Peel Mining Limited (ASX:PEX) Mallee Bull Returns More High-Grade Copper

Perth, Feb 9, 2012 AEST (ABN Newswire) - Perth-based explorer Peel Mining Limited (ASX:PEX) is pleased to report that follow-up RC/diamond drilling at the Mallee Bull prospect (previously known as 4-Mile), part of its 100%-owned May Day-Gilgunnia Project located about 100km south of Cobar in NSW, has intersected additional new high-grade Cobar-style polymetallic mineralisation.

The results continue to confirm that Mallee Bull is host to high-grade copper-dominant mineralisation, and importantly, that the mineralising system is open at depth. The results are in addition to those reported in mid-January where better assay results included: 4MRC015 - 6m @ 3.05% CuEq (2.01% Cu, 64 g/t Ag, 0.43 g/t Au) from 208m; 4MRC016 - 11m @ 3.30% CuEq (2.71% Cu, 36 g/t Ag, 0.26 g/t Au) from 233m; and 4MRC019 - 10m @ 3.47% CuEq(2.66% Cu, 44 g/t Ag, 0.51 g/t Au) from 237m.

Peel recently completed a follow-up RC/diamond drilling programme designed to test along strike and down dip of previously intersected mineralisation. Drilling was carried out on an approximate 40m by 40m grid pattern and comprises a series of RC and RC pre-collar/diamond tail drillholes. Assay data for many drillholes remain outstanding although multiple drillholes completed to date have intersected zones of polymetallic mineralisation comprising intervals of massive sulphide and/or stringer mineralisation, including visible chalcopyrite, sphalerite and galena with accessory sulphide minerals including pyrrhotite, pyrite, and arsenopyrite.

Drilling to date indicates that high-grade copper-dominant polymetallic mineralisation at Mallee Bull has a strike length of at least 120m, comes to within at least ~150m of surface, extends to at least ~310m below surface and is open in multiple directions including at depth. Peel notes that the majority of assays for deeper drillholes remain outstanding, and that Cobar-style deposits are typically short in strike length but long in the vertical plane.

Mineralisation occurs within a package of sheared and brecciated volcaniclastic sediments comprising siltstones and mudstones and is interpreted as occurring as a shoot-like structure dipping moderately to the west. Drill intercepts are construed as being close to true.

The Mallee Bull prospect is interpreted to be 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.

Background on Peel's Mallee Bull discovery

In March/April 2011, Peel began targeting a newly-recognised coincident EM and magnetic geophysical anomaly located within the historic 4-Mile goldfield. The 4-Mile goldfield comprises up to 60 shafts and workings spread over an area covering about 1,000m by 500m.

Initial drilling resulted in the discovery of significant silver-lead-zinc mineralisation. Follow-up drilling completed in July/August 2011 confirmed the discovery of Cobar-style copper-silver-gold-lead-zinc-cobalt mineralisation with better intercepts including: 4MRCDD06 - 10m @ 20% Pb/Zn, 41 g/t Ag, 0.77 g/t Au from 253m and 6.65m @ 4.09% CuEq (3.1% Cu, 34 g/t Ag, 0.93 g/t Au) from 267.35m; and 4MRC007 - 10m @ 2.41% CuEq (1.70% Cu, 46 g/t Ag, 0.27 g/t Au) from 248m and 4m @ 2.31% CuEq (1.49% Cu, 59 g/t Ag, 0.18 g/t Au) from 262m.

The Mallee Bull prospect is located less than 10 kilometres east of Peel's 100%-owned May Day gold-silver-lead-zinc deposit (ML1361), where drilling in 2010 by Peel confirmed the down-dip continuation of mineralisation to more than 200m below surface.

For the complete Peel Mining announcement including figures and tables, please view the following link:
http://media.abnnewswire.net/media/en/docs/ASX-PEX-577528.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