The Gap sits at the eastern-most end of the 16.5km-long Eastman Intrusion Complex, and the results of the RC drilling are the first for eight prospects that were drilled in recent months

 

The best result was 99m at 0.3 grams per tonne 3E PGE from surface, including 7m at 1.2gpt from 26m.

 

Restated to recognise the palladium-dominant mineralisation the assays were 99m at 0.6gpt palladium equivalent, including 7m at 1.64gpt.

 

Palladium is trading at around US$2230 per ounce, more than twice the price of platinum.

 

As an aperitif The Gap has proved a promising start for the wider program.

 

Assays are pending for the full suite of PGEs - rhodium, iridium, ruthenium, and osmium - which were indicated by recent rock chips at several prospects.

 

Peako is looking at the southern end of the Halls Creek Orogen, in the same neighbourhood as the historical Panton deposit and emerging Lamboo resource.

 

The wide-spaced program was limited to 35 RC holes for 4138m to help the company better understand the stratigraphy.

 

Technical director Dr Paul Kitto said The Gap had confirmed Peako's theory that that PGE mineralisation occurs as both high-grade reef zones and as wide disseminated zones throughout the ultramafic intrusion.

 

The Gap was a previously untested geochemical anomaly. 

 

Just two holes have successfully tested the 600m-long anomaly. A third hole, in the south-east, did not intercept the target horizon due to unrealised folding and that area remains untested.

 

The phase one program was completed in August. Visually, the key ultramafic-mafic sequence was identified at all eight prospects.

 

While assays for the seven other prospects are still pending, Peako is keen to get back into the field before the wet season starts in November.

 

The program aimed to test two styles of target: stratabound mineralisation, such as Future Metals' nearby Panton resource; and a previously unrecognised carbonate-hosted mineralisation potential linked with the Koongie Park Formation.

 

Peako controls around 4029sq.km in the Kimberley.

 

The company, which had $1.5 million cash at the start of the financial year, raised $1.2 million via a fully subscribed non-renounceable rights issue last month.

 

Peako shares have traded at 1.1-2.7c over the past year, and were steady this morning at 1.9c, valuing it at $7.2 million.