Shaidu area, a part of the district Nowshera, NWFP, lies within the Peshawar Basin. It is dominantly composed of fluvial sediments (Le., gravels, cobbles, sand and silt) deposited by the Kabul river. The area has for the first time been investigated for the occurrence of placer gold by collecting representative samples of pan concentrates. These samples were subjected to mineralogical and chemical studies. These studies suggest that visible placer gold particles are present in variable size and morphology and also have high concentration (up to 170 mg/kg) of gold in. the studied sediments. This gold is of economical grade and its high recovery (> 30 g/ ton) can be obtained by erecting the mercury amalgamation plant at the site.