Friday, 26th May 2006 (2896 views)

Gold explorer Persian Gold has clinched an option on a new gold field south-east of Tehran.

The Irish-based AIM-listed company said the early signs from sampling results at the Chah-e-Zard gold project, which lies in Yazd around 350 mile south-east of the capital, had convinced it to invest in the territory.

Under the terms of the agreement on the field, Persian Gold has the right to acquire a 70 per cent interest in a new company which would be created to hold the licence for the property.

Lying on a mineral belt which runs from Turkey through Iran to Pakistan, the project has already had gold occurrences charted in the area and is "well-suited to exploration activity" thanks to a favourable climate.

Chairman John Teeling welcomed a "significant addition to our Iranian exploration portfolio".

"The size and intensity of the gold anomaly indicates the possibility of a substantial deposit," he commented.

"The high gold values in the rock outcrop indicate a strong gold system but it is important to note that exploration is at an early stage."

Surface exploration has now already begun, with a drilling programme scheduled to commence in the coming months.

 

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