Pegasus Metals Limited (ASX: PUN) is pleased to advise that it has hit more massive sulphides containing high-grade copper and gold in the second target at its Mt Mulcahy Project in WA. The result from the West Copper target provides strong evidence that Mt Mulcahy is a VMS Province and therefore increases the prospect that more of the remaining 20 targets are also mineralised. Pegasus Managing Director Michael Fotios said the Company was also highly encouraged by  the recent re-evaluation of historic VTEM survey data, which showed that many of these 20 targets had the same or similar signatures to the flagship South Limb Pod discovery at Mt Mulcahy. Mt Mulcahy is located 50km north of Cue in the Murchison Region.

The first hole drilled by Pegasus at West Copper, which sits 300m west of South Limb Pod, has returned 0.5m at 2.3 per cent copper and 3.86 per cent zinc with 19.7g/t silver and 0.14g/t gold from 35m. This is the second massive sulphide intersection at West Copper following drilling by the previous owner which intersected 2.16m at 2.42% copper, 1.31% zinc and 19.8g/t silver (no gold assays were undertaken). Pegasus will undertake a ground-based electro-magnetic (EM) survey designed to provide more detail on the targets identified by the VTEM survey as well as identify additional targets. This will be followed by an extensive drilling campaign, which is expected to start in August.

The growing prospect of a VMS cluster at Mt Mulcahy has been made even more attractive by the latest assays from South Limb Pod, which contains another host of high-grade intersections. The fresh assays of up to 4.94 per cent copper and 3.86 per cent zinc with silver and gold further confirm the quality and continuity of the VMS-style mineralisation at South Limb Pod target. The mineralisation at South Limb Pod has been outlined over 300m down dip and to a vertical depth of 225m .
Pegasus is now drilling to test whether the South Limb Pod mineralisation extends from a vertical depth of 225m to 400m. This drilling has the potential to add substantial amounts of contained metal to any future South Limb Pod resource and also boost the development options available to Pegasus.

The latest results are consistent with those contained in previous assays, which have included intersections of up 6.8 per cent copper and 6.7 per cent zinc, further demonstrating the continuity of the mineralisation. The economics of any development at Mt Mulcahy would be boosted significantly by the shallow nature of the mineralisation, which makes it a potential open pit target. Weathering at Mt Mulcahy is relatively weak and only extends a few metres below the surface. “The drilling result at West Copper is highly significant for Mt Mulcahy and Pegasus,” Mr Fotios said. “It supports our theory that South Limb Pod is potentially just one of numerous high-grade deposits in a VMS cluster.

“The geo-physical similarities between South Limb Pod and many of the other targets are striking. With this substantial potential becoming increasingly clear, we will accelerate the implementation of our ground EM program with a view to drill-testing many of these other targets from August.” Diamond drilling at Mt Mulcahy has been completed in 61 holes to date (MMSP001 to MMSP004, MTMRCD001 to MTMRCD008 and MTMDD001 to MTMDD049).

This programme has included resource definition diamond drilling at South Limb, with 56 holes completed so far (MMSP001, MMSP003 & MMSP004, MTMRCD001 to MTMRCD008, MTMDD004 to MTMDD008 and MTMDD010 to MTMDD049). In addition 21 RC holes, testing the extension of the mineralisation up to the surface, have been completed (MTMRC009 to MTMRC029). Results for 54 diamond holes (MTMDD048 & MTMDD049 awaited) and 21 RC holes have now been announced in ASX releases dated 17 September 2012, 15 November 2012, 24 January 2013, 11 April 2013, 1 and 15 May 2013 and in this release.