Peel Mining

Southern Nights / Wagga Tank

Project Snapshot

Status

Resource Drilling

Location

Western edge of the Cobar Superbasin, 130km south of Cobar or ~30km northwest of Mount Hope.

Area Size

87km2.

Ownership

100% Peel Mining Limited

Commodity

Copper, Lead, Zinc, Gold & Silver

Mineral Resource

Indicated: 2,950Kt @ 0.23% Cu, 2.33% Pb, 5.73% Zn, 0.36g/t Au & 85.5g/t Ag.

Inferred: 2,000Kt @ 0.3% Cu, 1.6% Pb, 4.0% Zn, 0.3g/t Au & 67g/t Ag.

Total Resource: 4,950Kt @ 0.3% Cu, 2.0% Pb, 5.0% Zn, 0.4g/t Au & 78g/t Ag. (Taken from ASX Announcement: Substantial Resource Upgrade for Southern Nights, 26th March 2020).

Current Activities

Further infill and extensional drilling at Southern Nights has been planned. Detailed metallurgical testwork focused on improved metal selectivity and recoveries, as well as ore sorting with trials remain ongoing at the time of reporting.

An IP survey is planned to commence in the June quarter 2021

Planning of resource definition drilling targeting a shallow oxide gold target at Wagga Tank has commenced and is subject to regulatory approvals and access negotiations.

Metallurgical testwork will continue in the coming quarter, as part of a scoping study on this project.

  • The Wagga Tank project, contained within Exploration Licence 6695 was previously held by MMG until 2016, where registration was finalised on 16th July 2016, and it became 100% Peel owned.

    The project can be divided into two prospects: ‘Wagga Tank’ to the North and ‘Southern Nights’ ~1km to the South, they are located 130km south of Cobar and ~30km northwest of Mount Hope in central NSW. ‘Southern Nights’ was discovered by Peel in September 2017, from Drillhole WTRCDD021 (which was testing coincident chargeable IP and magnetic geophysical anomalies), this revealed significant sulphide mineralisation (Zinc-Lead-Silver). Subsequent drilling at both ‘Wagga Tank’ and ‘Southern Nights’ has exposed economical massive sulphide mineralisation. Peel Mining Ltd anticipates a move towards an economic mine plan in the future.

    The 2020-21 Drilling program saw 9 drillholes completed, their purpose was to define a resource at Wagga Tank and Southern Nights and to test for a southerly extension beyond the current resource model at Southern Nights:

    Resource Estimate 

    The Southern Nights / Wagga Tank prospect has a 2.2km long strike, with the system remaining open along strike and down dip,

    The Southern Nights discovery and subsequent drilling also by Peel has exposed the prospect as one of the most significant zinc polymetallic findings in Australia’s recent years. However, the prospect remains a challenge due to the thick transported cover overlying the VMS-style mineral system.

    Wagga Tank - Southern Nights Resource
    Resource Classification Kt Zn % Pb % Cu % Ag g/t Au g/t
    Southern Nights Indicated 2,540 5.9 2.3 0.19 88.9 0.33
    Inferred 1,600 3.7 1.4 0.3 59 0.3
    Sub-total 4,140 5 2 0.2 77 0.3
    Wagga Tank Indicated 410 4.67 2.52 0.5 64.3 0.53
    Inferred 400 5.3 2.3 0.3 98 0.5
    Sub-total 810 5 2.4 0.4 81 0.5
    Combined Indicated 2,950 5.73 2.33 0.23 85.5 0.36
    Inferred 2,000 4 1.6 0.3 67 0.3
    Total Resource 4,950 5 2 0.3 78 0.3

    (ASX Announcement- SUBSTANTIAL RESOURCE UPGRADE FOR SOUTHERN NIGHTS, 26th March 2020)

    Southerly Extension at Southern Nights

    Five extensional drillholes have been completed, these were planned to test the southerly extent of mineralisation beyond previously drilled WTRCDD238, which is located at the southern edge of the current Mineral Resource Estimate and hosts significant polymetallic mineralisation (35m @ 6.3% Zn, 2.59% Pb, 105g/t Ag, 0.24% Cu, 1.87g/t Au from 232m). Two out the five extensional drillholes (WTRCDD243 & WTRCDD244) returned intercepts of massive / semi-massive / stringer mineralisation (Pyrite-Sphalerite-Galena) up to ~70m south of WTRCDD238.

    The remaining three extensional drillholes, intercepted disseminated to stringer/semi-massive sulphide zones. Pending all ‘Southern Nights’ Assays.

  • The Cobar Basin developed as four deep-water troughs bordered by shallow-water shelves. Wagga Tank lies within the Mt Hope Trough, which is interpreted as a volcano-tectonic rift associated with a submarine cauldron. During the rift-phase, sub-aerial volcanism was followed by submarine, felsic volcanism. A-type volcanics occur along the major N-S structures and are overlain by S-type volcanics. Large accumulations of sediments and volcanics up to 2.5km thick were deposited (Scheibner, 1987).

    The stratigraphic units which form the Wagga Tank / Southern Nights prospect are steeply west dipping and generally upright, they are made up of:

    1) The Upper Amphitheatre Group / Mt Kennan Volcanics (the Wagga Tank formation)

    Informally, known as the Wagga Tank Formation, which overlays the following units. It is comprised of shales, siltstones and less commonly sandstone (a turbidite facies). The Vivigani Formation, occurs underneath, often with a transitional contact and was formed prior to the Wagga Tank Fmn. The formation is a complexed volcanic package of coarse polymictic volcaniclastics, sandstones, breccias, mass debris flow breccias, rhyolitic/rhyodacitic lavas, peperites with minor shales/siltstone beds.

    2) The Lower Amphitheatre Group

    Informally called the Eastern Formation, it underlies the Vivigani Fmn with a sharp contact. This formation it is also made up of turbiditic facies of shales, silts and sandstones, making it very similar to the Wagga Tank Fmn in composition, however the Eastern formation can commonly be distinguished by the higher occurrence of sandstone beds, likely suggesting that it was formed in a higher energy / shallower marine environment than the more recent Wagga Tank Fmn.

    Mineralisation

    Mineralisation occurs in the form of Pyrite, Sphalerite, Galena and Chalcopyrite, commonly developing in veins (Stringer veins > Colloform veins), which frequently exhibit sulphide zonation, and Massive/Laminated sulphides.

    The veins exclusively form in the footwall (within the Vivigani more than Eastern formation, this is surmised to have occurred due to the porosity and abundance of accommodation space in the unit).

    The contact between the Wagga Tank and the Vivigani Fmn predominately hosts the bulk of mineralisation in for of massive/laminated sulphides. It is theorised that volcanic-hosted massive sulphides (VHMS) / volcanic-associated massive sulphides (VAMS) originate in a unit underlying the Eastern Fmn and percolate their way up through the Eastern and Vivigani Fmns, until they encounter the ocean floor (syngenetic with the formation of the Wagga Tank Fmn) and deposit in “pools” from volcanic vents (possible evidence seen within drill core), where they form massive/laminated sulphides.