Peel Mining scores strong results halfway through resource definition drilling at Mallee Bull

Peel Mining’s resource drilling at the Mallee Bull copper deposit in NSW isn’t even 45% completed and the company’s already returning solid results.

Assays have confirmed new broad high-grade copper intercepts at shallower depths than previously seen, including:

62m at 2.14% copper, 15 g/t silver from 324m including 25m at 4.18% copper, 24 g/t silver from 361m (MBDD037); and
36m at 3.55% copper, 72 g/t silver from 345m including 14.4m at 4.71% copper, 103 g/t silver from 359m (MBDD038).

Peel Mining (ASX:PEX) is advancing the Mallee Bull and Wirlong copper assets as part of its copper-first strategy at the South Cobar project.

The goal is to establish critical mass by defining high-quality mineral resources in support of a new, centrally located processing plant.

Improving the resource classification

The company is aiming to convert the inferred classified resource to Indicated and expects to deliver a resource upgrade for Mallee Bull in the December 2021 quarter.

“The initial assays from resource upgrade drilling at Mallee Bull reinforce the high-grade nature of this important copper-rich deposit,” Peel Mining managing director Rob Tyson said.

“Significantly, drillholes MBDD037 and MBDD038 returned broad high-grade copper mineralisation at depths closer to surface than seen before, an exciting development as we seek to improve the quality of the mineral resource.”

The company has completed around 9,000m of the 20,000m program at Mallee Bull, with more results expected shortly.

“Processing of Mallee Bull drillcore is taking place on a campaign basis in conjunction with our resource drilling at Wirlong, and further results are anticipated to be received in the coming weeks,” Tyson said

Wirlong complements Mallee Bull

Recent testwork at the Wirlong deposit has proved it can complement Mallee Bull after achieving excellent recoveries and grades.

The testwork highlighted recoveries of 96.9% to produce a concentrate grading 27.1% copper.

Permitting and pre-development studies are continuing for the South Cobar project with the concept study on track for delivery in the first quarter of 2022.

Peel is also seeking regulatory approval to establish exploration declines at both Mallee Bull and Wirlong that will allow it to carry out underground resource definition drilling and exploration of the deeper portions of the deposit.

Successful underground exploration will potentially fast-track conversion to a full mining operation, with the benefit of established infrastructure and a streamlined regulatory approval process.

This article was developed in collaboration with Peel Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.