Middle Island’s (ASX:MDI) Shares Hot on ASX post news on Alto Metals Stake Acquisition & New RC Drilling Results

  • October 30, 2020 06:18 PM AEDT
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Middle Island’s (ASX:MDI) Shares Hot on ASX post news on Alto Metals Stake Acquisition & New RC Drilling Results

Summary

  • Middle Island (ASX:MDI) announced the acquisition of 10 per cent stake in Alto Metals Limited (ASX:AME).
  • The gold explorer has also unveiled robust Phase 2 RC drilling results from Ridge and McClaren deposits.
  • The Company has derived substantial Phase 2 RC drill intercepts from the Ridge deposit, including 7m @ 6.49g/t Au and 4m @ 5.32g/t Au.
  • MDI is planning to start a Phase 3 exploration drilling campaign immediately post a comprehensive sterilisation drilling program starting next week.
  • The Company appears to be in a strong position to complete the processing plant’s recommissioning by Q3 2021.

Middle Island Resources Limited’s (ASX:MDI) stock marked an upsurge of 6.7 per cent on 30 October 2020 to $0.016 on the acquisition of a sizeable stake in Alto Metals Limited (ASX:AME).

Middle Island acquired 10 per cent stake in Alto’s issued capital in an on-market transaction at the cost of 9.5 cents per AME share.

Additionally, the gold explorer has unveiled robust Phase 2 RC drilling results from Ridge and McClaren deposits, which appears to have lent a helping hand to the stock price rise.

Middle Island has completed final Phase 2 infill and extension, resource definition drilling at McClaren and Ridge satellite gold deposits. Both Ridge and McClaren deposits lie 2.5Km northeast of the Company’s wholly owned gold processing plant within permitted Mining Lease M57/129.

To Read about New Phase 2 RC Intercepts from Twin Shafts and Shillington Deposits, Click Here!

RC Drill Intercepts from Ridge Deposit

Middle Island’s Phase 2 infill RC drilling at the Ridge deposit comprised an additional 90 RC holes (3,492m) on a nominal 20m x 20m drill pattern, designed to:

  • quantify mineralisation to primarily Indicated Mineral Resource category, and
  • validate a mineralised northern extension to the deposit.

The Company derived substantial Phase 2 infill and extension RC drill intercepts from the infill RC drilling at the Ridge deposit, including 7m @ 6.49g/t Au and 4m @ 5.32g/t Au.

The latest results add to better Phase 1 RC drill intercepts already derived from Phase 1 RC drilling, comprising 4m @ 99.5g/t Au, 4m @ 50.5g/t Au, 9m @ 5.41g/t Au and 11m @ 2.16g/t Au.

Reconnaissance drill traverses that were extended well to the southwest of the Ridge’s main mineralised zone also intercepted a solitary zone of robust saprolite mineralisation, containing an intercept of 7m at 6.49g/t Au. The intercept is understood to be associated with a northeast-trending fault that will be further examined under the Phase 3 exploration drilling campaign.

RC Drill Intercepts from McClaren Deposit

The gold explorer’s infill RC drilling at the McClaren deposit consisted of an additional 94 RC holes (6,774m) on a nominal 20m x 20m drill pattern, designed to:

  • quantify mineralisation to primarily Indicated Mineral Resource category, and
  • establish a mineralised link to the nearby McIntyre deposit.

Middle Island derived significant Phase 2 infill and extension RC drill intercepts from the drilling at the McClaren deposit, including 11m @ 2.11g/t Au, 3m @ 29.8g/t Au and 4m @ 5.82g/t Au.

The new intercepts complement previously announced better Phase 1 RC drill intercepts, including 4m @ 90.6g/t Au and 8m @ 3.35g/t Au.

The Company has further finalised an HQ3 diamond core hole at McClaren and an additional two HQ3 diamond core holes at Ridge to provide material for bulk density determinations, and metallurgical/geotechnical testwork.

Next Course of Action

Middle Island has now successfully completed large diameter (HQ3) oxide diamond drilling at all the five new satellite gold deposits. While bulk density determinations are complete, metallurgical testwork has started, and geotechnical testwork is close to finalisation.

Given the substantial success of 2020 drilling campaign to date, the Company is planning to start a Phase 3 exploration drilling campaign immediately. The campaign is expected to focus on the McIntyre, Ridge and Shillington Gap areas and will be undertaken post a comprehensive sterilisation drilling program.

An extensive RC sterilisation drilling program is required for proposed new waste dumps and the TSF expansion. It is projected to begin early next week following the receipt of the program of work (POW) approvals.

The latest Phase 2 RC drilling results represent receipt of all resource definition assays for Sandstone’s ten deposit extensions and fresh gold deposit discoveries achieved over 2020. Given the ongoing progress in 2020 drilling campaign, Middle Island is proceeding well on its plan to complete the processing plant’s recommissioning by Q3 2021.

Must Read: Middle Island (ASX:MDI) inches closer to completion of Sandstone Feasibility

 

 


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