The share price of the Peel Mining Limited (ASX: PEX) hiked by 40% this morning after it was discovered that the grading of zinc while exploration was 40%. It is assumed that grading of zinc beyond 12% is categorized under high grade. This result was obtained from the Southern Nightsâ site of the company in NSW.
After the outcome of this result, the share price jumped from 31 cents to an intraday high of 44 cents as soon the market opened this morning.Â
Based on the estimation of Peel (ASX: PEX), it is the highest zinc intercept the company has ever come across. The result was obtained from the adjacent drill holes. This also indicated that the zone is a source of high-grade mineralization.
After drilling a hole of 18.2 meters it intercepted 15% lead, 1% copper, 350gms per tonne of silver, and 2.7gms per tonne of gold within the surface range of 182 meters.
Southern Nights form a unit of the project Wagga Tank of the company. This project is considered the most significant polymetallic discoveries in recent years.
In the year 2010, the company bought the Wagga Tank project for $40,000. At that location, there was no exploration done till 1989. Around 20,000 meters deep drilling is in progress in order to establish JORC mineral resources approximation by the mid of 2019.
There is certain mining industryâs code which is followed by the JORC in order to report the results from the exploration, mineral resources and the ore reserves. Australasian Joint Ore Reserves Committee manages these results derived from exploration.
This drilling program is considered to be an important step in the mining industry in Australia as this drilling program will identify the width and depth of the mineralized
The managing director of the company, Rob Tyson said stated that the grades of the ore were overwhelming, and it also highlights the benefits which can be derived from Cobar Basin.
He also stated that the company is having 100% ownership followed by secured funding. It will also help them to identify the geometry, scale as well as the evident economic potential of the project.
In order to continue the exploration process, the company is provided with sufficient funds. They hold almost $4 million in cash and cash equivalent by the end of September.
If we see the entire journey of the company, the performance of the company is 219.72%. The 1 year and 5 years performance of the company was -43% and -7.8% respectively. The YTD performance is -44.20%.
By the end of the day, the share price of the company increased by 40.323% and the closing price was A$0.435. The market capitalization was A$67.89x.
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