Sponsored

Middle Island adds more bling to Sandstone Gold Project, boosts Mineral Resource

Summary

  • Middle Island (ASX:MDI) announced that aggregate Mineral Resources at Sandstone gold project have now reached 746,000 ounces of gold.
  • The maiden MREs reported for McClaren and Ridge deposits have collectively added a further 24,500 ounces of gold to Sandstone’s existing Mineral Resources.
  • Ridge and McClaren satellite open pit deposits represent the final MREs declared under 2020 drilling campaign at Sandstone.
  • The Company has achieved its best-case scenario of doubling of Sandstone’s open pit Mineral Resources, anticipated before the commencement of the major drilling campaign.
  • Both Ridge and McClaren deposits will now be optimised to ascertain the in-pit Mineral Resources, which are expected to contribute to Ore Reserves in Sandstone’s existing FS.

Middle Island Resources Limited (ASX:MDI) has announced that aggregate Mineral Resources at its flagship Sandstone gold project have now reached 746,000 ounces of gold. The increase in the total Mineral Resources follows the release of maiden Mineral Resource estimates (MREs) for new Ridge and McClaren satellite open pit deposits from 2020 drilling campaign.

Following the release of MREs announcement, Middle Island shares marked an uptick of ~3.6 per cent to $0.014 during the early trading session on 17 November 2020.

Ridge and McClaren satellite open pit deposits represent the final MREs declared under 2020 drilling campaign at Sandstone. With the addition of maiden MREs for Ridge and McClaren deposits, Middle Island has achieved its best-case scenario of doubling of Sandstone’s open pit Mineral Resources, anticipated before the commencement of the major drilling campaign.

The latest MREs have improved the chances of a positive feasibility study (FS) result and project recommissioning, expected in 2021.

Maiden MREs - Ridge and McClaren Deposits

McClaren and Ridge represent the final two (of five) new satellite open pit deposits identified by Middle Island under its ~50,000m drilling campaign in 2020. The Ridge deposit is located about 2.1km east-northeast of the Sandstone mill, while the McClaren deposit is cited around 2.6km east of the mill.

Mr Shaun Searle of Ashmore Advisory Pty Ltd independently prepared the maiden MREs for McClaren and Ridge satellite open pit deposits, as demonstrated below:

The maiden MREs reported for McClaren and Ridge deposits have collectively added a further 24,500 ounces of gold to Sandstone’s existing Mineral Resources. Notably, over 72 per cent of Ridge and 80 per cent of McClaren’s MREs are categorised under the Indicated category.

Gold Mineralisation

Gold mineralisation is majorly hosted within banded iron formation (BIF) units at Ridge and McClaren deposits. The mineralisation usually occurs at fault intersections, with certain peripheral gold mineralisation taking place in the mafic country rock.

At the Ridge deposit, the mineralised BIF units are highly contorted by folding and steeply dipping at the southern end. However, these units become more predictable, tabular, and shallow northwest dipping towards the northern end. Most of the mineralisation takes place in oxidised zones with certain overlying laterite mineralisation.

On the other hand, gold mineralisation at the McClaren deposit is primarily associated with the lower of the two, flat to gently undulating BIF units, with upper unit exposed at surface being largely unmineralised. Significantly, mineralised BIF unit at McClaren has been found similar to the strongly mineralised BIF unit occurring at shallow depth at McIntyre in drilling activity.

MDI’s Next Steps

Middle Island notified that both Ridge and McClaren deposits will now be optimised to ascertain the in-pit Mineral Resources, which are expected to contribute to Ore Reserves in Sandstone’s existing FS.

As per the Company, the higher grade, northern extension of the Ridge deposit seems to be constrained by the quantum of drilling and is presently categorised as an Inferred Resource. After the Phase 3 infill drilling, this substantial extension is expected to be upgraded to Indicated classification for consideration as an Ore Reserve in a timely manner.

The exploration component of the Phase 3 drilling is also likely to test extensions to the Shillington Gap target and the McIntyre deposit. The Phase 3 drilling campaign currently underway at Sandstone is planned for completion in late December 2020.

The Company notified that an extensive program of RC sterilisation drilling is now at an advanced stage and further exploration drilling is imminent with the addition of a second RC rig.

Related Read: Middle Island (ASX:MDI) Delivers A+ Performance in FY 2020 Despite COVID-19 Storm


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK