THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) has updated the resource estimate for the Two Mile Hill open pit gold deposit within the company’s wholly-owned Sandstone gold project in the central goldfields of WA.
Middle Island reported the updated estimate follows completion of infill and extension drilling undertaken as part of a 2020 exploration and resource definition drilling campaign at Sandstone.
Two Mile Hill is one of 10 Sandstone gold deposits that are the subject of Middle Island’s ongoing drilling campaign and feasibility study (FS) in 2020.
Source: Company announcement
This campaign is still underway and is focussed on the definition of additional open pit Mineral Resources for inclusion for assessment as Ore Reserves in the project’s FS.
The update has resulted in a 13 per cent increase in the Two Mile Hill open pit Mineral Resource, to 1.25 million tonnes at 1.36 grams per tonne gold for 55,000 ounces.
It also increases Sandstone’s current total project Mineral Resources to 657,500 ounces gold which, importantly, does not include Middle Island’s five new satellite gold discoveries where resource definition drilling is being finalised.
The proportion of the Two Mile Hill open pit deposit classified as an Indicated Mineral Resource also increased to 95 per cent.
Two Mile Hill is one of 10 Sandstone gold deposits the subject of Middle Island’s ongoing +40,000m drilling campaign and feasibility study in 2020.
“The updated Mineral Resource estimate at the Two Mile Hill open pit gold deposit results in a marginal increase in tonnage and grade, primarily derived from infill drilling of the basalt-hosted mineralisation in the northeast quadrant of the deposit,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.
“This outcome represents an increase of approximately 7,000 ounces (or 13%) to the Two Mile Hill open pit Mineral Resource, with some 95 per cent now classified in the higher confidence Indicated category.
“This is a very pleasing outcome, which when re-optimised, will make a further meaningful contribution to open pit Mineral Resources contributing to the feasibility study, the outcome of which is looking increasingly positive.
“Resource estimates for the five new satellite open pit deposits have commenced which, along with extensions to the Goat Farm and Twin Shafts deposits, will be progressively provided as final results from the Phase 2 drilling campaign are received and compiled.”