Peel Exploration Ltd announce that a follow-up diamond drilling program is now underway at the Company's Attunga project, 20km north of Tamworth in northern NSW.

According to the release drilling is focused on the Attunga Copper Mine prospect to test for depth and strike extensions to substantial mineralization intercepted by Peel in May 2009. The Attunga Copper Mine is located approximately 800m north of Peel's Attunga Tungsten Deposit and is contained within EL6884, 100%-owned by Peel Exploration.

In May 2009, Peel reported that significant gold-copper mineralization was returned from ACM-004 yielding 75m at 1.02 gram per tonne gold, 0.87% copper, 0.09% molybdenum, 0.06% bismuth, and 22 gram per tonne silver from 136m including 27m at 1.60 gram per tonne gold, 1.66% copper, 0.18% molybdenum, 0.1% bismuth, and 39 gram per tonne silver from 136m.

ACM-4 was designed to test an historic IP anomaly located to the south of the historic workings. Mineralization at the Attunga Copper Mine is interpreted to be sub-vertical and the true width of the above intervals is construed to be approximately 25% of the downhole intercepts. The discovery supports Peel belief that the Attunga skarn deposits are part of a larger metalliferous system, possibly including a porphyry source.

The Attunga Copper Mine was discovered in 1902 and worked over various periods up until World War 2. Total recorded production was about 1,600 tonnes ore grading ~6% copper, ~8 g/t gold and ~150 gram per tonne silver. Workings comprised pits, shafts and levels and extended to about 80m below surface. Mineralization occurs in garnet-rich calc-silicate skarn with sulphide minerals including chalcopyrite, bornite and molybdenite.