New De Grey gold nugget discovery could dwarf previous patch
Pilbara prospectors De Grey have hit gold once again, unearthing nuggets in two new prospects said to dwarf their previous discovery, Loudens Patch.
The junior explorer (ASX:DEG) surged 15 per cent to 24c in lunchtime Tuesday trade.
Several pitted and flattened gold nuggets were found along a 12km target area, with conglomerate rock identified as similar to gold bearing rocks at the now infamous Purdy’s Reward site of Novo and Artemis (ASX: ARV) that started the local gold rush.
Chairman Simon Lill said the scope of the company’s pace has set them apart from others in the area.
“Our geological team understood the significance of Novo/Artemis’ activities earlier than most and moved rapidly to the initial Loudens Patch discovery,” Mr Lill said.
“They have now made more exciting new discoveries of highly prospective conglomerates with associated gold nuggets.”
“The scale of this 12km zone could dwarf Loudens Patch.”
At their Jarret Well site, a 300m strike length has been mapped, with up to 50m thickness.
The Steel Well site offers a 900m strike length, with thickness between 60m and 80m.
These nuggets are the first to come out of the 12km zone first announced in August for its “Witwatersrand-like” potential.
The Witwatersrand Basin is South African geological formation that houses the world’s biggest known gold reserves, producing 2 billion ounces or about half of gold ever mined.
With only 10 per cent of the 12km zone examined by metal detectors so far, they are hopeful there will be more good news to come.
To date mapping along the eastern margin of the Mt Roe Basalt, north of Steel Well, has been very limited.
Further work will be undertaken to explore outcrops in the gorges with the aim of extending the conglomerate beyond the current 2.5km strike.