Initial sampling at Marindi Metals’ (ASX: MZN) Bellary Dome project has revealed visible conglomerate-style and fine gold, with the project in proximity to Novo Resources tenements in Western Australia’s Pilbara.
Marindi appointed George Merhi as a consulting geologist to undertake initial sampling and exploration across the company’s tenements.
Mr Merhi collected samples from 81 stream sites and investigated historic trench materials. He visited previous workings where conglomerate gold had been mapped in the 1970s and 1980s and grabbed nine rock samples from nearby spoils.
Visible gold was seen in five of the conglomerate specimens, but it did not have the watermelon seed-shape that has been reported by other Pilbara conglomerate gold explorers.
Marindi claims it is “extremely positive” to identify visible gold and conglomerate at this early exploration stage.
“To my knowledge, there have been no reports of a conglomerate immediately beneath the Mount Roes Basalt with abundant buckshot and euhedral pyrite with visible fine gold identified in the west Pilbara or the southern Fortescue Basin to date,” Marindi consulting geologist George Merhi said.
“If this is correct, it is very significant to the Pilbara conglomerate gold story,” Mr Merhi noted.
Marindi managing director Joe Treacy said although more work was required to determine the extent of the gold mineralisation, the company was “very encouraged” by the recent discoveries.
Assays from the stream sampling are pending and preparations are underway for more detailed soil sampling and mapping across the conglomerate gold horizon.
Pilbara conglomerate gold story
Artemis Resources (ASX: ARV) and TSX-listed Novo Resources triggered a gold rush in the second half of last year after the duo identified numerous watermelon seed-shaped nuggets across the Purdy’s Reward project in the Pilbara.
The seed-shaped gold was said to be similar in shape and coarseness to the world’s largest known gold deposit, Witwatersrand reef, in South Africa, which has produced 1.5 billion ounces of the precious metal, with much more to come.
Other explorers in the area undertook rapid reviews of their nearby projects leading to a stream of gold find announcements from De Grey Mining (ASX: DEG), Kairos (ASX: KAI), as well as Artemis and Novo and several other juniors in the area.
This sparked a land grab with explorers pegging up prospective land in the vicinity of the discoveries.
The theory many hold is that the Pilbara may be playing host to a massive gold system that could sustain multiple gold mines for many years to come.
However, with believers, also comes detractors.
Explorers and investors, alike, remain watchful of the companies who are actively exploring to see the outcome.
Investors reacted positively to Marindi’s news today, with the company’s share price up 10% to A$0.011 by midday.