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Peel Mining (ASX:PEX) has significantly upgraded its Wagga Tank deposit in New South Wales, with a primary focus being on the development of the project as a significant, polymetallic open-pit resource.
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Only one part of the wider South Cobar project, the deposit now contains a pit-constrained mineral resource estimate of 3.56 million tonnes at 0.59% copper, 0.63 grams per tonne gold, 33g/t silver, 0.64% lead and 0.70% zin or 1.82% copper equivalent.
From this, Peel will yield approximately 21.1,000t Cu, 72.5,000 ounces Au, 3.77Moz Ag, 22.9,000t Pb, and 24.9,000t zinc.
Alongside that is an updated MRE for Southern Nights – another polymetallic deposit being investigated for underground mining potential.
This now contains 9.99Mt at 0.35% Cu, 0.41 g/t Au, 52 g/t Ag, 1.19% Pb, and 2.78% Zn.
Peel developed the MRE upgrade for its open pit at Wagga Tank from a new block model at $A40/t and $60/t net smelter return cut-offs within an optimal pit shell.
Meanwhile, the underground component is based on the January 2023 mineable shape constrained Southern Nights-Wagga Tank MRE at A$80/t NSR cut-off depleted by the new Wagga Tank pit shell with no other changes to the resource model or optimal stopes.
Technical director Rob Tyson said the achievement of this MRE upgrade was an important milestone for Peel – it should now enable the company to begin open pit operations outside of what had already been planned for South Cobar, based on its other deposits, Mallee Bull and Wirlong.
“Delineating a pit-constrained resource at Wagga Tank is a great outcome… with approximately 21,100 tonnes copper, 72,500 ounces gold, and 3.77 million ounces silver as well as significant lead and zinc defined within open pittable depths,” he said.
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He added: “Importantly, the open pit resource has [the] potential to transform Peel’s future mine plans, offering a lower capital development cost than the pre-feasibility study work which assumes Mallee Bull and Wirlong are developed as underground mines supplying ore to a new milling complex.”
Peel shares were trading at 7.7 cents at lunch today; a 6.94% rise.
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