The Peel Mining Ltd (ASX: PEX) share price lifted today after the company discovered more high-grade copper hits in its Wirlong mine in western New South Wales.
At the close of trade, the Peel Mining share price was up 2% at 25.5 cents per share.
Based in NSW, Peel Mining explores and develops precious, base, and specialty metals resources. In addition to its Peel segments, which bring in the vast majority of the company's revenue, it also has a farm-in agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC).
The company's drilling update today revealed that resource definition drilling at its 100%-owned Wirlong deposit had returned further broad and high-grade copper-mineralised intercepts. Wirlong is part of Peel's South Cobar Project, centred around 100km south of Cobar in western NSW.
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Peel Mining results
The company's latest drilling assays show significant zones of chalcopyrite dominant mineralisation in drilling. Four out of its five zones are operated at depths less than 300 metres, with intercepts ranging up to 25g/t up to 165 metres deep.
The company was originally planning to complete its drilling results using reverse circulation (RC) drilling. However, it has now switched to diamond drilling due to significant drillhole deviation since commencement.
Mineralisation returned from the resource definition drilling is generally consistent with the position of electromagnetic conductor plates, supporting the company's initial modelling on the mine.
What Peel management said
Peel Mining managing director Rob Tyson said the switch to diamond drilling was having a positive impact on Peel's discoveries.
Wirlong keeps producing excellent copper hits and, encouragingly, is indicating good vertical spatial continuity between intercepts. Underlining this is drillhole WLRC083 which is positioned 90m above from WLRC073 and has returned a broad interval of copper mineralisation to end of hole including a significant very high-grade interval.
The recent switch to diamond drilling provides additional valuable information to assist with our structural and geological modeling as well as material for metallurgical testwork. Once again, these results, coupled with the visuals and XRF analyses for drillholes still to be reported, assist in our goal of defining a high-grade maiden copper resource at Wirlong.
Peel Mining share price snapshot
The Peel Mining share price is up 128% this past year, but today's gains are against losses of 1.9% this week, 15% this month and 8.9% this year to date.
Despite this, the Peel Mining share price continues to beat its basic materials sector by 80% this year. The gains are likely a result of strong copper prices, which have surged more than US$1 per pound over the past 12 months, to their current price of US$3.98 per pound.
