stellar high-grade zinc, lead and silver results at its Southern Nights / Wagga Tank project about 130km south of Cobar in central NSW.
Results include a hit of 21 metres at 31 per cent zinc, 12 per cent lead, 258 grams per tonne of silver and 1.42 grams per tonne of gold.
The stock (ASX:PEX) soared higher today on the back of the results, gaining as much as 60 per cent to hit a high of 48c at noon AEDT.
At the time Peel told investors mineralisation at the site ranked as the best the company had encountered to date — and possibly the best since Peel’s inception a decade ago.
On the back of today’s results, Peel can now confirm that Southern Nights is potentially host to a major, high-grade base and precious metal mineral system.
Lab results also included 58 metres at 3.88 per cent zinc, 1.19 per cent lead, 28g/t silver, 0.28g/t gold from 139 metres including 9m at 8.84 per cent zinc, 2.07 per cent lead, 14g/t silver, 0.58g/t gold from 188 metres.
Recent follow-up drilling at Southern Nights has also intercepted further significant zinc-rich mineralisation open in all directions.
Drilling is continuing at Southern Nights.
Peel has timed its discovery of Southern Nights perfectly with the zinc price at 10-year highs.
Zinc has risen 32 per cent this year, hitting a high of $US3369.50 per tonne last week on strong global demand and tight supplies.
The metal is used to galvanise steel and is benefiting from Chinese infrastructure development and higher steel prices.