Perth, Oct 29, 2008 AEST (ABN Newswire) - Peel Exploration (ASX:PEX) Quarterly Activities Report For September 2008.
Highlights for September quarter 2008
- Extraordinary tungsten grades returned from metallurgical drilling at Attunga Tungsten Deposit - 42m at 2.09% WO3 and 0.17% Mo from 21m including 2m at 24% WO3 and 1.71% Mo from 22m in RC drillhole ATP1-D.
- Extensive gold mineralisation returned from RC drilling at Kensington - best results included 13m at 1.07 g/t gold from 49m (KENRC-17); 15m at 0.93 g/t gold from 29m (KENRC-8); 9m at 1.4 gold from 15m and 5m at 2.76 g/t gold from 60m (KENRC-9).
- Metallurgical and mineralogical studies on Attunga Tungsten Deposit underway.
- Commencement of in-house Conceptual Study on Attunga Tungsten Deposit.
- Lodgement of ELA covering historic Mount Tennyson East prospect.
Plans For December Quarter 2008
- Attunga Tungsten Deposit mineralogy and metallurgical studies continuing.
- Completion of in-house Conceptual Study on Attunga Tungsten Deposit.
- Field visits to Mt Patterson (Attunga Project), Dungowan, Barry, Waverley and Boorolong.
Exploration
Attunga Project: Gold, Tungsten, Molybdenum, Copper; NE NSW (PEX 100%).
Tenements: EL6883 (Mt Patterson), EL6884 (Attunga).
Targets: Intrusive-Related Gold System style gold-tungsten mineralisation; and skarn style tungsten-molybdenum mineralisation.
Peel was granted exploration licences covering the historic Attunga-Kensington gold-tungsten-molybdenum mineral fields in late 2007. The Attunga Project contains numerous historic mines, prospects and workings and investigations utilising historic exploration reports coupled with modern datasets indicate that the Attunga-Kensington mineralising structure bears the hallmarks of an Intrusive-Related Gold System (IRGS).
During and subsequent to the quarter, activity undertaken at the Attunga Project included:
- RC drilling at Kensington and Attunga Tungsten Deposit;
- Commencement of metallurgical and mineralogy studies;
- UV lamping and Niton XRF sampling at Attunga Tungsten Deposit and Prospect 2;
- Commencement of in-house Conceptual Study; and
- GIS data capture and desktop studies.
Attunga Tungsten Deposit (also known as Attunga Scheelite Deposit, Attunga Prospect 1)
The Attunga Tungsten Deposit was discovered in the late 1960s and with the exception of a single RC drillhole in 2006, which Peel subsequently discovered to be strongly mineralised, no noteworthy exploration has been completed since its discovery. In April 2008, Peel announced the completion of an independent resource estimate by Geos Mining Mineral Consultants for the Attunga Tungsten Deposit. An inferred resource of 1.29 Mt grading 0.61% WO3 and 0.05% Mo for 9,400t contained WO3 equivalent using 0.2% WO3 equivalent cutoff was defined.
Mineralisation at the Attunga Tungsten Deposit consists of proximal skarns developed at the contact of a lime-rich sequence with the Inlet Monzonite. The deposit remains open in several directions and future exploration will comprise infill and extensional drilling. At least five other outcrops of tungsten mineralised skarn in contact with the Inlet Monzonite have been identified and Peel believes strong potential exists for the discovery of additional resources.
Drilling
In August 2008, Peel announced that RC drilling at the Attunga Tungsten Deposit encountered extremely high-grade tungsten-molybdenum mineralisation confirming historic results that indicate the deposit has numerous high-grade zones.
An interval of 2m at 24.21% WO3 and 1.71% Mo from 22m downhole was obtained from RC drillhole ATP1-D. This interval was part of a larger mineralised interval of 42m at 2.09% WO3 and 0.17% Mo from 21m downhole (calculated using a 0.1% WO3 cutoff). Additional mineralisation was also encountered in RC drillhole ATP1-G returning 10m at 0.27% WO3 and 0.04% Mo downhole. Tungsten and molybdenum analyses were completed using pressed pellet XRF methodology by ALS Chemex. High-grade samples (>1.0% WO3) were check analysed by fusion XRF methodology.
Metallurgical testwork and mineralogy studies
In August 2008, Peel engaged NAGROM, metallurgical consultants, to complete Phase 1 (early warning) metallurgical testwork. At late October 2008, final Phase 1 testwork results were still pending; however Peel is encouraged by progress to date with indications of a potentially simple process flowsheet.
Several mineralogy/petrology studies on various samples from RC drillhole ATP1-D completed during the quarter identified a relatively coarse (0.1 to 1 mm) scheelite and molybdenite grain size offering additional encouragement regarding a potentially simple process flowsheet.
Subsequent to the quarter's end Peel received a detailed QEMSCAN (mineralogy) report investigating a variety of minerals characteristics associated with the Attunga Tungsten Deposit. Results also indentified relatively coarse scheelite and molybdenite grain sizes and indicate good liberation at various grind sizes. Interpretation of the report's findings is still underway.
Of particular note from both mineralogy reports is the high concentration of garnet mineralisation, also evident in outcrop and drillcore examinations, representing up to 80% of the tungsten-molybdenum bearing rock mass in some cases. Peel is investigating the potential economic implication of this mineral and notes its extensive use in sandblasting and water filtration industries.
Other work
Subsequent to the quarters end, Peel commenced an in-house Conceptual Study into development options for the Attunga Tungsten Deposit.
Peel also undertook a UV lamping survey at the Attunga Tungsten Deposit subsequent to the quarters end, in effort to identify the full extent of surface outcropping tungsten (scheelite) mineralisation. The information generated from this will aid future drilling and exploration planning.
Also subsequent to the quarters end, Peel successfully resurrected the original 1969 survey grid with the location of the original survey datum. Peel would like to thank John Love (Geopekos project geologist 1969) for his help in this endeavour.
Kensington Gold-Tungsten Prospect
The Kensington Gold-Tungsten Prospect located about 5km north-northwest of the Attunga Tungsten Deposit, represents a high-priority target within the Attunga Project area. Previous explorers have reported substantial gold and tungsten mineralisation at Kensington, including the delineation of historic tungsten resources.
During the quarter, an RC drilling programme at Kensington was concluded with 10 holes for 1,229m completed. Widespread gold mineralisation was encountered and continues to confirm that Kensington represents a significant gold-tungsten system. Encouragingly, gold mineralisation was intersected in all drillholes.
The drilling highlighted several areas requiring follow-up with a particular focus on the near-surface gold potential near KENRC-9, and about historic drillholes KENDDH-6 &-7. Drilling to date has been relatively shallow and Peel believes that good potential exists for the discovery of an economic gold system. In addition to the above gold results, significant tungsten mineralisation in the form of scheelite was also identified via Niton XRF analyser and UV inspection. Some tungsten anomalous samples were sent for analysis at ALS Chemex with certain individual metre intervals returning up to 0.21% WO3.
Geologically, the area at Kensington is complex, and more regionally, similarities between the Inlet Monzonite and the Cadia Hill Monzonite have been observed. Peel is encouraged by results received to date and plans to complete a full review of the data generated in effort to better focus future investigation.
Dungowan Project: Copper, Zinc, Gold, Silver; NE NSW (PEX 100%).
Tenement: EL6613.
Targets: Polymetallic VHMS mineralisation; syngenetic exhalative gold mineralisation; and epigenetic structurally-controlled gold mineralisation.
No fieldwork was completed during the quarter; however the licence was successfully renewed following a compulsory 50% relinquishment.
Peel's workplan at Dungowan for the coming quarter includes follow-up of geophysical targets.
Barry Project: Copper, Zinc, Gold, Silver; NE NSW (PEX 100%).
Tenement: EL6614.
Targets: Polymetallic VHMS mineralisation, intrusive-related precious/base metals mineralisation; and ultramafic-hosted nickel and PGEs.
No fieldwork was completed during the quarter; however the licence was successfully renewed following a compulsory 50% relinquishment.
Peel's workplan at Barry for the coming quarter includes the investigation of several other copper prospects (subject to access).
Waverley Project: Silver, Lead, Zinc, Gold; NE NSW (PEX 100%).
Tenement: EL6719.
Targets: Intrusive-related precious-base metals mineralisation.
No fieldwork was completed during the quarter.
Peel's workplan at Waverley for the coming quarter includes follow-up of magnetic anomalies defined by the recent geophysical survey.
Armidale Project: Silver, Gold, Antimony, Tungsten; NE NSW (PEX 100%).
Tenement: EL6722.
Targets: Intrusive-related precious metals mineralisation.
No fieldwork was completed during the quarter.
Further field investigation of Taits Gully is planned for the upcoming quarters.
Boorolong ELA: Molybdenum, Tin; NE NSW (PEX 100%).
Tenement: ELA3483.
Targets: Granite-hosted molybdenum and tin mineralisation.
No fieldwork was completed as Peel was still awaiting grant of the tenure.
Initial literature searches indicate possible high-grade molybdenum resources (non-JORC) remain present at Boorolong with little modern exploration.
Mt Tennyson East ELA: Molybdenum, Tungsten; Central NSW (PEX 100%).
Tenement: ELA3594.
Targets: Granite-hosted molybdenum and tin mineralisation.
During the quarter, Peel lodged ELA3594 covering the historic Mt Tennyson East (aka Kirk & Wade) molybdenum-tungsten prospect. Initial literature searches indicate that tungsten-molybdenum mineralisation at Mt Tennyson East possibly represents an extension to the current Mt Tennyson molybdenum resource, with minimal modern exploration having been undertaken.
Corporate
Shareholders are reminded of the Company's Annual General Meeting to be held at 3pm on Thursday 27th November, 2008 at The Vic, 1st Floor, 226 Hay St, Subiaco, WA 6008.
Contact
Peel Mining Limited
T: +61-8-9382-3955
F: +61-8-9388-1025
E: info@peelex.com.au
WWW: www.peelex.com.au
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