Primary Gold (ASX:PGO) has identified a new prospective area immediately south of its Toms Gully mine and mill in the Northern Territory.
The results were confirmed from a reconnaissance sampling program at a number of prospects within the Mt Bundy Project, including 21 stream sediment samples and 78 soil samples.
Encouraging results were returned from an area located 7 kilometres south of Toms Gully, originally highlighted in historic stream sediment samples.
New gold assays confirm and exceed the historic values with grades of 26.7ppb, 17.ppb and 16.2ppb, supported by overbank samples up to 45ppb.
Significantly, these results exceed the maximum stream sediment assay of 13ppb that led to the discovery of the high-grade Toms Gully deposit in the late 1980's.
The area has the right geology in terms of structure and stratigraphy, so the strong gold values are particularly meaningful.
PGO will now turn its attention to infilling and broadening geochemical coverage.
Also flagged for follow-up geochemical surveying is the Quest 30 area, located 3 kilometres east of the 148,000 ounce Quest 29 resource.
PGO is a gold producer and explorer with multiple near term-production and advanced exploration assets in the Northern Territory.
Primary owns the Mt Bundy Gold Project, which comprises the 250,000 tpa Toms Gully processing facility and substantial resources at the Toms Gully underground mine - 315,000 ounces; the Rustlers Roost open pit - 968,000 ounces; and the 148,000 ounces at Quest 29.
All projects are within a 15 kilometre radius of the Toms Gully mill.
The company is lightly valued at under $4 million.
