THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI), via subsidiary Sandstone Operations, has executed an option deed to acquire a 100 per cent- interest in the Wirraminna gold project.
Middle Island Resources explained the Wirraminna project is situated immediately adjacent to the company’s Sandstone gold project and, importantly, within one kilometre of its processing plant.
The acquisition involves Prospecting Licence Application (PLA) 57/1395, from prospectors Kym McClaren and Karl Mansen upon payment of $300,000 at any time within the next four years.
During the option period, Middle Island will have access to explore for sub-surface gold, while the vendors will retain surface gold rights to a depth of two metres.
The Wirraminna gold project covers an area of 40.64 hectares and adjoins the western boundary of the Sandstone gold project.
It is situated only one kilometre west of the 600,000 tonnes per annum Sandstone gold processing plant and hosts an Inferred Resource (JORC 2004) of 106,300 tonnes at 2.07 grams per tonne gold for 10,674 ounces that was estimated in 2006 for previous owners Troy Resources.
Middle Island signalled its intentions to upgrade the Resource to a standard consistent with the 2012 JORC Code guidelines in 2017/18, via verification and infill RC and diamond core drilling.
“Wirraminna is the exciting first step in what we plan will be a series of like consolidations, each designed to extend and enhance the proposed production profile for the Sandstone gold processing operation,” Middles Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.
“More immediately, the existing Wirraminna Resource provides a potential catalyst towards an earlier recommissioning of the Sandstone gold processing operation.
“Significant gold exploration potential is considered to exist within the highly mineralised Wirraminna project, on which the original Nunngarra town site (predecessor to Sandstone village) was centred.
“Middle Island will work closely with the Wirraminna vendors, in relation to both the Option Deed and Tribute Agreement, to deliver a mutually rewarding outcome.”