Peel Exploration (ASX:PEX) Managing Director Rob Tyson is excited about a significant deposit that may be found in the historic May Day mine,Gilgunnia, western NSW.
Peel Exploration acquired the mine in 2006 and says that it has discovered reasonable deposits of gold, silver, copper, lead and zinc.
The May Day gold-base metal deposit (comprising a 100 hectare mining lease - ML1361), is located approximately 100km south of the mining town of Cobar in central NSW. Peel recently lodged an exploration licence application (ELA3776) covering approximately 84 km2, encompassing the May Day deposit.
Rob Tyson is hoping to construct a new mine at the site about 100 km south of Cobar. According to him while the grade of the gold is marginal at times the drilling results are pleasing. For him the most exciting is the large magnetic anomaly sitting under the May Day pit, however that it quite deep. The shallower targets including geochemical anomalies near the surface is what they are looking at right now. They will also be looking at historical workings from the turn of the 20th century which have lead and zinc, but have not been tested for gold.
He hopes to offer to turn the mine into a potential mining site in about five years time. He also feels that the neighboring land owned by an international company is also rich with minerals, which drilling tests would confirm.