ASX-listed aspiring gold developer, Middle Island Resources, continues to steadily build its global gold resource based on a host of satellite deposits at its historic Sandstone gold project in WA. The latest update comes courtesy of an increase of about 7,000 ounces, or 13 per cent, for the Two Mile Hill open-pittable resource that is now estimated at 1.25 million tonnes going 1.36 grams per tonne for 55,000oz of contained gold.
The resource upgrade at Two Mile Hill pushes up the global resource at Sandstone to 18.1 million tonnes grading 1.13 g/t for 657,600oz of contained gold.
It follows the completion of an infill and extension drilling component of the continuing 40,000m-plus 2020 exploration and resource definition drilling campaign at Sandstone.
Middle Island is aiming to generate additional open-pit gold resources for consideration in the project’s feasibility study, which is slated to be released by the end of the year.
Pit optimisations and further assessment of the Two Mile Hill deposit will now be undertaken to determine how much of its resource can be converted into ore reserves for inclusion in the feasibility study.
Importantly, the Perth-based company says the overall Sandstone resource does not include the five new satellite gold discoveries where resource definition drilling is being finalised.
Middle Island recently returned some bonanza RC drill hits at the promising Ridge prospect, which looks to be shaping up as either an open-pit ore source in its own right or a deposit that is potentially connected to two nearby deposits.
Notable intersections from Ridge include 4m at 99.5 g/t gold from 13m including 1m at an eye-watering 390 g/t or 12.5 ounces to the tonne from 14m.
Other impressive results are 4m at 50.5 g/t from 3m including 1m at 198 g/t from 4m, 9m at 5.41 g/t from 22m and 2m at 5.85 g/t from 10m.
Middle Island Managing Director, Rick Yeates said: “The updated mineral resource estimate at the Two Mile Hill open-pit gold deposit results in a marginal increase in tonnage and grade.”
“Resource estimates for the five new satellite open pit deposits have commenced which, along with extensions to the Goat Farm and Twin Shafts deposits, will be progressively provided as final results from the phase two drilling campaign are received and compiled.”
The company is endeavouring to prove up sufficient reserves to warrant the refurbishment of its old mothballed 600,000-tonne-per-annum Sandstone processing plant about 12km south of the town of Sandstone between Mount Magnet and Leinster in the East Murchison mineral field.
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By Matt Birney
