Middle Island: McIntyre Deposit Returns Further Significant Assays, Stock Zooms ~4.5%

Summary

• Middle Island reported further significant assays at McIntyre deposit from Phase 2 RC drilling continuing at Sandstone project.
• Broad intervals of shallow dipping and BIF-hosted gold mineralisation from the surface has been confirmed from Phase 2 RC drilling at McIntyre.
• The Company has finalised more than 37,000m of drilling in Phase 1 and Phase 2 programs so far in 2020.
• McIntyre prospect is expected to make a massive positive contribution to the project’s mill recommissioning inventory.
• The Company is likely to report assays for the remaining four new satellite deposits in coming weeks.

On 29^th July 2020, Middle Island Resources Limited (ASX:MDI) soared by 4.5 per cent to $0.023 on ASX, following the release of further significant assays from Phase 2 reverse circulation (RC) drilling campaign progressing at Sandstone gold project.

Middle Island has reported robust assays from new McIntyre satellite gold deposit, which was identified in recently completed Phase 1 RC drilling campaign at Sandstone project.

The Company has finalised more than 37,000m of drilling in Phase 1 and Phase 2 programs so far in 2020, extending numerous existing deposits and discerning five new satellite deposits in the process. McIntyre is one of these five new deposits identified in Phase 1 RC drilling, with other four being McClaren, Ridge, Old Town Well and Plum Pudding.

Middle Island is currently continuing with Phase 2 RC and diamond drilling programs, exclusively focussed on infilling and extending these five deposits situated on existing Mining Leases within 2.5km of the Company’s gold processing plant.

Must Read! Middle Island Declares Updated Resource Estimates for Two Sandstone Deposits

New Drilling Results from McIntyre Deposit

The latest drilling results are obtained from an additional 31 holes (1,830m) of infill and extension RC drilling concluded at new McIntyre deposit under Middle Island’s ongoing Phase 2 RC drilling campaign.

The infill and extension drilling undertaken at the new McIntyre gold deposit has confirmed broad intervals of shallow dipping and banded iron formation or BIF-hosted gold mineralisation from the surface. The Phase 2 RC drilling has returned better infill and extension RC drill intercepts from the McIntyre deposit, as indicated in the below figure:

These broad intercepts of shallow dipping mineralisation complement those derived from Phase 1 RC drilling at McIntyre, including 24m @ 1.66g/t, 23m [email protected] 1.40g/t, 18m @ 1.35g/t Au and 11m @ 1.39g/t.

Further Details on McIntyre Deposit

McIntyre is one of a cluster of three proximal satellite gold deposits, comprising McClaren and Ridge, where considerable intercepts of 4m @ 99.5g/t, 4m @ 90.6g/t and 4m @ 50.5g/t Au were recently reported. These three proximal satellite gold deposits are hosted within the southeast extension of the Shillington BIF package.

Gold mineralisation at McIntyre is hosted in a very shallow northeast-dipping BIF unit, 8m to 25m thick, which is mineralised from the surface. Besides, mineralisation remains open to the east, which has now been extended on the southeast side of a narrow ‘rift’ structure.

Notably, the McIntyre mineralised zone characterises a new, very low strip ratio, open pit deposit that can make a profound contribution to the well-advanced 2020 feasibility study (FS) and Sandstone project’s mill recommissioning inventory.

Way Ahead

Middle Island notified that the detailed geological mapping near the McClaren-McIntyre-Ridge satellite gold deposits, together with ongoing RC and diamond drilling and high resolution airborne magnetic data would support in resolving the complex structural and stratigraphic architecture in this high-grade area.

Moreover, the Company expects further work to demonstrate continuity between the three satellite gold deposits, given their close proximity to each other.

Following the completion of Phase 2 drilling campaign, which is designed to infill and extend the five new satellite open pit deposits to an Indicated Mineral Resource category, the Company will undertake reconnaissance RC drill traverses around the 1.1km-long Shillington Gap target.

The Company is also likely to report assays for the remaining four new satellite deposits in coming weeks.

Going forth, Middle Island intends to formulate a resource estimate of the McIntyre deposit to the extent necessary to derive an Indicated Mineral Resource classification, which would allow these to be optimised, evaluated and incorporated into the feasibility study as Ore Reserves.