Shaidu area situated in Peshawar Basin lies in district Nowshera, Khyber Pakhtunkhwa. This area in mainly composed of gravels, sand, silt and cobbles. 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 collection of samples of the pan concentrates, shaking table showed visible placer gold particles. These particles vary in size and morphology. The gold particles are neither too fine nor coarse. Amalgamation is the most suitable method to recover gold. These sediments show a high concentration of gold. This gold is of high economical grade and values. Its high recoveries can be obtained by constructing the amalgamation plant at the site.