THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) has received firm commitments to raise $4 million to conduct the next phase of exploration and resource drilling at the company’s 100 per cent- owned Sandstone gold project in Western Australia.
The raising comes on the back of Middle Island Resources’ 2020 Phase 1 RC drilling program, which identified four new gold deposits all located within 2.5 kilometres of the company’s 100 per cent-owned 600,000 tonnes per annum Sandstone gold processing plant.
McLaren: including drilling results of 4m at 90.6 grams per tonne gold and 8m at 3.35g/t gold.
McIntyre: including drilling results of 24m at 1.66g/t gold, 23m at 1.4g/t gold, 11m at 1.39g/t gold and 18m at 1.35g/t gold.
Old Town Well: including drilling results of 20m at 0.87g/t gold, 8m at 2.17g/t gold and 8m at 1.45g/t gold.
Plum Pudding: including drilling results of 11m at 22.5g/t gold, 17m at 8.16g/t gold, 12m at 3.52g/t gold, 8m at 6.98g/t gold, and new intercepts of 3m at 3.72g/t gold, 10m at 3.08g/t gold and 2m at 4.98g/t gold.
“Given the extraordinary success of the 2020 drilling campaign to date, proceeds of the equity raising will allow the company to embark on a, necessarily substantially expanded, Phase 2 drilling campaign of at least 13,000 metres of RC and diamond drilling to infill and extend new, supplementary deposits identified at the Sandstone gold project and complete the project’s pre-feasibility study,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.
Middle Island indicated the he proceeds from the placement and existing cash reserves will be used to undertake the next phase of exploration and resource drilling at the Sandstone gold project and feasibility study.