Base metals explorer Peel Mining (ASX: PEX) continues to prove up the value of its Wagga Tank zinc polymetallic project in New South Wales with the discovery of new high-grade mineralisation at the Southern Nights prospect.
Two holes designed to test downdip of the successful WTRCDD150 drilled last month at Southern Nights have returned new sphalerite-galena-chalcopyrite-pyrite rich massive sulphides, confirming the continuity of zinc-rich mineralisation at depth.
In November, Peel said WTRCDD150 returned “awe-inspiring ultra-high-grade massive sulphides” including 18.2m at 40.3% zinc, 15.7% lead, 0.97% copper, 356 grams per tonne silver and 2.77g/t gold from 182m.
The two newest holes have confirmed those results, with WTRCDD153 returning 15m at 12.35% zinc, 6.13% lead, 0.56% copper, 128g/t silver and 0.6g/t gold from 356m, including 7.64m at 17.59% zinc, 10.36% lead, 0.73% copper, 211g/t silver, 0.62g/t gold from 356m.
Drillhole WTRCDD157 returned a set of equally impressive assays including 11m at 28.35% zinc, 14.84% lead, 0.46% copper, 380g/t silver and 1.56g/t gold from 218m.
Assays for significant copper mineralised zones in both drillholes remain pending.
More massive sulphides
Meanwhile, a third hole designed to test an area approximately 40m north along strike of the new holes has encountered an additional zone of massive through to stringer/breccia sphalerite-galena-pyrite-rich sulphide mineralisation at appoximately 320m below surface.
Geological logging and portable x-ray fluorescence (XRF) analyses indicate the interval returned from this hole contains “very high-grade” zinc-lead-silver mineralisation, supporting Peel’s belief that an “important zone of mineralisation” exists in the central Southern Nights prospect area.
The company will target this area with close-spaced infill drilling to better define its geometry and scale.
Maiden resource estimate
The latest drilling results are part of Peel’s 20,000-metre reverse circulation and diamond drilling campaign which kicked off in October.
The campaign is designed to test for extensions to the Wagga Tank-Southern Nights mineralised system, which remains open along strike and at depth.
Peel said drilling results will be used to define a maiden mineral resource estimate by mid-2019.
The Wagga Tank project is emerging as one of Australia’s “most significant zinc polymetallic discoveries” in recent years, potentially hosting a major, high-grade, base and precious metals mineral system.
The project is located on the western edge of the Cobar Superbasin, approximately 130 kilometres south of Cobar, and is believed to host polymetallic Cobar-style or volcanic-hosted massive sulphide-style deposits with multiple significant historic drill intercepts.
At mid-afternoon, shares in Peel Mining were trading 1.03% higher at $0.49.