Peel Mining

Resources and Reserves

Mineral Resources & Reserves of Peel Mining projects

Mineral Resources

Peel Mining has defined four resources across its major deposits within its South Cobar Projects (SCP).

Wirlong is located ~75km south of Cobar, NSW and about 40km north of Peel’s Mallee Bull copper deposit. Wirlong represents a classic Cobar-style Cu-Ag deposit analogous to the CSA mine. Strong copper mineralisation commences at ~60m below surface and has been defined to at least 600m below surface. Drilling at Wirlong has been designed to drill test the upper ~500m of the Wirlong Central zone where high-grade copper (chalcopyrite) mineralisation is understood to be structurally controlled on a NW-SE orientation. The deposit remains open along strike and at depth.

The Mallee Bull deposit is a Cobar-style copper dominant polymetallic deposit and was Peel’s first Mineral Resource Estimate release, originally in 2014 and then upgraded in 2017. Currently, the Mallee Bull deposit has a JORC compliant Mineral Resource of 6.76 million tonnes at 1.8% copper, 31 g/t silver, 0.4 g/t gold, 0.6% lead and 0.6% zinc (2.6% copper equivalent) containing approximately 175,000t copper equivalent (using a 1% copper equivalent cut-off).

The Wagga Tank–Southern Nights deposit is a large-scale Zn-rich polymetallic VMS-type deposit. A maiden resource was released in 2019 and subsequently upgraded in 2020. The resource currently totals 4.95 million tonnes @ 5.0% Zn, 2.0% Pb, 0.3% Cu, 0.4g/t Au & 78g/t Ag.

The historic May Day Open Pit mine was originally excavated in the 1990’s, recovering 2,398oz of gold. In 2020, Peel Mining defined a maiden inferred mineral resource based on drilling beneath the pit, this was subsequently upgraded to an indicated resource in early 2021. The May Day deposit consists of 1.07 Mt at 1.02 g/t Au, 26.3 g/t Ag, 0.74% Zn, 0.50% Pb.

A breakdown of the individual resources deposit is provided in the tables below:

WIRLONG MAIDEN MINERAL RESOURCE ESTIMATE (NOVEMBER 2021)
Resource Classification Tonnes (Kt) Cu (%) Ag (g/t) Contained Cu (t) Contained Ag (oz)
Indicated 860 2.3 9.1 19,800 252,000
Inferred 1,590 2.4 8.5 38,200 435,000
Total Resource 2,450 2.4 8.7 57,900 686,000

Note: The Wirlong MRE utilises A$90/tonne NSR cut-off mineable shapes that include minimum mining widths and internal dilution. Figures are rounded to reflect the precision of estimates and include rounding errors.

The information in this announcement that relates to Mineral Resource estimates is based on information compiled by Mr Jonathon Abbott, who is a Member of The Australian Institute of Geoscientists. Mr Abbott is a full time employee of MPR Geological Consultants Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

MALLEE BULL MINERAL RESOURCE ESTIMATE (UPDATED JULY 2017)
Resource Classification Kt CuEq % Cu % Ag g/t Au g/t Pb % Zn %
Indicated 1,340 2.15 0.91 30 0.4 0.96 1.23
Inferred 5,420 2.7 2 31 0.4 0.5 0.4
Total Resource 6,760 2.6 1.8 31 0.4 0.6 0.6

The information referred to in this announcement in relation to the Mallee Bull Resource Estimate is based on information compiled by Mr Jonathon Abbott, a Competent Person who is a Member of the Australian Institute of Geoscientists. At the time of calculating the Resource Estimate Mr Abbott was a full-time employee of MPR Geological Consultants Pty Ltd and is an independent consultant to Peel Mining Ltd. Mr Abbott has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code of Reporting of Mineral Resources and Ore Reserves’. Mr Abbott consented to the release of the matters based on his information in the form and context in which it appears.

Southern Nights Mineral Resource Estimate
Resource Classification Tonnes (Kt) Zn (%) Pb (%) Ag (g/t) Cu (%) Au (g/t)
Indicated 2,540 5.90 2.30 88.9 0.19 0.33
Inferred 1,600 3.7 1.4 59 0.3 0.3
Total Resource 4,140 5.0 2.0 77 0.2 0.3
Wagga Tank Mineral Resource Estimate
Resource Classification Tonnes (Kt) Zn (%) Pb (%) Ag (g/t) Cu (%) Au (g/t)
Indicated 410 4.67 2.52 64.3 0.50 0.53
Inferred 400 5.3 2.3 98 0.3 0.5
Total Resource 810 5.0 2.4 81 0.4 0.5
COMBINED SOUTHERN NIGHTS-WAGGA TANK MINERAL RESOURCE ESTIMATE
Resource Classification Tonnes (Kt) Zn (%) Pb (%) Ag (g/t) Cu (%) Au (g/t)
Indicated 2,950 5.73 2.33 85.5 0.23 0.36
Inferred 2,000 4.0 1.6 67 0.3 0.3
Total Resource 4,950 5.0 2.0 78 0.3 0.4

The information in this announcement that relates to grade estimation and the Mineral Resource Estimate for Southern Nights-Wagga Tank is based on information compiled by Mr Jonathon Abbott, who is a Member of The Australian Institute of Geoscientists. Mr Abbott is a full time employee of MPR Geological Consultants Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

COMBINED MAY DAY INDICATED MINERAL RESOURCE ESTIMATES (ROUNDED)
Cut off $NSR Tonnes Kt Au g/t Ag g/t Zn % Pb %
Open Pit Oxide $27/t 510 1.03 20.4  -
Sulphide $37/t 390 1.00 28.2 1.31 0.84
Subtotal   900 1.02 23.8 0.57 0.36
Underground (Sulphide) $80/t 170 1.03 39.4 1.67 1.21
Combined 1,070 1.02 26.3 0.74 0.50

The information in this announcement that relates to Mineral Resource estimates is based on information compiled by Mr Jonathon Abbott, who is a Member of The Australian Institute of Geoscientists. Mr Abbott is a full time employee of MPR Geological Consultants Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.