Peregrine Gold Uncovers Vast High-Grade Channel Iron Deposit Near BHP Hub
Peregrine Gold Limited has announced a major discovery of a high-grade Channel Iron Deposit spanning over 7.7km near key BHP iron ore operations in Western Australia. Initial assays reveal iron grades averaging 57%, highlighting significant potential for the Newman Gold Project.
- Large-scale Channel Iron Deposit discovered over 6.4km strike, with inferred extension to 7.7km
- High-grade iron ore averaging ~57% Fe, peaking above 61% Fe in samples
- Deposit located near BHP’s Western Ridge Project and Mt Whaleback, close to infrastructure
- Discovery represents a previously unreported valley-type CID system
- Peregrine plans further exploration including mapping, sampling, heritage surveys, and drill testing
Discovery Context and Location
Peregrine Gold Limited (ASX, PGD) has revealed a significant new Channel Iron Deposit (CID) discovery within its 100% owned Newman Gold Project in Western Australia. The deposit, named the Coopers CID Prospect, extends over a continuous 6.4 kilometres with widths reaching up to 200 metres. Magnetic survey data further suggests an additional 1.3 kilometres of strike, bringing the total potential length to 7.7 kilometres. This discovery lies just 2 kilometres from BHP’s Western Ridge Project and 13 kilometres from the Mt Whaleback mine, positioning it advantageously near established iron ore infrastructure.
High-Grade Iron Ore with Promising Characteristics
Initial rock chip assays from the CID samples demonstrate consistently high iron content, averaging approximately 57% Fe and peaking above 61% Fe. These grades compare favourably with other regional deposits and are accompanied by low levels of deleterious elements, suggesting the ore quality is suitable for high-value iron ore production. The deposit’s composition includes pisolitic iron-rich rock with haematitic cores and goethitic rims, alongside fossilised wood fragments, indicating a well-preserved geological system.
A Previously Overlooked Valley-Type CID System
Unlike historical exploration efforts that focused on mesa-style CIDs in the region, Peregrine’s discovery is situated in a low-lying topographical position, which likely contributed to it being missed by past explorers and government surveys. The company suggests this represents a valley-type CID system, potentially larger and better preserved than previously known deposits. Magnetic data correlates strongly with the CID outcrop distribution, allowing for confident extrapolation of the deposit’s extent.
Strategic Significance and Next Steps
The proximity of the Coopers CID Prospect to major iron ore operations and infrastructure enhances its development potential. Peregrine notes the recent sale of a nearby Robe River Mesa CID deposit by CZR Resources for around A$75 million, underscoring the commercial value of such discoveries. Moving forward, Peregrine plans to conduct further rock sampling, detailed mapping, heritage surveys, and specific gravity studies. Drill testing is anticipated pending heritage and permit approvals, which will be critical to defining the deposit’s thickness and resource potential.
Outlook and Market Implications
Technical Director George Merhi highlighted the team’s excitement about the discovery and the rapid progress planned to advance the project. With iron ore markets closely watching new supply sources, Peregrine’s CID discovery near BHP’s operations could attract significant investor interest. However, the deposit remains at an early exploration stage, and further drilling will be essential to confirm its economic viability.
Bottom Line?
Peregrine’s discovery could reshape iron ore prospects in the Pilbara, but key drilling results and approvals lie ahead.
Questions in the middle?
- What will drilling reveal about the true thickness and volume of the Coopers CID Prospect?
- How quickly can Peregrine secure heritage and environmental approvals to commence drilling?
- Could similar valley-type CIDs be identified elsewhere in the Newman Project through magnetic surveys?
