The share price of Middle Island Resources Ltd [ASX:MDI] are up today over 8%.
Middle Island Resources is an ASX-listed gold exploration company. Their current focus is the Sandstone gold project, located 400km northwest of Kalgoorlie in Western Australia. The company owns 100% of the project.
What did Middle Island Resources announce today?
The company said they uncovered a fourth gold discovery in Sandstone, which they’ve named Plum Pudding. Previous discoveries include McIntyre, McClaren and Old Town Well.
The company conducted 13,400m Phase 1 of their reverse circulation (RC) drilling program which targeted open pit targets in Sandstone and tested 14 gold deposits and prospects.
Some of the highlights of the results include 3 metres at 3.72 grams per tonne from 29 m, 10 m at 3.08 g/t from 41m, 2 m at 4.98 g/t from 33m, 3 m at 3.72 g/t from 29m and 12m at 0.93 g/t. from 39m.
Middle Island’s Managing Director Rick Yeates had this to say:
‘Centred on a high grade mineralised core defined by previous drilling, Phase 1 RC drilling at the Plum Pudding deposit has extended mineralisation over a 240m strike length to the south. Subject to infill and verification RC and diamond drilling, Plum Pudding is likely to represent a further new, shallow, oxide gold deposit that will be assessed as part of the updated pre-feasibility study (PFS), particularly as it is situated only 850m south of the Company’s 100%-owned, 600,000tpa processing plant, within granted Mining Lease M57/129.
‘The Directors look forward to sharing the final Phase 1 RC drilling results with you as they are received and compiled. The results of this program to date and the strong prevailing gold price significantly heighten the prospects of a positive mill recommissioning decision.’
What could happen next MDI?
The company is expecting to receive the results from the remaining 65 holes (4,209m) of Phase 1 RC drilling program in the coming weeks.
The company so far has seen a share price increase of 160% since this time last year.
While gold prices are going higher in Australian dollar terms, it’s not easy to know which explorers will be the winners and which ones will lose. It’s why The Rum Rebellion’s editor Greg Canavan has prepared a ‘How to pick winning gold stocks’ guide for you.