A decision around timing for the exploration decline will be made once the pre-feasibility study for Mallee Bull is completed. Pic via Getty Images.
Mining
The Review of Environmental Factors (REF) for Peel Mining’s Mallee Bull exploration decline project, part of its South Cobar project, has been approved by the NSW Resources Regulator.
The South Cobar project has a Mineral Resource Estimate (MRE) of approximately 20Mt containing 216kt copper, 322kt zinc, 151kt lead, 22Moz silver, and 204koz gold, and is considered one of Australia’s highest grade undeveloped copper deposits.
It comprises the Mallee Bull, Wirlong, Wagga Tank-Southern Nights and May Day deposits.
Mallee Bull is considered a classic ‘Cobar-style’ copper-rich deposit – the Cobar Basin being home to the CSA Copper mine, which was recently sold to New York Stock Exchange listed Metals Acquisition Corporation, for total consideration of US$1.1B by its long-time owners Glencore plc.
Peel Mining (ASX:PEX) holds 3,400km2 of exploration tenure within the Cobar Basin, one of the richest polymetallic regions in Australia.
Peel MD Jim Simpson says the approval is a major milestone for the company, and “essentially advances Mallee Bull to a ‘shovel-ready’ status, enabling the undertaking of underground development and exploration activities in preparation for mining.”
“The next major goal of the company is to complete the pre-feasibility study on the South Cobar project – Copper-First strategy, which will assist in determining the next steps for the company.”
The REF approval allows for the development of an exploration decline and associated infrastructure, to enable delineation drilling of the existing resource for mining purposes and to provide underground drilling sites for exploration of extensions to the current resource.
The company plans to construct a box cut to a maximum depth of ~25m below ground level (mbgl) and an exploration decline to a maximum depth of ~400mbgl – along with the construction of surface infrastructure.
The company is currently completing a pre-feasibility study for a Copper-First strategy for a standalone mill at the Mallee Bull site.
Notably, the NSW Government Critical Minerals & High-Tech Metals Activation Fund has contributed $500,000 towards the cost of the pre-feasibility study.
A decision with respect to timing or commencement of the exploration decline will be made once this work is completed.
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.
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