De Grey unveils conglomerate gold discovery that could dwarf Loudens Patch
After anchoring itself in Western Australia’s Pilbara in recent months, De Grey Mining (ASX: DEG) has reported two more conglomerate gold discoveries across its 1,800-square kilometre landholding, which could potentially “dwarf” the company’s renowned Loudens Patch deposit.
Named Jarret Well and Steel Well, these latest discoveries include a 12km zone with conglomerate gold mineralisation similar to the mineralisation reported at the Purdy’s Reward project, which triggered the current gold frenzy in the Pilbara.
At Jarret Well, three gold nuggets were recovered within conglomerate mineralisation, which has a mapped 300m strike which remains open with shallow dipping, and up to 50m thick.
Panoramic view looking southwest towards Jarret Well Conglomerate.
Meanwhile, a further three gold nuggets were found south of Steel Well, with the conglomerate mapped over 900m strike, which remains open, and up to 80m thick.
Metal detection and mapping were undertaken across less than 10% of 12km zone, with more than 90% remaining to be actively explored.
The 12km hot zone was identified through reconnaissance geological mapping followed by metal detecting, which led to the gold nugget recoveries.
Commenting on the discovery, De Grey Mining executive chairman Simon Lill said the latest gold detections could potentially “dwarf Loudens Patch”, because of the scale of the 12km zone.
“Our geological team understood the significance of Novo Resources (ASX: NVO) and Artemis Resources’ (ASX: ARV) activities earlier than most and moved rapidly to the initial Loudens Patch discovery,” Mr Lill said.
As the company progresses towards a drilling campaign, more mapping, metal detecting and geochemical sampling are underway across the newly identified hot spot.
“We are also looking forward to commencing drilling at the high grade Toweranna and Blue Moon prospects shortly,” Mr Lill added.
Jarret Well, Steel Well and Loudens Patch are part of the Indee gold project, which De Grey Mining is earning 100% via binding heads of agreement with Northwest Nonferrous Australia Mining’s (NNAM) subsidiary Indee Gold.
The agreement was executed in January this year and the company now has until mid-2019 to pay the vendors A$14.9 million plus a A$2 million instalment.
Pilbara’s secret gold treasure trove
It appears the Pilbara, which is rich in multiple commodities, has been harbouring a secret treasure trove of conglomerate gold which has got investors around the world in a lather.
Artemis and Novo triggered the gold rush with the discovery of numerous gold nuggets and conglomerate gold mineralisation at Purdy’s Reward.
As the rush unfolded, explorers scrambled to peg up land, with De Grey Mining securing itself a substantial landholding in the region.
The reason for the frenzy is the mineralisation’s similarity to the Witwatersrand deposit in South Africa, which is believed to be the world’s largest gold resource, having produced 1.5 billion ounces and more to come.
Shares in De Grey Mining leapt more than 20% in early morning trade on news of the latest discovery.