Primary identifies new prospective area south of Toms Gully
THE DRILL SERGEANT: Primary Gold (ASX: PGO) has announced a new prospective area immediately south of the company’s Toms Gully gold mine and mill in the Northern Territory.
The company said the areas were confirmed from the results of a reconnaissance sampling program it had carried out at a number of prospects within the Mt Bundy project, including a total of 21 stream sediment samples and 78 soil samples.
Primary Gold said it had been encouraged by the results, which were returned from an area located approximately seven kilometres south of Toms Gully, and were originally highlighted in historic stream sediment samples.
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Stream sediment sampling in area south of Toms Gully. Source: Company announcement
The company said the new assays had both replicated and, in a number of instances, exceeded the historic values.
Stream sediment assays include 26.7ppb, 17ppb and 16.2ppb and are supported by overbank samples up to 45ppb.
The company highlighted the point that the results exceed the maximum stream sediment assay (13ppb) that led to the discovery of the high-grade Toms Gully deposit in the late 1980s, adding that it considers them to highlights the prospectivity of the area.
The company claims the prospectivity is also supported by the geological setting, which is characterised by tight antiformal structures within the propsective Gerowie Tuff and Mt Bonnie Formation.
Primary Gold explained these are key features of the plus-12g/t Zapopan deposit (east of Pine Creek), and are thought to be important vectors when searching for look-alike, high-grade mineralisation.
“The area not only has the right geology, in terms of structure and stratigraphy, it is also returning assays which to date exceed those returned from our high-grade Toms Gully deposit at a similar stage of its discovery,” Primary Gold managing director Clay Gordon said in the company’s announcement to the Australian Securities Exchange.
“We will now turn our attention to infilling and broadening the geochemical coverage in this exciting area.”
Website: www.primarygold.com.au