A prospector has discovered 203 gold nuggets across Coziron Resources’ (ASX: CZR) Top Camp and Middle Valley prospects at its Croydon project in Western Australia’s Pilbara, which has been home to similar nugget discoveries in recent years.
The company revealed this morning that a prospector discovered the nuggets using a metal detector across the prospects.
Combined, the nuggets total 75.3 grams and range in size from 0.04-2.14g.
To-date Coziron has received 11 notifications from prospectors which have prospecting permits over its tenements.
The permits allow prospectors to carry out small-scale exploration for gold on the surface. As part of the permit conditions, prospectors must report their findings to the WA Government’s Department of Mines, Industry Regulation and Safety and the holder of the exploration licence, which is Coziron.
According to Coziron, this latest find is similar to other prospector reports from last year where gold nuggets totalling 53.4g were recovered from the same area.
“Photographic evidence suggested the 2018 recovered gold is being released from a quartz-carbonate rock,” the company noted.
“Although the recovery of coarse gold nuggets by prospectors is not in itself economically significant, the reported distribution has been plotted and integrated with other geological and geochemical data from Croydon and is being used to identify and prioritise targets for further work.”
Coziron plans to carry out a reverse circulation drilling program at Tom Camp, which will target a gold anomaly which was identified from surface sampling.
The company will also prioritise surface sampling and mapping at the Middle Valley prospect.
Pilbara gold rush
Although focused on the magnetite potential at its Pilbara projects, the company acquired Croydon in late 2017 after several explorers in the region revealed they had unearthed conglomerate-style gold at their tenements.
TSXV-listed Novo Resources and partner Artemis (ASX: ARV) triggered a gold rush in mid-2017 when they revealed they had discovered multiple gold nuggets at the Purdy’s Reward project about 45km from Karratha.
The find led to several other discoveries from nearby explorers, with the gold frenzy boosted by the theory the watermelon seed shaped nuggets were part of a much larger conglomerate-style deposit.
Additionally, the nuggets were noted to be similar to South Africa’s Witwatersrand gold reef which hosts the world’s largest known gold reserves and has already given up more than 1.5 billion ounces of the precious metal.
Shareholders and investors back Coziron
Today’s news follows an announcement earlier this week that Mark Creasy’s Yandal Investments Pty Ltd, which is Coziron’s largest shareholder, had provided $685,000 in interim funding to the company.
The loan is in addition to a $125,000 provided by Coziron’s directors in March.
Under the financing arrangements, the loans can be converted to shares in the company at either $0.01 per share or the same price as the company’s next capital raising.
To shore up more working capital cash, Coziron plans to undertake a placement shortly.