Wagga Tank Project

The Wagga Tank and Mount View Projects comprise a package of four tenements within the Cobar Superbasin, with notable prospects including the namesake Wagga Tank polymetallic deposit, Siegal’s Shaft/MD-2 and the May Day Tails anomaly.

ELs 7581 and 7484 of the Mount View Project were acquired from MMG Australia Limited, with the latter licence (adjoining EL7461, host to the Mallee Bull and May Day deposits) containing the May Day Tails prospect; a large untested coincident magnetic and geochemical anomaly.

ELs 7226 and 6695 of the Wagga Tank Project were held in Joint Venture by MMG Australia Limited (80%) and Golden Cross Operations Pty Ltd (20%). In mid-2016, Peel acquired 100% of the Joint Venture interests with MMG Australia Limited, receiving $1 consideration and 2% NSR on any future metals production and Golden Cross Operations Pty Ltd receiving $40,000 cash.

 

Wagga Tank

Wagga Tank, located on EL6695 and ~130km south of Cobar on the western edge of the Cobar Superbasin, represents a polymetallic VHMS-type deposit with many significant historic drill intercepts.  Historic drilling to date comprised 20 percussion drillholes and 22 diamond drillholes (some completed as percussion pre-collar/diamond tail combinations). All drillholes intersected mineralisation to some degree, with 24 intercepting significant values. The work culminated in an estimation of a non-JORC compliant inferred mineral resource comprising Zn-Pb-Cu-Ag-Au mineralisation, with significant intercepts including:

  • 5.3m @ 2.09 g/t Au, 1164 g/t Ag, 9.36% Cu, 0.78% Pb from 119.8m in HD-9
  • 15.4m @ 133 g/t Ag, 0.4% Cu, 4.5% Pb, 12.5% Zn from 140.1m in HD-11
  • 7.5m @ 99.4 g/t Ag, 7.25% Pb, 18.0% Zn from 215.6m in HD-12
  • 2.5m @ 0.24 g/t Au, 100 g/t Ag, 0.25% Cu, 8.59% Pb, 11.6% Zn from 216.2m in HD-14

No significant work has been completed at Wagga Tank since 1989.

 

Geology

The deposit is positioned at the western-most exposure of the Mt. Keenan Volcanics (Mt. Hope Group) where it is conformably overlain by a poorly outcropping, distal turbidite sequence of carbonaceous slate and siltstone. Mineralisation is hosted in a sequence of rhyodacitic volcanic and associated volcaniclastic rocks comprising polymictic conglomerate, sandstone, slate, crystal-lithic tuff and crystal tuff. This sequence faces northwest, strikes northeast-southwest and dips range from moderate westerly, to vertical, and locally overturned to the east. Mineralisation straddles the contact between the volcaniclastic facies and the siltstone-slate facies where there is a broad zone of intense tectonic brecciation and hydrothermal alteration (sericite-chlorite with local silicification).

Mineralisation comprises: a near surface oxide gold zone; a possible supergene-enriched copper-gold-silver-lead zone; and a primary zinc-lead-silver rich massive sulphide zone starting at the base of oxidation (~120m below surface).

Polymetallic massive sulphide mineralisation occurs as sub-vertical elongate shoots/lenses within zones of brecciation and hydrothermal alteration, within an envelope of lower grade disseminated and anastomosing vein-type mineralisation. The massive sulphide mineralisation typically comprises, in order of abundance, pyrite, sphalerite, galena and chalcopyrite with sphalerite-galena ratios in the order of 2:1, chalcopyrite is accessory and there with silver assays typically ranging from 50-250 g/t and gold from 0.1-0.5 g/t.

 

Drilling to date

Initial drilling by Peel was completed in December 2016 for a total 18 RC drillholes (for 4,315m), 5 of which were extended with diamond tails (for 473m). The program has been highly successful in confirming the presence of high grade base and precious metal mineralisation originally identified at Wagga Tank. Better intercepts are listed below. True widths are likely ~60-70% of the downhole widths based on the interpreted sub-vertical nature of mineralisation.

  • WTRC001 (271m)
    • 4m @ 2.40 g/t Au from 78m
    • 12m @ 3.09% Cu, 97 g/t Ag, 1.36 g/t Au from 92m
  • WTRCDD002 (323.8m)
    • 10m @ 1.00% Cu, 0.11 g/t Au from 109m
    • 7m @ 0.88% Cu, 0.08 g/t Au from 130m
    • 8m @ 8.54% Zn, 6.20% Pb, 134 g/t Ag, 1.45% Cu from 173m
    • 13m @ 3.73% Zn, 2.14% Pb, 29 g/t Ag, 0.30% Cu, 0.21 g/t Au from 225m (incl. 7m @ 5.75% Zn, 3.32% Pb, 43 g/t Ag, 0.40% Cu, 0.24 g/t Au from 230m)
  • WTRC003 (267m)
    • 9m @ 0.74% Cu, 41 g/t Ag, 1.07 g/t Au from 141m
    • 14m @ 0.86% Cu, 1.49% Pb, 35 g/t Ag, 0.19 g/t Au from 188m
    • 25m @ 1.07% Cu, 8 g/t Ag, 0.27 g/t Au from 208m
    • 13m @ 5.02% Zn, 3.51% Pb, 46 g/t Ag, 0.29 g/t Au from 240m
  • WTRCDD004 (319m)
    • 17m @ 1.19% Cu from 128m
    • 15m @ 8.49% Zn, 4.11% Pb, 114 g/t Ag, 1.57 g/t Au, 0.31% Cu from 280m
  • WTRCDD005 (378.4m)
    • 33m @ 1.01% Cu, 0.27 g/t Ai from 120m
    • 5m @ 0.97% Cu, 0.37 g/t Au from 165m
    • 5m @ 1.39% Zn, 2.18% Pb, 33 g/t Ag, 0.32% Cu, 0.04 g/t Au from 205m
    • 2m @ 2.15% Cu, 45 g/t Ag, 0.8 g/t Au from 224m
    • 5m @ 6.60% Zn, 2.30% Pb, 55 g/t Ag, 0.40% Cu, 0.34 g/t Au from 295m
  • WTRC006 (211m)
    • 4m @ 2.20% Zn, 0.55% Pb, 7 g/t Ag from 165m
  • WTRC007 (174m)
    • 1m @ 3.26 g/t Au from 79m
  • WTRC009 (210m)
    • 4m @ 1.34% Cu, 0.29 g/t Au from 78m
    • 15m @ 1.42% Zn, 0.19% Pb, 6.5 g/t Ag from 176m
  • WTRC010 (216m)
    • 5m @ 1.21% Cu, 0.60 g/t Au, 20 g/t Ag from 200m
  • WTRC011 (210m)
    • 7m @ 3.15 g/t Au, 1.1% Cu from 78m
  • WTRC012 (204m)
    • 11m @ 0.87 g/t Au, 0.69% Cu, 14 g/t Ag from 193m to EOH
  • WTRC013 (228m)
    • 17m @ 2.65 g/t Au, 0.54% Cu, 11 g/t Ag from 211m to EOH (incl. 9m @ 4.30 g/t Au, 0.72% Cu, 14 g/t Ag from 211m)
  • WTRCDD015 (405.3m)
    • 5m @ 1.05% Cu, 0.8 g/t Au from 150m
    • 16m @ 0.73% Cu, 0.28 g/t Au from 171m
    • 14m @ 1.94% Zn, 0.99% Pb, 0.30% Cu, 20 g/t Ag from 225m
    • 4m @ 0.97% Cu, 0.16 g/t Au, 12 g/t Ag from 262m
  • WTRCDD016 (392.5m)
    • 10m @ 3.46% Zn, 0.97% Pb from 230m
    • 9m @ 0.79% Cu, 0.26 g/t Au, 20 g/t Ag from 315m
    • 6.5m @ 4.9% Zn, 1.79% Pb, 22 g/t Ag, 0.21 g/t Au from 330m
    • 17m @ 3.18% Zn, 1.42% Pb, 30 g/t Ag, 0.26 g/t Au from 351m
    • 0.4m @ 5.43% Zn, 3.75% Pb, 327 g/t Ag from 388.8m

Final assays for holes WTRC017 and WTRC018 remain pending, however, preliminary portable XRF analysis has returned encouraging values.

Extensional drilling at Wagga Tank has been planned for the near future, with at least 7 drillholes from the above program showing indications of continued mineralisation at depth.

Wagga Tank Drill Plan