Peel Mining confirms high-grade supergene copper and gold mineralisation at Wagga Tank

Assays from drilling at Peel Mining’s (ASX: PEX) Wagga Tank tenement in central New South Wales have confirmed strong supergene copper and oxide gold mineralisation outside the existing mineral resource envelope.

The company recently completed 15 vertical reverse circulation drill holes for a total of 2,248 metres, targeting potential supergene mineralisation associated with volcanogenic massive sulphide deposits.

The mineralisation is caused by weathering processes of primary sulphide minerals into a range of secondary minerals including chalcocite, covellite, malachite, azurite, chrysocolla and native silver.

Supergene assays

Peel reported best sulphide supergene assays of 75m at 1.53% copper, 0.67 grams per tonne gold and 11g/t silver from 87m and 23m at 1.10% copper and 0.11g/t gold from 106m.

Oxidised supergene intercepts included 19m at 6.67% copper, 0.87g/t gold and 11g/t silver from 71m, while best oxide results were 24m at 5.09g/t gold and 89g/t silver from 15m.

Nearly all of the intercepts sit outside the existing Wagga Tank mineral resource of 6.83 million tonnes grading 3.92% zinc, 1.52% lead, 0.24% copper, 62g/t silver and 0.30g/t gold.

The mineralisation is believed to remain open along strike.

Mineralisation confirmed

Peel technical director Rob Tyson said drilling had achieved its primary objective.

“The assays returned from drilling at Wagga Tank confirm the presence of strong copper, gold and silver supergene and oxide mineralisation, which sits above and adjacent to the current mineral resource and points to a robust, near-surface growth opportunity for the deposit,” he said.

“These results highlight the potential for further exploration at Wagga Tank, particularly immediately along strike to the north, where limited effective historic drilling has occurred.”

South Cobar project

Wagga Tank forms an important part of Peel’s South Cobar project, which also comprises defined mineral systems at Mallee Bull, Wirlong, Southern Nights and May Day across 3,400 square kilometres of tenure.

South Cobar has a global mineral resource estimate of approximately 20Mt containing 216,000t copper, 322,000t zinc, 151,000t lead, 22 million ounces silver and 204,000oz gold.

Planning for follow-up drilling is reportedly underway and anticipated to take place later this quarter.