Mallee Bull, discovered by Peel in 2011, already has a resource of 3.9 million tonnes at 2.7% copper equivalent, using a 1% cut-off grade.

Peel managing director Rob Tyson told the RIU Sydney Resources Round-up yesterday that an update to the 2014 maiden resource would be out by the end of the quarter.

“That will be a global resource and include lead and zinc this time,” he said.

“Mallee Bull’s getting fitter.”

Peel is weighing up an early production option for the high-grade T1 zone at Mallee Bull, which has returned results including 12m at 35.1% zinc and lead, 308 grams per tonne silver and 1.5gpt gold from 83m. 

Tyson said there metallurgical results conducted at the nearby Endeavour mine had been encouraging, and the company could process the ore there.

The company will conduct a 4000m reverse circulation program before heading into a prefeasibility study.

“Mallee Bull is certainly on a pathway to production,” Tyson said.

Peel has drilled 110km in the Cobar Basin since listing 10 years ago, including more than 20km this financial year.

“It’s certainly going into the ground as it should,” Tyson said.

“I’m fairly sure no one in our space is putting more holes into the ground.”

It was that approach which attracted St Barbara last month as a 9.6% shareholder, with CEO Bob Vassie publicly praising the company’s efficiency.

Peel is still well-funded with A$6 million cash.

The Cobar Basin already holds $50 billion worth of metals.

“We’re hoping to convert those to what we see in the area, which is long-life mining operations,” Tyson said.

“It’s a significant place to be looking for these deposits.”

Shares in Peel were down by 13% to 19.5c on low volume.