weekend lounge short term trading 23 -25th aug, page-15

Entry for STT: PEX, Peel Mining Limited, Copper Exploration, Cobar Region, NSW, FA.

Exploration at the company's flagship Mallee Bull project in the Cobar region of NSW has recently begun with the commencement of the phase 4 drilling program.

The mineralisation at Mallee Bull produces both magnetic and electromagnetic signals. What excites me is that DHEM survey data from a 2012 hole at the Butchers Dog prospect (located 1km north of Mallee Bull) drilled in the centre of a very large anomaly, has identified a moderate to strong off hole anomaly thought to be located within 200m of the depth of the hole. Peel believes that there is potential that the Butchers Dog anomaly is associated with the mineralisation at Mallee Bull. If this proves to be true, then the extent of the mineralised system at Mallee Bull could become significantly larger. Plans for the September quarter include refining the geometrical data with additional DHEM followed by drill testing.

In addition to the drilling at Mallee Bull, exploration has begun on the company's recently acquired 100% owned Sandy Creek prospect to test geophysical anomalies. Sandy creek was acquired from private interests and is located 20km to the north of the Mallee Bull project.

A review of exploration data was completed and there are strong similarities to results from early stage exploration at Mallee Bull. The geological and structural settings show similarities along with coincident magnetic and electromagnetic anomalies. A strong DHEM anomaly has been identified as well as strong geochemical anomalism supported by high grade polymetallic historic drilling results. Subsequent to the quarter, initial exploration of Sandy Creek by Peel utilising a high DHEM survey confirmed the presence of the strong offhole anomaly and this anomaly remains largely untested by drilling. Follow up exploration including drilling is scheduled to commence around now.

Results from the company’s drilling programs should start to flow soon which is likely to drive a rapid increase in the market’s interest for Peel Mining.