Middle Island Claims Third New Sandstone Gold Discovery

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) announced a third gold discovery in as many weeks at the company’s 100 per cent-owned Sandstone gold project in the central goldfields of Western Australia.

Middle Island Resources made the third gold discovery – the Old Town Well deposit – during a recently completed Phase 1, reverse circulation (RC) drilling program that is one of four planned programs that collectively comprise a campaign totalling 17,300m of exploration and resource definition drilling at the Sandstone gold project.

The Phase 1 RC program, exclusively focussed on open pit targets at Sandstone, testing some 14 gold deposits and prospects, all located within four kilometres of the company’s gold processing plant with the majority on existing Mining Leases.

Old Town Well deposit comprises broad, consistent, shallow drill intercepts over a 60m aggregate width and 340m strike length.

Latest drilling results include:

20 metres at 0.87 grams per tonne gold;
8m at 2.17g/t gold; and
8m at 1.45g/t gold.

Middle Island believes Old Town Well is likely to represent a substantial oxide gold deposit, the majority of which is relatively shallow, including a blanket of mineralised laterite from surface.

“The broad gold intercepts returned from Phase 1 RC drilling at the Old Town Well prospect are likely to represent a substantial tonnage, the majority of which is shallow oxide material,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Subject to one metre resampling, and infill RC and diamond drilling, the deposit will be assessed as part of the updated prefeasibility study (PFS), as it is situated only 600 metres north of the company’s 100 per cent-owned, 600,000 tonnes per annum processing plant, within granted Mining Lease M57/128.

“High hydrothermal fluid flows are clearly evident at the Old Town Well prospect and it is possible that the quartz veining and intense alteration observed in drilling to date is peripheral to far more significant gold mineralisation along strike or down dip/plunge.

“Given early success with two new gold discoveries at McClaren and McIntyre, announced in the preceding two weeks, I have received multiple enquiries on whether the various prospects and deposits were prioritised for drilling in any particular order.

“Two drill rigs were engaged to complete the Phase 1 program.

“Other than the rigs being allocated to specific prospects that best matched their respective capabilities and capacities, the order of drilling was predicated solely on efficiency, to minimise the tramming distance (and thereby chargeable work time) between the various deposits and prospects.

“At this stage, the results of this program, coupled with the resource upgrade announced last week and the strong prevailing gold price, significantly heighten the prospects of a positive mill recommissioning decision.”

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au