Friday 4th November 2011
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Perth-based junior gold explorer Peel Mining said it has been awarded two exploration permits covering the Rise and Shine gold project near Cromwell in Central Otago.
Peel said the permit area, which was the subject of a competitive permit allocation process by New Zealand Petroleum and Minerals, the government-owned manager of the Crown minerals estate, hosts multiple historic gold workings with historic production estimated at more than 180,000 ounces of gold.
It said the area appears to be structurally similar to the Macraes gold mine, which is owned by the publicly listed OceanaGold Corp. The Macraes mine is about 80 kilometres north of Dunedin and Peel said permit area is located in a similar position in the Otago Schist.
“Substantial amounts of exploration have previously been completed at Rise and Shine,” it said.
“However, the majority of work has been directed at historic workings sited at the base of the Rise and Shine Creek Valley. Peel believes that the Rise and Shine Shear Zone could possibly be 'flatter' than previously assumed, offering potential for large-tonnage, low-grade grade gold deposits extending up-dip from previously defined mineralisation.”
It said it plans to complete a program of drilling aimed at testing this.
“Peel was attracted to Rise and Shine because of its apparent similarities to Macraes” and it offers the company a potentially low-risk, high-return exploration scenario, said managing director Rob Tyson.
Peel reported a A$500,000 net loss for the year ended June 30, down from the previous year's A$700,000 loss. It had A$700,000 in cash at Sept. 30.
Peel shares are 0.5 cents higher at 14 Australian cents on the ASX, having risen from 7 cents this time last year and below their recent peak at 16.5 cents.
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