Middle Island Commences Phase 2 Drilling Campaign at Sandstone on the Dot

Summary

  • Middle Island has kick-started Phase 2 drilling campaign at Sandstone, comprising ~13,800m of resource definition RC drilling and ~1,000m of HQ diamond drilling prior to the feasibility study.
  • The Phase 2 resource definition drilling has commenced as scheduled and will primarily target five new satellite deposits and an extension to Shillington.
  • The Company has also commenced a drone terrain survey and has planned to undertake airborne magnetic & radiometric survey, Phase 2 diamond drilling and Phase 2 RC Exploration drilling in the near-term.

In line with its plan, Middle Island Resources Limited (ASX:MDI) has initiated Phase 2 drilling campaign at Sandstone Gold Project, comprising ~13,800m of resource definition reverse circulation (RC) drilling program and ~1,000m of HQ diamond drilling program prior to the feasibility study.

Middle Island has kick-started Phase 2 drilling campaign on the back of a successful Phase 1 Aircore and RC drilling program completed this year, that identified five new satellite deposits at Sandstone - McIntyre, Ridge, Old Town Well, McClaren and Plum Pudding.

The Company is undertaking or will carry out different exploration work programs at Sandstone this year, as demonstrated in the below figure:

Phase 2 Resource Definition RC Drilling

Commenced on 5th June 2020, the Phase 2 resource definition RC drilling comprises an initial 222 holes (13,846m) of resource definition RC drilling at Sandstone.

Initially, the Company planned ~3,000m of resource definition RC drilling at Sandstone that was based on the estimation of one new deposit; however, the program has now been considerably expanded due to the success of Phase 1 drilling campaign, which identified five new satellite deposits. The revised Phase 2 drilling campaign is targeted at these five new satellite deposits and an extension to Shillington.

Two drill rigs will be employed in this drilling program to infill and extend the new satellite deposits on a nominal 20m x 20m pattern. Besides, ~720m (12 holes) of additional drilling is planned at Shillington to validate a probable southern extension to the deposit discovered in Phase 1 program.

The resource definition RC drilling will produce notional Indicated Mineral Resources to be incorporated in an updated feasibility study planned for completion in Q3 CY 2020.

In the latter stages of the Phase 2 resource definition RC drilling program (July 2020), the Company has also planned to undertake Phase 2 diamond drilling, comprising notionally two HQ3 diamond holes per satellite target (~1,000m in total). The key objectives of this drilling are to:

  • Produce material for bulk density determination,
  • Provide material for metallurgical and geotechnical testing, and
  • Permit the new deposits to be counted as Ore Reserves in the feasibility study update.

Drone Terrain Survey

Together with this resource definition RC drilling, a drone terrain survey has also been initiated last week to finalise a high-resolution (+/-50mm) digital terrain model (DTM) over Wirraminna Prospecting Licence and two granted Mining Leases, prior to the feasibility study update. Land Surveys Pty Ltd has commenced the drone terrain survey.

The survey is being scaled up in expectation of a substantial increase in open pit Mineral Resources at Sandstone.

Airborne Magnetic and Radiometric Survey

The Company has further planned commencement of a high-resolution (25m line spacing) airborne magnetic & radiometric survey in June 2020, over the two granted Mining Leases and Wirraminna Prospecting Licence.

The survey is targeted at accurately detecting prospective banded iron formation (BIF) units under shallow cover prior to Phase 2 RC exploration drilling.

Phase 2 RC Exploration Drilling

Following the completion of Phase 2 RC resource definition drilling and airborne magnetic survey, Phase 2 RC exploration drilling is expected to begin in July 2020, at the following exploration targets:

  • The undrilled 1.15km-long Shillington Gap (between the Ridge and Shillington gold deposits), where the mineralised Shillington BIF package extends below superficial transported cover.
  • Extensive zones of gold mineralisation noted in historic drilling below and adjacent to the Eureka open pit deposit.

The Phase 2 RC drilling will be extended to deliver an initial assessment of at least these two exploration priorities presented by the Phase 1 campaign.

Source: Company's report

While the Company is yet to finalise details of the exploratory component of this Phase 2 program, it has made the application to extend the current POW over M57/129 to adjust the potential additional drilling.

Middle Island deserves credit for the pace at which it is continuing massive open pit drilling campaign at Sandstone Gold Project, that has delivered an extremely successful start. The Company remains well-funded and stays on the beam to accomplish its planned Phase 2 drilling campaign in due course.

MDI closed the trading session at $0.016 on 9th June 2020.


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