The diamond rig speared some 205m of mineralisation grading 1.4% copper and three grams per tonne silver from 434m, punctuated by multiple higher-grade hits such as 11m at 4.32% copper and 8gpt silver from 501m, 10m at 4.6% copper and 7gpt silver from 584m, and 16m at 2.02% copper and 3gpt silver from 622m.

 

The hole was drilled to extend the known mineralisation on the south-eastern edge of the Wirlong Central zone where there has been limited drilling, but where Peel's new structural interpretation suggested the mineralisation was likely to continue along strike.

 

Peel is planning further drilling to test this position, with magnetic data suggesting the Wirlong system could have a 4km strike.

 

Other intercepts in the program included 21m at 1.13% copper and 6gpt silver from 336m, including 6m at 2.2% copper and 9gpt, and 22m at 1.36% and 4gpt from 256m, including 2m at 3.7% copper and 12gpt.

 

The explorer is hoping to deliver a maiden resource later this quarter, with processing and assaying results expected in the coming weeks.

 

Recent metallurgical tests showed recoveries of 95% copper, resulting in a 32% copper concentrate, with promising ore sorting trails.

 

The company also has two diamond rigs at the nearby Mallee Bull, which Peel calls one of Australia's highest grade undeveloped copper deposits.

 

The latest assays have delivered impressive hits, such as 26.8m at 3.12% copper, 23gpt silver and 0.14gpt gold from 542m, including 10m at 5.9% copper, 30gpt silver and 0.12gpt gold.

 

Peel's interpretation is that the Mallee Bull lode thickens to the south.

 

Resource drilling continues, and an upgrade to the current 119,000t copper, 6.6 million ounce silver, 83,000oz gold, 38,000t lead and 38,000t zinc resource also due before the end of the year.

 

The last resource was calculated in 2017. 

 

Mallee Bull starts at about 60m below surface and has been defined to at least 800m depth, although the deposit remains open along strike as well. 

 

Peel is ultimately planning to build a central processing hub south of Cobar, with a feasibility study planned for 2022.

 

Peel shares jumped 11% in early trade to A25.5c, valuing it at $96 million. The stock has traded between 19.5c and 36c over the past year.

 

The company had almost $17 million cash at the start of June.