Shares in the company soared more than 140% as De Grey said its...

Shares in the company soared more than 140% as De Grey said its prospect ranked with the Purdy’s Reward find that has proved a boon for owners Novo Resources and Artemis Resources.
“We are essentially now only one step behind Novo and Artemis in terms of defining bedrock hosted conglomerate gold mineralisation,” De Grey said.
The gold potential of the Loudens Patch area is being assessed by detailed mapping, metal detecting and geochem sampling.
Work to date “indicates the conglomerate as a potential host for palaeo-placer style gold mineralisation similar to that identified at Comet Well and Purdy’s Reward”. De Grey said.
“All the nuggets found are smooth and waterworn, typical of a palaeo-placer gold deposit with most having pitting. Many have the appearance of watermelon seeds very similar to what has been found at Comet Well and Purdy’s Reward.
“This is considered comparable to Witwatersrand style gold mineralisation.”
De Grey now intends undertaking similar work programs to those now underway at Novo and Artemis’ Purdy’s Reward.
That work includes trenching and wide diameter RC drilling.
Loudens Patch is on ground De Grey has an option to own 100% by paying $14.9 million by late July next year.
De Grey acquired the option for ground on the basis of the more conventional Indee prospect that, with Turner River, makes up the company’s overall Pilbara project.
Scoping work on the Pilbara project suggests a 60,000 ounce per annum development could be viable, with a pre-feasibility underway last month.
Indee and Turner River currently contain more than 1 million ounces of resources.
De Grey raised $2.9 million last month by issuing new shares priced at 5c each.
Those shares were up 142% to 14.5c in afternoon trade, capitalising the company at $38 million.