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PEEL MINING LIMITED Interim / Quarterly Report 2016

Oct 30, 2016

65545_rns_2016-10-30_2087ab68-0e5c-4216-a336-f4ea491f7868.pdf

Interim / Quarterly Report

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SEPTEMBER 2016 QUARTERLY REPORT 31 OCTOBER 2016

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

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

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

Contact:

Rob Tyson Managing Director [email protected]

About Peel Mining Limited:

  • The Company’s projects cover more than 5,000 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 exploration potential along with the exciting new Wirlong copper discovery.

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

  • Wagga Tank represents a polymetallic VHMS-type deposit with many significant intercepts; no drilling since 1989.

  • Attunga Tungsten Deposit is a high grade tungsten deposit.

  • 152 million shares on issue for $24m Market Capitalisation at 28 October 2016.

Highlights for September quarter 2016

  • New copper mineralisation discovered at

  • 'Mallee Bull North' (centred ~300m north of Mallee Bull), which remains open along strike and down dip. Significant intercepts include:

  • MBRC054 returned 7m @ 2.01% Cu, 37 g/t Ag, 0.15 g/t Au from 324m;

  • MBRC055 returned 9m @ 2.24% Cu, 27 g/t Ag, 0.27 g/t Au from 455m;

  • MBRCDD056 returned 5m @ 0.76% Cu, 16 g/t Ag, 0.07 g/t Au from 458m;

  • MBRCDD059 returned 10m @ 1.00% Cu, 14 g/t Ag, 0.07 g/t Au from 469m;

  • MBRCDD060 returned 4m @ 1.18% Cu, 38 g/t Ag, 0.37 g/t Au from 369m;

  • MBDD027 returned 1m @ 4.65% Cu, 48 g/t Ag, 2.96 g/t Au from 335m; 7m @ 1.28% Cu, 16 g/t Ag, 1.89 g/t Au from 371m and 5m @ 2.22% Cu, 31 g/t Ag, 0.09 g/t Au from 404m.

  • Further extensional drilling at Mallee Bull to

  • be completed prior to end of year.

Subsequent to the end of the quarter, drilling at Wagga Tank confirmed significant zinc-leadsilver sulphide and copper oxide/sulphide; with assays for first 4 drillholes pending.

Wagga Tank represents a polymetallic VHMStype deposit with many significant historic drill intercepts; no drilling since 1989.

  • Initial Wagga Tank work program comprising

  • drilling and geophysics to be expanded.

  • JOGMEC complete Stage 1 earn-in of Cobar

  • Superbasin Project and elect to move to Stage 2.

  • Placement of $2.99m for cash position of $4m.

Plans for December quarter 2016

RC/diamond drilling at Wagga Tank to confirm historic mineralised intercepts continuing

  • RC/diamond drilling at Mallee Bull continuing

  • RC/diamond drilling at Wirlong to resume

Peel Mining Limited – Quarterly Report September 2016

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Exploration

Mallee Bull Project: Cu-Pb-Zn-Au-Ag; 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. Details can be found in the announcement released 27 May 2014; "High Grade Copper Resource at Mallee Bull".

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Figure 1 - Mallee Bull Drill Plan

Drilling

In mid-July 2016, the latest drilling program (Program 7) at Mallee Bull commenced as part of investigations to find new mineralisation. Part of this program was aimed at determining the cause of an offhole DHEM anomaly, centred ~300m north of the main Mallee Bull deposit. This has led to the discovery of new copper mineralisation in the area now termed 'Mallee Bull North'.

The first drillhole of the program MBRC053 was drilled approximately 1.5km NW of the Mallee Bull resource to test a coincident geochemical and Orion 3D IP anomaly. Although no significant mineralisation was encountered, an increase in the magnetic susceptibility values near the bottom of hole was noted, along with silicification and weak disseminated pyrite within fine grained sandstone. DHEM data showed no obvious anomalies, however, this initial survey used a less than favourable loop configuration and a re-survey is warranted.

Peel Mining Limited – Quarterly Report September 2016

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At Mallee Bull North, drillholes MBRC054 and MBRC055 were drilled to test the identified off-hole DHEM anomaly with assays confirming that the conductor responsible is caused by significant copper mineralisation. Best intercepts include 7m @ 2.01% Cu, 37 g/t Ag, 0.15 g/t Au from 324m in MBRC054 and 9m @ 2.24% Cu, 27 g/t Ag, 0.27 g/t Au from 455m in MBRC055 (collared ~80m north of MBRC054). Mineralisation comprises stringer/breccia style quartz-sulphide (chalcopyrite-pyrrhotite) with true width thought to be ~60% of the downhole intervals.

MBRCDD056 was drilled ~80m along strike to the north and 60m east of MBRC055, and is the northernmost hole of the Mallee Bull North program. Weak sphalerite-galena-chalcopyrite mineralisation was noted in silicified zones and quartz veins throughout the hole, with significant intercepts including 1m @ 0.71% Zn from 351m, 1m @ 0.68% Zn from 370m, 1m @ 0.69% Zn, 0.40% Pb from 381m, 1m @ 0.22% Zn, 0.31% Cu, 0.22 g/t Au from 387m, 5m @ 0.76% Cu, 0.54% Pb, 0.62% Zn, 16.0 g/t Ag from 458m (incl. 1m @ 0.44% Cu, 2.35% Pb, 1.97% Zn, 37.1 g/t Ag from 458m).

MBRCDD057 was initially RC drilled ~80m along strike to the south of MBRC054, however failed to reach the zone of interest. The drillhole was subsequently extended with a diamond tail which encountered silicified structurally deformed zones with abundant cross-cutting and sub-parallel quartz veins along with minor chalcopyrite-pyrrhotite mineralisation. Better intercepts include 1m @ 1.24% Pb, 0.30% Zn, 17.4 g/t Ag from 357 and 2m @ 0.19% Cu, 0.45% Pb, 0.33% Zn, 25.1 g/t Ag from 364m.

MBRC058 was drilled up-dip of MBRC054 and the DHEM anomaly, intersecting a 10m zone of weak CuZn-Pb mineralisation from 291m downhole averaging 0.28% Cu, 0.39% Pb, 0.90% Zn, 12.2 g/t Ag (incl. 2m @ 0.27% Cu, 0.75% Pb, 1.34% Zn, 15 g/t Ag from 292m and 1m @ 0.57% Cu, 1.00% Pb, 1.80% Zn, 41 g/t Ag from 299m). Additional intercepts include 1m @ 0.42% Pb, 1.14% Zn from 269m, 1m @ 0.69% Cu, 13.5 g/t Ag, 0.20 g/t Au from 307m and 1m @ 1.06% Cu from 312m.

MBRCDD059 was drilled to test between MBRC054 and MBRC055, however the drillhole deviated such that the final trace intersected ~170m down dip of MBRC054, down dip and south of the EM target. A 10m zone of stringer/breccia style quartz-sulphide (chalcopyrite-pyrrhotite) mineralisation was again intersected from 469m downhole, averaging 1.01% Cu, 0.37% Zn, 14 g/t Ag (incl. 1m @ 1.40% Cu, 12 g/t Ag from 469m and 4m @ 1.67% Cu, 0.61% Zn, 18.4 g/t Ag, 0.13 g/t Au from 474m.

MBRCDD060 was also drilled to test between MBRC054 and MBRC055 and continued to encounter the same style of mineralisation seen in previous drillholes, including a 4m zone of 1.18% Cu, 0.36% Pb, 0.23% Zn, 37.7 g/t Ag, 0.37 g/t Au from 369m (incl. 1m @ 3.15% Cu, 0.30% Pb, 0.31% Zn, 39.7 g/t Ag, 0.58 g/t Au from 369m.

Follow-up DHEM surveying proceeded to identify a moderate-strong off-hole anomaly, in close proximity to the targeted area and modelled as easterly dipping. Diamond drillhole MBDD027 was drilled from the east to target this conductor, and multiple zones of fracture fill sphalerite-galena-chalcopyrite-pyrrhotite mineralisation were encountered including: 2m @ 0.35% Cu, 0.91% Pb, 2.21% Zn, 26.3 g/t Ag from 144m; 1m @ 0.49% Pb, 3.10% Zn, 20.6 g/t Ag from 160m; 1m @ 1.59% Cu, 0.47% Pb, 3.05% Zn, 28.7 g/t Ag from 266m; 1m @ 4.65% Cu, 48.3 g/t Ag, 2.96 g/t Au from 335m; 7m @ 1.28% Cu, 16 g/t Ag, 1.89 g/t Au from 371m and 5m @ 2.22% Cu, 31 g/t Ag, 0.09 g/t Au from 404m; 1m @ 0.56% Pb, 1.26% Zn, 17.2 g/t Ag from 442m and 2m @ 0.48% Pb, 1.35% Zn, 13.2 g/t Ag from 476m.

Mineralisation at Mallee Bull North is hosted in the Shume Formation turbidite sediments (mudstone to sandstone) with sulphides predominantly occurring as chalcopyrite-pyrrhotite-quartz breccias and stringers. The geometry of mineralisation is interpreted to be near vertical, however some intercepts appear to be steeply dipping to the east. The true width of mineralisation varies but is generally interpreted to be ~60% of downhole widths.

Peel Mining Limited – Quarterly Report September 2016

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Peel is encouraged by the discovery of new mineralisation at Mallee Bull North with mineralisation remaining open along strike and down dip. Geophysics indicates good potential to grow mineralisation in this area and along strike.

Drillhole MBRCDD061 was primarily designed to target the T3 remanent magnetic anomaly. Several zones of significant structural deformation and locally strong stringer sulphide (pyrrhotite-sphalerite-galena) mineralisation were encountered. Assay results remain pending and physical properties testwork is planned.

Subsequent to the end of the quarter, MBRC062 was drilled 75m west and 50m north of MBRC045 (RC hole MBRC045 was part of the September 2015 drilling program completed to test the strike potential of the T1 IP chargeability anomaly). The hole passed through weakly mineralised zones of Pb-Zn mineralisation. Assay results remain pending.

Further extensional drilling at Mallee Bull is planned to be completed prior to end of year, including targeting a structural target to the south of Mallee Bull (see below).

Structural review

A structural analysis of the Mallee Bull deposit was conducted by Orefind Pty Ltd using a combination of field and core examination and 3D implicit geological modelling. Four main zones were identified as targets, with the most promising being both down- and up-plunge from the high grade zones that are defined by the existing drilling. The down-plunge target to the south of Mallee Bull is considered a high priority target with drilling planned for November.

Cobar Superbasin Project: Cu-Pb-Zn-Au-Ag; Western NSW (PEX 60%; JOGMEC 40%).

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.

During the quarter, JOGMEC concluded its Stage 1 expenditure commitments ($4m) and, consequently, has earnt a 40% interest in the project. JOGMEC has elected to enter into Stage 2 to acquire an additional 10% interest of the JV by spending a further $3 million.

As a result, field activities are planned to re-commence in November at the Wirlong prospect, where mineralisation remains open up and down dip, and along strike; the planned RC/diamond holes will focus on extending the known mineralisation and targeting potential higher grade structures. Furthermore, RC drill programs are planned for the Red Shaft, Sandy Creek and Bedooba prospects to follow-up previous significant intercepts (10m @ 0.84 g/t Au, 0.20% Cu, 0.26% Pb from 60m in RSRC003 and 5m @ 0.76% Cu from 62m in RSRC007 at Red Shaft), target gravity/magnetic anomalies, and to test surface soil and rock chip anomalies at Bedooba (incl. sample 50037 which returned 2.8% Pb, 0.2% Cu, 1% As).

Other planned activities include detailed airborne EM surveys at Irisvale and Armageddon, and RAB/soil geochem surveys at Bedooba, and soil geochem surveys MD2 and Armageddon.

Peel Mining Limited – Quarterly Report September 2016

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Figure 2 - Cobar Superbasin Project Tenements & Prospects

Peel Mining Limited – Quarterly Report September 2016

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Wagga Tank/Mount View Projects: Cu-Pb-Zn-Au-Ag; Western NSW (PEX 100%). Targets : Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation.

Subsequent to the end of the quarter, the transfers of the Wagga Tank and Mount View Group of tenements (ELs 7226, 7484 and 7581) from MMG to Peel were approved and finalised. EL6695 was previously transferred to Peel.

During the quarter, RC drillhole MD2RC001 was drilled to target a strong positive magnetic anomaly that defines the Siegal's Shaft/MD-2 prospect area. Historic activities had insufficiently tested this feature, with drilling predominantly focused on following-up surface geochemical anomalism and associated IP anomalies. MD2RC001 was terminated at 343m due to excessive water, however anomalous Cu, Pb and Zn values were seen throughout the hole along with elevated magnetic susceptibility readings. Significant intervals include 2m @ 1.00% Zn, 0.40% Pb, 10.9 g/t Ag from 81m incl. 1m @ 1.78% Zn, 0.71% Pb, 19.1 g/t Ag from 81m and a 20m zone averaging 0.23% Zn from 119m (incl. 2m @ 0.41% Zn, 0.11% Pb from 121m and 1m @ 0.37% Zn, 0.19% Pb, 9 g/t Ag from 144m). Geological mapping of the area has shown that mineralisation at Siegal's Shaft/MD-2 features characteristics similar to the styles at the Mallee Bull, Wirlong and Sandy Creek prospects, and further drilling in the area is anticipated.

Also during the quarter, to the south-west of the Siegal's Shaft/MD-2 prospect, geological mapping and portable XRF surveying was conducted at the Boolahbone and Wagga Tank prospects which found both to lie in close proximity to a regional-scale fault interpreted to be a possible major crustal fluid conduit.

Subsequent to the end of the quarter, drilling at the namesake Wagga Tank prospect designed to confirm historic high-grade base and precious metal mineralisation, returned significant zinc-lead-silver sulphide and copper oxide/sulphide intercepts. Assays for all Wagga Tank drilling were pending at the time of reporting.

The Wagga Tank prospect is located on the western edge of the Cobar Superbasin, ~130 km south of Cobar or ~30km northwest of Mount Hope, and represents a polymetallic VHMS-type deposit with many significant historic drill intercepts; last drilling was in 1989. The initial drilling program has been designed to confirm the presence of high grade base and precious metal mineralisation originally identified at Wagga Tank in the 1970s and 80s.

At the time of reporting, Peel has completed six RC drillholes (for 1,537m) with a seventh drillhole in progress. Whilst assays for all Wagga Tank drilling remain pending, initial drillhole geological logging coupled with portable XRF analysis (Olympus Delta) has confirmed the presence of significant zones of copper oxide/sulphide mineralisation and zinc-lead-silver sulphide mineralisation. Some drillholes have terminated early due to a clay zone collaring off the drillholes – these drillholes are proposed to be extended by diamond tail. A summary of drill results to date is as follows:

WTRC001 (271m) returned an approximate 10m zone of oxide/supergene copper mineralisation at ~95m downhole. Mineralisation occurs as malachite, azurite and possibly chalcocite, within a ferrugunised felsic volcanic. The true width of mineralisation is unknown at this time.

WTRC002 (244m) returned multiple mineralised intervals: 7m zone of pyrite-sphalerite-galenachalcopyrite (Zn-Pb-Cu-Ag) semi-massive to massive sulphide mineralisation from 173m; 8m zone of stringer/breccia pyrite-sphalerite-galena-chalcopyrite (Zn-Pb-Cu-Ag) mineralisation from 203m; and 6m zone of stringer/breccia pyrite-sphalerite-galena-chalcopyrite (Zn-Pb-Cu-Ag) mineralisation from 231m. The true width of mineralisation is unknown at this time, however mineralisation is thought to be near vertical. This drillhole requires a diamond tail.

Peel Mining Limited – Quarterly Report September 2016

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WTRC003 (253m) returned multiple mineralised intervals with broad zones of highly anomalous copper mineralisation: 4m of disseminated copper sulphide mineralisation from 146m; 9m of disseminated copper sulphide mineralisation from 192m; 19m of disseminated copper sulphide mineralisation from 210m; and 8m zone of stringer/breccia pyrite-sphalerite-galena-chalcopyrite (Zn-Pb-Cu-Ag) mineralisation from 242m. The true width of mineralisation is unknown at this time, however mineralisation is thought to be near vertical. This drillhole requires a diamond tail.

WTRC004 (294m) returned an 8m pyrite-sphalerite-galena-chalcopyrite (Zn-Pb-Cu-Ag) semi-massive to massive sulphide mineralisation 286m. The true width of mineralisation is unknown at this time, however mineralisation is thought to be near vertical. The drillhole ended in mineralisation at 294m and requires a diamond tail.

WTRC005 (264m) returned multiple mineralised intervals including 3m disseminated copper sulphide mineralisation from 131m and a 23m zone of disseminated/stringer pyrite-sphalerite-galena-chalcopyrite (Zn-Pb-Cu-Ag) mineralisation from 205m. The true width of mineralisation is unknown at this time, however mineralisation is thought to be near vertical. This drillhole requires a diamond tail.

WTRC006 (211m) remains to be logged and analysed by portable XRF and was drilled as pre-collar requiring a diamond tail.

In light of the confirmation of high grade base and precious metal mineralisation at Wagga Tank, Peel plans to expand the current drilling program to garner further information with regards to the setting, tenor, mineralisation style and alteration of the Wagga Tank prospect.

The Company will provide further information on the Wagga Tank program as results are received and analysed.

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

Targets: Archean gold deposits.

Peel's WA landholding was further consolidated in the September quarter with applications submitted for an additional four exploration licences; areas covered include the south-eastern extension of the NWSE trending shear zone along which the Apollo Hill resource and prospects such as 'The Eye' magnetic high anomaly on E31/1076 are located.

At the north-western end of Peel's tenement package, a programme of work has been submitted for auger and RAB drilling on the E40/296 '27 Well' licence where multiple targets have been identified and anomalous surface Pb, Cu, As geochemical anomalies require follow-up. Deeper and extensional drilling is also still warranted approximately 12km to the SE at the main Apollo Hill deposit, to follow-up the significant mineralisation encountered in March 2016 and further increase the potential to add to the inferred resource.

Peel Mining Limited – Quarterly Report September 2016

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Figure 3 - Wagga Tank Drilling with Geology

Peel Mining Limited – Quarterly Report September 2016

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Figure 4 - Apollo Hill Project Tenements & Prospects

Peel Mining Limited – Quarterly Report September 2016

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Other Projects

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

Corporate

Peel raised $2,992,000 by way of placement of 18,700,000 new ordinary shares in the company, on the 19th September 2016.

For further information, please contact Managing Director Rob Tyson on (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.

Mallee Bull RC & Diamond Drill Collars

Hole ID Northing Easting Azi Dip Final Depth(m)
MBRC053 6414446 414373.3 89.88 -60.26 235
MBRC054 6413692 415135.6 83.98 -64.36 427
MBRC055 6413772 415136.7 83.03 -66.14 499
MBRCDD056 6413855 415194.5 81.09 -65.1 533.7
MBRCDD057 6413614 415139.6 89.28 -65.06 604
MBRC058 6413698 415201.1 89.78 -64.76 337
MBRCDD059 6413733 415136.7 90.5 -68.62 604.1
MBRCDD060 6413736 415156.8 85.45 -66.87 487
MBDD027 6413630 415534.3 273.94 -60.86 523
MBRCDD061 6413235 415439.9 83.9 -64.32 768.7
MBRC062 6413495 415285 90 -65 349

Siegal's Shaft/MD-2 RC Drill Collar

Hole ID Northing Easting Azi Dip Final Depth(m)
MD2RC001 6401240 393410 254.8 -55 343
Wagga Tank RC Drill Collars
Hole ID Northing Easting Azi Dip Final Depth(m)
WTRC001 6387293 378794 312 -50 271
WTRC002 6387323 378820 312 -50 244
WTRC003 6387353 378847 312 -50 253
WTRC004 6387326 378877 312 -50 294
WTRC005 6387296 378850 312 -50 264
WTRC006 6387267 378823 312 -50 211
WTRC007 6387263 378767 312 -50 --

Peel Mining Limited – Quarterly Report September 2016

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Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals) Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals) Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals) Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals) Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals) Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals) Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals) Mallee Bull RC/Diamond Drilling Significant Assay Results(1m intervals)
Hole ID From(m) To(m) Cu(%) Pb(%) Zn(%) Ag (g/t) Au(g/t)
MBRC054 319
324
325
326
327
328
329
330		 320
325
326
327
328
329
330
331		 0.02
0.59
1.19
1.18
4.32
3.46
2.59
0.73		 0.77
0.56
0.70
0.15
0.53
0.67
0.79
0.24		 0.35
0.75
0.81
0.81
1.03
0.52
0.98
0.33		 14.0
29.4
54.4
15.9
50.1
49.9
43.6
14.3		 -0.01
0.03
0.14
0.05
0.28
0.24
0.29
-0.01
MBRC055 431
432
442
444
446
455
456
457
459
460
461
462
463		 432
433
443
445
447
456
457
458
460
461
462
463
464		 0.60
0.37
0.71
1.02
1.11
2.10
0.92
0.65
0.69
4.91
1.94
7.93
0.59		 0.29
0.16
0.12
0.06
0.04
0.04
0.01
0.18
0.09
0.52
0.11
0.19
0.03		 0.93
0.83
0.14
0.46
0.09
0.21
0.10
0.18
0.11
0.66
0.19
0.69
0.07		 29.6
16.5
18.8
13.6
13.5
15.5
6.60
17.8
11.8
79.7
22.1
69.6
6.30		 0.03
0.04
0.03
0.03
0.04
0.10
0.06
0.05
0.08
0.49
0.28
1.32
0.05
MBRCDD056 370
381
384
387
458
459
460
461
462
473		 371
382
385
388
459
460
461
462
463
474		 0.02
0.02
0.01
0.05
0.44
0.51
0.89
1.23
0.73
0.61		 0.19
0.40
0.23
0.31
2.35
0.04
0.17
0.07
0.10
0.01		 0.68
0.69
0.56
0.22
1.97
0.04
0.16
0.42
0.49
0.05		 3.30
4.60
3.10
4.20
37.1
7.50
16.9
10.2
8.50
7.40		 0.02
-0.01
-0.01
0.22
0.11
0.10
0.05
0.08
0.03
0.01
MBRCDD057 357
364
365		 358
365
366		 0.06
0.24
0.15		 1.24
0.29
0.61		 0.30
0.07
0.60		 17.4
29.5
20.6		 0.01
0.05
0.07
MBRC058 269
291
292
293
294
295
296
298
299
300
307
312		 270
292
293
294
295
296
297
299
300
301
308
313		 0.04
0.13
0.09
0.45
0.12
0.25
0.15
0.20
0.57
0.70
0.69
1.06		 0.42
0.15
0.86
0.64
0.48
0.24
0.16
0.16
1.00
0.17
0.21
0.06		 1.14
0.53
1.61
1.07
0.64
1.16
0.76
0.69
1.80
0.44
0.27
0.23		 4.10
3.90
11.2
18.8
11.4
8.70
6.10
4.80
41.0
13.7
13.5
8.70		 0.04
0.01
-0.01
0.01
0.01
0.01
-0.01
0.01
0.07
0.27
0.20
0.08
MBRCDD059 469
470
472
474		 470
471
473
475		 1.40
0.35
0.73
0.89		 0.09
0.45
0.08
0.33		 0.10
0.39
0.10
1.27		 12.0
28.2
8.40
22.8		 0.02
0.04
0.02
0.09

Peel Mining Limited – Quarterly Report September 2016

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475
476
477
478
487		 476
477
478
479
488		 1.80
0.68
3.30
0.63
0.76		 0.11
0.05
0.01
0.00
0.07		 0.51
0.05
0.59
0.14
0.19		 19.9
8.10
22.9
4.70
10.8		 0.03
0.35
0.06
0.02
0.03
MBRCDD060 369
370
371
372
441		 370
371
372
373
442		 3.15
0.68
0.36
0.54
0.00		 0.30
0.01
0.51
0.61
0.26		 0.31
0.06
0.39
0.16
0.01		 39.7
5.10
49.1
57.0
35.8		 0.58
0.66
0.07
0.15
0.02
MBDD027 144
145
159
160
188
263
264
266
267
291
292
316
335
371
372
373
374
376
377
404
405
407
408
442
457
476
477		 145
146
160
161
189
264
265
267
268
292
293
317
336
372
373
374
375
377
378
405
406
408
409
443
458
477
478		 0.23
0.46
0.03
0.03
0.00
0.00
0.01
1.59
0.29
0.02
0.02
0.42
4.65
4.68
0.90
1.62
0.78
0.10
0.77
2.64
1.57
4.25
2.45
0.08
0.01
0.19
0.11		 0.76
1.07
0.10
0.49
0.01
0.12
0.66
0.47
0.12
0.24
0.09
0.06
0.14
0.23
0.03
0.10
0.08
0.00
0.10
0.27
1.31
0.99
0.65
0.56
0.64
0.59
0.38		 2.11
2.30
0.70
3.10
0.04
0.58
0.64
3.05
0.55
0.87
0.65
0.92
0.25
0.23
0.04
0.10
0.03
0.01
0.04
0.24
0.08
0.29
0.52
1.26
0.79
0.62
2.08		 21.7
30.8
6.00
20.6
0.80
2.60
12.5
28.7
6.80
8.00
3.70
10.0
48.3
45.2
7.90
15.7
8.10
23.4
11.9
27.6
48.2
48.7
28.2
17.2
16.1
15.5
10.8		 0.06
0.09
-0.01
0.02
0.20
0.01
0.03
0.11
0.08
0.01
0.01
0.03
2.96
0.29
0.01
0.12
0.03
12.8
0.04
0.01
0.08
0.23
0.15
0.04
-0.01
0.10
-0.01

Siegal's Shaft/MD-2 RC Significant Assay Results (1m intervals)

Hole ID From(m) To(m) Cu(%) Pb(%) Zn(%) Ag (g/t) Au(g/t)
MD2RC001 81 82 0.05 0.71 1.78 19.1 0.03

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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 and reverse circulation (RC)
drilling were used to obtain samples for
geological logging and assaying.
 Diamond core was cut and sampled at 1m
intervals. RC drill holes were sampled at
1m intervals and split using a cone splitter
attached to the cyclone to generate a split
of 2-4kg to ensure sample representivity.
 Multi-element readings were taken of the
diamond core and RC 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 and grade and whether sample bias may
have occurred due to preferential loss/gain of
fine/coarse material.		  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 drilling but no significant sample
recovery issues have been encountered in
a drilling program 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 statisticallyvalid

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Criteria JORC Code explanation Commentary
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 drill holes in the current
program weregeologicallylogged 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 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.
 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 Laboratory Services were used for Au
and multi-element analysis work carried
on out on 3m to 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:
o
PUL-23 (Sample preparation
code)
o
Au-AA25 Ore Grade Au 30g
FA AA Finish, Au-AA26 Ore
Grade Au 50g FA AA Finish
o
ME-ICP41 35 element aqua
regia
ICP-AES,
or
an

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Criteria JORC Code explanation Commentary
appropriate Ore Grade base
metal 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 reading with a total 3 readings
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.
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 5 minutes to
obtain a steady reading. Collars are picked
up after 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.
 3m to 6m sample compositing has been
applied to RC drilling at Mallee Bull for gold
and/or multi-element assay.

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Criteria JORC Code explanation Commentary
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.

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 Cobar Superbasin Project comprises of
multiple exploration licences that are
subject to a farm-in agreement with
JOGMEC whereby JOGMEC can earn up to
50%.
 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 several
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 ofpredominantlysedimentary

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Criteria JORC Code explanation Commentary
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
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’). _
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 notpracticable, representative reporting		  All results are reported.

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Criteria JORC Code explanation Commentary
of both low and high grades and/or widths should
be practiced to avoid misleading reporting of
Exploration Results.
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 and Cobar
Superbasin Project will include geophysical
surveying and RC/diamond drilling to
further define the extent of mineralisation
at
the
prospects.
Down
hole
electromagnetic (DHEM) surveys will be
used to identify potential conductive
sources
that
may
be
related
to
mineralisation.

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).
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.		  No samples were taken at the Apollo Hill
project in the September 2016 Quarter.
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). _		  No drilling was completed at the Apollo Hill
project in the September 2016 Quarter.
Drill
sample
recovery		 Method of recording and assessing core and chip
sample recoveries and results assessed.		  No significant sample recovery issues have
been encountered to date.

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Criteria JORC Code explanation Commentary
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.		  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 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 and RC samples
records
lithology,
mineralogy,
mineralisation, structure (DDH only),
weathering, colour and other features of
the
samples.
Core
and
chips
are
photographed as both wet and dry.
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.		  No samples were taken at the Apollo Hill
Project during the September 2016
Quarter.
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) andprecision have been established.		  No samples were submitted for laboratory
assaying and testwork in the September
2016 Quarter.

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Criteria JORC Code explanation Commentary
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.		  Data/drill hole spacing is variable and
appropriate to the geology.
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. Samples are collected in
individually numbered bags and 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 Leases
M39/296 and M31/486.
 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
duringa drillprogram aimed at findingthe

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20

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Criteria JORC Code explanation Commentary
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.
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
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.		  No length weighting or top-cuts have been
applied.
 No metal equivalent values are used for
reporting exploration results.

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Criteria JORC Code explanation Commentary
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 60% of the down-hole width.
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 the main Apollo Hill deposit
will include further RC and diamond drilling
and geochemical sampling.
 Auger and RAB drilling is planned over
prospects identified over Peel's broader
tenement package.

Table 1 - Section 1: Sampling Techniques and Data for Wagga Tank 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		  Reverse circulation (RC) drilling was used
to obtain samples for geological logging
and assaying.
 The RC drill hole was sampled at 1m
intervals and split using a cone splitter
attached to the cyclone to generate a split
of 2-4kg to ensure sample representivity.
 Multi-element readings were taken of the
RC drill chips using an Olympus Delta
Innov-X portable XRF tool. The portable
XRF was calibrated against standards after
every 30 readings.

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Criteria JORC Code explanation Commentary
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). _		  The Reverse Circulation drilling utilised a 5
1/2 inch diameter hammer.
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.		  RC samples are not weighed on a regular
basis due to the exploration nature of
drilling but no significant sample recovery
issues have been encountered in a drilling
program to date.
 When
poor
sample
recovery
is
encountered during drilling, the geologist
and driller have endeavoured to rectify the
problem to ensure maximum sample
recovery.
 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 drill chip samples were geologically
logged. Logging of RC samples recorded
lithology,
mineralogy,
mineralisation,
weathering, colour and other features of
the samples.
 The RC drill hole was 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.		  The RC drilling rig was 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.
 Bulk samples were placed in green plastic
bags, with the sub-samples collected
placed in calico sample bags.
 A sample size of 2-4kg was collected and
considered
appropriate
and
representative for the grain size and style
of mineralisation.

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Criteria JORC Code explanation Commentary
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 Services were used for Au
and multi-element analysis work carried
out on 3m and 4m 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
Siegal's
Shaft/MD-2:
o
PUL-23 (sample preparation
code)
o
Au-AA26 Ore Grade Au 50g
FA AA Finish
o
ME-ICP41 35 element aqua
regia
ICP-AES
or
an
appropriate Ore Grade base
metal AA finish
 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 sampling and 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.
 Grid system used is MGA94 (Zone 55).
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 spacing is variable and appropriate to
the geology and historical drilling.
 3m or 4m sample compositing has been
applied to RC drilling at Siegal's Shaft/MD-
2 for gold assay.
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.		  It is unclear at this stage whether sampling
has a set bias; no orientation based
sampling is known at this time.
Sample
security		 The measures taken to ensure sample security.  The chain of custody is managed by the
projectgeologist. Samples are collected in

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Criteria JORC Code explanation Commentary
individually numbered bags and 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 Wagga Tank 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 100% Peel owned Wagga Tank project
is located within Exploration Licence
EL6695 "Wagga Tank". The tenement is in
good standing and no known impediments
exist.
Exploration
done by other
parties		 Acknowledgment and appraisal of exploration by
other parties.		  The Wagga Tank Project has been the focus
of modern mineral exploration activities
since
the
early
1970s
by
various
companies,
including
Golden
Cross,
Pasminco, Homestake, Shell and MMG. At
the Wagga Tank prospect, historic drilling
led to the defining of a non-JORC compliant
inferred resource estimate comprising
polymetallic
(Zn-Pb-Cu-Ag-Au)
mineralisation. At the Siegal's Shaft/MD-2
prospect, activities comprised of VTEM
surveying, diamond drilling and DHEM
surveying. The drilling predominantly
focused on following-up the surface
geochemical anomalism and associated IP
anomalies in theprospect area.
Geology Deposit type, geological setting and style of
mineralisation.		  The
project
is
located
within
the
volcanic/volcaniclastics deep-water Mount
Hope Trough of the Cobar Superbasin.
Mineralisation at the Wagga Tank and
Siegal's Shaft prospects are Cobar-style
and lead-zinc dominant. The Wagga Tank
prospect is located at the western-most
exposure of the Mt Keenan Volcanics
where it is conformably overlain by a non-
outcropping distal turbidite sequence of
carbonaceous
slate
and
siltstone.
Mineralisation is hosted in a sequence of
rhyodacite
volcanics
and
associated
volcaniclastics. The Siegal's Shaft prospect
is located in a sequence of rhyodacitic
pyroclastics which contain thin lensoid
occurrences of fine-grained tuffaceous
sediments and ash-fall tuffs. A gossan
occurs roughlyat the contact between

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Criteria JORC Code explanation Commentary
fine-grained
sediments
and
well-
developed coarse-grained crystal and
crystal-lithic tuffs. Thin layers of massive
sulphide mineralisation also occur within
the sediments as well as in the form of
disseminations,wisps,stringers and blebs.
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’). _
True widths are generally estimated to be
about 60% of the down-hole width.
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		 Other exploration data, if meaningful and material,
_should be reported including (but not limited to): _		  No other substantive exploration data are
available.

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Criteria JORC Code explanation Commentary
exploration
data		 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.



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 Wagga Tank and Siegal's
Shaft/MD-2 will comprise of RC and/or
diamond drilling.

TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3 Granted tenements

TENEMENT PROJECT LOCATION OWNERSHIP CHANGE IN
QUARTER
E39/1198 Apollo Hill Leonora,WA 100%
E39/1236 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%
E39/1887 Apollo Hill Leonora, WA 100%
E40/0296 27 Well Leonora,WA 100% Renewal Sought
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%
P31/2069 Rise Again Leonora, WA 100%
P31/2072 Rise Again Leonora, WA 100%
P31/2073 Rise Again Leonora, WA 100%
P31/2068 Rise Again Leonora, WA 100%
P31/2070 Rise Again Leonora,WA 100%
E31/1116 Apollo Hill Leonora,WA 100% Granted
EL8326 Attunga Attunga,NSW 100%
ML1361 Mayday Cobar,NSW 50% Renewal sought
EL7461 Gilgunnia Cobar,NSW 50%
EL7711 RubySilver Armidale,NSW 100%
EL7519 Gilgunnia South Cobar,NSW 100%

Peel Mining Limited – Quarterly Report September 2016

27

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EL7976 Mundoe Cobar,NSW 100%
EL8070 Tara Cobar,NSW 100%
EL8071 Manuka Cobar,NSW 100%
EL8105 Mirrabooka Cobar,NSW 100% Renewal Sought
EL8112 Yackerboon Cobar,NSW 100% 50% Renewed
EL8113 Iris Vale Cobar,NSW 100% Renewal Sought
EL8125 Hillview Nth Cobar,NSW 100% Renewal Sought
EL8126 Norma Vale Cobar,NSW 100% Renewal Sought
EL8201 Mundoe North Cobar,NSW 100%
EL8114 Yara Cobar,NSW 100% Renewal Sought
EL8117 Illewong Cobar,NSW 100% 50% Renewed
EL8307 SandyCreek Cobar,NSW 100% Renewal Sought
EL8314 Glenwood Cobar,NSW 100%
EL8336 Brambah Cobar,NSW 100%
EL8345 Pine Ridge Cobar,NSW 100%
EL8391 Gilgunnia North Cobar,NSW 100%
EL8414 Mt Walton Cobar,NSW 100%
EL8426 Marygold Cobar,NSW 100%
EL8447 Linera Cobar,NSW 100%
EL8450 Beanbah Cobar,NSW 100% Granted
EL8451 Michelago Cooma,NSW 100% Granted
EL6695 Wagga Tank Cobar,NSW 100% Transferred

Tenements under application/transfer

TENEMENT PROJECT LOCATION STATUS
E31/1132 Apollo Hill Leonora,WA Under application
E31/1133 Apollo Hill Leonora,WA Under application
E39/1984 Apollo Hill Leonora,WA Under application
E39/1991 Apollo Hill Leonora,WA Under application
ELA5343 Burthong Cobar,NSW Under application
EL7581 Lowan Cobar,NSW Under transfer
EL7484 Mount View Cobar,NSW Under transfer
EL7226 Wongawood Cobar,NSW Under transfer

Peel Mining Limited – Quarterly Report September 2016

28

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