Peel Mining has regained complete ownership of its Mallee Bull copper and May Day gold deposits in New South Wales via a $17 million deal with CBH Resources.
The company has acquired its remaining 50 per cent project interest from CBH, which is its former joint venture (JV) partner, as it has received ministerial approval for a transfer of titles.
CBH received an offer of $17 million for the JV’s two tenements last year, prompting Peel to exercise its right to acquire the JV.
Peel aims to consolidate its assets while targeting a critical mass of 12-15 million tonne resources under its Hub & Spoke strategy.
“With complete managerial independence now returned, it is the company’s intention to undertake a resource drillout at Mallee Bull to establish a primarily indicated resource as part of the company’s plans to achieve a critical mass of resources to support our Hub & Spoke strategy,” Peel managing director Rob Tyson said.
“The acquisition of Mallee Bull delivers 100 per cent control of Peel’s entire Cobar Basin tenure, whilst significantly increasing the company’s exposure to copper, and expanding the company’s asset base in its objective to achieve critical mass to support a standalone processing plant.”
The Mallee Bull project sat under a JV arrangement with CBH for eight years, where the company’s funding was said to be instrumental in helping to delineate the deposit.
“Under the joint venture, Mallee Bull rapidly advanced into a major copper discovery with mineralisation extending from near surface to at least 800 metres below surface,” Tyson said.
The Mallee Bull prospect contains a JORC resource of 6.76 million tonnes at 1.8 per cent copper, 31 grams per tonne silver, 0.4 grams per tonne gold, 0.6 per cent lead and 0.6 per cent zinc.
The project comprises the Mallee Bull copper deposit and the May Day gold-polymetallic deposit, approximately 100 kilometres south of Cobar in central New South Wales.