Middle Island Resources (ASX: MDI) continues to build on its confidence in the upcoming development of the Sandstone Gold Project in Western Australia with further drilling success.
Managing Director, Rick Yeates, said the company’s latest results have extended intercept of 22m at 1.42g/t Au at the Two Mile Hill deposit, providing further proof of a potential significant deepening of the optimum open pit and, therefore, the associated gold processing inventory.
“Given the extraordinary success of the 2020 Sandstone drilling campaign to date, identifying a fifth new deposit was always going to be a stretch. 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 22m at 1.42g/t Au in MSRC304 at Two Mile Hill is extremely encouraging, particularly given its disposition relative to the A$2,500/oz 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.
“As reported on 14 May 2020, the Company raised a further A$4 million (before costs) in a tightly discounted Placement. The capital raising was necessitated by the success of the drilling campaign to date, with four new deposits identified, requiring a significantly 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.
“The Phase 2 RC programme will be expedited by engaging an additional drill rig.”
The Phase 1 RC drilling represents the second of four planned programmes that collectively comprise a campaign totalling at least 17,300m of exploration and resource definition drilling at the Company’s 100%-owned Sandstone gold project in the central goldfields of Western Australia.
The latest results come from the recently completed Phase 1 RC programme at Sandstone, which exclusively focussed on open pit targets at Sandstone.
The programme tested some 14 gold deposits and prospects, all within four km of the company’s 100%-owned gold processing plant and the majority on permitted Mining Leases.
In the case of existing deposits, drilling is designed to variously extend Mineral Resources, reclassify Mineral Resources from Inferred to Indicated status, and/or upgrade JORC Code 2004 Mineral Resources to JORC Code 2012 compliance. These comprise the Two Mile Hill, Shillington, Wirraminna, Goat Farm, Twin Shafts and Plum Pudding deposits.
RC drilling within the northeast quadrant of the Two Mile Hill open pit deposit was designed to extend and/or provide further confidence in the existing 2012 JORC Indicated and Inferred Mineral Resources.
Eight outstanding assays from hole MSRC304 have been received, resulting in a previously reported interceptof 16m at 1.64g/t Au(from 71m), being extended to a comprise a revised intercept of22m at 1.42g/t Au(from 65m)
Open pit optimisation studies indicate the northeast quadrant of the Two Mile Hill deposit is very sensitive to Mineral Resource upgrades and/or additions within the basalt, potentially deepening the entire open pit by at least 20m, and possibly by as much as 40m, thereby significantly increasing the overall open pit inventory. The results received to date, including the extended intercept above, suggest this objective could well be achieved
New RC drill intercepts returned from limited infill drilling at southern end of the Twin Shafts depositinclude multiple 2m to 6m intervals of circa 1g/t Au. These results are broadly consistent with previous drilling results in this area.
The southern mineralised extension of the Twin Shafts deposit lies beneath ~5m of waste rock and is situated immediately along strike from the Twin Shafts in-pit tailings storage facility.
However, the mineralisation is of sufficient interest to be estimated as a Mineral Resource and optimised to confirm its economic significance as part of the updated feasibility study.
Given the planned extension and/or lift on the tailings facility, the Twin Shafts extension may provide a source of suitable waste to undertake this work.