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Middle Island Resources (ASX: MDI)

THE CONFERENCE CALLER: Middle Island Resources (ASX: MDI) has outlined a schedule of exploration and corporate activities focused on its stated intentions of recommissioning its 100 per cent-owned Sandstone gold processing plant at the earliest opportunity.

The Resources Roadhouse had a brief chat with Middle Island Resources managing director at the recent RIU Resources Investor Roadshow in Melbourne to hear the company’s latest strategy.

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Middle Island’s exploration to date at the Sandstone project has been largely focussed on assessing brownfields targets, such as the Two Mile Hill deposit.

This has left the majority of greenfields targets untested or inadequately tested.

Advancing the Two Mile Hill deposit will remain a priority, but while that carries on, further exploration will hone in on identifying and quantifying additional open pit deposits of sufficient gold grade to facilitate a recommissioning decision.

“A recommissioning decision for the Sandstone gold operation is predicated on defining adequate gold resources, at an acceptable grade, to justify the modest recommissioning costs and ensure sustainable production,” Middle Island Resources managing director Rick Yeates said in a previous announcement.

“This is being progressively achieved via a dual approach; systematic exploration on Middle Island’s own tenure and engagement with neighbouring companies to consolidate adjacent deposits.”

Middle Island recently reached out to neighbour Alto Metals (ASX: AME), offering an all scrip off‐market take‐over offer for all that company’s issued ordinary shares.

Middle Island considers combining of the assets of the two companies would create a company with near-term cash flow potential and considerable production and exploration upside.
The company believes access to the Sandstone processing plant would provide Alto with an immediate, proximal and cost-effective processing solution for its gold resources that is not otherwise available.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile,” Yeates said.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.”

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

Middle Island Resources Completes Reo Sale

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) informed the market that Vancouver-based Tajiri Resources Corporation (TSXV: TAJ) has exercised its option to fully acquire Middle Island’s Reo gold project in Burkina Faso, West Africa.

Middle Island said the completion of the transaction resulted from Tajiri’s payment to Middle Island of the final US$150,000 Option Extension and Exercise Fee.

The company explained that the transaction collectively comprised a combination of a US$335,000 cash payment and five million fully paid TAJ ordinary shares, at the time representing around eight per cent of Tajiri’s register on a fully diluted basis.

The deal sees Middle Island shareholders retain exposure to the Reo gold project via the TAJ shares, along with a residual 2 per cent NSR production royalty that Tajiri may acquire at any time for US$5 million.

The TAJ shares also provide Middle Island shareholders exposure to Tajiri’s gold exploration projects in Guyana, South America.

“Middle Island welcomes Tajiri’s commitment to the Reo gold project and looks forward to facilitating the orderly transfer of the exploration permits and other assets in Burkina Faso, once registration of Tajiri’s local entity is finalised,” Middle Island Resources said in its ASX announcement.

 

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

Middle Island Resources Limited (ASX: MDI)

Middle Island Resources has outlined a schedule of exploration and corporate activities focused on its stated intentions of recommissioning its 100 per cent-owned Sandstone gold processing plant at the earliest opportunity.

Middle Island’s exploration to date at the Sandstone project has been largely focussed on assessing brownfields targets, such as the Two Mile Hill deposit.

This has left the majority of greenfields targets untested or inadequately tested.

Advancing the Two Mile Hill deposit will remain a priority, but while that carries on, further exploration will hone in on identifying and quantifying additional open pit deposits of sufficient gold grade to facilitate a recommissioning decision.

Identification of the targets to be drilled goes back to 2017 when a Weights of Evidence (WoE) targeting study of the Sandstone gold project was carried out by structural geologist Dr Brett Davis that identified and ranked prospective areas within the project area.

Of these targets only one target, the Davis prospect, has so far been tested.

Two traverses of reconnaissance RC holes (5 holes) were drilled across the Davis East and Davis West anomalies to determine the nature and tenor of associated saprolitic mineralisation, encountering broad zones of ferruginous quartz veining within saprolitic ultramafic rocks.

Initial results included a best intercept at Davis West of:

MSRC259
1 metre at 1.88 grams per tonne gold from 23m depth.

The new program of eight RC holes will test the two blind gold anomalies that were not drilled previously, and to follow up on the results from the previous RC drilling.

Other WoE targets were identified besides the Davis target, situated within the southern portion of the Sandstone project.

Historical exploration activities in this area were restricted to broad spaced soil sampling and limited shallow vacuum and RAB drilling that failed to adequately test beneath the transported cover.

A planned program of geochemical auger and aircore drilling, comprising approximately 200 holes, will test eleven WoE targets across the southern portion of Mining Lease M57/129.

Other proposed work will follow up a 2018 program of geological mapping, rock chip sampling, and soil sampling on the Dandaraga tenement.

Three cohesive gold in soil anomalies were identified as the Agnes, Enigma and Central (Swede) gold anomalies.

A 20-hole RC drill program is proposed to test these gold soil anomalies for a mineralised bedrock source.

Drilling will comprise several East-West orientated sections across the trend of the soil anomalies, these will also test the extension along strike of mineralisation associated with historic gold workings at Swede, Agnes, and Enigma.

Middle Island recently acquired the 158.4 square kilometre Well Exploration Licence (E57/1102), subject to finalising a heritage agreement that occupies the southern end of the western limb of the Sandstone anticlinorium.

The tenement has received minimal exploration activity in the past, and what was done was mainly broad spaced soil sampling across the northern third of the tenement.

An initial, more systematic, low cost programme of geological mapping, rock chip sampling and soil sampling is proposed to determine to gold potential of the tenement.

Results from a 2018 RC program on the McIntyre project have encouraged Middle Island to test the extensions of the intersected mineralisation.

“A recommissioning decision for the Sandstone gold operation is predicated on defining adequate gold resources, at an acceptable grade, to justify the modest recommissioning costs and ensure sustainable production,” Middle Island Resources managing director Rick Yeates said.

“This is being progressively achieved via a dual approach; systematic exploration on Middle Island’s own tenure and engagement with neighbouring companies to consolidate adjacent deposits.”

Middle Island recently reached out to neighbour Alto Metals (ASX: AME), offering an all scrip off‐market take‐over offer for all that company’s issued ordinary shares.

Middle Island considers combining of the assets of the two companies would create a company with near-term cash flow potential and considerable production and exploration upside.

The company believes access to the Sandstone processing plant would provide Alto with an immediate, proximal and cost-effective processing solution for its gold resources that is not otherwise available.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile,” Yeates said.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.”

At the time of writing, Alto Metals had advised its shareholders to take no action and await further advice from the Board.

 

Email: info@middleisland.com.au
Web: www.middleisland.com.au

Directors: Peter Thomas, Rick Yeates, Beau Nicholls, Dennis Wilkins

 

Middle Island Resources Identifies Fresh Gold Targets

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) has been encouraged by results of a recent geochemical aircore drilling program on several Weights of Evidence (WoE) targets defined within the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Middle Ialnd said the new gold targets are close to five known deposits it had previously identified in fresh drilling at southern end of the Sandstone gold project.

The results from geochemical aircore drilling on several Weights of Evidence (WoE) targets have defined several new blind gold anomalies defined beneath a blanket of transported sheetwash cover with a further 18, including higher priority, WoE targets still to be tested.

Three cohesive gold anomalies, with peak values up to 337ppb gold (0.34g/t) were defined over individual strike lengths of approximately 160 metres, some of which remain open beyond the sampled area.

Each of the anomalies is consistent with nearby, high-grade open pit deposits that have been mined and processed.

All new gold anomalies lie within 2.5 kilometres of Middle Island’s 600,000 tonnes per annum Sandstone gold processing plant, consistent with an area hosting the highest density of gold deposits within the entire Sandstone greenstone belt.

The company said that the correlation between the position and orientation of the anomalies, and previous success enjoyed at the project’s Davis prospect, provides considerable confidence that other Sandstone WoE targets may generate similar anomalies.

Each of these new WoE targets enhances the potential of a mill recommissioning decision, consistent with Middle Island’s primary objective.

Further aircore and reconnaissance RC drilling will be planned to respectively extend and test the WoE anomalies in order to understand the nature and tenor of associated saprolitic and bedrock mineralisation.

“The receipt of further encouraging exploration results from the recently completed aircore geochemical drilling is extremely pleasing,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“All gold anomalies associated with these WoE targets lie on permitted Mining Leases and within 2.5 kilometres of the company’s 600,000 tonnes per annum Sandstone gold processing plant, enhancing their potential to contribute to a mill recommissioning decision.

“Following initial exploration success at Davis, the latest results also serve to further confirm the validity of the WoE study, with a further 18 targets (many of which are higher priority) yet to be tested.

“I acknowledge the efforts of the small, but effective, MDI team that is progressing our exploration strategy, while simultaneously progressing our consolidation strategy, consistent with the company’s stated objectives.”

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au

 

Middle Island Resources Launches Takeover Bid on Alto Metals

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder over the weekend by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

Middle Island Resources said it had formed the view that the combination of the assets of the two companies would create, among other material benefits to the shareholders, a company with near-term cash flow potential and considerable production and exploration upside.

The all scrip off-market takeover offer will give Alto shareholders five Middle Island ordinary shares for each Alto ordinary share, which the hunter said values its prey at approximately $9.4 million representing a 61 per cent premium over Alto’s last closing price.

According to Middle Island this upside would include access to its processing plant, even though it is currently on care and maintenance, saying this would provide Alto shareholders with an immediate, proximal and cost-effective processing solution for their company’s gold resources that is not otherwise available.

Middle Island is keen to restart its Sandstone gold processing plant and clearly the Alto deposits would provide initial mill feed and critical mass to support its early recommissioning in conjunction with the former’s Two Mile Hill deposits.

Middle Island declared it has received indicative broker support with respect to the takeover for an equity capital raising of approximately $5 million in additional funds to advance the feasibility and recommissioning of the Sandstone plant. Claiming the combination of Middle Island and Alto will consolidate the entire Sandstone greenstone belt and dataset under a single entity.

“Middle Island’s offer is compelling for Alto shareholders, who will receive a significant premium based on the last closing price for their shares and will benefit in the future growth potential of the proposed Combined Group,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island will integrate Alto’s assets with Middle Island’s Sandstone gold project, and immediately embark on an updated feasibility study, incorporating Alto’s Mineral Resources, to determine the economics of recommissioning the Sandstone gold processing plant.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.

“In the view of the Middle Island directors, the premium offered, the funding support, Middle Island’s technical and management expertise, and participation in the combined Middle Island‐Alto upside, makes the bid a compelling proposal.”

As The Roadhouse was going to print there had been no on-market response from Alto Metals, but we will keep an eye out for further developments.

 

Website: www.middleisland.com.au

 

Positive Gold Drilling and Ore Sorting Results at Sandstone

Middle Island Resources (ASX: MDI) recently completed a Stage 1 infill diamond drilling program at the company’s wholly-owned Sandstone gold project in Western Australia.

Middle Island Resources had targeted the program of infill diamond drilling in the upper half of the tonalite deeps deposit at Two Mile Hill.

The Two Mile Hill tonalite deeps deposit comprises a comprehensively gold-mineralised tonalite (granite) plug or stock, which at surface measures around 250 metres in length, 80m to 90m in width and extends to at least 700m depth.

Two Mile Hill is located four kilometres north of Middle Island’s 600,000 tonnes per annum Sandstone gold processing plant via an existing haul road.

Although there has been insufficient exploration carried out to estimate a Mineral Resource to date at the Two Mile Hill tonalite deeps deposit, Middle Island has determined an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 grams per tonne gold to 1.4g/t gold for 0.9 million to 1.5 million ounces of gold situated between 140m and 700m vertical depth, below which it remains open.

The recent program consisted seven drill holes (MSDD262-MSDD268) comprising 988m of RC pre-collar and 1,121.2m of NQ2 diamond tails, for a total of 2,109.2m.

The aim of the drilling was to infill existing diamond drilling within the upper half of the tonalite deeps deposit, extending from 140m depth (base of the open pit Mineral Resource) to approximately 420m depth.

The Stage 1 program was carried out with the following objectives in mind:

To provide enough drill density to permit the upper half of the Exploration Target to be re-classified to at least a JORC 2012 Inferred Resource;

To provide clarity on quartz vein densities and gold distribution within the tonalite to facilitate an improved structural understanding and optimise future drill targeting; and

To optimise the number of intersections of banded iron formation (BIF), marginal to the tonalite, to identify new positions of high-grade, replacement-style mineralisation within the stacked BIF units.

The tonalite results are generally consistent with previous diamond drilling with results returning:

165 metres at 1.11g/t gold from 85m, including 7m at 4.73g/t gold from 123m, 5m at 6g/t gold from 142m and 10m at 3.34g/t gold from 202m depth; and

150m at 1.03g/t gold from 84m, including 34m at 1.85g/t gold from 96m depth.

The drilling also encountered a new zone of high-grade mineralisation within the banded iron formation (BIF), returning:

5m at 21.9g/t gold from 339m, including 2m at 54g/t gold from 340m depth.

Middle Island explained that the drilling indicated the BIF-hosted gold mineralisation peripheral to the tonalite was behaving in a similar vein to elsewhere at Two Mile Hill, by returning higher grades associated with massive to semi-massive pyrite replacement of magnetite.

One hole, MSDD262, demonstrated the host comprises moderately brecciated BIF with the company noting this to be the first occasion that gold mineralisation has been identified within brecciated elements of the stacked BIF units.

Although the MSDD262 intercept represents a new mineralised BIF position, Middle Island said results across the entire program indicated additional multiple similar, high-grade intercepts were encountered peripheral to the tonalite at Two Mile Hill.

The drilling also returned intercepts from footwall and hanging-wall basalts consistent with previous drilling.

Shallow gold intercepts within basalts along the north-eastern tonalite contact returned:

93m at 2.57g/t gold from surface, including 35m at 6.27g/t gold from 58m depth; and

9m at 5.23g/t gold from 85m.

Middle Island believes that, based on these and other shallower results within the basalt, the resource model for the upper half of the Two Mile Hill tonalite deeps Exploration Target may well justify re-estimation.

“As anticipated from infill diamond drilling, the tonalite intercepts returned from the Two Mile Hill deeps gold deposit serve to confirm the earlier results,” Middle Island Resources managing director Rick Yeates said.

“It is also extremely pleasing to identify a further significant new zone of pyrite replacement-style gold mineralisation within the BIF adjacent to the tonalite contact, particularly as it is somewhat divorced from the main tonalite body.

“It is also the first significant intersection identified within brecciated elements of the BIF package and one, of only a few, recorded in the more sparsely drilled Middle BIF unit.

“Utilising these results, resource modelling of the Exploration Target will provide a formal JORC 2012 Mineral Resource for the upper half of the Two Mile Hill tonalite deeps Exploration Target, provide better resolution on the distribution of gold mineralisation within the tonalite which, together with the recently completed ore sorting campaign and geotechnical findings, will facilitate a more robust assessment of the underground mining potential.”

Earlier this year, Middle Island achieved further positive results from Stage II ore sorting trials conducted on drill core from the Two Mile Hill tonalite deeps deposit.

Middle Island’s Stage 1 ore sorting trials were commissioned after the company realised more than 96 per cent of the gold at Two Mile Hill is hosted by quartz veins within the tonalite.

The initial ore sorting campaign in 2017 was based on composite samples of quarter NQ diamond core.

The trials indicated that sorting could deliver a 185 per cent to 257 per cent increase in feed grade, with gold recoveries more than 93 per cent.

The earlier trials focussed on underground mining via more selective, open stoping, therefore utilising composites comprising broader intervals of diamond core with a higher head grade.

The Phase II trials focussed on sub-level caving, therefore utilising all primary core, representative of the entire deposit, to generate composites.

A series of four primary (fresh) composites, and a single transitional (partially oxidised) composite comprising intervals of half HQ and half PQ diamond core derived from MSDD261, were selected for crushing prior to ore sorting.

The results from the Stage II ore sorting campaign on the Two Mile Hill tonalite deeps deposit demonstrated that the ore can be upgraded substantially via a combination of Colour and X-ray sensors.

The results gave Middle Island further confidence that its use of the technology could enable it to deliver a great deal of upside for the project.

The results confirmed upgrades of between 155 per cent and 213 per cent, with sorting gold recoveries in the range of 67 to 93 per cent.

Ore sorting product yields fell within the range of 39 to 51 per cent, indicating that the sorting process rejects more than half the sorter feed material as waste.

Middle Island intimated a further campaign of bulk ore sorting would be undertaken to focus on enhancing results through the application of a Laser sensor, in conjunction with X-ray and/or Colour.

“Ore sorting trials continue to demonstrate a significant enhancement in gold grade, along with a commensurate reduction in feed mass that improves the potential viability of underground mining at the Two Mile Hill tonalite deeps deposit,” Yeates said.

“Considerable news flow associated with the Two Mile Hill deposit can be anticipated in the current quarter, including diamond drilling results, a Mineral Resource upgrade and an updated underground mining concept study.

“We look forward to keeping shareholders updated on progress with the substantial Two Mile Hill tonalite deeps deposit at the Sandstone gold project during the remainder of 2018.”

 

Middle Island Resources Limited (ASX: MDI)
…The Short Story

HEAD OFFICE
Suite 1
2 Richardson Street
West Perth WA 6005

Ph: +61 8 9322 1430

Email: info@middleisland.com.au
Website: www.middleisland.com.au

DIRECTORS
Peter Thomas, Rick Yeates, Beau Nicholls

 

Middle Island Extends Wirraminna Gold Mineralisation

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) advised of assay results from infill and extension RC (reverse circulation percussion) drilling recently completed at the Wirraminna gold deposit, within the company’s wholly-owned Sandstone gold project in Western Australia.

Middle Island’s Wirraminna deposit is situated one kilometre from the company’s 100 per cent-owned, Sandstone 600,000 tonnes per annum gold processing plant.

“The results of the RC drilling have extended the depth potential of the deposit, but are otherwise broadly consistent with expectations and previous drilling results,” Middle Island Resources said in its ASX announcement.

“However, holes drilled to verify historic, broad, high-grade intervals again proved unsuccessful.”

Highlight RC drill intercepts included:

MSRC274
7 metres at 1.76g/t gold from 68m;

MSRC276
6m at 6.62g/t gold from 84m;

MSRC282
14m at 1.82g/t gold from 82m;

MSRC285
14m at 1.8g/t gold from 42m, including 1m at 18.2g/t gold from 52m; and

MSRC291
5m at 2.51g/t gold from 41m.

An existing Mineral Resource estimate for the Wirraminna deposit sits at 550,000 tonnes at 1.3 grams per tonne gold for 23,000 ounces gold (at a 0.5g/t lower cut-off grade).

Around 55 per cent of this is classified as an Indicated Mineral Resource, whilst the balance is in the Inferred category.

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au

 

Middle Island Resources Encounters Promising Gold Hits at Sandstone

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) received final assay results for a Stage 1 infill diamond drilling program the company completed in July at its wholly-owned Sandstone gold project in Western Australia.

Middle Island Resources explained the drilling program comprised infill diamond drilling in the upper half of the tonalite deeps deposit at Two Mile Hill.

The drilling comprised seven drill holes (MSDD262-MSDD268) and included RC pre-collar and diamond drilling at the Two Mile Hill tonalite deeps deposit and was designed to infill existing diamond drilling within the upper half of the tonalite deeps deposit, extending from 140 metres depth (base of the open pit Mineral Resource) to approximately 420m depth.

Several intersections returned from the tonalite, including:

165 metres at 1.11 grams per tonne gold from 85m, including 7m at 4.73g/t gold from 123m, 5m at 6g/t gold from 142m and 10m at 3.34g/t gold from 202m depth; and

150m at 1.03g/t gold from 84m, including 34m at 1.85g/t gold from 96m depth.

A new zone of high-grade mineralisation was identified within the banded iron formation (BIF), returning:

5m at 21.9g/t gold from 339m, including 2m at 54g/t gold from 340m depth.

Shallow gold intercepts were also encountered within basalts along the north-eastern tonalite contact, of:

93m at 2.57g/t gold from surface, including 35m at 6.27g/t gold from 58m depth; and

9m at 5.23g/t gold from 85m depth.

“As anticipated from infill diamond drilling, the tonalite intercepts returned from the Two Mile Hill deeps gold deposit serve to confirm the earlier results,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“It is also extremely pleasing to identify a further significant new zone of pyrite replacement-style gold mineralisation within the BIF adjacent to the tonalite contact, particularly as it is somewhat divorced from the main tonalite body.

“It is also the first significant intersection identified within brecciated elements of the BIF package and one, of only a few, recorded in the more sparsely drilled Middle BIF unit.

“Utilising these results, resource modelling of the Exploration Target will provide a formal Mineral Resource the upper half of the Two Mile Hill tonalite deeps Exploration Target, provide better resolution on the distribution of gold mineralisation within the tonalite which, together with the recently completed ore sorting campaign and geotechnical findings, will facilitate a more robust assessment of the underground mining potential.”

 

Website: www.middleisland.com.au

 

Middle Island Encounters High-Grades With First Two Mile Hole

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) greeted Day One of the Diggers & Dealers forum in Kalgoorlie by releasing assay results for the first diamond hole of a recently completed, Stage 1, resource definition drilling program at the Two Mile Hill deposit within the company’s wholly-owned Sandstone gold project in Western Australia.

Middle Island said the recently completed program comprised in-fill, RC pre-collared, NQ diamond drilling (MSDD262- 268) focussed on the upper half of the Two Mile Hill tonalite deeps deposit, between 140m and 420m vertical depth.

“The latter holes were primarily designed to infill the existing drilling within the tonalite, in the process optimising the number of intersections on the adjacent banded iron formation (BIF) units, intruded by the tonalite, which are known to host high grade, pyrite replacement-style gold mineralisation,” Middle Island said in its ASX announcement.

Hole MSDD262 returned an intersection of:
8 metres at 14.5 grams per tonne gold, including 2m at 54g/t gold.

Middle Island completed seven drill holes (MSDD262-MSDD268), comprising 988m of reverse circulation percussion (RC) pre-collars and 1,121.2m of NQ2 diamond core tails at the Two Mile Hill tonalite deeps deposit during July 2018.

The company indicated that due to a high, seasonal volume of samples in the laboratory, complete assay results have only been received for MSDD262.

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au

 

Middle Island Achieves Positive Stage II Ore Sorting Results

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) reported further positive results from Stage II ore sorting trials conducted on drill core from the Two Mile Hill tonalite deeps deposit at the company’s 100 per cent-owned Sandstone gold project in Wetsrn Australia.

The Two Mile Hill tonalite deeps deposit comprises a gold mineralised, tonalite (granite) plug or stock, which at surface measures some 250 metres in length, 80-90m width and extends to at least 700m depth.

The deposit is located four kilometres north of Middle Island’s 600,000 tonnes per annum Sandstone gold processing plant and comprises an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 grams per tonne to 1.4g/t gold (0.9 million to 1.5 million ounces of gold) situated between 140m and 700m vertical depth, below which it remains open.

“Ore sorting trials continue to demonstrate a significant enhancement in gold grade, along with a commensurate reduction in feed mass that improves the potential viability of underground mining at the Two Mile Hill tonalite deeps deposit,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Considerable newsflow associated with the Two Mile Hill deposit can be anticipated in the current quarter, including diamond drilling results, a Mineral Resource upgrade and an updated underground mining concept study.

“We look forward to keeping shareholders updated on progress with the substantial Two Mile Hill tonalite deeps deposit at the Sandstone gold project during the remainder of 2018.”

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au