Mallee Bull

Project Snapshot

Status Advanced Exploration
Location Gilgunnia goldfields, 100km south of Cobar, NSW.
Area Size Exploration Lease covers ~85km2

The current Mineral Resource model is confined within an area of approximately 560 x 340m and 800m vertically.

Commodity Copper, Silver, Gold, Lead, Zinc
Ownership 100% Peel Mining Limited
Mineral Resource Mineral Resource July 2017

6.76 million tonnes at 1.8% copper, 31 g/t silver, 0.4 g/t gold, 0.6% lead and 0.6% zinc (a combined total of 2.6% copper equivalent) containing approximately 119,000 tonnes of copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000t lead and 38,000t zinc (175,000t copper equivalent) (using a 1% copper equivalent cut-off)

Current Activities Planned 15,000m of infill resource drilling in an effort to define a predominantly indicated classified mineable resource, allowing an existing internal scoping study for Mallee Bull to then be updated to reflect its potential contribution to a conceptual stand-alone mill. Drilling expected to commence in the latter half of 2021.

Other activities include metallurgical test work, geotechnical studies, underground mining studies, and resource modelling and estimation.

 

Overview

The Mallee Bull Copper Project is located approximately 100km south of Cobar in western NSW and is situated on a 20,000-acre pastoral lease owned by Peel Mining.

Mallee Bull has been a flagship project for Peel since the initial discovery of 2010 and has been defined into one of the highest-grade undeveloped copper deposits in Australia, featuring classic ‘Cobar-style’ Cu-Ag-Au-Zn-Pb mineralisation with attributes comparable to Cobar’s world class CSA Mine. Mineralisation commences at ~60m below surface and has been defined to at least 800m below surface and remains open along strike and depth.

Current project objectives entail upgrading of the current Cu dominant resource, focusing on increasing the Indicated classification.

Brief History

In 2009, Peel finalised the acquisition of exploration lease EL7461 which encompassed the historic Gilgunnia and 4-Mile goldfields, it also contained the mining lease, ML1361, the May Day Project, another of Peel’s flagships.

Initial exploration primarily focused on the known polymetallic potential of May Day until, in late 2010, an airborne electromagnetic geophysical survey resulted in the recognition of a coincident late time conducting anomaly and magnetic high proximal to the historic 4-Mile goldfields.

The anomaly was confirmed by a subsequent ground-based geophysical survey in early 2011, and follow-up RC and diamond drilling resulted in the discovery of strongly anomalous polymetallic (gold-silver-copper-lead-zinc) mineralisation.

In 2012, CBH Resources Limited signed a farm-in agreement to acquire 50% of the Mallee Bull and May Day projects. During the JV partnership, seven drill programs were completed at the Mallee Bull Project, as well as the release of a maiden mineral resource in 2014 and an updated resource in 2017.

In 2020, Peel exercised its pre-emptive right to acquire CBH Resources Limited’s 50% share of the Mallee Bull Joint Venture by matching a third party’s unconditional offer, regaining 100% control of the high-grade Mallee Bull copper deposit and the gold-polymetallic May Day deposit.

Exploration & Geology

Since discovery in 2010, drilling activities at Mallee Bull and proximal targets include 125 RAB holes, 153 RC holes (including 42 with diamond tails), and 51 diamond holes (including 11 wedge holes), this for a total of approximately 9,500m of RAB drilling, 28,400m of RC drilling, and 30,500m of diamond drilling to the end to 2020.

Other exploration activities completed by Peel during it’s tenure include soil and rock chip sampling (including lab assay as well as portable XRF), geological mapping, and a number of geophysical survey techniques.

Mallee Bull is interpreted to be in a favourable geological and structural position; it is situated in the suitably high-stress environment of the “nose” of an anticline and occurs in a geological sequence of turbidite and volcaniclastic sediments which are thought to be age equivalent to the Chesney and Great Cobar Slate Formations found in the immediate Cobar region. Mineralisation occurs either as massive sulphide or hydrothermal breccia styles within a package of brecciated volcaniclastic and turbidite sediments comprising siltstones and mudstones and is interpreted to occur as a shoot/lens-like structure dipping moderately to the west. The deposit is split into three lenses: Silver Ray, Union, and Mallee Bull Deeps.

Resource

A Maiden Mineral Resource was released in May 2014 and was subsequently upgraded in July 2017. The 2017 model comprises 6.76 million tonnes at 1.8% copper, 31 g/t silver, 0.4 g/t gold, 0.6% lead and 0.6% zinc (a combined total of 2.6% copper equivalent) containing approximately 119,000 tonnes of copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000t lead and 38,000t zinc (175,000t copper equivalent) (using a 1% copper equivalent cut-off). Refer to 6th July 2017 announcement “Mallee Bull Resource Grows by 65% to 175,000t CuEq” for further details.

Resource Classification Kt CuEq % Cu % Ag g/t Au g/t Pb % Zn %
Indicated 1,340 2.15 0.91 30 0.4 0.96 1.23
Inferred 5,420 2.7 2 31 0.4 0.5 0.4
Total Resource 6,760 2.6 1.8 31 0.4 0.6 0.6