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.
Within the Attunga project, there are three specific areas of interest: the Attunga tungsten deposit area, the Attunga copper mine prospect and the Kensington gold-tungsten prospect. The Attunga project area is considered prospective for tungsten-molybdenum skarn-type mineralisation, base/precious metal skarn-type mineralisation, and gold intrusive-related gold system type mineralisation.
Discovered in 1968, the Attunga tungsten deposit was subject to an intense, but short lived exploration program comprising a total of 25 diamond drill holes for 4236 metres of drilling to a maximum depth of about 290m. Minimal further exploration has been completed at the Attunga tungsten deposit in the ensuing years.
The Attunga copper mine, about 800m north of the tungsten deposit was discovered in 1902 and worked at various times until World War Two. Total recorded production was about 1600t of ore grading six per cent copper, eight grams per tonne of gold and 150g/t of silver. Other significant metals present include bismuth, and molybdenum.
The Kensington gold prospect, located about 5km north of the Attunga tungsten deposit, comprises a series of historic gold workings across an 800m strike, with mineralisation outcropping and covered by a 1500m long gold geochemical anomaly that is open in several directions. In 1987 diamond drilling intersected extensive low-grade gold mineralisation with results including 13m at 1.07g/t of gold from 0m, and 108m at 0.74g/t of gold from 8m returned.
Gold mineralisation at Kensington is hosted in a complexly faulted/sheared suite of dioritic and andesitic breccias, andesitic volcanic greywacke andesitic tuff, carbonaceous shale, metasediments and lamprophyre.
Exploration. Between March and May 2010, Peel Mining completed six diamond holes that returned encouraging mineralisation. The results from the Attunga copper mine confirmed the presence of molybdenum-gold-copper skarn mineralisation that remained open in several directions and provided encouragement that the Attunga skarn deposits were possibly part of a larger metalliferous system, perhaps including a porphyry/mineralised granite source.