De Grey Mining Limited’s (ASX:DEG) share price doubled intra-day after identifying a new conglomerate gold target containing gold nuggets at its Pilbara Gold Project in Western Australia.
This target represents a new area separate from the 12 kilometre Mt Roe Basalt target recently identified by De Grey.
To date 91 nuggets ranging in size from 2mm to 10mm have been found in and around the new target area west of Mt Roe Basalt.
Importantly, several nuggets have been found higher up the slope, outside the historic workings and within several metres of the conglomerate target zone.
All the nuggets found are smooth and waterworn, typical of a palaeo-placer gold deposit with most having pitting.
Many have the appearance of watermelon seeds and is considered comparable to Witwatersrand style gold mineralisation.
The size of De Grey’s new target is 1.5 kilometres by 400 metres with a depth of circa 5-10 metres
De Grey has also identified extensive alluvial gold workings dating from modern day scraping to historic alluvial and dry blowing mining.
These have been identified over 200 metres within the tenement area.
De Grey is now undertaking mapping and sampling on both the western and the eastern sides of the prospective Mt Roe Basalt range targeting the prospective conglomerate horizon.
Subject to additional mapping and sampling results, De Grey intends to assess the outcropping conglomerate areas for in-situ bedrock mineralisation.
Currently this work is most likely to include surface trenching to provide better exposures for detailed and bulk sampling and geological examination, followed by drilling testing.