|Silver mine purchase sparks investor interest|
|Thursday, 03 March 2011 10:01|
Peel shares closed up 1.5 cents, or 21.43 per cent, at 8.5 cents after reaching a high of 9.6 cents in intraday trade.
The Perth-based company on Wednesday said it had acquired an exploration licence of about 60 sq km covering the historic Ruby-Tulloch-Rockvale silver field about 30km east of Armidale.
The Ruby silver mine has in the past produced 350,000 ounces of the metal, while the Tulloch silver mine yielded 50,000 ounces of silver.
Peel said a 1968 drill intercept, at the Ruby mine of 5.08 metres wide at a grade of 6,700 grams per tonne silver from a depth of 90.5 metres, had never been followed up.
Managing director Rob Tyson said the Ruby project was an excellent addition to Peel's existing precious and specialty metals assets and offered potential high-grade exposure to an increasingly valuable metal.
"Peel has commenced landowner negotiations and is looking to kick start exploration over the near term," Mr Tyson said.
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