The Attunga project is about 20 kilometres north of Tamworth and about 330km north of Sydney, New South Wales. The project licenses cover a combined area of about 250 square kilometres.
The three specific areas of interest within this project are: the Attunga tungsten deposit area, Attunga copper mine prospect and the Kensington gold-tungsten prospect.
Discovered in 1968, the Attunga tungsten deposit remains open in several directions and future exploration will comprise infill and extensional drilling. Peel Mining said at least five other outcrops of tungsten mineralised skarn contact with the Inlet Monzonite have been identified, and it believes there is strong potential for the discovery of additional resources.
The Attunga copper mine was worked from first discovery in 1902 up until World War II, with workings at the mine extended to around 80m below surface.
In 2010 Peel Mining began a drilling program and intercepted visible molybdenum-copper mineralisation over an approximate 8m zone. Upon final analysis it was confirmed as a high grade molybdenum interval. These results indicated that the Attunga skarn deposits were possibly part of a larger metalliferous system, potentially including a porphyry/mineralised granite source.
The Kensington gold deposit, about 5km north of the tungsten deposit, comprises historic gold workings dating back to before World War I. Peel believes the deposit represents an intrusive-related gold system and an economically important class of gold deposit.
In July 2008, a preliminary RC drilling program was completed which encountered widespread gold mineralisation. This was followed up in 2010 by an additional RAB drilling program completed to target gold mineralisation; the results provided further encouragement to the possibility of substantial, near surface mineralisation at the site.