"The chisel was found inside rubble of stone chips that fell from the stonemasons working on the rocks comprising the Western Wall," Shukron told Israel's daily Haaretz.
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About 6 inches long, the metal tool features a flattened head, as a result of being repeatedly banged on rock.
"People pray and kiss these holy stones every day, but somebody carved them, somebody chiseled them, somebody positioned them," Shukron was reported as saying.
"They were workers, human beings, who had tools. Today for the first time we can touch a chisel that belonged to one of them," he added.
According to Haaretz, the IAA has not yet confirmed the finding, but Shukron trusts his findings.
"I have no doubt that it belongs to the time the Wall was built," he said.
"We found it at the base of the Western Wall, about six meters (19.68 feet) below the main street of Jerusalem in the era of the Second Temple," he added.
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Commonly believed to have been part of King Herod's massive expansion project on the Temple Mount, which included the Second Temple itself, the Western Wall may have not been built by the Bible's bloodiest tyrant after all.