Peel has a high grade tungsten,molybdenum discovery

Peel shares closed 1.5 cents, or 8.33 per cent, stronger at 19.5 cents.

Grades up to 24.21 per cent tungstic oxide and 1.71 per cent molybdenum have been encountered at the project, which is based on a previously identified deposit that has lain untouched for about 40 years.

"To my knowledge, these results are some of the highest grade tungsten mineralisation reported anywhere in the world and give strong encouragement to the deposit's potential for future development," executive director Rob Tyson said.

Tyson said tungsten was being mined in Spain at grades as low as 0.15 per cent tungstic oxide.

He said Attunga appeared to be a small deposit "but that doesn't matter if the grades are there, as they are in this case".

"I think this could be an economic deposit that we could be open cut mining in a few years time," he said.

"We're rapt."

Peel Exploration aims to undertake a scoping study in the next few months and complete a feasibility study by the end of 2009.

Tungsten are molybdenum are chiefly used in steel making.