Middle Island Resources Racks-up Further Encouraging Sandstone Drill Results
THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) has continued its run of encouraging results from a Phase 1, reverse circulation (RC) drilling program recently completed at the company’s 100 per cent-owned Sandstone gold project in the central goldfields of Western Australia.
Middle Island Resources conducted the Phase 1 RC program, focussing on open pit targets at Sandstone.
The company has subsequently tested around 14 gold deposits and prospects, all within four kilometres of its 100 per cent-owned gold processing plant and the majority on permitted Mining Leases.
The latest results came from 1m assays derived from drilling at the Twin Shafts deposit and Tailings South prospect, along with eight remaining assay results from the Two Mile Hill deposit.
These included an extended intercept of 22m at 1.42g/t gold at the Two Mile Hill deposit, providing further confidence of deepening of the optimum open pit and, therefore, the associated gold processing inventory.
Drilling at the southern extremity of the Twin Shafts deposit identified a modest grade mineralised extension that will still be estimated and included as a maiden Mineral Resource for assessment in Sandstone’s feasibility study update.
Middle Island noted that the proximity of the Twin Shafts mineralised extension to the existing in-pit tailings storage facility means that mining may expand the tailings capacity and waste generated by that mining may be used for a planned tailings dam lift and/or expansion, providing an economic benefit in addition to potential mill feed.
Results relating to the remaining 44 holes of the Phase 1 RC drilling program are anticipated to be compiled and released next week.
These results relate to Sandstone’s Shillington and Goat Farm deposits, the Ridge prospect, and the G2 & G3 gravity targets.
“Given the extraordinary success of the 2020 Sandstone drilling campaign to date, identifying a fifth new deposit was always going to be a stretch,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.
“Despite the anticipation, we are unable to do so on this occasion, but Phase 1 RC drilling results from the remaining deposits and prospects are still being received and compiled.
“Despite this, the revised intercept of 22 metres at 1.42 grams per tonne gold in MSRC304 at Two Mile Hill is extremely encouraging, particularly given its disposition relative to the $2,500 per ounce optimum pit shell.
“While extension of the Twin Shafts deposit to the south is of limited superficial significance, Twin Shafts is not included in the existing Mineral Resources and it will be estimated as part of the updated study.
“The mineralised extension’s proximity to the existing tailings storage facility means that mining may expand the tailings capacity and waste generated by mining may be appropriate to use for a planned tails dam lift and/or expansion, providing an economic benefit in addition to potential mill feed.”
Middle Island recently reported a $4 million capital raising that was brough about by the success of the company’s recent drilling campaign that identified four new deposits.
Requiring a much-expanded Phase 2 RC drilling program in order to bring these new deposits into an Indicated Mineral Resource classification for consideration as Ore Reserves in the updated feasibility study, Middle Island is set to commence a Phase 2 RC program by engaging an additional drill rig.
Email: info@middleisland.com.au