Big Breakthrough! Gold explorer Middle Island Resources Limited (ASX:MDI) has identified second new gold deposit at its wholly-owned Sandstone Gold Project. The new deposit is defined at one of a cluster of three proximal gold prospects within Sandstone, the McIntyre prospect.
Post the key update, MDI stock surged by 16.7 per cent on the ASX, closing the trading session at $0.014 on 21st April 2020.
The new gold deposit has been reported as part of the Middle Island’s latest gold results emerging from its recently completed 13,400m, Phase 1 reverse circulation (RC) drilling program. Exclusively focusing on open pit targets, the Phase 1 RC program has tested around 14 gold deposits and prospects, all situated within the Sandstone processing plant and most of them on existing Mining Leases.
The Phase 1 RC drilling program is one of the four planned programs conducted under the Company’s major 17,300m exploration and resource definition drilling campaign continuing at Sandstone project in the central goldfields of Western Australia.
Impressive Drilling Results Received from McIntyre Prospect
The latest drilling results are derived from a further 12 holes (774m) of the RC drilling concluded at the McIntyre gold prospect, comprising 172 holes in total. The Company has found better RC drill intercepts from the McIntyre prospect in the assays, which include:
- 24m at 1.66g/t (from surface in MSRC351),
- 23m at 1.40g/t (from 11m depth in MSRC352),
- 11m at 1.39g/t (from 25m depth in MSRC353), and
- 18m at 1.35g/t Au (from 32m depth in MSRC354).
Out of 14 gold deposits and prospects tested under Phase 1 RC drilling program, the Company has reported assays of McIntyre, Two Mile Hill deposit, McClaren and Tailings East prospects to date.
To Know More on Drilling Results, Read Middle Island Announced Bonanza Intercept from McClaren Prospect, Stock Soars 37.5%
Amongst these prospects, Two Mile Hill is the existing deposit while the other three targets represent those which have had little or no drilling in the past. Besides these four targets, the Phase 1 RC drilling program has tested the following deposits and prospects:
- Existing Deposits: Wirraminna, Twin Shafts, Shillington, Plum Pudding and Goat Farm.
- Other Targets: Old Town Well, Ridge, Davi , Wirraminna Laterite (East & West) and G2 & G3 gravity targets.
Observations from Latest Drilling Results
The broad, consistent gold intercepts obtained from the Phase 1 RC drilling suggests that the McIntyre prospect may well prove to represent a potential new, open pit, very low strip ratio deposit that together with the recently delineated McClaren deposit, readily justifies additional infill and extension drilling under the planned Phase 2 RC drilling program.
McIntyre, McClaren and Ridge prospects are the three proximal gold prospects that are hosted within the southeast extension of the Shillington BIF (banded iron formation) package, situated on granted Mining Lease M57/129, 2.5km from the Sandstone gold processing plant.
Recently finalised geological mapping of the proximal McIntyre, McClaren and Ridge prospects indicates that the former two are associated via a northeast-trending corridor of higher deformation and quartz veining.
Middle Island mentioned that the recent drilling orientation may be sub-parallel to the deformation zone, offering an opportunity to considerably expand the mineralised zone laterally in the proposed Phase 2 follow-up RC drilling (circa 3,000m). Moreover, it offers an opportunity to detect mineralisation along the deformation zone, beneath cover, beyond and between the McIntyre and McClaren deposits.
The geological mapping has established a structural link between the McIntyre and McClaren prospects, with an identical link indicated with the proximal Ridge prospect, which is yet to be clearly established.
The Company expects McClaren and McIntyre prospects to represent two new open pit deposits to supplement the planned Sandstone mill recommissioning inventory. The Company is waiting for the Phase 1 RC drilling results for the Ridge prospect to ascertain if associated gold mineralisation is connected with McClaren and/or McIntyre deposits.
In a nutshell, the Phase 1 RC drilling program results received so far significantly increase the likelihood of a positive Sandstone mill recommissioning decision. Moreover, Middle Island is well-financed to progress with follow-up activities at McClaren, McIntyre and any further new discoveries at Sandstone project.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.