Shaidu area situated in Peshawar Basin lies in district Nowshera, Khyber Pakhtunkhwa. This area is investigated for the occurrence of placer gold and also to develop an economical, feasible and environmentally safe method. Mineralogical and chemical studies of the shaking table samples showed the occurrence of placer gold particles in concentrate, middling and tailing. These particles vary in size and morphology. Most of the particles are greater than 70μm, thus amalgamation is very effective for recovery of gold particles larger than 60-70μmwhilecyanidation method is used for the recovery of finer particles. A pilot study is suggested in order to increase the knowledge of the proposed plant and resources.