Peel Mining Limited (ASX:PEX) Announce New Cobar-Style Copper Discovery in NSW

Perth, Aug 2, 2011 AEST (ABN Newswire) - Perth-based explorer Peel Mining Limited (ASX:PEX) is pleased to announce that recent drilling at the 4-Mile Prospect, part of its 100%-owned May Day-Gilgunnia Project in NSW, has resulted in the discovery of a broad zone of Cobar-style copper-polymetallic mineralisation.

4-Mile is a newly identified prospect, located approximately 100km south of Cobar. The latest drilling, which comprised four new RC drill holes on an east-west line, targeted a recently identified geophysical electro-magnetic (EM) conductor and coincident magnetic geophysical anomaly, located within the historic 4-Mile goldfields.

Drillhole 4MRC007 intersected a broad 55 metre zone of sulphide mineralisation, including chalcopyrite, sphalerite and galena. Other accessory sulphide minerals observed includes pyrrhotite, pyrite, and arsenopyrite.

This included a 48 metre intersection which assayed on average 0.74% Cu, 24 g/t Ag, 0.21 g/t Au, 0.48% Pb, 0.49% Zn from 218m. Within this intersection were individual higher grade intervals, including:

- 4m @ 3.59 g/t Au from 184m;

- 1m @ 1.65% Cu, 96 g/t Ag, 1.48 g/t Au, 9.99% Pb, 2.00% Zn from 219m;

- 4m @ 1.42% Cu, 18 g/t Ag, 0.21 g/t Au, 0.39% Pb, 0.20% Zn from 226m;

- 7m @ 0.27% Cu, 15 g/t Ag, 0.15 g/t Au, 0.51% Pb, 1.75% Zn from 235m;

- 8m @ 1.94% Cu, 55 g/t Ag, 0.30 g/t Au, 0.16% Pb, 0.29% Zn from 248m; and

- 4m @ 1.49% Cu, 59 g/t Ag, 0.18 g/t Au, 0.26% Pb, 0.21% Zn from 262m.

The mineralisation occurs within a package of sediments comprising carbonaceous shales and siltstones and is interpreted as occurring as a shoot-like structure dipping moderately to the south-west and plunging to south-east, meaning that drill intercepts reported would be close to true.

A recent review of local geology indicates that 4-Mile is positioned in a favourable geological and structural position, sited on the "nose" of an anticline - a suitable high-stress environment, and occurring in a geological unit interpreted to be age equivalent of the Chesney and Great Cobar Slate Formations found in the immediate Cobar region.

Drill-holes 4MRC004/5/7 ended in anomalous arsenic- and/or silver-lead-zinc-arsenic geochemistry while drill-hole 4MRC006 (240m) is interpreted as having possibly been terminated too early. Down-hole EM modelling indicates possible extensions to the mineralisation encountered to date further below and along strike from 4MRC007. Follow-up diamond drilling utilising 4MRC006 as a pre-collar is planned to commence shortly.

Peel's Managing Director, Mr Rob Tyson, said the Company was very encouraged by the discovery of Cobar-style copper-polymetallic mineralisation at 4-mile at such an early stage of exploration.

"We obviously had high hopes for the prospectivity of this area following the significant silver-lead-zinc mineralisation which we intersected in drilling in May this year, however we are clearly very excited to have encountered these grades and widths of Cobar-style mineralisation in the heart of one of the world's great mining provinces.

"Follow-up drilling at 4-mile will now be a priority for us over the coming weeks and months," Mr Tyson said.

The 4-Mile prospect is located less than 10 kilometres east of Peel's 100%-owned May Day gold-silver-lead-zinc deposit (ML1361), where drilling last year by Peel confirmed the down-dip continuation of mineralisation to more than 200m below surface.

Further Background on Peel's 4-Mile discovery

In March/April 2011, Peel completed three RC drillholes targeting a newly-recognised coincident EM and magnetic geophysical anomaly located within the historic 4-Mile goldfield.

This drilling resulted in the discovery of significant silver-lead-zinc mineralisation with better assays including: 4MRC001 - 5m @ 21 g/t Ag, 0.15 g/t Au, 0.27 % Cu, 0.87% Pb, 1.88% Zn from 194m; 4MRC002 - 5m @ 11 g/t Ag 0.15 g/t Au, 1.28% Pb, 2.1% Zn from 138m; and 4MRC003 - 10m @ 24 g/t Ag, 0.09 g/t Au, 1.17% Pb, 2.2% Zn from 110m.

The new drilling was designed to follow up these results.

For the complete Peel Mining announcement including figures and tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-PEX-551888.pdf

Contact

Peel Mining Limited T: +61-8-9382-3955 F: +61-8-9388-1025 E: info@peelex.com.au WWW: www.peelex.com.au