The Cobar Superbasin Project (CSP) comprises of 23 Exploration Licences and Applications covering more than 2,800km2; one of the largest exploration landholdings in the highly prospective Cobar Basin.
The Cobar Superbasin is one of several intracratonic basins developed in the Lachlan Orogen during the Silurian/Devonian; it is the richest polymetallic basin in the Lachlan Orogen, and the district contains four polymetallic underground mines and one open pit. The highest mineral prospectivity lies within a rift sequence of Cobar Supergroup volcanics and volcanoclastics in the vicinity of syn-sedimentary active faults.
In the Cobar Superbasin, location and geometry of mineral deposits are strongly influenced by strain intensity; the majority of Peel Mining’s tenements are laying in the high strain domain of the basin, implying high prospectivity for mineral potential.
$7,000,000 Farm-In Agreement
The September 2014 quarter saw Peel (through its wholly owned subsidiary Peel (CSP) Pty Ltd) enter into a Memorandum of Agreement (MoA) with Japan Oil, Gas and Metals National Corporation (JOGMEC) for JOGMEC to earn up to a 50% interest in certain exploration tenements owned by Peel (CSP) in the Cobar Superbasin, by funding $7 million of exploration expenditure. Further details of the JOGMEC MoA can be found in Peel’s ASX Announcement released on 30 September 2014.
Work to date
Numerous target areas have been selected for future investigation within the extensive package of tenements, which are largely unexplored and under-drilled. Many targets have been identified based on proximity to faults which determine metallogenic zones, geophysical anomalies such as magnetic highs or lows, and proximity to basin bounding structures which create zones of high strain. These targets include the Wirlong, Red Shaft, Sandy Creek, Mundoe and Bedooba prospects, all of which are in close proximity to the high grade Mallee Bull copper-polymetallic deposit in the Gilgunnia project.
Following approval by the Foreign Investment Review Board (FIRB) in November 2014, Stage 1 of exploration under the MoA with JOGMEC was completed in the September 2016 quarter, encompassing $4 million expenditure and taking JOGMEC’s interest in the project to 40%. Work comprised of moving loop EM (MLEM), down-hole EM (DHEM) and airborne magnetic surveys, as well as extensive RC and diamond drilling. Stage 2, for an additional 10% interest through the spending of $3 million, has now commenced with activities at the Wirlong prospect.