THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) released an Exploration Target for the Two Mile Hill tonalite deeps deposit at the company’s Sandstone gold project in Western Australia.
Middle Island Resources released the target of 24 million tonnes at 1.1 grams per tonne gold to 1.4g/t gold, comprising between 0.9 million ounces and 1.5 million ounces estimated between 140 metres and 700m depth.
The company declared the potential quantity and grade of the Exploration Target to be conceptual in nature, as it has yet to complete sufficient exploration to estimate a Mineral Resource, adding that it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The estimated Exploration Target includes results from diamond core hole MSDD156, which generated a gold intercept of 508.3m at 1.38g/t gold, including 160m at 2.31g/t gold.
Middle Island claimed the Exploration Target confirms the presence of a substantial mineralised system measuring approximately 250m in strike and up to 90m in width at surface, which is mineralised to at least 713m depth and remains open at depth.
Within the Exploration Target, broader, sub-horizontal zones of higher grade mineralisation have been intercepted and include 22m at 5.95g/t gold, 37m at 4.46g/t gold, 50m at 2.71g/t gold, 13m at 6.39g/t gold, and 11m at 6.89g/t gold.
“The new Exploration Target, along with encouraging results derived from recent metallurgical and mineralogical testwork, increases the potential for bulk underground mining beneath the proposed open-pit cutback on the Two Mile Hill tonalite deposit,” Middle Island Resources said in its ASX announcement.
“Formal resource updates for both the Two Mile Hill tonalite deeps and BIF deposits are being prepared by an independent consultant prior to completing the underground mining concept study.”