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PEEL MINING LIMITED Interim / Quarterly Report 2015

Jul 30, 2015

65545_rns_2015-07-30_723352fb-5fb5-4dec-b0a6-939520c1a031.pdf

Interim / Quarterly Report

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JUNE 2015 QUARTERLY REPORT 31 JULY 2015

Peel Mining Limited ASX code: PEX ACN: 119 343 734

Unit 1, 34 Kings Park Rd West Perth, WA 6005

Ph: (08) 9382 3955 Fax: (08) 9388 1025 E: [email protected] Web: www.peelmining.com.au

Contact:

Rob Tyson Managing Director [email protected]

About Peel Mining Limited:

  • The Company’s five projects cover more than 4,000 km[2 ] of highly prospective tenure in NSW and WA.

  • Mallee Bull is an advanced copperpolymetallic deposit that remains open in many directions.

  • Cobar Superbasin Project Farm-in Agreement with JOGMEC offers funded, highly-prospective and strategic greenfields exploraiton potential.

  • Apollo Hill hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike.

  • Attunga Tungsten Deposit is a high grade tungsten deposit.

  • Ruby Silver project contains several historic high-grade silver mines.

  • 132 million shares on issue for $34m Market Capitalisation at 29 July 2015.

Highlights for June quarter 2015

RC drilling at the T1 target, Mallee Bull returns near surface, very high grade zinc-leadsilver-gold mineralisation, with significant intercepts including:

  • 10m @ 15.8% Zn, 7.6% Pb, 322 g/t Ag, 1.28 g/t Au from 106m in MBRC018

  • 12m @ 20.3% Zn, 14.8% Pb, 308 g/t Ag, 1.59 g/t Au from 83m in MBRC024

  • 7m @ 21.4% Zn, 12.7% Pb, 203 g/t Ag, 0.58 g/t Au from 71m in MBRC028

Substantial zinc-lead mineralisation has previously been intercepted elsewhere at Mallee Bull, remains open and is yet to be formally quantified. This mineralisation possibly represents the down-dip continuation of mineralisation intercepted at T1, which also remains open along strike to the north and south, and up and down dip.

Next stage of exploration activities for the Cobar Superbasin Project under the JOGMEC MoA, encompassing $1.5M expenditure, commenced with MLEM surveys at Mundoe, Burthong, Wirlong and Red Shaft.

RAB drilling at the 'Mud Hut/40G' prospect on E31/1063 (part of the broader Apollo Hill gold project), where previous rock chip sampling results included 42.9 g/t Au and 10.9 g/t Au returns anomalous values with better intercepts including 2m @ 1.32 g/t Au from 16m and 2m @ 2.11 g/t Au from 22m in 40GRAB12 and 1m @ 1.09 g/t Au from 18m in 40GRAB17.

Plans for September quarter 2015

RC drilling at Mallee Bull (now underway) to follow-up very high-grade zinc-lead-silver-gold mineralisation intercepted at the T1 target.

Cobar Super Basin activities comprise MLEM and gravity surveys, RAB and RC drilling at Mundoe, Burthong, Wirlong, Red Shaft and Sandy Creek.

Peel Mining Limited – Quarterly Report June 2015

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Exploration

Mallee Bull Project: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 50% and Manager, CBH 50%).

Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation.

The Mallee Bull project is a 50:50 Joint Venture with CBH Resources Limited (CBH). A maiden JORC compliant Mineral Resource estimate was completed in May 2014, and comprises 3.9Mt at 2.3% copper, 32 g/t silver and 0.3 g/t gold. Details can be found in the announcement released 27 May 2014; "High Grade Copper Resource at Mallee Bull".

In February 2015, an Orion 3D DC-IP-MT survey, covering approx. 5km[2] centred on the Mallee Bull deposit, was completed in conjunction with a high-resolution (50m line-spacing) airborne magnetics survey, aiming to increase the scale of the known mineralised system. Orion 3D is a state-of-the-art geophysical system that acquires three sets of data in multiple directions - DC (direct current), IP (induced polarisation) and MT (magnetotellurics) - providing a high-resolution and deep-penetrating three dimensional survey. 3D inversion modelling of the data and subsequent interpretation identified two areas of strong chargeability for drill testing, both occurring in close proximity to Mallee Bull.

T1 Target

The first target (T1) is defined as a near surface, strong chargeable and low resistivity response located in an up-dip position to the east of Mallee Bull, and is coincident with a gravity high. RC drilling at T1 in April/May of this quarter encountered substantial near-surface zinc-lead-silver-gold mineralisation comprising sphalerite-galena-pyrite sulphides in stringer to massive accumulations within fresh turbidite sediments of the Shume Formation. Mineralisation was intersected in all 21 holes (MBRC013, MBRC016 to MBRC035) to varying degrees, with nine of the twenty-one drill holes intersecting high-grade mineralisation to within 50m of surface. Mineralisation is occurring in a position close to the interpreted axial plane of an anticline and is considered to be dipping about 45 degrees to the west. Down hole widths are interpreted to approximate true widths. Better results are detailed in Table 1 below.

Table 1: T1 - Summary of important drill results

Hole ID From(m) To(m) Width(m) Zn(%) Pb(%) Ag (g/t) Au(g/t)
MBRC016 131 138 7 6.08 3.42 76 0.25
MBRC018 106 116 10 15.82 7.60 322 1.28
MBRC019 88 92 4 8.21 3.35 113 1.02
MBRC021 95 101 6 10.30 4.98 159 0.76
MBRC023 121 127 6 10.57 4.81 53 0.39
MBRC024 83 95 12 20.30 14.81 308 1.59
MBRC028 71 78 7 21.39 12.74 203 0.58
MBRC030 77 80 3 16.05 7.48 174 0.21
MBRC034 50 58 8 2.13 6.98 130 0.49

Substantial zinc-lead rich mineralisation has previously been intercepted at Mallee Bull, most notably on the northern end of the current resource model where it has been defined to more than 500m below surface and remains open. This mineralisation possibly represents the down-dip continuation of the mineralisation currently intercepted at T1. No resource estimates have been made for zinc-lead mineralisation to date. T1, which remains open along strike to the north and south and up and down dip, potentially offers a substantial lift to the quantum of this mineralisation.

Subsequent to the quarter’s end, a follow-up programme comprising a minimum of 2,400m RC designed to test for extensions to the high grade mineralisation recently intercepted at T1.

Peel Mining Limited – Quarterly Report June 2015

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Figure 1 – Mallee Bull JV Section 6413410N

Peel Mining Limited – Quarterly Report June 2015

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Figure 2 – Mallee Bull JV Section 6413410N T1

Peel Mining Limited – Quarterly Report June 2015

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Figure 3 - Mallee Bull JV T1 Drill Plan

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Figure 4 - Mallee Bull T1 Oblique View with Cu-Ag-Au Resource Domains and Gravity Model

Peel Mining Limited – Quarterly Report June 2015

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T2 Target

Target 2 (T2) is defined as a moderate to strong chargeable anomaly located approximately 250m to the west of Mallee Bull, commencing at ~250m below surface and continuing to about ~450m below surface. A single diamond hole (MBDD025) for a total 500m was drilled to test the anomaly, and whilst zones of chlorite alteration and fracturing were noted in the drillcore, only minor disseminated sulphide mineralisation was noted at depths shallower than the target zone. A DHEM survey was completed, and excepting an off-hole anomaly interpreted to be consistent with the Mallee Bull conductor, no further anomalies were observed.

Additional Targets

Target 3 (T3) is a substantial remanent (negative) magnetic feature located ~500m southeast of Mallee Bull. T3 is located in close proximity to the centre of the historic 4-Mile gold workings and has anomalous surface and RAB drillhole geochemistry (Au-As) located above it. A deep diamond drillhole to test T3 was deferred following the discovery of significant mineralisation at T1. Target 4 (T4), a small, strong magnetic high located ~1,200m to the east of Mallee Bull was tested with drillholes MBRC014 and MBRC015. No significant mineralisation was intercepted however disseminated pyrrhotite was identified over broad intervals and elevated magnetic susceptibility readings were noted. A DHEM survey was completed on hole MBRC015, and whilst no bedrock conductors proximal to the hole were identified, there was evidence for a distal off-hole anomaly for which a unique source location could not be determined. Additional geophysics, such as a Fixed Receiver Electromagnetic (FREM) survey, has been recommended to potentially upgrade the priority of this anomaly.

Cobar Superbasin Project: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 100%).

Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation.

As announced in the September 2014 quarter, the Cobar Superbasin Project is subject to a Memorandum of Agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC), under which JOGMEC may earn up to 50% interest by funding up to $7 million of exploration. Details of the JOGMEC MoA can be found in Peel's ASX Announcement released on 30 September 2014.

Subsequent to the quarter’s end, the second year of exploration under the JOGMEC MoA, encompassing $1.5 million expenditure, commenced; activities are to comprise MLEM and gravity surveys, RAB and RC drilling at Mundoe, Burthong, Wirlong, Red Shaft and Sandy Creek.

At the Mundoe prospect, a moving loop electromagnetic (MLEM) survey consisting of 6 traverses for a total 7.2 line km has been completed over the main mineralised zone, where RC drilling in the December quarter returned highly encouraging results including 26m @ 15.2 g/t Ag, 0.33% Cu from 97m, 1m @ 71 g/t Ag, 2.89% Cu from 165m in MURC011, 8m @ 55.3 g/t Ag, 0.15% Cu from 205 and 2m @ 138 g/t Ag, 0.13% Cu from 209m in MURC012, with the latter two intercepts potentially extending known mineralisation at Mundoe approximately 100m further south.

To the west of the main prospect, interpretation of recently acquired airborne magnetic data delineated a large lineament with an interpreted dextral offset of ~1km, with mineralisation at Mundoe appearing to be parallel to this structure. Two distinct magnetic high targets identified along the lineament, and an additional MLEM survey has been completed over the north-west magnetic target, also for a total 7.2 line km.

Peel Mining Limited – Quarterly Report June 2015

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Figure 5 – Mundoe RTP Magnetics with Drilling and MLEM lines

MLEM surveys have also been conducted over the Wirlong and Red Shaft prospects, where RAB drilling was completed in December last year to test significant surface geochemical anomalies. Highly anomalous base and precious metals mineralisation was returned, including 9m @ 2.19% Pb, 0.11% Zn from 1m and 6m @ 1.01% Pb from 13m in WLRAB004, and 15m @ 0.86 g/t Au from 7m in RSRAB035. Details can be found in the December 2014 quarter, and the exploration update released 11 March 2015; "Exploration Update - Strong Mineralisation at Wirlong, Red Shaft, Sandy Creek".

Data from the MLEM surveys are still pending and, as at Mundoe, is expected to assist with drill planning.

Apollo Hill Project: Gold; Northeastern Goldfields WA (PEX 100%).

Targets: Archaean gold deposits.

Regional exploration activities over the broader Apollo Hill tenement package continued in the June quarter, which saw all Exploration Licence applications granted consolidating Peel's WA landholding now to over 550km[2] of tenure, with multiple prospective targets now identified away from the main Apollo Hill resource.

Peel Mining Limited – Quarterly Report June 2015

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Figure 6 - Apollo Hill Project Tenements and Geology

At the Mud Hut/40G prospect located on E31/1063, where geochemical sampling previously identified an area of anomalous gold values including 42.0 g/t Au, 10.9 g/t Au and 7.39 g/t Au, a small orientation auger survey was undertaken, with anomalous gold values returned including a 0.21 g/t Au sample northnortheast along the same strike trend as the aforementioned high grade Au samples.

In May, 37 shallow RAB holes were completed at Mud Hut/40G as follow-up with encouraging results returned, including:

  • 2m @ 0.53 g/t Au from 9m in 40GRAB03

  • 2m @ 1.32 g/t Au from 16m and 2m @ 2.11 g/t Au from 22m in 40GRAB12

Peel Mining Limited – Quarterly Report June 2015

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  • 1m @ 1.09 g/t Au from 18m in 40GRAB17

  • 2m @ 0.60 g/t Au from 28m in 40GRAB020

  • 2m @ 0.52 g/t Au from 18m to EOH in 40GRAB021

Additional auger sampling has subsequently extended coverage to the north, south and east of the RAB drilling, with anomalous gold values of up to 110ppb Au returned towards the east along an interpreted NE trending magnetic structural feature. Auger sampling also continued at the Stockdale prospect approximately 3.5km NE of Mut Hut/40G, with anomalous gold values of up to 310ppb Au.

Further drilling and surface sampling is planned at both prospects for the next quarter.

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Peel Mining Limited – Quarterly Report June 2015

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Other Projects

No fieldwork was undertaken on any other project during the quarter.

In the upcoming quarter Peel plans to drill its 100%-owned Orana prospect near Ivanhoe, western NSW (EL8216). The Orana prospect is defined by a strong, discrete magnetic anomaly (centred at 227800E 6375300N - MGA55 GDA94) and was previously identified by CRA Exploration on the basis that it might represent a shallowly buried Elura-type body in Devonian sediments. In 1983 CRAE attempted to drill the prospect, however drillhole RD83OR1 was abandoned at 127m following the collapse of PVC casing. RD83OR1 intersected Devonian acid porpohyry from 93m to 127m, however the magnetic susceptibility of the acid porphyry was deemed insufficient to explain the magnetic anomaly. The Orana prospect was recently awarded co-operative drill funding of up $55,000 under the New Frontiers Cooperative Drilling program. Peel plans to complete a single diamond drillhole at Orana in early August.

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Corporate

Peel received a tax refund of $1.19m (before costs) for 2013/14 year in relation to Research & Development activities undertaken by the Company.

For further information, please contact Managing Director Rob Tyson on mobile (08) 9382 3955.

Competent Persons Statements

The information in this report that relates to Exploration Results is based on information compiled by Mr Robert Tyson, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Tyson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Peel Mining Limited – Quarterly Report June 2015

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Mallee Bull Drill Collars

Hole ID Northing Easting Azi Dip Final Depth(m)
MBDD025 414888.8 6413340 80.0 -60.5 498.3
MBRC013 415380 6413390 90.1 -60.2 250
MBRC014 416573.5 6413692 265.8 -69.8 217
MBRC015 416522.7 6413685 271.8 -64.8 250
MBRC016 415340.4 6413390 83.7 -62.2 250
MBRC017 415340.2 6413430 89.9 -59.6 250
MBRC018 415380.2 6413430 87.0 -60.1 250
MBRC019 415400.7 6413430 90.8 -60.2 164
MBRC020 415360.2 6413430 90.8 -60.3 200
MBRC021 415400.4 6413451 90.8 -60.8 200
MBRC022 415380.2 6413451 90.8 -60.2 200
MBRC023 415359.9 6413451 90.8 -59.9 200
MBRC024 415400.2 6413410 90.8 -60.3 160
MBRC025 415380.8 6413410 90.8 -60.5 181
MBRC026 415399.3 6413390 91.8 -60.2 150
MBRC027 415420.5 6413389 90.8 -60.6 140
MBRC028 415420.2 6413410 90.8 -60.0 150
MBRC029 415420.1 6413430 90.8 -60.0 150
MBRC030 415421.3 6413451 90.8 -60.5 150
MBRC031 415340.1 6413451 90.8 -60.2 242
MBRC032 415441.5 6413389 90.8 -59.9 128
MBRC033 415441.5 6413410 90.8 -59.7 122
MBRC034 415440.6 6413431 90.8 -60.2 128
MBRC035 415443.9 6413454 90.8 -60.4 122

Mallee Bull T1 RC Drilling Significant Assay Results (1m intervals)

Hole ID From(m) To(m) Zn(%) Pb(%) Cu(%) Ag (g/t) Au(g/t)
MBRC013
MBRC013
MBRC013
MBRC013
MBRC013
MBRC013
MBRC013
MBRC013
MBRC013		 139
140
141
142
175
176
184
185
191		 140
141
142
143
176
177
185
186
192		 1.88
1.62
0.24
2.35
1.72
3.37
2.48
1.80
1.33		 0.35
0.62
0.23
0.80
0.39
0.70
0.29
0.25
1.06		 0.30
0.07
0.02
0.05
0.01
0.04
0.05
0.12
0.10		 16
32
15
43
7
14
10
9
40		 0.41
0.14
0.08
0.11
0.48
0.23
0.17
0.22
0.01
MBRC016
MBRC016
MBRC016
MBRC016
MBRC016
MBRC016
MBRC016
MBRC016
MBRC016		 131
132
133
134
135
136
137
174
177		 132
133
134
135
136
137
138
175
178		 22.40
4.80
3.19
3.41
3.35
3.90
1.54
0.59
1.38		 13.10
2.18
1.61
1.13
1.54
1.95
2.44
0.60
0.26		 0.06
0.04
0.03
0.04
0.04
0.05
0.05
0.07
0.08		 414
45
20
10
13
15
15
10
6		 0.49
0.33
0.44
0.39
0.06
0.02
0.02
-0.01
0.07
MBRC017
MBRC017
MBRC017		 134
137
145		 135
138
146		 0.10
0.21
0.05		 0.53
1.87
0.86		 0.02
0.06
0.04		 10
15
9		 0.01
0.01
0.04

Peel Mining Limited – Quarterly Report June 2015

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Hole ID From(m) To(m) Zn(%) Pb(%) Cu(%) Ag (g/t) Au(g/t)
MBRC017
MBRC017
MBRC017
MBRC017
MBRC017		 160
163
164
165
194		 161
164
165
166
195		 0.07
0.69
0.44
0.20
0.61		 0.11
0.50
0.42
1.13
0.19		 0.11
0.08
0.06
1.05
0.73		 5
17
16
25
8		 -0.01
0.02
0.02
0.04
0.04
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018
MBRC018		 104
106
107
108
109
110
111
112
113
114
115
116
117
133
155
156
221
235		 105
107
108
109
110
111
112
113
114
115
116
117
118
134
156
157
222
236		 0.19
10.80
16.40
17.00
14.75
12.35
14.80
16.50
18.20
22.90
14.45
1.29
0.89
1.33
0.67
2.31
0.08
0.14		 0.85
4.83
7.35
7.70
6.76
5.76
6.55
7.43
10.00
11.85
7.77
0.70
0.97
0.70
0.42
1.95
0.11
0.17		 0.03
0.05
0.14
0.10
0.12
0.07
0.08
0.09
0.11
0.42
0.28
0.04
0.03
0.39
0.55
1.12
0.04
0.14		 27
176
297
299
273
250
288
326
421
540
354
35
31
20
16
67
9
14		 0.02
1.02
1.43
1.56
1.54
1.75
2.03
0.51
1.83
0.87
0.22
0.22
0.05
0.1
0.18
0.28
0.02
0.04
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019
MBRC019		 87
88
89
90
91
92
93
94
95
116
122
144
145
146
147
148
149
150
151		 88
89
90
91
92
93
94
95
96
117
123
145
146
147
148
149
150
151
152		 0.55
2.43
19.15
9.07
2.17
0.50
0.93
0.63
0.48
0.60
1.46
0.12
1.19
0.38
0.07
1.44
0.31
2.28
0.74		 0.28
1.21
7.94
3.46
0.80
0.19
0.47
0.26
0.34
0.56
0.58
0.32
3.34
1.48
0.09
0.91
0.15
4.28
1.12		 0.02
0.02
0.10
0.13
0.04
0.02
0.02
0.02
0.02
0.34
0.08
0.28
1.65
0.13
0.01
0.07
0.03
1.43
0.15		 10
40
265
122
26
7
13
7
5
13
13
14
112
29
3
18
6
142
34		 0.02
0.02
2.61
1.24
0.2
0.06
0.13
0.11
0.02
0.13
0.08
0.08
4.7
0.06
-0.01
0.05
0.19
0.34
0.15
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020		 117
126
127
128
129
130
131
132
133		 118
127
128
129
130
131
132
133
134		 3.85
1.29
1.05
0.68
1.86
2.22
2.49
1.17
0.53		 1.92
0.77
1.83
0.27
0.77
1.29
1.59
1.66
0.91		 0.01
0.02
0.05
0.01
0.02
0.03
0.04
0.03
0.02		 336
7
17
3
8
12
12
11
6		 0.26
0.02
0.06
-0.01
0.16
0.01
0.07
0.05
0.02

Peel Mining Limited – Quarterly Report June 2015

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Hole ID From(m) To(m) Zn(%) Pb(%) Cu(%) Ag (g/t) Au(g/t)
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020
MBRC020		 134
154
155
156
157
158
159
163
185
188
189		 135
155
156
157
158
159
160
164
186
189
190		 0.37
1.67
2.58
6.63
0.74
1.06
0.43
5.47
0.40
0.40
0.51		 0.83
0.52
0.94
2.62
0.78
0.28
1.43
0.80
1.52
0.62
0.83		 0.04
0.78
1.22
2.62
0.38
0.18
0.19
0.28
0.48
0.24
0.50		 5
16
19
112
48
7
18
25
31
19
21		 0.02
0.08
0.11
1.37
0.8
0.1
0.03
0.13
0.07
0.07
0.07
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021
MBRC021		 92
93
94
95
96
97
98
99
100
101
104
105
121
122		 93
94
95
96
97
98
99
100
101
102
105
106
122
123		 0.96
1.30
0.52
2.68
28.30
27.10
1.15
1.18
1.41
0.65
2.05
1.26
0.89
0.71		 0.38
0.52
0.24
1.23
14.35
12.45
0.49
0.68
0.69
0.33
0.88
0.68
0.42
0.42		 0.02
0.02
0.02
0.04
0.07
0.03
0.01
0.02
0.02
0.01
0.04
0.02
0.57
0.69		 24
26
14
54
501
359
11
15
13
6
9
6
26
18		 0.08
0.21
0.16
0.35
2.13
1.66
0.12
0.16
0.14
0.07
0.12
0.09
0.11
0.13
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022
MBRC022		 110
111
114
115
116
117
118
120
121
122
123
131
139
156
157
159		 111
112
115
116
117
118
119
121
122
123
124
132
140
157
158
160		 1.40
0.70
1.17
0.57
1.13
1.14
1.06
2.06
2.75
1.19
0.53
0.58
0.50
0.59
1.65
0.81		 0.64
0.28
0.52
0.26
0.70
0.58
0.43
0.99
2.32
0.77
0.36
0.46
0.45
0.25
0.40
0.38		 0.02
0.01
0.02
0.01
0.03
0.02
0.02
0.04
0.06
0.02
0.01
0.02
0.01
0.02
0.45
0.27		 20
8
9
4
9
6
5
8
17
5
2
3
3
4
9
16		 0.14
0.07
0.1
0.02
0.03
0.03
0.03
0.04
0.09
0.07
0.07
0.12
0.01
0.05
0.11
0.08
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023		 113
114
121
122
123
124
125
126
127
128		 114
115
122
123
124
125
126
127
128
129		 0.21
0.20
5.72
32.20
21.10
1.79
1.43
1.21
0.91
0.92		 0.09
0.09
2.88
13.90
9.86
0.85
0.71
0.64
0.47
0.43		 0.01
0.01
0.19
0.18
0.15
0.03
0.03
0.02
0.01
0.01		 43
40
35
143
99
14
12
15
11
10		 0.13
0.11
0.65
0.92
0.45
0.13
0.08
0.11
0.09
0.08

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Hole ID From(m) To(m) Zn(%) Pb(%) Cu(%) Ag (g/t) Au(g/t)
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023
MBRC023		 129
130
131
132
133
134
135
139
158
196
197
198
199		 130
131
132
133
134
135
136
140
159
197
198
199
200		 0.61
1.56
1.27
0.85
0.76
0.53
0.52
0.56
1.14
0.10
0.20
0.17
0.16		 0.37
0.88
0.63
0.65
0.40
0.31
0.29
0.25
0.60
0.82
0.49
0.46
0.40		 0.01
0.03
0.02
0.02
0.02
0.01
0.01
0.01
0.11
0.41
0.25
0.33
0.59		 8
10
6
5
5
2
2
2
12
34
18
17
20		 0.03
0.04
0.02
0.05
0.08
0.06
0.04
0.07
0.02
0.02
0.03
0.01
0.08
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024
MBRC024		 81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
105
106
131
132
133
135
136
149
151		 82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
106
107
132
133
134
136
137
150
152		 1.45
0.48
29.40
23.90
30.90
31.80
33.90
37.40
32.80
16.35
2.32
0.95
0.62
3.21
0.33
0.49
1.14
0.40
0.14
1.56
0.99
1.34
0.64
1.59		 0.67
0.32
14.15
11.90
15.00
17.05
22.60
25.10
29.80
10.95
14.05
0.64
0.29
16.15
0.45
0.36
0.60
0.14
0.15
0.94
0.46
0.98
0.07
0.88		 0.03
0.03
0.06
0.06
0.07
0.10
1.55
0.95
1.28
0.51
0.89
0.25
0.20
0.60
0.08
0.05
0.11
0.54
0.38
2.69
0.08
0.09
0.04
0.09		 18
8
365
327
433
469
494
490
503
172
176
14
7
245
7
5
9
14
13
74
7
26
2
16		 0.07
0.04
1.11
1.97
4.93
3.64
2.45
1.98
1.65
0.47
0.29
0.15
0.18
0.23
0.04
0.06
0.37
0.02
0.2
0.38
0.07
0.16
0.03
0.06
MBRC025
MBRC025
MBRC025		 111
123
125		 112
124
126		 0.12
1.91
3.37		 1.70
1.29
1.35		 0.07
0.29
0.11		 17
21
20		 0.01
0.09
0.08
MBRC026
MBRC026
MBRC026
MBRC026
MBRC026
MBRC026
MBRC026
MBRC026
MBRC026
MBRC026
MBRC026		 115
116
117
118
119
120
121
122
123
124
129		 116
117
118
119
120
121
122
123
124
125
130		 3.12
2.40
4.50
1.58
1.81
1.54
2.74
2.23
0.98
4.60
1.74		 1.62
2.12
3.97
0.83
1.71
1.32
2.88
2.49
1.39
4.09
0.84		 0.19
0.15
0.20
0.10
0.12
0.15
0.23
0.42
0.13
0.48
0.08		 68
35
59
16
27
30
71
49
26
98
14		 0.06
0.04
0.05
0.03
0.09
0.02
0.13
0.1
0.13
0.21
0.11

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Hole ID From(m) To(m) Zn(%) Pb(%) Cu(%) Ag (g/t) Au(g/t)
MBRC026
MBRC026		 133
134		 134
135		 7.37
2.99		 6.22
3.28		 0.73
0.15		 129
60		 0.7
0.05
MBRC027
MBRC027
MBRC027
MBRC027
MBRC027		 104
107
111
112
126		 105
108
112
113
127		 4.53
0.39
0.25
4.60
1.27		 3.64
0.08
0.12
2.92
0.18		 0.89
0.02
0.05
0.80
0.00		 80
3
6
58
8		 0.86
0.58
0.53
2.42
0.07
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028
MBRC028		 71
72
73
74
75
76
77
79
116
117
119
121
123
124
126
131
144
145		 72
73
74
75
76
77
78
80
117
118
120
122
124
125
127
132
145
146		 29.80
39.20
27.90
16.35
35.60
1.22
0.61
0.70
3.18
1.65
1.01
0.81
1.73
7.15
2.13
1.65
8.54
1.43		 14.20
20.40
21.60
12.40
19.45
0.86
0.64
0.45
5.19
0.87
0.66
1.76
1.06
8.41
0.68
0.94
8.38
1.40		 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.13
0.22
0.11
0.16
0.03
0.41
0.04
0.05
0.58
0.05		 272
393
246
166
321
12
7
5
129
22
13
26
18
115
9
17
159
24		 0.22
1.77
1
0.34
0.67
0.03
0.06
0.77
0.38
0.03
0.01
0.19
0.39
0.2
0.14
0.18
0.24
0.13
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029
MBRC029		 68
69
70
71
72
86
112
115
118
128
129
132
139
140
141
143		 69
70
71
72
73
87
113
116
119
129
130
133
140
141
142
144		 3.26
3.19
2.25
2.52
0.59
1.46
0.25
1.19
1.02
0.08
2.03
1.86
4.70
4.54
5.46
1.33		 1.95
2.38
1.99
2.28
1.04
0.80
0.17
0.55
0.44
0.55
2.86
2.41
1.85
1.68
2.15
0.20		 0.05
0.04
0.03
0.04
0.04
0.07
0.02
0.06
0.14
0.07
0.72
1.05
0.34
0.41
0.21
0.06		 34
36
53
38
17
11
11
21
19
22
78
69
60
39
74
4		 0.29
0.39
0.06
0.06
0.04
0.19
1
0.09
0.07
0.02
0.12
0.08
0.06
0.12
0.05
0.02
MBRC030
MBRC030
MBRC030
MBRC030
MBRC030
MBRC030
MBRC030
MBRC030
MBRC030
MBRC030		 77
78
79
82
83
84
96
124
128
129		 78
79
80
83
84
85
97
125
129
130		 7.34
37.80
3.01
1.08
1.05
1.45
2.67
1.35
1.30
2.20		 3.90
16.75
1.79
0.41
0.49
0.72
1.43
0.57
0.30
0.52		 0.05
0.97
0.04
0.02
0.02
0.03
1.25
0.28
0.01
0.02		 106
388
28
11
10
9
34
13
15
29		 0.27
0.32
0.05
0.08
0.11
0.19
0.45
0.03
0.03
0.78

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Hole ID From(m) To(m) Zn(%) Pb(%) Cu(%) Ag (g/t) Au(g/t)
MBRC030
MBRC030
MBRC030
MBRC030		 138
139
142
143		 139
140
143
144		 0.43
0.22
0.23
0.50		 2.01
1.47
1.21
2.31		 0.70
0.36
0.36
1.00		 70
51
46
80		 0.32
0.06
0.13
0.17
MBRC031
MBRC031
MBRC031
MBRC031
MBRC031
MBRC031
MBRC031
MBRC031
MBRC031
MBRC031
MBRC031		 133
134
135
136
137
142
143
144
188
189
196		 134
135
136
137
138
143
144
145
189
190
197		 1.26
3.10
2.11
2.94
1.66
2.14
1.54
1.93
1.85
0.93
0.51		 0.87
1.43
1.39
1.53
0.81
1.08
1.00
0.99
0.22
0.13
2.27		 0.02
0.04
0.04
0.05
0.02
0.04
0.03
0.03
0.06
0.02
0.95		 39
14
13
24
21
15
11
9
4
2
50		 0.02
0.18
0.08
0.08
0.09
0.04
0.02
0.07
0.47
0.53
0.11
MBRC032
MBRC032
MBRC032
MBRC032
MBRC032
MBRC032
MBRC032
MBRC032
MBRC032
MBRC032		 50
51
63
83
96
100
104
109
114
115		 51
52
64
84
97
101
105
110
115
116		 0.07
0.06
1.32
1.18
0.62
0.15
0.52
1.07
1.24
2.14		 0.10
0.12
0.19
0.40
0.56
0.22
0.72
0.50
0.51
0.67		 0.03
0.13
0.20
0.05
0.02
0.20
0.06
0.01
0.01
0.01		 45
52
9
11
14
18
33
9
6
8		 0.02
0.04
0.05
0.09
0.51
0.64
0.1
0.18
0.07
0.12
MBRC033
MBRC033
MBRC033
MBRC033
MBRC033
MBRC033
MBRC033		 52
53
54
55
56
57
62		 53
54
55
56
57
58
63		 0.06
0.13
0.23
0.18
0.12
0.09
1.61		 1.47
4.55
2.40
2.61
1.15
1.42
0.06		 0.02
0.07
0.07
0.05
0.08
0.03
0.01		 1
2
2
1
54
11
14		 0.02
0.31
0.07
0.05
0.04
0.03
0.01
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034
MBRC034		 50
51
52
53
54
55
56
57
58
60
61
69
70
114
117
118
119		 51
52
53
54
55
56
57
58
59
61
62
70
71
115
118
119
120		 0.16
2.01
5.97
1.90
0.20
0.42
1.33
5.02
1.16
1.31
0.76
2.26
2.61
0.19
10.45
1.23
1.08		 0.92
15.25
16.60
2.88
2.13
3.00
7.67
7.40
0.67
1.10
1.93
0.16
0.35
0.25
7.78
1.17
0.20		 0.20
0.07
0.17
0.45
0.08
0.24
0.10
0.40
0.03
0.03
0.05
0.02
0.02
0.11
1.03
0.19
0.02		 220
41
17
247
19
68
104
328
14
19
24
3
3
9
126
22
5		 0.24
0.59
0.53
0.24
0.52
0.45
0.62
0.73
0.14
0.05
0.09
0.01
0.02
1.49
1.88
0.49
0.2

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Apollo Hill Drill Collars

Hole ID Northing Easting Azi Dip Final Depth(m)
40GRAB01 378920 6757771 54 -60 270
40GRAB02 378958 6757773 50 -60 270
40GRAB03 378998 6757781 56 -60 270
40GRAB04 378983 6757731 39 -60 90
40GRAB05 378943 6757728 28 -60 90
40GRAB06 378918 6757729 30 -60 90
40GRAB07 378903 6757730 40 -60 90
40GRAB08 378897 6757698 34 -60 270
40GRAB09 378922 6757695 31 -60 270
40GRAB10 378941 6757694 28 -60 270
40GRAB11 378958 6757691 25 -60 270
40GRAB12 378975 6757692 25 -60 270
40GRAB13 378939 6757847 28 -60 270
40GRAB14 378959 6757847 19 -60 270
40GRAB15 378979 6757844 17 -60 270
40GRAB16 379001 6757847 22 -60 270
40GRAB17 379017 6757848 24 -60 270
40GRAB18 379040 6757847 22 -60 270
40GRAB19 379043 6757810 31 -60 90
40GRAB20 379026 6757813 31 -60 90
40GRAB21 379004 6757815 20 -60 90
40GRAB22 378987 6757816 19 -60 90
40GRAB23 378963 6757814 16 -60 90
40GRAB24 378939 6757812 22 -60 90
40GRAB25 378922 6757812 24 -60 90
40GRAB26 378901 6757811 31 -60 90
40GRAB27 378941 6757773 22 -60 270
40GRAB28 378981 6757781 16 -60 270
40GRAB29 379018 6757776 19 -60 270
40GRAB30 378997 6757728 19 -60 90
40GRAB31 378968 6757730 25 -60 90
40GRAB32 378886 6757729 25 -60 90
40GRAB33 378880 6757700 31 -60 270
40GRAB34 378858 6757698 28 -60 270
40GRAB35 378998 6757690 19 -60 270
40GRAB36 379012 6757690 22 -60 270
40GRAB37 379032 6757689 19 -60 270

Apollo Hill Significant Assay Results

Assay Results
Hole ID From(m) To(m) Au(g/t)
40GRAB03
40GRAB03		 9
10		 10
11		 0.45
0.60
40GRAB12
40GRAB12
40GRAB12
40GRAB12
40GRAB12		 14
16
17
22
23		 15
17
18
23
24		 0.26
1.90
0.73
3.36
0.85
40GRAB15 0 1 0.36

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Hole ID From(m) To(m) Au(g/t)
40GRAB15 1 2 0.30
40GRAB17 18 19 1.09
40GRAB19 9 10 0.35
40GRAB20
40GRAB20
40GRAB20
40GRAB20
40GRAB20		 20
24
25
28
29		 21
25
26
29
30		 0.25
0.27
0.45
0.89
0.30
40GRAB21
40GRAB21		 18
19		 19
20		 0.77
0.26
40GRAB30 12 13 0.23
40GRAB31 13 14 0.24
40GRAB34 15 16 0.36

Table 1 - Section 1: Sampling Techniques and Data for Mallee Bull/Cobar Superbasin Project

Criteria JORC Code explanation Commentary
Sampling
techniques		 Nature and quality of sampling (eg cut channels,
random chips, or specific specialised industry
standard measurement tools appropriate to the
minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc).
These examples should not be taken as limiting the
broad meaning of sampling.
Include reference to measures taken to ensure
sample
representivity
and
the
appropriate
calibration of any measurement tools or systems
used.
Aspects of the determination of mineralisation that
are Material to the Public Report.
In cases where ‘industry standard’ work has been
done this would be relatively simple (eg ‘reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay’). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of
detailed information.		  Diamond, reverse circulation (RC) and
Rotary Air Blast (RAB) drilling were used to
obtain samples for geological logging and
assaying.
 Diamond core was cut and sampled at 1m
intervals. RC and RAB drill holes were
sampled at 1m intervals and split using a
cone splitter attached to the cyclone to
generate a split of 2-4kg (generally) to
ensure sample representivity.
 Multi-element readings were taken of the
RC and RAB drill chips using an Olympus
Delta Innov-X portable XRF tool. The
portable XRF was calibrated against
standards after every 30 readings.
Drilling
techniques		 Drill type (eg core, reverse circulation, open-hole
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc).		  Drilling to date has been a combination of
diamond, reverse circulation and rotary air
blast. Reverse circulation drilling utilised a
5 1/2 inch diameter hammer. A blade bit
was predominantly used for RAB drilling.
NQ and HQ coring was used for diamond
drilling.
Drill
sample
recovery		 Method of recording and assessing core and chip
sample recoveries and results assessed.
Measures taken to maximise sample recovery and
ensure representative nature of the samples.
Whether a relationship exists between sample
recovery andgrade and whether sample bias may		  Core recoveries are recorded by the drillers
in the field at the time of drilling and
checked by a geologist or technician.
 RC and RAB samples are not weighed on a
regular basis due to the exploration nature
of drillingbut no significant sample

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Criteria JORC Code explanation Commentary
have occurred due to preferential loss/gain of
fine/coarse material.		 recovery issues have been encountered in
drilling programs to date.
 Diamond core is reconstructed into
continuous runs on an angle iron cradle for
orientation marking and depths are
checked against the depths recorded on
core blocks. Rod counts are routinely
undertaken by drillers.
 When
poor
sample
recovery
is
encountered during drilling, the geologist
and driller have endeavoured to rectify the
problem to ensure maximum sample
recovery.
 Sample recoveries to date have generally
been high. Insufficient data is available at
present to determine if a relationship
exists between recovery and grade. This
will be assessed once a statistically valid
amount of data is available to make a
determination.
Logging Whether core and chip samples have been
geologically and geotechnically logged to a level of
detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical
studies.
Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant
intersections logged.		  All core and drill chip samples are
geologically logged. Core samples are
orientated and logged for geotechnical
information. Drill chip samples are logged
at 1m intervals from surface to the bottom
of each individual hole to a level that will
support
appropriate
future
Mineral
Resource studies.
 Logging of diamond core, RC and RAB
samples records lithology, mineralogy,
mineralisation, structure (DDH
only),
weathering, colour and other features of
the samples. Core is photographed as both
wet and dry.
 All diamond, RC and RAB drill holes in the
current program were geologically logged
in full.
Sub-sampling
techniques
and
sample
preparation		 If core, whether cut or sawn and whether quarter,
half or all core taken.
If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry.
For all sample types, the nature, quality and
appropriateness
of
the
sample
preparation
technique.
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of
samples.
Measures taken to ensure that the sampling is
representative of the in situ material collected,
including
for
instance
results
for
field
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain
size of the material being sampled.		  Drill core was cut with a core saw and half
core taken.
 The RC and RAB drilling rigs were equipped
with an in-built cyclone and splitting
system, which provided one bulk sample of
approximately 20kg and a sub-sample of 2-
4kg per metre drilled.
 All samples were split using the system
described above to maximise and maintain
consistent representivity. The majority of
samples were dry.
 Bulk samples were placed in green plastic
bags, with the sub-samples collected
placed in calico sample bags.
 Field duplicates were collected by re-
splitting the bulk samples from large
plastic bags. These duplicates were
designed for lab checks.

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Criteria JORC Code explanation Commentary
 Early stage exploration sees composite
sampling completed for Au only analysis,
with samples hand speared using a half
round piece of pipe with samples collected
as
6m
composites.
Resampling
is
undertaken using split samples which are
stored with the bulk samples at the time of
drilling.
 Where pXRF sampling indicates significant
base metals mineralisation, 1m split
samples for those intervals are collected
and submitted for multi-element analysis.
 A sample size of 2-4kg was collected and
considered
appropriate
and
representative for the grain size and style
of mineralisation.
Quality
of
assay
data
and
laboratory
tests		 The nature, quality and appropriateness of the
assaying and laboratory procedures used and
whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF
instruments,
etc,
the
parameters
used
in
determining the analysis including instrument make
and model, reading times, calibrations factors
applied and their derivation, etc.
Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy
(ie lack of bias) and precision have been established.		  ALS Services was used for Au analysis work
carried out on the 5m or 6m composite
samples and 1m split samples. The
laboratory techniques below are for all
samples submitted to ALS and are
considered appropriate for the style of
mineralisation defined at Mallee Bull,
Mundoe, Sandy Creek, Wirlong and Red
Shaft:
o
PUL-23 (Sample preparation
code)
o
ME-MS61
or
ME-ICP41
multi-element
o
Or an appropriate Ore Grade
base metal AA finish
o
Au-AA26 Ore Grade Au 50g
FA AA Finish
 Assaying of soil samples in the field was by
portable XRF instrument Olympus Delta
Innov-X Analyser. Reading time was 20
seconds per filter with a total 3 filters per
sample.
 The QA/QC data includes standards,
duplicates
and
laboratory
checks.
Duplicates for drill core are collected by
the lab every 30 samples after the core
sample is pulverised. Duplicates for
percussion drilling are collected directly
from the drill rig or the metre sample bag
using a half round section of pipe. In-house
QA/QC tests are conducted by the lab on
each batch of samples with standards
supplied by the same companies that
supplyour own.
Verification of
sampling and
assaying		 The verification of significant intersections by either
independent or alternative company personnel.
The use of twinned holes.		  All geological logging and sampling
information is completed in spreadsheets,
which are then transferred to a database
for validation and compilation at the Peel
head office. Electronic copies of all
information are backed up periodically.

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Criteria JORC Code explanation Commentary
Documentation of primary data, data entry
procedures, data verification, data storage (physical
and electronic) protocols.
Discuss any adjustment to assay data.		  No adjustments of assay data are
considered necessary.
Location
of
data points		 Accuracy and quality of surveys used to locate drill
holes (collar and down-hole surveys), trenches, mine
workings and other locations used in Mineral
Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.		  A Garmin hand-held GPS is used to define
the location of the drillholes and /or
samples. Standard practice is for the GPS
to be left at the site of the collar for a
period of 5 minutes to obtain a steady
reading. Collars are picked up at a later
date by DGPS. All collars at Mallee Bull
have been picked up by DGPS. Down-hole
surveys are conducted by the drill
contractors
using
either
a
Reflex
gyroscopic tool with readings every 10m
after drill hole completion or a Reflex
electronic multi-shot camera will be used
with readings for dip and magnetic
azimuth taken every 30m down-hole.
QA/QC in the field involves calibration
using a test stand. The instrument is
positioned with a stainless steel drill rod so
as not to affect the magnetic azimuth.
 Grid system used is MGA 94 (Zone 55). All
down-hole
magnetic
surveys
were
converted to MGA94grid.
Data spacing
and
distribution		 Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
Whether sample compositing has been applied.		  Data/drill hole spacing is variable and
appropriate to the geology and historical
drilling.
 6m sample compositing has been applied
to RC drilling at Red Shaft and Mundoe for
gold assay, and to RAB drilling at Sandy
Creek,Red Shaft and Wirlong.
Orientation of
data
in
relation
to
geological
structure		 Whether the orientation of sampling achieves
unbiased sampling of possible structures and the
extent to which this is known, considering the
deposit type.
If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.		  Most drillholes are planned to intersect the
interpreted mineralised structures/lodes
as near to a perpendicular angle as
possible (subject to access to the preferred
collar position).
Sample
security		 The measures taken to ensure sample security.  The chain of custody is managed by the
project geologist who places calico sample
bags in polyweave sacks. Up to 5 calico
sample bags are placed in each sack. Each
sack is clearly labelled with:
o
Peel Mining Ltd
o
Address of Laboratory
o
Sample range
 Detailed records are kept of all samples
that are dispatched, including details of
chain of custody.
Audits
or
reviews		 The results of any audits or reviews of sampling
techniques and data.		  Data is validated when loading into the
database. No formal external audit has
been conducted.

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Table 1 - Section 2 - Reporting of Exploration Results for Mallee Bull/Cobar Superbasin Project

Criteria JORC Code explanation Commentary
Mineral
tenement and
land
tenure
status		 Type, reference name/number, location and
ownership including agreements or material issues
with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or national
park and environmental settings.
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.		  The Mallee Bull prospect is wholly located
within
Exploration
Licence
EL7461
“Gilgunnia”. The tenement is subject to a
50:50 Joint Venture with CBH Resources
Ltd, a wholly owned subsidiary of Toho
Zinc Co Ltd.
 The tenements are in good standing and no
known impediments exist.
Exploration
done by other
parties		 Acknowledgment and appraisal of exploration by
other parties.		  Work was completed in the area by former
tenement
holders
including
Triako
Resources between 2003 and 2009; it
included diamond drilling, IP surveys,
geological mapping and reconnaissance
geochemical sampling around the historic
Four Mile Goldfield area. Prior to Triako
Resources, Pasminco Exploration explored
the Cobar Basin area for a “Cobar-type” or
“Elura-type” zinc-lead-silver or copper-
gold-lead-zinc deposit.
Geology Deposit type, geological setting and style of
mineralisation.		  The prospect area lies within the Cobar-Mt
Hope Siluro-Devonian sedimentary and
volcanic units. The northern Cobar region
consists of predominantly sedimentary
units with tuffaceous member, whilst the
southern Mt Hope region consists of
predominantly felsic volcanic rocks; the
Mallee Bull prospect seems to be located
in an area of overlap between these two
regions. Mineralization at the Mallee Bull
discovery
features
the
Cobar-style
attributes of short strike lengths (<200m),
narrow widths (5-20m) and vertical
continuity, and occurs as a shoot-like
structure dippingmoderatelyto the west.
Drill
hole
Information		 A summary of all information material to the
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the
basis that the information is not Material and this
exclusion does not detract from the understanding
of the report, the Competent Person should clearly
explain why this is the case.		  All relevant information material to the
understanding of exploration results has
been included within the body of the
announcement or as appendices.
 No information has been excluded.
Data
aggregation
methods		 In
reporting
Exploration
Results,
weighting
averaging techniques, maximum and/or minimum
grade truncations (eg cutting of high grades) and		  No length weighting or top-cuts have been
applied.
 No metal equivalent values are used for
reportingexploration results.

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Criteria JORC Code explanation Commentary
cut-off grades are usually Material and should be
stated.
Where aggregate intercepts incorporate short
lengths of high grade results and longer lengths of
low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown in
detail.
The assumptions used for any reporting of metal
equivalent values should be clearly stated.
Relationship
between
mineralisation
widths
and
intercept
lengths		 These relationships are particularly important in the
reporting of Exploration Results.
If the geometry of the mineralisation with respect
to the drill hole angle is known, its nature should be
reported.
If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg ‘down hole length, true width not
_known’). _
True widths are generally estimated to be
about 90-100% of the downhole width
unless otherwise indicated.
Diagrams Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for any
significant discovery being reported These should
include, but not be limited to a plan view of drill hole
collar locations and appropriate sectional views.		  Refer to Figures in the body of text.
Balanced
reporting		 Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
of both low and high grades and/or widths should
be practiced to avoid misleading reporting of
Exploration Results.		  All results are reported.
Other
substantive
exploration
data		 Other exploration data, if meaningful and material,
should be reported including (but not limited to):
geological observations; geophysical survey results;
geochemical survey results; bulk samples – size and
method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock
characteristics;
potential
deleterious
or
contaminating substances.		  No other substantive exploration data are
available.
Further work The nature and scale of planned further work (eg
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible
extensions,
including
the
main
geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.		  Future work at Mallee Bull will include
geophysical surveying and RC/diamond
drilling to further define the extent of
mineralization at the prospect. Down hole
electromagnetic (DHEM) surveys will be
used to identify potential conductive
sources
that
may
be
related
to
mineralization.
Table 1 - Section 1: Sampling Techniques and Data for Apollo Hill
Criteria JORC Code explanation Commentary
Sampling
techniques		 Nature and quality of sampling (eg cut channels,
random chips, or specific specialised industry
standard measurement tools appropriate to the
minerals under investigation, such as down hole
_gamma sondes, or handheld XRF instruments, etc). _		  Soil samples were taken by scraping off
organic material and digging down about
10cm into the soils.
 Soil Auger samples were taken from the
end of hole auger spoils

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Criteria JORC Code explanation Commentary
These examples should not be taken as limiting the
broad meaning of sampling.
Include reference to measures taken to ensure
sample
representivity
and
the
appropriate
calibration of any measurement tools or systems
used.
Aspects of the determination of mineralisation that
are Material to the Public Report.
In cases where ‘industry standard’ work has been
done this would be relatively simple (eg ‘reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay’). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of
detailed information.
Drilling
techniques		 Drill type (eg core, reverse circulation, open-hole
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
_what method, etc). _		  Auger and RAB drilling was completed
Auger holes were drilled to an average
depth of 0.8m while RAB drilling was
variable dependent on the base of
oxidation and hardness.
Drill
sample
recovery		 Method of recording and assessing core and chip
sample recoveries and results assessed.
Measures taken to maximise sample recovery and
ensure representative nature of the samples.
Whether a relationship exists between sample
recovery and grade and whether sample bias may
have occurred due to preferential loss/gain of
fine/coarse material.		  No significant sample recovery issues have
been encountered to date.
 When
poor
sample
recovery
is
encountered, the geologist and driller have
endeavoured to rectify the problem to
ensure maximum sample recovery.
 Sample recoveries to date have generally
been high. Insufficient data is available at
present to determine if a relationship
exists between recovery and grade. This
will be assessed once a statistically valid
amount of data is available to make a
determination.
Logging Whether core and chip samples have been
geologically and geotechnically logged to a level of
detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical
studies.
Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant
intersections logged.		  All soil auger samples and RAB chip
samples were examined by a geologist.
Sub-sampling
techniques
and
sample
preparation		 If core, whether cut or sawn and whether quarter,
half or all core taken.
If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry.
For all sample types, the nature, quality and
appropriateness
of
the
sample
preparation
technique.		  All samples dried and reconciled against
company submission.

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Criteria JORC Code explanation Commentary
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of
samples.
Measures taken to ensure that the sampling is
representative of the in situ material collected,
including
for
instance
results
for
field
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain
size of the material being sampled.
Quality
of
assay
data
and
laboratory
tests		 The nature, quality and appropriateness of the
assaying and laboratory procedures used and
whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF
instruments,
etc,
the
parameters
used
in
determining the analysis including instrument make
and model, reading times, calibrations factors
applied and their derivation, etc.
Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy
(ie lack of bias) and precision have been established.		  ALS Laboratory (Kalgoorlie) was used for
Au analysis work carried out on the
samples. The laboratory techniques below
are for all samples submitted to ALS and
are considered appropriate for the style of
mineralisation defined at Apollo Hill
o
Au-ST43 Super Trace Au -
25g AR
o
Au-AROR43
Au
AR
Overrange - 25g
 The QA/QC data includes standards,
duplicates and laboratory checks. In-house
QA/QC tests are conducted by the lab on
each batch of samples with standards
supplied by the same companies that
supplyour own.
Verification of
sampling and
assaying		 The verification of significant intersections by either
independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry
procedures, data verification, data storage (physical
and electronic) protocols.
Discuss any adjustment to assay data.		  All geological logging and sampling
information is completed in spreadsheets,
which are then transferred to a database
for validation and compilation at the Peel
head office. Electronic copies of all
information are backed up periodically.
 No adjustments of assay data are
considered necessary.
Location
of
data points		 Accuracy and quality of surveys used to locate drill
holes (collar and down-hole surveys), trenches, mine
workings and other locations used in Mineral
Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.		  A Garmin hand-held GPS is used to define
the location of the samples. Standard
practice is for the GPS to be left at the site
of the collar for a period of 10 minutes to
obtain a steady reading. Collars are picked
up after by DGPS.
 Grid system used is MGA94(Zone 51).
Data spacing
and
distribution		 Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
Whether sample compositing has been applied.		  Sample spacing is variable and appropriate
to the geology. Soil samples were taken on
a 20m grid. Soil Auger samples were taken
at 40-50m spacing at Stockdale and 40m
spacing at Mud Hut.
 Sample compositing was applied to RAB
drillingon 5m composite for Au only.
Orientation of
data
in
relation
to
geological
structure		 Whether the orientation of sampling achieves
unbiased sampling of possible structures and the
extent to which this is known, considering the
deposit type.
If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.		  Sampling orientation was appropriate for
the early stage of exploration.

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Criteria JORC Code explanation Commentary
Sample
security		 The measures taken to ensure sample security.  The chain of custody is managed by the
project geologist who places calico sample
bags in polyweave sacks. Up to 5 calico
sample bags are placed in each sack. Each
sack is clearly labelled with:
o
Peel Mining Ltd
o
Address of Laboratory
o
Sample range
 Detailed records are kept of all samples
that are dispatched, including details of
chain of custody.
Audits
or
reviews		 The results of any audits or reviews of sampling
techniques and data.		  Data is validated when loading into the
database. No formal external audit has
been conducted.

Table 1 - Section 2 - Reporting of Exploration Results for Apollo Hill

Criteria JORC Code explanation Commentary
Mineral
tenement and
land
tenure
status		 Type, reference name/number, location and
ownership including agreements or material issues
with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or national
park and environmental settings.
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.		  The 100% Peel owned Apollo Hill project is
located 60km southeast of Leonora WA,
within a package of Exploration and
Prospecting
Licences
(see
Tenement
Information Table) and Mining Lease
M39/296
 The Stockdale prospect is located on
E31/1039, held by Diana and Lindsay
Stockdale, and is contiguous to Peel's
package of Exploration and Prospecting
Licences.
 The tenements are in good standing and no
known impediments exist.
Exploration
done by other
parties		 Acknowledgment and appraisal of exploration by
other parties.		  The
main
Apollo
Hill
deposit
was
discovered in 1986 by Fimiston Mining Ltd
during a drill program aimed at finding the
source of abundant eluvial gold at the base
of a prominent hill in the area. Active
drilling by Fimiston, Battle Mountain
(Australia)
Ltd,
Homestake
Gold
of
Australia Ltd, Mining Project Investors Pty
Ltd and Hampton Hill Mining NL since then
has outlined extensive gold mineralisation
and alteration over a 1km strike length.
 Historic exploration over the Stockdale
prospect area has been minimal. Recent
prospecting
activities
have
been
conducted by Lindsay and Diana Stockdale
has indicated the potential for primary
gold mineralisation.
Geology Deposit type, geological setting and style of
mineralisation.		  The project is located in the Archean aged
Norseman-Wiluna Belt, Eastern Goldfields
Province of the Yilgarn Craton. The deposit
occurs
in
a
mineralised
structure
associated with the 1km wide Apollo Shear
Zone, a component of the Keith-Kilkenny
Fault system. Strongly deformed felsic
volcanoclastic rocks lie to the west of the

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Criteria JORC Code explanation Commentary
Apollo shear, with relatively undeformed
pillow basalt and dolerite to the east.
Zones
of
mylonitisation,
shearing,
brecciation and fracturing caused by the
shear is present along the contact, and
resulting open space structures are
favourable for trapping ore fluids and
forming ore deposits. Multiple gold
mineralisation events are interpreted to
have occurred at Apollo Hill during a
complex
deformational
history.
Gold
mineralisation is accompanied by quartz
veins and carbonate-pyrite alteration
associated with a mafic-felsic contact.
Drill
hole
Information		 A summary of all information material to the
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the
basis that the information is not Material and this
exclusion does not detract from the understanding
of the report, the Competent Person should clearly
explain why this is the case.		  All relevant information material to the
understanding of exploration results has
been included within the body of the
announcement or as appendices.
 No information has been excluded.
Data
aggregation
methods		 In
reporting
Exploration
Results,
weighting
averaging techniques, maximum and/or minimum
grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be
stated.
Where aggregate intercepts incorporate short
lengths of high grade results and longer lengths of
low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown in
detail.
The assumptions used for any reporting of metal
equivalent values should be clearly stated.		  No length weighting or top-cuts have been
applied.
 No metal equivalent values are used for
reporting exploration results.
Relationship
between
mineralisation
widths
and
intercept
lengths		 These relationships are particularly important in the
reporting of Exploration Results.
If the geometry of the mineralisation with respect
to the drill hole angle is known, its nature should be
reported.
If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg ‘down hole length, true width not
_known’). _
Given the early stage of the exploration at
Stockdale and Mud Hut, no inference can
be given about the relationship between
widths and drill hole orientation.
Diagrams Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for any
significant discovery being reported These should		  Refer to Figures in the body of text.

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Criteria JORC Code explanation Commentary
include, but not be limited to a plan view of drill hole
collar locations and appropriate sectional views.
Balanced
reporting		 Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
of both low and high grades and/or widths should
be practiced to avoid misleading reporting of
Exploration Results.
 All results are reported.
Other
substantive
exploration
data		 Other exploration data, if meaningful and material,
should be reported including (but not limited to):
geological observations; geophysical survey results;
geochemical survey results; bulk samples – size and
method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock
characteristics;
potential
deleterious
or
contaminating substances.
 No other substantive exploration data are
available.
Further work The nature and scale of planned further work (eg
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible
extensions,
including
the
main
geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.		  Future work at Apollo Hill will include RAB
drilling and further geochemical sampling.

TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3 Granted tenements

TENEMENT PROJECT LOCATION OWNERSHIP CHANGE IN
QUARTER
E31/0800 Apollo Hill Leonora,WA 100%
E39/1198 Apollo Hill Leonora,WA 100%
E39/1236 Apollo Hill Leonora,WA 100%
P31/1797 Apollo Hill Leonora,WA 100%
P39/4586 Apollo Hill Leonora,WA 100%
P39/4587 Apollo Hill Leonora,WA 100%
P39/4588 Apollo Hill Leonora,WA 100%
P39/4589 Apollo Hill Leonora,WA 100%
P39/4590 Apollo Hill Leonora,WA 100%
P39/4591 Apollo Hill Leonora,WA 100%
P39/4592 Apollo Hill Leonora,WA 100%
P39/4677 Apollo Hill Leonora,WA 100%
P39/4678 Apollo Hill Leonora,WA 100%
P39/4679 Apollo Hill Leonora,WA 100%
P39/4789 Apollo Hill Leonora,WA 100%
E40/0296 27 Well Leonora,WA 100%
E40/0303 Bulyairdie Leonora,WA 100%
M39/0296 Isis Leonora,WA 100%
E40/0337 The Gap Leonora,WA 100%
E31/1063 Apollo Hill South Leonora,WA 100%
E31/1075 Yerilla Leonora,WA 100%
E31/1076 Mt Remarkable Leonora,WA 100%
M31/486 Apollo Hill ML Leonora, WA 100%
E31/1087 Rise Again Leonora, WA 100%
P31/2071 Rise Again Leonora, WA 100% Granted

Peel Mining Limited – Quarterly Report June 2015

28

==> picture [156 x 69] intentionally omitted <==

P31/2069 Rise Again Leonora, WA 100% Granted
P31/2072 Rise Again Leonora, WA 100% Granted
P31/2073 Rise Again Leonora, WA 100% Granted
P31/2068 Rise Again Leonora, WA 100% Granted
P31/2070 Rise Again Leonora, WA 100% Granted
EL8326 Attunga Attunga,NSW 100%
ML1361 Mayday Cobar,NSW 50%
EL7461 Gilgunnia Cobar,NSW 50%
EL7711 RubySilver Armidale,NSW 100%
EL7519 Gilgunnia South Cobar,NSW 100%
EL7976 Mundoe Cobar,NSW 100%
EL8070 Tara Cobar,NSW 100%
EL8071 Manuka Cobar,NSW 100%
EL8105 Mirrabooka Cobar,NSW 100%
EL8112 Yackerboon Cobar,NSW 100%
EL8113 Iris Vale Cobar,NSW 100%
EL8125 Hillview Nth Cobar,NSW 100%
EL8126 Norma Vale Cobar,NSW 100%
EL8201 Mundoe North Cobar,NSW 100%
EL8114 Yara Cobar,NSW 100%
EL8115 Burthong Cobar,NSW 100%
EL8117 Illewong Cobar,NSW 100%
EL8307 SandyCreek Cobar,NSW 100%
EL8216 Orana Ivanhoe,NSW 100%
EL8247 Gulf Creek Barraba,NSW 100%
EL8314 Glenwood Cobar,NSW 100%
EL8336 Brambah Cobar,NSW 100%
EL8345 Pine Ridge Cobar,NSW 100%

Tenements under application

TENEMENT PROJECT LOCATION STATUS
ELA5152 Gilgunnia North Cobar,NSW Under application
ELA5171 Mt Walton Cobar,NSW Under application

Peel Mining Limited – Quarterly Report June 2015

29

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