Ann: Exceptional Zinc-Rich Discovery at Wagga Tank, page-44

Hi @Tradewyns

You ask

"Could you please explain to me why PEX decided to not drill out Mallee Bull after the spectacular hits in June 2015?

I am curious because most exploration companies would love to have hits like that and, if funded, would hammer the shyte out of it with multiple drill rigs."

The results to which you refer are from a near surface section of the deeper Mallee Bull Cu deposit that is rich Zn, Pb and Ag and Au. The area is known as T1 and was discovered in a similar way to Southern Lights by drilling an IP chargeability anomaly. I've extracted an image of the T1 anomaly from an April 2015 announcement for you to see below.



Curiously the company also targeted a coincident IP and magnetic anomaly at Southern Lights when they drilled diamond hole WTRCDD021 but so far I don't remember seeing any images of the IP anomaly (only the magnetics).

From yesterdays announcement.

"As previously reported, drillhole WTRCDD021 was designed to test coincident chargeable IP and magnetic geophysical anomalies, and was collared approximately 1km south of the Wagga Tank deposit at what is now termed the Southern Nights area."

Below I've found a 2015 image of the T1 (Zn-Pb-Ag-Cu-Au mineralised) zoned at Mallee Bull in relation to the deeper primary Cu ore body.


T1 seems to be a small Zn-Pb-Ag-Au rich zoned continuation of the hanging wall of the dominantly Cu mineralised Malle Bull deposit. I suppose this begs the question in relation to the new Southern Nights Zn-Pb-Ag discovery. Is it a Zn rich zone of a deeper Cu deposit similar to Mallee Bull and what is the exact relationship between the Southern Nights mineralisation and that at Wagga Tank?

As far as your original question goes PEX have drilled (and are drilling out) the T1 zone at Mallee Bull and it's currently the subject of mining prefeasibility study in which the costs are being shared with PEX's 50% partners at Malle Bull, CBH resources, who operate the Endeavour zinc silver mine (which is approximately 145km north of Mallee Bull and I guess about 85km north of the Wagga Tank/Southern Nights).

Hope this helps. Esh