Peel Mining Limited announced that recent exploration drilling at the 4 Mile prospect has resulted in the discovery of significant silver, lead and zinc mineralization. 4 Mile is located within Peel's 100% owned May Day Gilgunnia project about 100 kilometers south of the Cobar. The drilling consisted of an east west line of three RC drill holes at approximately 40 meters spacing for a total of 663 meters targeting a newly recognized coincident EM and magnetic geophysical anomaly located within the historic 4-Mile goldfield.
Visible sulphide mineralization including sphalerite and galena was intersected in zones up to 10 meters wide within all three drill holes. Other accessory sulphide minerals observed includes pyrrhotite, pyrite, arsenopyrite and chalcopyrite. The sulphides occur within a package of sediments comprising carbonaceous shales and siltstones. True width is unknown at this stage although it appears that mineralization is swallowing to the east, possibly indicating a moderate westerly dip, in which case the drill intercepts reported would be close to true. All drill holes remained anomalous in silver, lead and zinc arsenic at the bottom of holes.
All mineralization intersected to date is primary in nature and future exploration will test to the east of existing drilling for possible supergene enrichment. Planning of follow up RC and RAB drill holes targeting potential up-dip and north-south extensions to the newly discovered mineralization is now underway. Downhole and moving loop EM geophysical surveys are also planned to further refine the EM conductor and to test the local area for additional targets.
Peel Mining also announced that a first pass reconnaissance mapping and rock chip and dump sampling program at the Tulloch, G Reef, Happy Valley and Rockvale areas has returned very high silver and gold values. Samples were collected from shaft dumps at the Rockvale, G Grid and Happy Valley areas from rock chips along the line of lode at Rockvale. See Appendix 2 for technical details.
In February 2011, Peel was granted EL7711 covering the historic Ruby Tulloch Rockvale silverfield 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 gram per tonne silver and the Tulloch silver mine which produced 50,000 ounces silver at 6,200 gram per tonne silver. The area has been subject to limited modern exploration and drilling.
Peel recently completed a first-pass reconnaissance geological mapping and sampling program over the Tulloch, G Reef and Happy Valley and Rockvale areas. This mapping delineated the Rockvale line of lode at surface for more than 750m, and on strike with the Ruby silver mine. Mapping and sampling currently underway has now identified that the G-Reef lode is traceable in outcrop for 700m in length. In places the lode zone is up to 5m wide and is associated with serenities granite.
Other activity now underway includes an approximately 15 line kilometer IP geophysical survey covering the Tulloch and Rockvale mine areas this work is nearing completion and is being completed to aid in the delineation of sulphide bearing quartz-carbonate veins in preparation for follow up drilling.
Mr Rob Tyson MD of Peel said that "The results from 4-Mile are very pleasing for such an early stage. Additional drilling will be completed as soon as practicable to further test this potentially significant mineralization. The high grade gold and silver rock chip/dump samples from Ruby Silver project are also extremely satisfying and we are looking forward to seeing what the IP results contain."
