The Gilgunnia South prospects lie within Exploration lease (EL) 7519, located immediately south of Peel’s Mallee Bull discovery, and approximately 120km south of Cobar. The tenement covers an area of about 108km2.
The prospect area lies within the Cobar-Mt Hope Siluro-Devonian sedimentary and volcanic units. The Cobar-Mt Hope belt can be divided into two distinct units; the northern Cobar region consists of predominately sedimentary units with tuffaceous member, whilst the southern Mt Hope region consists of predominately felsic volcanic rocks. The Gilgunnia region is located in an area of overlap between these two regions.
In August 2012, Peel completed a HeliTEM survey over a portion of EL7519 to investigate two magnetic anomalies that had been identified by former tenement holder OZ Minerals Ltd in 2011, named MD-1 and MD-3. The anomalies were seen to have a similar signature to mineralised zones in the Cobar region, suggesting a mineralised expression akin to those in the adjacent “May Day” Mallee Bull deposit. The results of the survey failed to conclusively define conductors associated with these magnetic anomalies, and it is hypothesised that the mineralised source of the magnetic anomalies at Gilgunnia South is also at depth, potentially out of range of the airborne survey. Peel will progress with geochemical surface sampling, ground geophysical surveys and drilling at depth (if warranted) in due course. Peel believes the Gilgunnia South tenement to be highly prospective, considering the abundance of historic mining in the area and the lack of modern exploration.