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    Middle Island Resources reports new 600m gold target at Sandstone

    Middle Island Resources Limited (ASX: MDI) has announced a highly encouraging update on its Sandstone gold project in central Western Australia.

    The company reported that new interface aircore geochemical drilling confirms new Tailings South gold target, just 800m south of the Middle Island’s gold processing plant at the Sandstone gold project in central WA.

    It may be noted that the Tailings South target was one of five targets tested or refined as part of the 1,800m aircore drilling program completed in January 2020.

    The company reported that the composite Tailings South gold anomaly comprises a 600m-long eastern element and a 300m-long western element, both of which are north trending.

    MDI said that Tailings South will be the last prospect to be tested as part of the Company’s current 12,300m Phase I reverse circulation (RC) drilling program.

    Middle Island reported that some 11,000m of the planned 12,300m Phase I RC program have been completed, all assay results of which are pending.

    The company said that once all Phase I RC results have been returned and compiled, a planned Phase II RC drilling program, comprising a notional 3,000m, will be undertaken to upgrade any Inferred Mineral Resources identified by the Phase I work to an Indicated Mineral Resource classification.

    MDI said that simultaneously, a notional 800m of oxide diamond coring of new deposits will be undertaken to provide additional bulk density data, along with material for further metallurgical, geotechnical and waste classification testing, where required.

    The company said that additional Mineral Resources derived from the entire 17,900m drilling campaign will be applied to the current updated Sandstone pre-feasibility study (PFS), which is planned to be completed by the end of the 2020 June quarter.

    MDI said that the outcome of the updated PFS will inform a Sandstone gold project recommissioning decision. The timeframe for recommissioning is estimated to be five months.

    Sandstone project

    The Sandstone project and processing facility is situated 12km south of the township of Sandstone, ~400km northwest of Kalgoorlie, and located on a sealed highway between the mining towns of Mt Magnet and Leinster in the East Murchison Mineral Field of Western Australia.

    Sandstone exploration program

    The company had commenced a total 17,900m drilling campaign at its 100%-owned Sandstone gold project in central Western Australia.

    The aggressive and systematic Sandstone 2020 exploration and gold development program is set against a background of record gold prices and considerable local M&A activity, with recent takeover offers made for Spectrum Metals and Alto Metals at significant premiums.

    MDI reported that assay results have been received for the ~1,800m aircore drilling program completed late in January 2020. The company reported that some 11,000m of the planned 12,300m Phase I, multi-rig, RC program has been completed, all assay results of which are still pending.

    Encouraging update from AC drilling

    The company announced that all assay results have finally been received for the ~1,800m aircore drilling program completed late in January 2020.

    MDI said that the interface (palaeo-surface) geochemical aircore drilling results have been prioritised for compilation to provide more accurate targeting for the current Phase I RC drilling. The company said that the laterite drilling results are yet to be assessed in detail.

    New Tailings South gold target

    The company said that the interface (palaeo-surface) aircore geochemical drilling has identified the new Tailings South gold target, located only 800m south of the Company’s 100%-owned gold processing plant. This is one of five targets tested or refined as part of the 1,800m aircore drilling program.

    The composite Tailings South gold anomaly, identified beneath 8-15m of transported sheetwash cover, comprises a 600m-long eastern element (to a maximum 107ppb Au) and a 300m-long western element (to a maximum 51ppb Au), both of which are north trending, consistent with the interpreted major structural orientation, but oblique to the stratigraphic orientation at this point.

    The anomaly, originally identified by a Weights of Evidence (WoE) structural targeting study, is interpreted to be associated with a series of folded banded iron formations (BIFs) dislocated by faulting.

    Phase I RC drilling program ongoing

    MDI reported that some 11,000m of the planned 12,300m Phase I, multi-rig, RC program has been completed, all assay results of which are still pending.

    The company said that the Phase I RC program is anticipated to be completed next week, with 12 of the 14 targets and deposits tested to date.

    MDI said that the new Tailings South prospect will be the last target to be RC drill tested as part of the Phase I program, anticipated to be completed next week.

    MDI reported that the visual logging of the RC chips has identified broad zones of quartz veining, associated with intense silica-pyrite-haematite alteration, providing considerable encouragement that at least one new gold deposit may have been identified by the RC drilling campaign to date and that most of the existing deposits are likely to be extended and/or enhanced.

    What’s next?

    Phase II drill program: The company announced that once all Phase I RC results have been received and compiled, a planned Phase II RC drilling program, comprising a notional 3,000m, will be undertaken to infill and upgrade any Inferred Mineral Resources identified by the Phase I work to an Indicated Mineral Resource classification.

    Oxide diamond coring: MDI said that Phase II RC drilling program will be undertaken simultaneously with a notional 800m of oxide diamond coring of new deposits to provide additional bulk density data, along with material for further metallurgical, geotechnical and waste classification testing, where required.

    PFS to be updated: Additional Mineral Resources derived from the entire planned 17,900m drilling campaign will be applied to the pre-feasibility study (PFS), which is in the process of being updated. The PFS update is planned to be completed in mid-2020, informing any subsequent Sandstone gold project recommissioning decision.

    The company said that subject to available finance, and pending a positive PFS outcome, any recommissioning timeframe is estimated to be five months. This means that the project could conceivably be in production by early 2021.

    Other plans: MDI said that further work includes bedrock RC drill testing of the Tailings South target on 80m spaced, top to tail traverses is imminent to determine the nature and significance of any associated saprolitic mineralisation.

    Jonathan Norris
    Jonathan is a founder of Mining.com.au and has been covering the resources industry since 2018. With over 17 years experience in print, broadcast and online media, Jonathan has seen first hand the transformative effect of online niche media.

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    • Delayed Prices (USD) - Last Updated 01-07-2022
    • Gold $1,819.00
    • Silver $20.75
    • Platinum $916.00
    • Palladium $1,898.00
    • Dalian Iron Ore i2209 $121.63
    • Aluminium $2,491.00
    • Cobalt $72,460.00
    • Copper $8,365.50
    • Lead $1,971.00
    • Nickel $23,158.00
    • Tin $26,800.00
    • Zinc $3,333.00