Peelwood (NSW, Australia)

Peelwood Project (100%)
Copper – Zinc Project in New South Wales, Australia

Balamara Resources Limited is 100% owner of the seven exploration licences (EL’s) located in the Lachlan Fold Belt of eastern New South Wales, Australia.

The seven exploration licenses are:

• EL2934 – Peelwood North
• EL2934 – Peelwood South
• EL6081 – Single Tree Hill
• EL6082 – Junction Point
• EL6767 – Elsienora
• EL6831 – Black Springs
• EL6955 – Mount Costigan

 All tenements form a contiguous package that is located from around 50-80 kilometres (km) south of the City of Bathurst in eastern New South Wales.

Balamara’s main asset at Peelwood is the Peelwood North deposit (formerly known as John Fardy).

In addition, the Peelwood Copper-Zinc project has several historical mines and prospects with zinc-rich volcanic-hosed sulphide-style mineralization. Each of these old mines or prospects has the potential for similar style of mineralization to that at Peelwood North deposits.

History

The Peelwood mine operated continuously form approximately 1870 to 1879 as mainly a silver, copper and lead producer.  Production between 1879 and 1895 was intermittent except for three years up to 1889 when zinc was also produced.

The Peelwood mine is on the same line as the Peelwood North deposit although ore is not continuous between the two.

Other early metal mines operating in the locality, at the end of the 1800s include the Cordillera and Mount Costigan mines which also produced silver, lead and copper, although on a smaller scale to the Peelwood mine.

About Peelwood

The Peelwood North deposit is at Peelwood located approximately 50 kms north of Crookwell and 75 kms south of Bathurst, NSW, in the Upper Lachlan Shire.

The site is accessed from the Peelwood Road at Peelwood. Peelwood Road is a public road managed by the Upper Lachlan Shire.  Peelwood is in the Lachlan Catchment Management Area.

Peelwood is in a rural area, distant from any occupied townsite. The surrounding land is either cleared for farming purposes or vegetated with native vegetation that is accessed for grazing.

The landscape is gentle to steeply sloping dissected by creek lines which are mostly intermittent. Dams have been constructed on many of the creeks to catch runoff for stock watering purposes. Peelwood Road follows the Peelwood Valley which has the Peelwood creek at its base. Peelwood Creek flows north eventually connecting with the Abercrombie River. The minesite area drains to the east into the Peelwood Creek.

Current Status

On the 18^th of January 2011, Balamara announced that the Peelwood Metallurgical recovery test work exceeded expected recoveries and will result in higher metal production at no additional cost and the metallurgical test work also confirmed that saleable concentrates were achievable. Soon after, on the 15^th of March 2011, the Peelwood North Mine Water Study conducted by RPS Aquatera concluded that all water required for ore processing can be secured by harvesting surface water runoff which would be done by constructing a 180ML-250ML storage dam.