How Big Could Peregrine Gold’s New High-Grade Iron Deposit Become?
Peregrine Gold has announced a major discovery of a high-grade Channel Iron Deposit spanning over 7.7km near established BHP iron ore operations in Western Australia, signaling a promising new chapter for the Newman Gold Project.
- Large-scale Channel Iron Deposit discovered over 6.4km strike, with inferred extension to 7.7km
- High-grade iron assays averaging ~57% Fe, peaking above 61% Fe
- Deposit located near BHP’s Western Ridge Project and major infrastructure
- Low levels of deleterious elements indicating high-quality ore
- Next steps include heritage surveys, mapping, and drill testing pending approvals
Discovery Overview
Peregrine Gold Limited (ASX, PGD) has revealed a significant breakthrough at its Newman Gold Project in Western Australia with the discovery of a large-scale, high-grade Channel Iron Deposit (CID). Spanning a continuous strike length of 6.4 kilometres and widths up to 200 metres, this CID is further extended by 1.3 kilometres based on magnetic survey interpretations, bringing the total potential strike to approximately 7.7 kilometres.
The discovery is notable not only for its scale but also for its quality. Initial rock chip assays show iron grades averaging around 57% Fe, with peak values exceeding 61% Fe. Importantly, the ore exhibits low levels of deleterious elements, suggesting it meets the parameters for premium iron ore deposits.
Strategic Location and Geological Significance
Located just 2 kilometres from BHP’s world-class Western Ridge Project and 13 kilometres from the Mt Whaleback mine, the Coopers CID Prospect benefits from proximity to established mining infrastructure and transport corridors. This adjacency could materially reduce development costs and timelines if the deposit advances to production.
Geologically, the CID represents a ‘Valley Type’ system, distinct from the historically explored mesa-style deposits in the region. The deposit’s preservation in a low topographical position likely contributed to it being overlooked in previous exploration campaigns and government surveys. The CID consists of pisolitic iron-rich rock with haematitic cores and goethitic rims, occasionally containing fossilised wood fragments, indicating a well-preserved mineralisation environment.
Exploration and Next Steps
Peregrine’s exploration team has already mapped and sampled the deposit extensively, confirming the magnetic signature aligns closely with the CID outcrop. This correlation allows for confident inference of strike extensions beyond visible outcrop. However, the thickness of the deposit remains uncertain, with observed exposures showing a minimum of 10 metres. The central channel areas, which are wider, may host significantly thicker mineralisation pending drill testing.
Looking ahead, Peregrine plans to undertake heritage surveys, obtain permits, conduct further mapping and sampling, and review regional magnetic data to identify additional CID targets within the Newman Project. Drill testing is anticipated once approvals are secured, marking a critical phase in validating the deposit’s resource potential.
Market Context and Comparisons
The discovery’s scale and grade invite comparisons with recent transactions in the Pilbara iron ore sector, notably CZR Resources’ sale of an 85% interest in the Robe River Mesa CID for approximately A$75 million. While Robe River Mesa has a defined Probable Ore Reserve of 33.4 million tonnes at 55% Fe, Peregrine’s CID shows higher iron grades and a larger surface expression, albeit at an earlier exploration stage.
Technical Director George Merhi highlighted the team’s excitement and commitment to rapidly advancing the project, emphasizing the potential for further CID discoveries through magnetic data analysis. The company’s methodical approach underscores the importance of balancing exploration momentum with regulatory and heritage considerations.
Bottom Line?
Peregrine’s discovery near BHP’s iron ore heartland could reshape regional supply dynamics, next drill results will be pivotal.
Questions in the middle?
- What will drill testing reveal about the true thickness and resource potential of the CID?
- Can Peregrine secure timely heritage and permitting approvals to maintain exploration momentum?
- Will further magnetic data analysis uncover additional CID deposits within the Newman Project?