Peel Mining Limited – Quarterly Report December 2016 1 DECEMBER 2016 QUARTERLY REPORT 31 JANUARY 2017 Peel Mining Limited ASX code: PEX ACN: 119 343 734 Unit 1, 34 Kings Park Rd West Perth, WA 6005 Ph: (08) 9382 3955 Fax: (08) 9388 1025 E: [email protected]Web: www.peelmining.com.au Contact: Rob Tyson Managing Director [email protected]About Peel Mining Limited: The Company’s projects cover more than 5,000 km 2 of highly prospective tenure in NSW and WA. Mallee Bull is an advanced copper- polymetallic deposit that remains open in many directions. Cobar Superbasin Project Farm-in Agreement with JOGMEC offers funded, highly-prospective and strategic greenfields exploration potential along with the exciting new Wirlong copper discovery. Wagga Tank represents a polymetallic VHMS-type deposit with many significant intercepts; no drilling since 1989. Apollo Hill hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike. Attunga Tungsten Deposit is a high grade tungsten deposit. 151 million shares on issue for $26.5m Market Capitalisation at 31 Jan 2017. Highlights for December quarter 2016 Initial drilling program at Wagga Tank confirms the prospect as a significant Zn-Pb-Ag- Cu-Au mineralised system. Better intercepts include: o 12m @ 3.09% Cu, 97 g/t Ag, 1.36 g/t Au from 92m (WTRC001) o 8m @ 8.54% Zn, 6.20% Pb, 134 g/t Ag, 1.45% Cu from 173m and 7m @ 5.75% Zn, 3.32% Pb, 43 g/t Ag, 0.40% Cu, 0.24 g/t Au from 230m (WTRCDD002) o 25m @ 1.07% Cu, 8 g/t Ag, 0.27 g/t Au from 208m and 13m @ 5.02% Zn, 3.51% Pb, 46 g/t Ag, 0.29 g/t Au from 240m (WTRC003) o 15m @ 8.49% Zn, 4.11% Pb, 114 g/t Ag, 0.31% Cu, 1.57 g/t Au from 280m (WTRCDD004) o 33m @ 1.01% Cu, 0.27 g/t Au from 120m and 5m @ 6.60% Zn, 2.30% Pb, 55 g/t Ag, 0.40% Cu, 0.34 g/t Au from 295m (WTRCDD005) o 17m @ 2.65 g/t Au, 0.54% Cu, 11 g/t Ag from 211m to EOH (WTRC013) o 17m @ 3.18% Zn, 1.42% Pb, 30 g/t Ag, 0.26 g/t Au from 351m (WTRCDD016) Drilling at Wirlong for potential oxide/supergene mineralisation returns further significant results: o 9m @ 3.29% Cu, 18 g/t Ag from 71m (WLRC035) o 7m @ 1.07% Cu, 4 g/t Ag from 99m (WLRC033) Plans for March quarter 2017 Extensional drilling at Wirlong (re- commenced at the time of reporting). Completion of initial Wagga Tank drilling programme; 7 of 18 drillholes require extensions. Mallee Bull work programme planning. For personal use only
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Peel Mining Limited – Quarterly Report December 2016 1
Ph: (08) 9382 3955 Fax: (08) 9388 1025 E: [email protected] Web: www.peelmining.com.au Contact: Rob Tyson Managing Director [email protected]
About Peel Mining Limited:
The Company’s projects cover more than 5,000 km2 of highly prospective tenure in NSW and WA.
Mallee Bull is an advanced copper-polymetallic deposit that remains open in many directions.
Cobar Superbasin Project Farm-in Agreement with JOGMEC offers funded, highly-prospective and strategic greenfields exploration potential along with the exciting new Wirlong copper discovery.
Wagga Tank represents a polymetallic VHMS-type deposit with many significant intercepts; no drilling since 1989.
Apollo Hill hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike.
Attunga Tungsten Deposit is a high grade tungsten deposit.
151 million shares on issue for $26.5m Market Capitalisation at 31 Jan 2017.
Highlights for December quarter 2016
Initial drilling program at Wagga Tank confirms the prospect as a significant Zn-Pb-Ag-Cu-Au mineralised system. Better intercepts include:
o 12m @ 3.09% Cu, 97 g/t Ag, 1.36 g/t Au from 92m (WTRC001)
o 8m @ 8.54% Zn, 6.20% Pb, 134 g/t Ag, 1.45% Cu from 173m and 7m @ 5.75% Zn, 3.32% Pb, 43 g/t Ag, 0.40% Cu, 0.24 g/t Au from 230m (WTRCDD002)
o 25m @ 1.07% Cu, 8 g/t Ag, 0.27 g/t Au from 208m and 13m @ 5.02% Zn, 3.51% Pb, 46 g/t Ag, 0.29 g/t Au from 240m (WTRC003)
o 15m @ 8.49% Zn, 4.11% Pb, 114 g/t Ag, 0.31% Cu, 1.57 g/t Au from 280m (WTRCDD004)
o 33m @ 1.01% Cu, 0.27 g/t Au from 120m and 5m @ 6.60% Zn, 2.30% Pb, 55 g/t Ag, 0.40% Cu, 0.34 g/t Au from 295m (WTRCDD005)
o 17m @ 2.65 g/t Au, 0.54% Cu, 11 g/t Ag from 211m to EOH (WTRC013)
o 17m @ 3.18% Zn, 1.42% Pb, 30 g/t Ag, 0.26 g/t Au from 351m (WTRCDD016)
Drilling at Wirlong for potential oxide/supergene mineralisation returns further significant results:
o 9m @ 3.29% Cu, 18 g/t Ag from 71m (WLRC035)
o 7m @ 1.07% Cu, 4 g/t Ag from 99m (WLRC033)
Plans for March quarter 2017
Extensional drilling at Wirlong (re-commenced at the time of reporting). Completion of initial Wagga Tank drilling programme; 7 of 18 drillholes require extensions. Mallee Bull work programme planning.
Peel Mining Limited – Quarterly Report December 2016 2
Exploration Wagga Tank/Mount View Projects: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 100%). Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation. Wagga Tank is a volcanic-hosted massive sulphide (VHMS) deposit located on the western edge of the Cobar Superbasin, ~130km south of Cobar and ~45km south-west of Mallee Bull. Historic drilling intersected significant polymetallic mineralisation interpreted to occur as sub-vertical elongate shoots/lenses within zones of brecciation and hydrothermal alteration. The area has been subject to minimal exploration since 1989. Initial drilling was completed by Peel this quarter for a total of 18 RC drillholes (for 4,315m), five of which were extended with diamond tails (for 473m). The program has successfully confirmed the presence of high grade base and precious metal mineralisation originally identified at Wagga Tank. Better intercepts so far are listed below, with final assays for some drillholes still awaited. True widths are likely ~60-70% of the downhole widths based on the interpreted sub-vertical nature of mineralisation.
WTRC001 (271m) – complete o 4m @ 2.40 g/t Au from 78m o 12m @ 3.09% Cu, 97 g/t Ag, 1.36 g/t Au from 92m
WTRCDD002 (323.8m) – complete o 10m @ 1.00% Cu, 0.11 g/t Au from 109m o 7m @ 0.88% Cu, 0.08 g/t Au from 130m o 8m @ 8.54% Zn, 6.20% Pb, 134 g/t Ag, 1.45% Cu from 173m o 13m @ 3.73% Zn, 2.14% Pb, 29 g/t Ag, 0.30% Cu, 0.21 g/t Au from 225m (incl. 7m @ 5.75%
Zn, 3.32% Pb, 43 g/t Ag, 0.40% Cu, 0.24 g/t Au from 230m) WTRC003 (267m) – extension required
o 9m @ 0.74% Cu, 41 g/t Ag, 1.07 g/t Au from 141m o 14m @ 0.86% Cu, 1.49% Pb, 35 g/t Ag, 0.19 g/t Au from 188m o 25m @ 1.07% Cu, 8 g/t Ag, 0.27 g/t Au from 208m o 13m @ 5.02% Zn, 3.51% Pb, 46 g/t Ag, 0.29 g/t Au from 240m followed by, o 11m @ 11.7% Zn, 6.5% Pb, 67 g/t Ag, 0.3% Cu from 253m (as indicated by pXRF,
assays pending) WTRCDD004 (319m) – complete
o 17m @ 1.19% Cu from 128m o 15m @ 8.49% Zn, 4.11% Pb, 114 g/t Ag, 1.57 g/t Au, 0.31% Cu from 280m
WTRCDD005 (378.4m) – complete o 33m @ 1.01% Cu, 0.27 g/t Au from 120m o 5m @ 0.97% CU, 0.37 g/t Au from 165m o 5m @ 1.39% Zn, 2.18% Pb, 33 g/t Ag, 0.32% Cu, 0.04 g/t Au from 205m o 2m @ 2.15% Cu, 45 g/t Ag, 0.8 g/t Au from 224m o 5m @ 6.60% Zn, 2.30% Pb, 55 g/t Ag, 0.40% Cu, 0.34 g/t Au from 295m
WTRC006 (211m) – possible extension required o 4m @ 2.20% Zn, 0.55% Pb, 7 g/t Ag from 165m
WTRC007 (174m) – complete o 1m @ 3.26 g/t Au from 79m
WTRC009 (210m) – possible extension required o 4m @ 1.34% Cu, 0.29 g/t Au from 78m o 15m @ 1.42% Zn, 0.19% Pb, 6.5 g/t Ag from 176m
WTRC010 (216m) – extension required o 5m @ 1.21% Cu, 0.60 g/t Au, 20 g/t Ag from 200m
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WTRC011 (210m) – extension required o 7m @ 3.15 g/t Au, 1.1% Cu from 78m
WTRC012 (204m) – extension required o 11m @ 0.87 g/t Au, 0.69% Cu, 14 g/t Ag from 193m to EOH
WTRC013 (228m) – extension required o 17m @ 2.65 g/t Au, 0.54% Cu, 11 g/t Ag from 211m to EOH (incl. 9m @ 4.30 g/t Au, 0.72%
Cu, 14 g/t Ag from 211m) WTRCDD015 (405.3m) - complete
o 5m @ 1.05% Cu, 0.8 g/t Au from 150m o 16m @ 0.73% Cu, 0.28 g/t Au from 171m o 14m @ 1.94% Zn, 0.99% Pb, 0.30% Cu, 20 g/t Ag from 225m o 4m @ 0.97% Cu, 0.16 g/t Au, 12 g/t Ag from 262m
WTRCDD016 (392.5m) – abandoned, ended in mineralisation o 10m @ 3.46% Zn, 0.97% Pb from 230m o 9m @ 0.79% Cu, 0.26 g/t Au, 20 g/t Ag from 315m o 6.5m @ 4.9% Zn, 1.79% Pb, 22 g/t Ag, 0.21 g/t Au from 330m o 17m @ 3.18% Zn, 1.42% Pb, 30 g/t Ag, 0.26 g/t Au from 351m o 0.4m @ 5.43% Zn, 3.75% Pb, 327 g/t Ag from 388.8m
As aforementioned, assays for drillholes WTRC017 (324m – extension required) and WTRC018 (252m – extension required) remain pending, however, preliminary portable XRF analysis has returned encouraging values. Extensional diamond drilling is to commence at Wagga Tank in the January quarter; at least 7 drillholes have shown indications of continued mineralisation at depth and require extensions. Geophysics A review of historic geophysics data at Wagga Tank revealed that previous airborne EM surveys had not covered the main prospect and immediate surrounding areas; a VTEM survey was subsequently completed in December to complete the dataset. Final data remained pending at the time of reporting. Siegal's Shaft/MD-2 At the MD2 prospect, historic drillholes designed to test coincident geochemical and IP anomalies, returned substantial mineralised intervals hosted in massive sulphides, including:
- 14m @ 2.20% Zn, 0.85% Pb, 0.66% Cu, 0.49 g/t Au, 40.3 g/t Ag from 48m (incl. 3m @ 2.43% Zn, 0.94% Pb, 0.49% Cu, 0.6 g/t Au, 54.3 g/t Ag from 50m and 6m @ 3.41% Zn, 1.30% Pb, 1.11% Cu, 0.73 g/t Au, 55.2 g/t Au from 55m) in percussion hole SP1
- 1m @ 3.06% Zn, 2.16% Pb, 68 g/t Ag from 33.5m, 4m @ 1.09% Zn, 0.38% Pb, 0.84% Cu, 29.5 g/t Ag from 61.5m, 1m @ 4.44% Zn, 3.40% Pb, 0.80% Cu, 65 g/t Ag from 70m in diamond hole SD1
- 5m @ 0.92% Zn, 0.72% Cu, 19.8 g/t Ag from 27m (incl. 2m @ 1.10% Zn, 1.57% Cu, 30.5 g/t Ag from 28m, 4m @ 1.31% Zn, 0.71% Pb, 0.50% Cu, 37.3 g/t Ag from 33m, 4m @ 2.70% Zn, 1.22% Pb, 0.43% Cu, 56.8 g/t Ag from 35.5m in diamond hole SD4
During the quarter, Peel completed RC drillholes MD2RC002 and MD2RC003 designed to follow-up the historic shallow massive sulphide intercepts. Both drillholes returned significant zones of mineralisation which remain open at depth and along strike:
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MD2RC002 (100m)
o 2m @ 0.69% Cu, 0.33 g/t Au, 10.3 g/t Ag from 31m o 1m @ 0.38 g/t Au from 34m o 4m @ 2.49% Zn, 1.31% Pb, 0.31 g/t Au, 41.8 g/t Ag from 51m (incl. 2m @ 4.44% Zn, 2.40%
Pb, 0.5 g/t Au, 75.5 g/t Ag from 52m MD2RC003 (84m)
o 1m @ 0.58% Zn from 42m o 1m @ 0.58% Zn, 0.27% Pb from 51m o 7m @ 0.82% Zn, 0.38% Pb, 0.22 g/t Au, 16.2 g/t Ag from 64m (incl. 1m @ 1.86% Zn, 0.97%
Pb, 0.39% Cu, 0.37 g/t Au, 31.1 g/t Ag from 64m
Figure 1 - MD-2 Drill Plan F
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Figure 2 - Wagga Tank Drill Plan
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Peel Mining Limited – Quarterly Report December 2016 6
Cobar Superbasin Project: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 100%). Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation. The Cobar Superbasin Project is subject to a Memorandum of Agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC), under which JOGMEC may earn up to 50% interest by funding up to $7 million of exploration. Details of the JOGMEC MoA can be found in Peel's ASX Announcement released on 30 September 2014. The Stage 1 expenditure commitments totalling $4 million were concluded in the September 2016 quarter, taking JOGMEC's interest in the project to 40%. Stage 2, for an additional 10% interest through the spending of $3 million, has commenced with activities at the Wirlong prospect. Wirlong The Wirlong prospect represents a very large, mineralised, hydrothermal system with a strike length of more than 2.5km. Recent exploration confirmed that the area is host to significant high grade copper mineralisation, which still remains open up- and down-dip and along strike. The December quarter saw the completion of an additional 9 RC drillholes (WLRC029 - WLRC037), of which the first eight were drilled to test for potential oxide copper mineralisation up-dip of previous significant intercepts. Multiple mineralised zones were returned from all drillholes, with better intercepts summarised below.
WLRC029 (156m) o 1m @ 1.77% Zn from 72m o 3m @ 0.87% Zn, 0.39% Cu from 85m o 10m @ 0.64% Zn, 0.26% Cu from 91m o 7m @ 0.53% Cu, 0.34% Zn from 111m o 3m @ 0.94% Zn, 0.24% Pb from 119m
WLRC030 (156m) o 9m @ 0.47% Cu from 35m o 3m @ 0.43% Zn, 0.37% Cu from 106m o 4m @ 0.53% Zn, 0.30% Cu from 110m o 3m @ 0.43% Cu, 0.24% Zn from 115m
WLRC031 (162m) o 2m @ 0.81% Cu from 5m o 2m @ 0.85% Cu, 11.5 g/t Ag from 63m
WLRC032 (138m) o 6m @ 0.77% Cu from 106m incl. 2m @ 1.34% Cu from 108m o 3m @ 0.51% Cu from 113m o 2m @ 0.59% Cu from 118m o 6m @ 0.52% Cu from 127m
WLRC033 (126m) o 3m @ 0.76% Cu from 28m, o 1m @ 0.99% Zn, 0.38% Cu from 62m, o 2m @ 1.28% Cu, 0.54% Zn from 67m, o 2m @ 0.81% Cu from 99m, o 3m @ 1.88% Cu, 7.6 g/t Ag from 103m
WLRC034 (150m) o 9m @ 0.83% Zn, 0.30% Pb from 75m incl. 3m @ 1.15% Zn, 0.50% Pb, 7.2 g/t Ag from 78m o 2m @ 2.00% Cu from 117m o 1m @ 1.52% Cu from 122m o 2m @ 0.85% Cu from 144m o 2m @ 1.12% Cu from 147m
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WLRC035 (150m) o 3m @ 0.65% Cu from 56m o 1m @ 2.15% Cu, 0.60% Zn, 13.6 g/t Ag from 63m o 9m @ 3.29% Cu, 0.60% Zn, 18 g/t Ag from 70m o 2m @ 0.85% Cu from 123m
WLRC036 (144m) o 1m @ 1.13% Cu from 65m o 1m @ 1.24% Cu from 76m o 1m @ 0.99% Cu from 105m
Encouragingly, a number of holes have shown indications of continued mineralisation past the end-of-hole, and extensions are anticipated in the next quarter. Follow-up extensional drilling has commenced at the time of reporting. At the southern end of the Wirlong prospect, RC drillhole WLRC037 was completed to test a gravity high anomaly interpreted to be approximately ~180m below surface. The drillhole was drilled from the west and collared ~400m south-west of drillhole WLRC022. WLRC022 was drilled in April 2016 to target the northern end of the same gravity anomaly, returning notable intercepts such as 1m @ 0.35% Cu, 1.30% Pb, 0.76% Zn, 29 g/t Ag from 172m and 1m @ 0.46% Pb, 0.95% Zn from 366m. Initial downhole surveys for WLRC037 show the modelled gravity target has been intersected and whilst chlorite alteration was noted in the hole, no significant mineralisation was found to be present. Red Shaft Approximately 4km SSE of Wirlong, 3 RC drillholes (for 1,098m) were completed at the Red Shaft prospect with the aim of intercepting additional Cu and Au mineralisation. Drillhole RSRC009 was drilled down dip of previous RC drillhole RSRC005 (drilled Nov 2015; 6m @ 0.28 g/t Au from 6m, 2m @ 0.44% Pb from 17m) to follow-up the significant intercepts and also to test both an arsenic surface geochemical anomaly and gravity high. RSRC009 passed through chlorite altered zones with disseminated sulphide mineralisation, returning a better intercept of 4m @ 0.48% Pb from 41m. About 140m to the south-east of RSRC009, drillhole RSRC010 was drilled down dip of drillhole RSRC003 (Nov 2015; 4m @ 1.88 g/t Au, 0.35% Pb from 61m), and whilst silicic and chlorite alteration was noted throughout the hole, no significant gold or base metal mineralisation was encountered. A further 115m to the south-east, drillhole RSRC011 was drilled down dip of RSRC007 (Nov 2015; 5m @ 0.76% Cu from 62m), returning a significant intercept of 2m @ 0.80% Pb from 61m. Sandy Creek Drilling also recommenced at the Sandy Creek prospect, where 2 RC drillholes were completed to further evaluate the potential southern extension of mineralisation and investigate a gravity high with an associated chargeability anomaly. RAB drilling over the area in late 2015 had returned several encouraging Pb and Zn intercepts, and RC drillholes PSCRC006 (150m) and PSCRC007 (200m) were drilled as follow-up to target potential shallow mineralisation. Final drilling data is still awaited for both holes, however, preliminary pXRF analysis has returned a few anomalous zones including 2m @ 0.58% Zn, 0.18% Pb from 119m, 2m @ 0.47% Zn, 0.35% Pb from 128m and 3m @ 0.43% Zn, 0.19% Pb from 142m in PSCRC007.
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Figure 3 - Wirlong Drill Plan
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Figure 4 - CSP Tenements & Prospects
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Iris Vale & Armageddon As at Wagga Tank, VTEM surveys were completed over the Armageddon prospect and the Iris Vale tenement, with preliminary data highlighting multiple anomalies for further investigation. At Iris Vale, a number of the anomalies appear to be coincident with areas of discrete and linear basement anomalies identified from the modelling of airborne magnetic survey data collected in October 2015. Areas of particular interest include the north-eastern portion of the Iris Vale tenement as well as the vicinity of the Marigold prospect along the western edge of the licence, where portable XRF sampling has also defined a surface Zn anomaly. Approximately 40km to the south, the Armageddon prospect is defined by anomalous Cu-Pb-As gossanous rocks over a strong N-S magnetic low, along which a series of anomalies have been identified from the latest VTEM survey. The area is to be covered with a partial leach soil sampling program in the near future. Bedooba The Bedooba prospect is defined by a NE/SW trending magnetic anomaly with coincident gravity high and a substantial pXRF soil geochemical anomaly along strike to the north-east. A follow-up partial leach soil sampling program (506 samples) was completed in November 2016. Results not only substantiate the pXRF data but also extend the As, Pb, Sb and Bi soil anomaly a further 800m to the north-east. A follow-up 3-drillhole RC drilling program is planned.
Mallee Bull Project: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 50% and Manager, CBH 50%). Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation. The Mallee Bull project is a 50:50 Joint Venture with CBH Resources Limited (CBH). A maiden JORC compliant Mineral Resource estimate was completed in May 2014, details of which can be found in the announcement released 27 May 2014; "High Grade Copper Resource at Mallee Bull". Drilling at Mallee Bull continued this quarter under CBH JV Program 7. RC drillhole MBRC062 was drilled to further test the strike and down dip potential of the T1 Zn-Pb-Ag-Au mineralisation however only weakly mineralised zones of Zn-Pb mineralisation were intersected. Additional close-spaced drilling surrounding the T1 area is anticipated with the aim of strengthening the existing Mallee Bull resource; the substantial zinc-lead rich mineralisation that has been intercepted at the deposit to date is still yet to be quantified. In the September quarter, a structural analysis of the Mallee Bull deposit was conducted for a better understanding of the mineralised system and to assist with drillhole targeting. One of the four main targets identified from the study was drill tested this quarter with drillhole MBRCDD063. The theorised down-plunge structural target to the south of Mallee Bull was considered a potential conduit for mineralisation however only minor mineralised intercepts were encountered, and a downhole EM survey of the hole identified no additional conductive bodies other than the main Mallee Bull deposit itself. Additional geophysics work in December comprised of a VTEM survey over the EL7461 tenement area, from which multiple anomalies were detected; final processing and interpretation of the data is still awaited and will be used to confirm any priority targets.
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Apollo Hill Project: Gold; Northeastern Goldfields WA (PEX 100%). Targets: Archean gold deposits. No field work was undertaken at the Apollo Hill Project during the quarter. Other Projects No fieldwork was undertaken on any other project during the quarter.
Corporate No corporate activity was completed during the quarter. Competent Persons Statements
The information in this report that relates to Exploration Results is based on information compiled by Mr Robert Tyson, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Tyson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Figure 5 - Mallee Bull Drill Plan
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Wagga Tank RC/Diamond Drill Collars
Hole ID Northing Easting Azi Dip Final Depth (m)
WTRC001 6387293 378794 312 -51 271
WTRCDD002 6387323 378820 312 -51 323.8
WTRC003 6387353 378847 312 -51 267
WTRCDD004 6387326 378877 312 -51 319
WTRCDD005 6387296 378850 312 -51 378.4
WTRC006 6387267 378823 312 -51 211
WTRC007 6387263 378767 312 -51 174
WTRC008 6387237 378797 312 -51 192
WTRC009 6387211 378827 312 -51 210
WTRC010 6387383 378873 312 -51 216
WTRC011 6387356 378903 312 -51 210
WTRC012 6387414 378900 312 -51 204
WTRC013 6387386 378929 312 -51 228
WTRC014 6387239 378854 312 -51 210
WTRCDD015 6387270 378881 314.53 -51.31 405.3
WTRCDD016 6387299 378906 312 -50 392.5
WTRC017 6387351 378952 312 -50 324
WTRC018 6387333 378931 312 -50 252
Siegal's Shaft/MD-2 RC Drill Collars
Hole ID Northing Easting Azi Dip Final Depth (m)
MD2RC002 6401300 393080 270 -60 100
MD2RC003 6401380 393060 270 -60 84
Wirlong, Red Shaft & Sandy Creek RC Drill Collars
Hole ID Northing Easting Azi Dip Final Depth (m)
WLRC029 6446864 418458 265 -55 156
WLRC030 6446898 418455 265 -55 156
WLRC031 6446941 418457 265 -55 162
WLRC032 6446978 418458 265 -55 138
WLRC033 6447019 418465 265 -55 126
WLRC034 6447055 418342 85 -55 150
WLRC035 6447057 418461 265 -55 150
WLRC036 6447098 418459 265 -55 144
WLRC037 6445081 418620 80 -60 349
RSRC009 6442004 419497 90 -60 312
RSRC010 6441867 419456 90 -60 414
RSRC011 6441758 419422 90 -60 372
PSCRC006 6434270 414569 300 -60 150
PSCRC007 6434125 414537 300 -60 200
Mallee Bull RC/Diamond Drill Collars
Hole ID Northing Easting Azi Dip Final Depth (m)
MBRC062 6413490 415285 90 -65 349
MBRCDD063 6413237 415441 258 -73 606.3
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Wagga Tank RC/Diamond Significant Assay Results (1m intervals)
Hole ID From (m) To (m) Cu (%) Pb (%) Zn (%) Ag (g/t) Au (g/t)
Peel Mining Limited – Quarterly Report December 2016 25
Table 1 - Section 1: Sampling Techniques and Data for Mallee Bull/Cobar Superbasin/Wagga Tank Projects
Criteria JORC Code explanation Commentary
Sampling techniques
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
Diamond and reverse circulation (RC) drilling were used to obtain samples for geological logging and assaying.
Diamond core was cut and sampled at 1m intervals. RC drill holes were sampled at 1m intervals and split using a cone splitter attached to the cyclone to generate a split of 2-4kg to ensure sample representivity.
Multi-element readings were taken of the diamond core and RC drill chips using an Olympus Delta Innov-X portable XRF tool. The portable XRF was calibrated against standards after every 30 readings.
Drilling techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
Drilling to date has been a combination of diamond, reverse circulation and rotary air blast. Reverse circulation drilling utilised a 5 1/2 inch diameter hammer. A blade bit was predominantly used for RAB drilling. NQ and HQ coring was used for diamond drilling.
Drill sample recovery
Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Core recoveries are recorded by the drillers in the field at the time of drilling and checked by a geologist or technician
RC and RAB samples are not weighed on a regular basis due to the exploration nature of drilling but no significant sample recovery issues have been encountered in a drilling program to date.
Diamond core is reconstructed into continuous runs on an angle iron cradle for orientation marking and depths are checked against the depths recorded on core blocks. Rod counts are routinely undertaken by drillers.
When poor sample recovery is encountered during drilling, the geologist and driller have endeavoured to rectify the problem to ensure maximum sample recovery.
Sample recoveries at Wirlong, Red Shaft, Sandy Creek and Mallee Bull to date have generally been high.
Sample recoveries at Wagga Tank have been variable with broken ground
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Criteria JORC Code explanation Commentary
occurring in places and poorer sample recoveries encountered. Insufficient data is available at present to determine if a relationship exists between recovery and grade. This will be assessed once a statistically valid amount of data is available to make a determination.
Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
All core and drill chip samples are geologically logged. Core samples are orientated and logged for geotechnical information. Drill chip samples are logged at 1m intervals from surface to the bottom of each individual hole to a level that will support appropriate future Mineral Resource studies.
Logging of diamond core, RC and RAB samples records lithology, mineralogy, mineralisation, structure (DDH only), weathering, colour and other features of the samples. Core is photographed as both wet and dry.
All diamond, RC drill holes in the current program were geologically logged in full, except at Wagga Tank where logging is still underway.
Sub-sampling techniques and sample preparation
If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material being sampled.
Drill core was cut with a core saw and half core taken.
The RC drilling rigs were equipped with an in-built cyclone and splitting system, which provided one bulk sample of approximately 20kg and a sub-sample of 2-4kg per metre drilled.
All samples were split using the system described above to maximise and maintain consistent representivity. The majority of samples were dry.
Bulk samples were placed in green plastic bags, with the sub-samples collected placed in calico sample bags
Field duplicates were collected by re-splitting the bulk samples from large plastic bags. These duplicates were designed for lab checks.
A sample size of 2-4kg was collected and considered appropriate and representative for the grain size and style of mineralisation.
Quality of assay data and laboratory tests
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
ALS Laboratory Services were used for Au and multi-element analysis work carried on out on 3m to 6m composite samples and 1m split samples. The laboratory techniques below are for all samples submitted to ALS and are considered appropriate for the style of mineralisation defined at Mallee Bull,
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Criteria JORC Code explanation Commentary
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
Wirlong, Red Shaft, Sandy Creek, Siegal’s Shaft/MD-2 and Wagga Tank:
o PUL-23 (Sample preparation code)
o Au-AA25 Ore Grade Au 30g FA AA Finish, Au-AA26 Ore Grade Au 50g FA AA Finish
o ME-ICP41 35 element aqua regia ICP-AES, or an appropriate Ore Grade base metal AA finish
o ME-ICP61 33 element 4 acid digest ICP-AES, with an appropriate Ore Grade base metal AA finish
o ME-MS61 48 element 4 acid digest ICP-MS and ICP-AES, with an appropriate Ore Grade base metal AA finish
Assaying of soil samples in the field was by portable XRF instrument Olympus Delta Innov-X Analyser. Reading time was 20 seconds per reading with a total 3 readings per sample.
The QA/QC data includes standards, duplicates and laboratory checks. Duplicates for drill core are collected by the lab every 30 samples after the core sample is pulverised. Duplicates for percussion drilling are collected directly from the drill rig or the metre sample bag using a half round section of pipe. In-house QA/QC tests are conducted by the lab on each batch of samples with standards supplied by the same companies that supply our own.
Verification of sampling and assaying
The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
All geological logging and sampling information is completed in spreadsheets, which are then transferred to a database for validation and compilation at the Peel head office. Electronic copies of all information are backed up periodically.
No adjustments of assay data are considered necessary.
Location of data points
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
A Garmin hand-held GPS is used to define the location of the samples. Standard practice is for the GPS to be left at the site of the collar for a period of 5 minutes to obtain a steady reading. Collars are picked up after by DGPS. Down-hole surveys are conducted by the drill contractors using either a Reflex gyroscopic tool with readings every 10m after drill hole completion or a Reflex electronic multi-shot camera will be used with readings for dip and magnetic azimuth taken every 30m
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Criteria JORC Code explanation Commentary
down-hole. QA/QC in the field involves calibration using a test stand. The instrument is positioned with a stainless steel drill rod so as not to affect the magnetic azimuth.
Grid system used is MGA 94 (Zone 55). All down-hole magnetic surveys were converted to MGA94 grid.
Data spacing and distribution
Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
Data/drill hole spacing is variable and appropriate to the geology and historical drilling.
3m to 6m sample compositing has been applied to RC drilling at Mallee Bull, Wirlong, Red Shaft, Sandy Creek, Siegal’s Shaft/MD-2 and Wagga Tank for gold and/or multi-element assay.
Orientation of data in relation to geological structure
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Most drillholes are planned to intersect the interpreted mineralised structures/lodes as near to a perpendicular angle as possible (subject to access to the preferred collar position).
Sample security
The measures taken to ensure sample security. The chain of custody is managed by the project geologist who places calico sample bags in polyweave sacks. Up to 5 calico sample bags are placed in each sack. Each sack is clearly labelled with:
o Peel Mining Ltd o Address of Laboratory o Sample range
Detailed records are kept of all samples that are dispatched, including details of chain of custody.
Audits or reviews
The results of any audits or reviews of sampling techniques and data.
Data is validated when loading into the database. No formal external audit has been conducted.
Table 1 - Section 2 - Reporting of Exploration Results for Mallee Bull/Cobar Superbasin/Wagga Tank Projects
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
The Mallee Bull prospect is wholly located within Exploration Licence EL7461 “Gilgunnia”. The tenement is subject to a 50:50 Joint Venture with CBH Resources Ltd, a wholly owned subsidiary of Toho Zinc Co Ltd.
The Cobar Superbasin Project comprises of multiple exploration licences that are subject to a farm-in agreement with JOGMEC whereby JOGMEC can earn up to 50%.
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Criteria JORC Code explanation Commentary
The Wagga Tank Project comprises of EL6695, EL7226, EL7484 and EL7581 and is 100%-owned by Peel Mining Ltd, subject to a 2% NSR royalty agreement with MMG Ltd.
The tenements are in good standing and no known impediments exist.
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties.
Work in the Mallee Bull area was completed by several former tenement holders including Triako Resources between 2003 and 2009; it included diamond drilling, IP surveys, geological mapping and reconnaissance geochemical sampling around the historic Four Mile Goldfield area. Prior to Triako Resources, Pasminco Exploration explored the Cobar Basin area for a “Cobar-type” or “Elura-type” zinc-lead-silver or copper-gold-lead-zinc deposit.
Work at Wagga Tank was completed by multiple previous explorers including Newmont, Homestake, Amoco, Cyprus, Arimco, Golden Cross, Pasminco and MMG.
Geology Deposit type, geological setting and style of mineralisation.
The Mallee Bull prospect area lies within the Cobar-Mt Hope Siluro-Devonian sedimentary and volcanic units. The northern Cobar region consists of predominantly sedimentary units with tuffaceous member, whilst the southern Mt Hope region consists of predominantly felsic volcanic rocks; the Mallee Bull prospect seems to be located in an area of overlap between these two regions. Mineralisation at the Mallee Bull discovery features the Cobar-style attributes of short strike lengths (<200m), narrow widths (5-20m) and vertical continuity, and occurs as a shoot-like structure dipping moderately to the west.
Wagga Tank, a volcanic-hosted massive sulphide (VHMS) deposit, is located ~130km south of Cobar on the western edge of the Cobar Superbasin. The deposit is positioned at the western-most exposure of the Mt. Keenan Volcanics (Mt. Hope Group) where it is conformably overlain by poorly-outcropping, distal turbidite sequence of carbonaceous slate and siltstone. Mineralisation is hosted in a sequence of rhyodacitic volcanic and associated volcaniclastic rocks comprising polymictic conglomerate, sandstone, slate, crystal-lithic tuff and crystal tuff. This sequence faces northwest, strikes northeast-southwest and dips range from
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Criteria JORC Code explanation Commentary
moderate westerly, to vertical, and locally overturned to the east. Mineralisation straddles the contact between the volcaniclastic facies and the siltstone-slate facies where there is a broad zone of intense tectonic brecciation and hydrothermal alteration (sericite-chlorite with local silicification).
Drill hole Information
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
All relevant information material to the understanding of exploration results has been included within the body of the announcement or as appendices.
No information has been excluded.
Data aggregation methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
No length weighting or top-cuts have been applied.
No metal equivalent values are used for reporting exploration results.
Relationship between mineralisation widths and intercept lengths
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
True widths are generally estimated to be about 90-100% of the downhole width unless otherwise indicated.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Refer to Figures in the body of text.
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
All results are reported.
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Criteria JORC Code explanation Commentary
Other substantive exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
No other substantive exploration data are available.
Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Future work at the Mallee Bull, Cobar Superbasin and Wagga Tank Projects will include geophysical surveying and RC/diamond drilling to further define the extent of mineralisation at the prospects. Down hole electromagnetic (DHEM) surveys will be used to identify potential conductive sources that may be related to mineralisation.
TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3 Granted tenements
TENEMENT PROJECT LOCATION OWNERSHIP CHANGE IN QUARTER
E39/1198 Apollo Hill Leonora, WA 100%
E39/1236 Apollo Hill Leonora, WA 100% Relinquished
P39/4588 Apollo Hill Leonora, WA 100%
P39/4589 Apollo Hill Leonora, WA 100%
P39/4590 Apollo Hill Leonora, WA 100%
P39/4591 Apollo Hill Leonora, WA 100%
P39/4592 Apollo Hill Leonora, WA 100%
P39/4677 Apollo Hill Leonora, WA 100%
P39/4678 Apollo Hill Leonora, WA 100%
P39/4679 Apollo Hill Leonora, WA 100%
E39/1887 Apollo Hill Leonora, WA 100% E40/0296 27 Well Leonora, WA 100% Relinquished
E40/0303 Bulyairdie Leonora, WA 100% Relinquished
M39/0296 Isis Leonora, WA 100%
E40/0337 The Gap Leonora, WA 100%
E31/1063 Apollo Hill South Leonora, WA 100%
E31/1075 Yerilla Leonora, WA 100%
E31/1076 Mt Remarkable Leonora, WA 100% M31/486 Apollo Hill ML Leonora, WA 100% E31/1087 Rise Again Leonora, WA 100% P31/2071 Rise Again Leonora, WA 100% P31/2069 Rise Again Leonora, WA 100% P31/2072 Rise Again Leonora, WA 100% P31/2073 Rise Again Leonora, WA 100% P31/2068 Rise Again Leonora, WA 100% P31/2070 Rise Again Leonora, WA 100%
E31/1116 Apollo Hill Leonora, WA 100%
EL8326 Attunga Attunga,NSW 100%
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ML1361 Mayday Cobar,NSW 50% Renewal sought
EL7461 Gilgunnia Cobar,NSW 50%
EL7711 Ruby Silver Armidale,NSW 100%
EL7519 Gilgunnia South Cobar,NSW 100%
EL7976 Mundoe Cobar,NSW 100%
EL8070 Tara Cobar,NSW 100%
EL8071 Manuka Cobar,NSW 100%
EL8105 Mirrabooka Cobar,NSW 100% 50% Renewed
EL8112 Yackerboon Cobar,NSW 100%
EL8113 Iris Vale Cobar,NSW 100%
EL8125 Hillview Nth Cobar,NSW 100%
EL8126 Norma Vale Cobar,NSW 100%
EL8201 Mundoe North Cobar,NSW 100% Renewal sought
EL8114 Yara Cobar,NSW 100% 50% Renewed
EL8117 Illewong Cobar,NSW 100%
EL8307 Sandy Creek Cobar, NSW 100% Renewal sought
EL8314 Glenwood Cobar, NSW 100%
EL8336 Brambah Cobar, NSW 100%
EL8345 Pine Ridge Cobar, NSW 100%
EL8391 Gilgunnia North Cobar, NSW 100%
EL8414 Mt Walton Cobar, NSW 100%
EL8426 Marygold Cobar, NSW 100%
EL8447 Linera Cobar, NSW 100%
EL8450 Beanbah Cobar, NSW 100%
EL8451 Michelago Cooma, NSW 100%
EL6695 Wagga Tank Cobar, NSW 100% Renewal sought
EL7581 Lowan Cobar, NSW 100% Renewal sought
EL7484 Mount View Cobar, NSW 100% Renewal sought
EL7226 Wongawood Cobar, NSW 100% Renewal sought
Tenements under application
TENEMENT PROJECT LOCATION STATUS
E31/1132 Apollo Hill Leonora, WA Under application
E31/1133 Apollo Hill Leonora, WA Application withdrawn
E39/1984 Apollo Hill Leonora, WA Under application
E39/1991 Apollo Hill Leonora, WA Under application