THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) is conducting ongoing ore sorting trials and resource definition diamond drilling on the Two Mile Hill tonalite deeps deposit within the company’s 100 per cent-owned Sandstone gold project in Western Australia.
Middle Island Resources’ initial mineralogical assessment involved the assaying of a series of hand-sorted composites of quartz vein material and un-veined tonalite.
The results of these suggested that greater than 99 per cent of the gold at the project is hosted in the quartz veins.
Middle Island was encouraged enough to initiate an ore sorting study on gold mineralised material sourced from the Two Mile Hill tonalite deeps deposit.
More definitive ore sorting trials on bulk composites derived from diamond core hole MSDD261 at the Two Mile Hill tonalite deeps deposit are nearing completion.
The company anticipates the more definitive ore sorting results will be available late in June.
Concurrently, Middle Island is carrying out Stage 1 resource definition diamond drilling, designed to bring the upper half (140m to 420m depth) of the Two Mile Hill tonalite deeps Exploration Target into at least an Inferred Resource category.
Of the initial program, all RC pre-collars have been completed (541m) and three NQ diamond core tails are complete (817m).
Assuming a successful outcome on the current, more definitive, ore sorting trials, Middle Island has flagged its intentions to progress Stage II infill drilling, designed to bring the upper half of the deposit into an Indicated Resource category, prior to a more comprehensive economic assessment of underground mining options.
Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.
“Despite some delays with ore sorting, we are otherwise pleased with progress on both the ore sorting and resource definition diamond drilling campaigns for the Two Mile Hill tonalite deeps deposit.
“Assuming positive results from these work streams, bulk underground mining at Two Mile Hill becomes a very real opportunity that would substantially extend and enhance the presently envisaged project production schedule.
“Middle Island looks forward to reporting the results of drilling and ore sorting during the June and September quarters of 2018.”