The Peak Gold Mines Pty Ltd (PGM) operations are located approximately 9 km south of Cobar, NSW. PGM currently mines and treats ore from three separate orebodies within 5 km of the original plant. Production from the original Peak orebody ceased in April 2002, with ore currently sourced from underground at New Occidental and Perseverance, while New Cobar supplies ore from an open cut mine. In March 2003, Wheaton Minerals Asia Pacific purchased the operation from Rio Tinto who operated the mine for around ten years._x000D_
The Perseverance deposit is situated between 600 and 1000 m south of the Peak orebody. Access is via shaft from Peak to 630 m below surface and then by decline to the northern end of the deposit locally known as Zone A. Development of the resource commenced mid 2002 to set up for a long hole open stoping operation at 25 m level spacing. The first production stope was successfully brought on line December 2003._x000D_
The Perseverance deposit is hosted by sediments and volcanics along the eastern margin of the Devonian Cobar basin and is one of many deposits with the Cobar Gold Field. The Cobar Gold Field has produced approximately 2.5 million ounces of gold since 1880. The Perseverance area had long been considered prospective due to the presence of old workings at the southern extensions of Peak line of lode. Significant mineralisation was first discovered at Perseverance in 1994 when PGM drilled a hole targeted 950 m below the historic workings. The target was based on an apparent plunge to the stratigraphic controls to the Peak Orebody. Subsequent exploration within and around the greater' Perseverance area has been significantly aided through the use of downhole electro-magnetic surveys due to the close spatial association between gold and sulfide mineralisation.