Peel Mining

Wirlong Project

Project Snapshot

Status

Resource Upgrade Drilling

Location

~30km southwest of Nymagee and 80km south-southeast of Cobar.

Area Size

Defined by a 2km strike

Ownership

100% Peel Mining Limited

Commodity

Copper & Silver

Mineral Resource

Maiden Indicated and Inferred Mineral Resource Estimate (MRE) for Wirlong delivers 2.45Mt @ 2.4% Cu, 8.7g/t Ag for 57,900t contained copper and 686,000oz contained silver.

Maiden Indicated and Inferred Mineral Resource Estimate (MRE) for Wirlong delivers 2.45Mt @ 2.4% Cu, 8.7g/t Ag for 57,900t contained copper and 686,000oz contained silver.

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 Wirlong prospect is located within EL8307 “Sandy Creek” and EL8126 “Norma Vale”. It was once part of the Cobar Superbasin Project (CSP), along with other prospects including Sandy Creek, Red Shaft, Armageddon and Bedooba. In 2020, Peel regained 100% ownership of CSP including Wirlong, when Japanese Oil Gas and Metals National Corporation (JOGMEC), sent a written notice to Peel Mining Ltd (Peel) in August 2020, withdrawing and terminating the Memorandum of Agreement at no cost.

    The CSP comprises 16 highly prospective tenements covering ~1,400 km2 in the Cobar Basin. Investigations so far have resulted in the discovery of a significant copper mineralised system at the Wirlong prospect. The prospect is associated with a >2km ~N-S striking shear, with slatey cleavage detected in outcropping volcanics and sediments (Brown, 2017). Peel was initially drawn to the area by the presence of historic copper workings, a topographic high, a multi-element surface geochemical anomaly and coincident or semi-coincident magnetic, radiometric, gravity, IP and electromagnetic anomalies. Wirlong hosts strong copper intercepts and is characterised as “Cobar Style” mineralisation, analogous with the Glencore’s CSA mine.

    Drilling at Wirlong is part of the Company’s “Hub & Spoke” strategy to advance each of the Company’s deposits to mineable resources, to achieve critical mass in support of a new substantial centrally located processing plant. The resource definition drill program comprises of up to ~11,000m of drilling and is anticipated to be completed in the March quarter of 2021.

  • The Cobar Superbasin is one of several intracratonic basins developed within the Lachlan Orogen during the Silurian/Devonian; it is the richest polymetallic basin in the Lachlan Orogen as evidenced by estimated pre-mining metal inventories: >2.5 million tonnes copper, >200 tonnes of gold, >4.8 million tonnes of zinc, >2.8 million tonnes of lead, and >4,000 tonnes of silver2.

    Peel believes that the prospectivity of the southern portion of the Cobar Superbasin (the area covered by Peel Mining’s tenements) is extremely high, factoring in the presence of metal-bearing fluids and high strain domains which favour mineral deposits and occurrences; this is supported by the presence of major deposits/mines in the area such as Nymagee, Hera, Federation, Wirlong, May Day, Mallee Bull, Mt Hope and Southern Nights-Wagga Tank.

    Wirlong is located within Peel’s 100%-owned EL8307 and EL8126. Peel was initially drawn to the area by the presence of historic copper workings, a topographic high, a >2km multi-element surface geochemical anomaly and coincident or semi-coincident magnetic (>3km), radiometric, gravity, IP and electromagnetic anomalies. Exploratory drilling at Wirlong in early 2015 identified significant primary copper mineralisation with follow-up drilling in late 2015 yielding strong copper mineralisation and confirming the potential of the prospect.

    The deposit is located approximately 1.5km north of the historic Wirlong workings and is hosted in a N-S striking, moderate to steeply west dipping (~65 degrees) sequence of interfingering sediments and volcanics that exhibit open to locally tight parasitic folds. The sediments comprise massive to locally laminated quartz-rich sandstones and interbedded shale, siltstone and sandstone turbidites of the Shume Formation. The volcanics comprise massive, porphyritic, flow-banded and auto-brecciated rhyolite of the Shuttleton Rhyolite Member. Soft sediment deformation, intense hydrothermal alteration, local hyaloclastites and peperitic margins are indicative of the rhyolite being emplaced as a very high-level sill into wet, semi-consolidated sediments. Age dating of the Shuttleton Rhyolite Member by Walternberg et al (2016) suggests an age of 421.9 +/- 2.7Ma for the rhyolite which is consistent with the sequence forming during late Silurian to Early Devonian rifting related to the formation of the Cobar Super Basin. Field observations and younging data from drill core have delineated a westward-younging sequence that is bound to the east by the major N-S striking Woorara Fault.

    The sequence at Wirlong is overprinted by a strong, consistently N-S striking foliation that dominantly dips steeply to the east, rotating to steeply west where proximal to the Woorara Fault. Evidence from bedding and younging data shows that the west dipping sequence of sediments and volcanics is parasitically folded, dominated by open to locally tight asymmetric style folds.

    Peel believes the deposit is hosted within a NW-SE striking fault known locally as the John Owen Fault. The John Owen Fault is observed at the surface by local gossanous float and as a series of isolated, massive quartz veins that range in thickness from <1m to over 10m. The fault has been mapped at the surface for a current strike length of over 1.3km and forms a conjugate structure set with a NE-SW striking fault that passes through the historic Wirlong shafts. Peel hypothesizes the faults formed during near E-W compression during basin inversion that gave rise to conjugate fault sets that are consistent with a Riedel shear model.

    Mineralisation at Wirlong is hosted in all lithologies and comprises massive to semi-massive breccia-fill and vein hosted chalcopyrite-pyrrhotite-pyrite (+/- arsenopyrite, sphalerite, galena). In the oxide zone azurite, malachite, chalcocite and smithsonite are locally abundant. Intense Fe-Mg chlorite alteration is spatially associated with chalcopyrite-rich mineralisation. Structural analysis indicates that movement along the John Owen Fault created local zones of dilation that facilitated the movement of mineralising fluids into pre-existing structures and fabrics such as faults, fractures and foliation.

    Mineralisation forms a series of stacked, en-echelon style lenses that are hosted within and proximal to the John Owen Fault. The en-echelon style lenses increase in grade towards the east of the deposit which is theorized to reflect an increase in the interaction between the NW-SE striking John Owen Fault and the regional N-S striking Woorara Fault to the east. Mineralization remains open in all directions with WLDD040 (205m @ 1.4% Cu) drilled on the eastern-most section.

    The style of mineralisation, alteration and structural setting are considered analogous to that observed at the world class CSA Mine in Cobar.

    2 – See Vladimir David – “Cobar Deposits – Structural Control” (2018)Other References: Waltenberg, K., Blevin, P. L., Bull, K. F., Cronin, D. E., and Armistead, S. E. 2016. New SHRIMP U-Pb Zircon ages from the Lachlan Orogen and the New England Orogen, New South Wales

  • The MRE has been constrained and reported within mineable shapes generated at A$90/t NSR with a minimum mining width of three metres and includes internal dilution. The MRE for the Wirlong deposit is reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code (2012)).

    Table 2 – Wirlong Maiden Mineral Resource Estimate (by Domain) as at November 2021

    WIRLONG MAIDEN MINERAL RESOURCE ESTIMATE
    Domain Resource Classification Tonnes (Kt) Cu (%) Ag (g/t) Contained Cu (t) Contained Ag (oz)
    MBX Indicated 450 3.1 11.3 13,900 163,000
    Inferred 930 2.8 10.1 26,000 302,000
    Sub-total 1,380 2.9 10.5 39,900 465,000
    B Indicated 170 1.3 6.7 2,200 37,000
    Inferred 170 1.6 4.9 2,700 27,000
    Sub-total 340 1.4 5.8 4,900 63,000
    C Indicated 120 1.5 6.4 1,800 25,000
    Inferred 120 1.5 7.0 1,800 27,000
    Sub-total 240 1.5 6.7 3,600 52,000
    D Indicated 70 1.9 8.1 1,300 18,000
    Inferred 290 2.0 7.0 5,800 65,000
    Sub-total 360 2.0 7.2 7,100 83,000
    E Indicated 50 1.1 4.8 600 8,000
    Inferred 70 1.5 5.0 1,100 11,000
    Sub-total 120 1.3 4.9 1,600 19,000
    All 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.

    An Indicated and Inferred MRE of 2.45Mt @ 2.4% Cu and 8.7g/t Ag has been constrained and reported within AU$90/t NSR mineable shapes. Significantly, 860Kt @ 2.3% Cu and 9.1 g/t Ag of Indicated classified MRE has been constrained and reported within A$90/t NSR mineable shapes, accounting for ~35% of the MRE tonnes and ~34% of contained Cu metal. See Table 2 for full Mineral Resource Estimate breakdown by domain.

    The Wirlong Indicated & Inferred MRE is the product of 41,612m of RC and diamond drilling completed by Peel since 2014. The bulk (~79%) of that drilling has been focused on the high-grade MBX (Massive Breccia Mineralisation) lens following its recognition in late 2018.

    The MRE has been completed by independent mining consultant Mr Jonathon Abbott of MPR Geological Consultants Pty Ltd (MPR). Mr Abbott accepts responsibility for the block modelling and the MRE. Mr Robert Tyson, an employee of Peel Mining, accepts responsibility for the geological interpretation, sampling and analytical data upon which the MRE is based. NSR calculations and mineable shape creation was completed by Antcia Consulting Pty Ltd.

    Figure 1 – Wirlong Block Model Tonnage/Grade Curve – Indicated & Inferred

    Note: Figure 1 shows NSR-tonnage curves from evaluation of the combined models on a block-by-block basis for cut offs of A$0 to A$500/tonne in A$10 increments relative to the combined Mineral Resource Estimates.

    NET SMELTER RETURN

    For the reporting of the MRE, a Net Smelter Return (NSR) value has been used to reflect the polymetallic nature of mineralisation. NSR in A$/t, represents the potential economic value of mineralisation net of all costs after it leaves site, and was applied to each block within the block model after estimation. The NSR (A$/t) formula includes assumptions regarding metal prices, exchange rates, metallurgical recoveries, metal marketing terms (including payabilities and deductions/penalties), freight, smelting and refining charges, and royalties.

    The NSR formula is:

    NSR = (metal grades x metallurgical recoveries x payabilities x A$ metal prices) less (concentrate freight and treatment charges, penalties and royalties)

    Metal price assumptions were based on late 2021 Australian dollar metal pricing and are listed in Table 3; metallurgical recovery assumptions are listed in Table 4.

    MINING ASSUMPTIONS

    The MRE is constrained and reported within mineable shapes produced by Deswik’s Stope Shape Optimiser using an NSR cut-off of A$90/t. SSO runs were performed by Antcia Consulting Pty Ltd with NSR inputs supplied by Peel Mining. The mineable shapes were based upon the smallest mineable unit (SMU) for the SSO shapes being 5m long, 5m high, with a minimum mining width of 3m. These inputs were used to provide a balance between practical mining and mineralisation shapes.

    CUT-OFF VALUES

    The reported MRE includes internal dilution, where required, representing mineralisation estimated at below the A$90/t NSR cut off but does not include footwall or hanging wall dilution outside the mineralised domains. The cut-off value includes assumptions regarding mine operating, processing and site administration costs. Material at this cut-off within mineable shapes, is considered by Peel to have reasonable prospects of eventual economic extraction.

    Table 3 – Metal price assumptions used in MRE

    COMMODITY PRICE PRICE ASSUMPTION
    A$ Copper Price 13,014/tonne
    A$ Silver Price 32.87/ounce

    Figure 1 shows Wirlong’s full block model tonnage/grade curve for Indicated and Inferred classified estimates at incremental A$10 NSR cutoffs ranging from $A0/t to A$500/t with SSO modelling from A$80/t to A$100/t shown as bold.

    METALLURGY AND CONCEPTUAL PROCESSING FLOWSHEET

    Metallurgical testwork completed by Peel at ALS Burnie has guided the company’s metallurgical assumptions for the Wirlong MRE. Work to date has comprised a series of sequential and locked cycle flotation tests.

    As a result, Peel has assumed a conceptual sequential processing flowsheet for the project comprising a single copper sulphide flotation process. Cumulative metallurgical recoveries for copper and silver are listed in Table 4. Metallurgical testwork at ALS Burnie remains ongoing. It is Peel Mining’s opinion that all elements included in the conceptual processing flowsheet have a reasonable potential to be recovered and sold.

    Table 4 – NSR metallurgical recovery assumptions used in MRE

    METAL CUMULATIVE RECOVERY (%)
    Copper 95
    Silver 65