Pegmont Mines Limited (NSX:PMI) Annual Report - 31 December 2020

Sydney, Mar 15, 2021 AEST (ABN Newswire) - During 2020, the main emphasis of Pegmont Mines Limited's (NSX:PMI) exploration was directed at the Canyon EPM 27345 costing $79,000 and the Mount Kelly Trend regional analysis; an area of known copper mineralisation associated with significant faults.

The Canyon tenement is located between Mount Kelly and McLeod Hill copper deposits which are associated with a deep North-South structure called McNamara Fault.

We have undertaken a detailed analysis of previous exploration (mainly conducted by CRA in the 1990s) including drilling, and concluded that deep cover in the area has largely hidden the underlying geological formation of Dolomitic Siltstone that may host copper-gold mineralisation. The least risk option for confirming copper mineralisation is to drill the northern strike extension of the McNamara Fault from the known mineralisation at McLeod Hill, towards the Canyon prospect.

A draft Plan of Operations for 10 RC holes totalling 1,000-1,200 metres has been prepared for presentation to the Landholder and Native Title interests, prior to drilling due May-June 2021.

The Canyon tenement is close (3-5 kilometres) to the Mount Kelly Operational infrastructure (Map 4) owned by another party used to treat oxide ores by Solvent Extraction and Electro-Winning (SXEW) to produce high quality (99.99% pure) copper cathode. Their camp facilities are available to us for access to the tenement.

Additional outcrop sampling was conducted at Mingera $79,000 to firm up a geochemical anomaly prior to seeking an Option deal package, including Templeton, with a major mining group. Negotiations have resulted in a subsequent offer being received in February 2021.

No drilling was conducted at either Mingera or Templeton during the year due to COVID-19 access restrictions on personnel entering the Mount Isa district.

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