Vendetta Mining (VTT.V) is still drilling away on its Pegmont Lead-Zinc project in Australia, and the company has now provided the assay results of an additional nine holes which were all drilled on Zone 5, the underground portion of the mine. Keep in mind that now the open pit potential of Pegmont has been confirmed, the exploration phase at Zone 5 is merely meant to get a better understanding of the mineralized structures, and the resource increase at Zone 5 will only have a small impact on the NPV of Pegmont (as the additional value will be marginal due to compounded discounting).
As expected (according to the Broken Hill model), the zinc grades appear to be increasing at Zone 5, and with true thicknesses of 5.3 meters at 8.45% PbZn (4.05% zinc), 5.2 meters at 8.61% PbZn (4.01% zinc) and 2.6 meters containing 11.03% PbZn (7.17% zinc), the existence of the zinc rich zones have now been confirmed, further validating the company’s exploration model.
93 holes have now been completed as part of the 2017 drill program, and the assay results of almost 50 holes still have to be reported, so we expect the next few weeks and months to be busy as these assay results will be used for an updated resource estimate in 2018.
As part of its regional exploration campaign, Vendetta Mining has now drilled a first two RC holes to prepare for a 4-hole, 1,400 meter drill program targeting the previously discovered copper-gold zone. These two holes identified the fault which is interpreted to be the boundary between the lead-zinc and copper-gold zones.
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The author has a long position in Vendetta Mining. Vendetta is a sponsor of the website. Please read the disclaimer
