Peregrine Gold makes major Channel Iron Deposit discovery

• Peregrine Gold discovers large-scale Channel Iron Deposit (CID)
• It has been observed over a continuous length of 6.4km and up to 200m wide 
• Further rock sampling and mapping of the Coopers CID prospect is planned 

Special Report: Stream sediment sampling on Peregrine Gold’s E52/3850 tenement has revealed a large-scale Channel Iron Deposit discovery just 2km from BHP’s Western Ridge asset, close to the town of Newman. 

In subsequent sampling and mapping, Peregrine geologists mapped the CID over a total strike length of 6.4km and widths of up to 200m with a further 1.3km of strike interpreted in magnetics. 

Peregrine Gold (ASX:PGD), which jumped 62% at the opening to 30c, believes the discovery was missed by previous exploration programs and GSWA mapping due to its low topographical position.

Historical CID work focused on the mesas in the area to the northeast but PGD said the recent discovery represented a better preserved and far larger scale CID system than historical mesa-style CIDs and could represent a ‘Valley Type’ system.

Geochemical data of the CID samples has shown the material is of a consistently high grade – peaking above 61% Fe – with all CID samples taken averaging ~57% Fe.

Levels of deleterious elements are also low and considered within the parameters for high quality iron ore deposits.

It is anticipated that subject to drill testing, the depth of the CID channel may be substantially thicker in the central parts of the channel which are up to 200m wide. 

Similarities to major deposits 

Recent corporate movements have drawn attention to CZR Resources’ (ASX:CZR) sale of its 85% holding in the Robe River Mesa Channel Iron Deposit for ~$75m. 

Positioned next to Rio Tinto’s existing Robe Valley operations and near major infrastructure, Peregrine believes Robe Mesa provides a useful point of reference. 

Early indications suggest Peregrine’s recent CID discovery has a scale that compares very favourably to that of Robe Mesa. 

“Outstanding result” 

PGD technical director George Merhi said the company’s exploration team had delivered an outstanding result in the discovery of this virgin high-grade Channel Iron Deposit that appears to be of significant scale.

“Our objective moving forward will be to advance the Coopers CID Prospect as quickly as possible,” he said. 

“We are currently assessing the regional magnetic database in order to identify additional magnetic features which may represent CID targets. 

“The team will rapidly advance this discovery to set the stage for drill testing, subject to further results and receiving approvals”.

What’s next? 

Peregrine will undertake further rock sampling and mapping at Coopers CID, while also analysing airborne magnetic data over the broader Newman project to pinpoint similar potential CID deposits.

Upcoming exploration will include heritage surveys, POW planning and submission, specific gravity studies, a review of the regional magnetic database and RC drill testing. 

This article was developed in collaboration with Peregrine Gold, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.