Primary excited by large, new Coolgardie anomaly

Primary Gold Limited (ASX: PGO) has discovered a large geochemical anomaly in the first phase of exploration at the recently acquired south-western area at its Coolgardie Project in Western Australia.

The company said the new exploration work targeting prospective geology zones away from the known deposits, has been successfully completed with 461 samples, distributed over a regular 200 x 100m grid, collected from the 9 km 2 area.

All samples were collected and assayed using mobile metal ion (MMI) methodology – a proven advanced geochemical exploration technique used in finding mineral deposits.

The program discovered new geochemical anomalies, including a 1km long strong gold anomaly denoted as Anomaly-1, and two weaker anomalies, Anomaly-2 and Anomaly-3.

Anomaly-1 is located on the floodplains of the Gazali creek extending in a down-stream direction along the creek banks. Mobile gold content in the soil samples from this area consistently exceeds 50 ppb Au (MMI) and in two samples reached 108 and 110 ppb Au (MMI) values.

Managing Director Garry Mills said Anomaly–1 spatially coincides with a major cross-cutting structure that strikes in a NW – SE direction intersecting the Coolgardie greenstone sequence at a high angle.

The company said this structure, located in the central part of Primary’s tenement package, is geologically similar to that hosting Primary’s Tycho deposit in the eastern part of the tenement package. Shallow scout drilling by previous explorers in the Anomaly-1 area intersected gold mineralisation at depths ranging from 40m to 60m.

“The discovery of a 1km long soil geochemical anomaly, in an area previously untested by soil geochemical analysis or systematic drilling, confirms our belief these tenements potentially host gold mineralisation and warrants systematic drilling,” Mr Mills said.

“Anomaly 1, in particular, shows significant potential and will be our priority target for the 2018 drill program. While Anomaly 2 and 3 are potential drill targets, further MMI geochemical sampling will be undertaken to provide more confidence in these anomalies. I look forward to updating investors on the results from the drilling campaign in the new year.”