Peregrine picks up seven new tenements around Newman gold project

Peregrine Gold acquires seven tenements around Newman gold project in WA
Tenements consolidate company’s land position in traditionally iron ore region
Initial reconnaissance exploration planned for early Q1 2024

Special Report: Peregrine Gold has acquired seven new high prospective exploration tenements around its Newman gold project in the Pilbara region of WA.

The district-scale Newman tenement package was assembled after noting that “epizonal” quartz textures were observed in the area by previous explorers as far back as the 1980s in the traditionally iron ore area.

Epizonal gold systems are known to produce the highest-grade gold deposits currently known, including the exceptional Swan Zone at the Fosterville goldfield.

Peregrine Gold (ASX:PGD) made its first bedrock gold discovery at the Tin Can prospect earlier this year, and with new prospects continually being discovered over the extensive land package, the company is confident the area will develop into Australia’s next great gold camp.

Consolidating Pilbara land position

The tenements – E47/4311, E52/3370, E52/3755, E52/2933, E52/3396, E52/3097 and E52/3570 – were acquired from Fortescue (ASX: FMG) subsidiary FMG Pilbara for cash consideration of A$100,000, plus deferred consideration, including the following milestone payments:

Milestone One: The payment of $500,000 upon PGD announcing to the ASX the delineation of a JORC compliant resource of at least 100,000 ounces of gold with a minimum cut-off grade of 0.5 g/tonne (or the economic equivalent of other minerals);
Milestone Two: The payment of $500,000 upon grant of any mining lease under Division 3 of Part IV of the Mining Act to PGD, and;
Royalty: 1% of the Free On Board (FOB) revenue in respect to iron ore products, and 1% of the net smelter return in respect of royalty minerals and gold.

“The acquisition of these highly prospective tenements is a valuable addition to Peregrine Gold’s land position at Newman,” PGD technical director George Merhi said.

“Some of these tenements are along trend of our current prospects and within a prospective geological formation.”

Peregrine Gold (ASX:PGD) — Pic: Newman gold project tenement locations. Source: PGD.

Initial exploration in 2024

Notably, two exploration licences in the agreement, E52/3396 and E52/3097, are immediately south and west of the Peninsula, Birdsnest and Tin Can prospects and will be the focus of initial surface exploration.

“Reconnaissance exploration including steam sediment, soil and rock sampling will commence early in Q1 2024,” Merhi said.

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.