Peel Mining Limited (ASX:PEX) Exploration Update On Ruby Silver, Apollo Hill And 4-Mile
Perth, April 20, 2011 AEST (ABN Newswire) - Peel Mining Limited (
ASX:PEX) is pleased to report that field activities at its 100%-owned Ruby silver project are now underway with an approximately 15 line kilometre IP geophysical survey covering the Tulloch and Rockvale mine areas commencing this week. This survey is being completed to aid in the delineation of sulphide-bearing quartz-carbonate veins in preparation for follow-up drilling.
In late February 2011, Peel was granted EL7711 covering the historic Ruby-Tulloch-Rockvale silver-field located approximately 30 km east of Armidale, New South Wales. The area contains numerous historic silver mines, workings and prospects including: the Ruby silver mine which produced 350,000 ounces silver at 620 g/t silver; and the Tulloch silver mine which produced 50,000 ounces silver at 6,200 g/t silver. The area has been subject to limited modern exploration and drilling, however a 1968 drill intercept of 5.08m at 6,700 g/t silver from 90.5m at Ruby mine remains to be followed up.
Peel also recently completed a first-pass reconnaissance geological mapping and sampling programme over the Tulloch, Rockvale and G Reef/Happy Valley areas. This mapping has delineated the Rockvale line of lode at surface for more than 750m, and on strike with the Ruby silver mine.
Peel is now seeking relevant regulatory approvals in anticipation of an upcoming drill programme.
Apollo Hill gold project
Peel Mining is also pleased to report that diamond drilling at its 100%-owned Apollo Hill gold project is now underway. The aim of this drilling (two drillholes for 300m) is to provide representative gold-mineralised material for broad metallurgical testwork to further evaluate the extraction characteristics of Apollo Hill gold mineralisation.
Preliminary testwork completed by Peel in 2010 yielded excellent overall gold extraction including greater than 80% gravity recoverable gold and rapid cyanide leach kinetics. Peel plans to complete additional testwork designed to assess the following metallurgical characteristics of Apollo Hill ore:
- Gold leaching/gravity separation characteristics of oxide, transitional and fresh ore types;
- Bond Crushing Work Index of fresh ore;
- Bond Ball Mill Work Index of fresh ore;
- Bond Abrasion Index of fresh ore, and;
- Immersion SG testwork.
Furthermore, a 3,000m RC extensional drill programme is scheduled to commence later this week. This programme of 20 drillholes is designed to increase sample density to allow for the extension of the Apollo Hill resource model a further 200m (grid) south and to a minimum depth of about 150 metres below surface. Upon completion of this drilling and receipt of final assay results, Peel plans to update the current resource estimate for Apollo Hill of 341,000 oz contained gold at a 0.5 g/t Au cutoff.
May Day-Gilgunnia precious-base metal project
Peel recently completed a programme of three RC drillholes (for a total of 663m) targeting a newly-recognised coincident (EM and magnetic) geophysical anomaly at the historic 4-Mile goldfield prospect located within its 100%-owned May Day-Gilgunnia project.
Peel is very encouraged to report the intersection of visible base metal sulphide mineralisation (galena and sphalerite) in zones up to 10m wide, within all three drillholes. True width is unknown. Handheld XRF analysis confirms the presence of zinc and lead mineralisation with visual estimates via geological logging indicating individual metres containing up to 5% combined sphalerite and galena. Other accessory sulphide minerals observed includes pyrrhotite, pyrite, arsenopyrite and chalcopyrite. The sulphides occur within a package of sediments comprising carbonaceous shales and siltstones. Final assay results remain outstanding and will be reported as soon as they are received and compiled.
Prior to drilling, Peel refined the Four-Mile EM anomaly by completing a ground-based fixed-loop TEM survey. This survey confirmed the existence of a moderate-strong conductor. Peel is now planning to complete a downhole EM survey, scheduled to be completed this week, to further refine the EM conductor.
Commenting on the activity Peel Managing Director said: "The 4-Mile results are very encouraging with confirmation of potentially important base metal mineralisation. We are planning to rapidly assess the 4-Mile prospect with downhole EM in preparation for follow-up drilling. Early access at our Ruby silver project also ensures drilling there as soon as possible. Peel is focussed on advancing each of our projects in as timely and cost effective manner as feasible."
Contact
Peel Mining Limited
T: +61-8-9382-3955
F: +61-8-9388-1025
E: info@peelex.com.au
WWW: www.peelex.com.au
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