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Sayona Mining shares spike on conglomerate hosted gold opportunity

Shares have spiked over 50% intra-day to trade at $0.02.
ground and rocks at Deep Well
Further work is planned at the Deep Well tenement

Sayona Mining (ASX:SYA) has identified Fortescue aged rocks, which signal conglomerate-hosted gold potential within its Mallina Lithium Project located in the Pilbara region of Western Australia.

The Fortescue aged rocks have specifically been identified on the 119 square kilometre Deep Well tenement application within the Mallina project.

Reconnaissance exploration was originally attempting to locate outcropping pegmatite prospective for lithium but instead identified Fortescue aged rocks along the western tenement area.

The Pilbara region of Western Australia is currently experiencing a new gold rush for gold deposits associated with conglomerate rocks.

Global investor interest has increased dramatically recently, driven by gold discoveries made by Novo Resources Corp (CVE:NVO), Artemis Resources (ASX:ARV) and De Grey Mining Ltd (ASX:DEG).

Corey Nolan, CEO, commented

“The company is encouraged by the identification of further zones of spodumene mineralisation at Mallina, where three pegmatite systems in a 5x3 kilometre area have now been discovered, representing a large mineralised system.

“Also, recent geological work at Deep Well which has identified Fortescue Group rocks prospective for conglomerate hosted gold, displays the inherent value of the 2,000+ square kilometre tenement holding Sayona has in the Pilbara.”

The Pilbara’s new conglomerate gold rush

The Pilbara region of Western Australia is currently experiencing a new gold rush for gold deposits associated with conglomerate rocks.

Conglomerates contain mostly rounded pebbles and cobbles of quartz and other rocks laid down in streams or river beds.

The conglomerate at Deep Well ranges from quartz pebble conglomerate to those being dominated by felsic volcanic and chert clasts.

The best-known conglomerate gold deposit in the world is the Witwatersrand of South Africa that has produced >1.5 billion ounces of gold, more than one third of all of the gold produced on Earth.

Further work at Deep Well is planned in order to better understand the geology of the area and it’s potential.

New area of spodumene pegmatite identified at Mallina

At the Mallina project a new area of spodumene pegmatite has also been identified at the Area C prospect.

This area lies centrally between the Discovery and the Eastern group of pegmatites which together cover some 5x3 kilometres. 

The Area C pegmatites are intermittently outcropping along 800+ metres of strike and have been observed up to 15 metres in width.

Assay results of the five rock samples collected range up to 4.61% lithium oxide with spodumene the only observed lithium mineral.

Soil geochemistry has confirmed the anomalism at the Area C Prospect, although only two soil traverses 800 metres apart have been completed.

Further soil sampling, geological reconnaissance and interpretation is being carried out to help advance the prospect to drill stage.

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