Peel Mining Limited (ASX:PEX) Announce Exceptional Drill Results at 4-Mile Cobar-Style Discovery

Perth, Aug 26, 2011 AEST (ABN Newswire) - Perth-based explorer Peel Mining Limited (ASX:PEX) is pleased to report that follow-up diamond drilling at the 4-Mile Prospect, part of its 100%-owned May Day-Gilgunnia Project located about 100km south of Cobar in NSW, has intersected further high-grade Cobar-style polymetallic mineralisation.

The 4-Mile prospect comprises a recently identified geophysical electro-magnetic (EM) conductor and coincident magnetic geophysical anomaly, located within the historic 4-Mile goldfield. The latest drilling, which consisted of a diamond tail drillhole (utilising 4MRC006 as a pre-collar), was designed to follow-up significant mineralisation returned from 4MRC007 reported earlier this month.

Drillhole 4MRCDD006 intersected a broad (~60m) alteration/shear zone from about 250m down-hole containing multiple intervals of massive sulphide and stringer mineralisation, including chalcopyrite, sphalerite and galena. Other accessory sulphide minerals observed include pyrrhotite, pyrite, and arsenopyrite.

Within this intersection were individual higher grade intercepts, including:

- 10m @ 0.14% Cu, 41 g/t Ag, 0.77 g/t Au. 9.01% Pb, 11.00% Zn from 252m;

- 6.65m @ 3.10% Cu, 34 g/t Ag, 0.93 g/t Au, 0.65% Pb, 0.13% Zn from 267.35m;

- 9.3m @ 1.20% Cu, 19 g/t Ag, 0.14 g/t Au, 0.28% Pb, 0.17% Zn from 293.7m; and

- 5m @ 0.15% Cu, 30 g/t Ag, 0.15 g/t Au, 1.21% Pb, 2.76% Zn from 306m.

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

4-Mile 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.

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

"This result clearly shows the potential of the 4-Mile discovery to host very-high grade base and precious metal mineralisation similar to that found at other major deposits located in the Cobar district. It is tremendously exciting given the very early stage of exploration.

"Additional exploration at 4-Mile is already underway and follow-up drilling will be a priority for us in the near-term," Mr Tyson said.

Further Background on Peel's 4-Mile discovery

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

Initial drilling resulted in the discovery of significant silver-lead-zinc mineralisation. Follow-up drilling completed in July/August 2011 has confirmed the discovery of Cobar-style copper-silver-gold-lead-zinc mineralisation.

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.

For the complete Peel Mining Limited announcement including figures and tables, please view:
http://media.abnnewswire.net/media/en/docs/ASX-PEX-554571.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