Peel Exploration to look for Cobar gold
Wednesday September 30, 2009
A new exploration company has entered the Cobar region, recently acquiring an exploration licence for an area south of Cobar.
Peel Exploration Ltd announced last week it has acquired a 100 per cent interest in the May Day deposit, near Gilgunnia, believed to have promising gold base metal prospects.
“It offers a potentially rapid path to production and cashflow, benefiting from its situation on a granted mining lease located in one of Australia’s major mining districts,” Peel Exploration managing director Rob Tyson said.
“Available data suggests the presence of open, high grade gold base metal mineralisation with minimal recent exploration, offering excellent exploration potential,” he said.
The company’s exploration licence covers an area of 84km² encompassing the May Day deposit, as well as Gilgunnia and Four-Mile goldfields.
Mr Tyson said the May Day site was originally discovered in 1898 and developed as an underground copper, lead and silver mine.
Further exploration was carried out in the area in the 1970s and 1980s, with a small scale mining operation carried out in 1996.
“The May Day deposit exhibits similarities to the nearby Hera gold base metal deposit.
“Peel considers the May Day deposit to potentially represent the upper levels of large scale Cobar-style mineralisation such as CSA, Peak and Endeavor,” Mr Tyson said.
“Mining infrastructure in the region is well established and the opportunity may also exist for limited capital expenditure if an economic resource is recognised, with the possibility of trucking ore for toll treatment at nearby underutilised processing plants.”
Peel Exploration now plans to compile all available data, before embarking on a new drilling program to further define the May Day resource.
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