‘Bonanza’ Gold Boosts Middle Island Resources Ltd’s Share Price

The Middle Island Resources Ltd’s [ASX:MDI] share price is up today close to 8.7%. At time of writing, shares are trading at 2.5 cents.

Middle Island Resources is a gold exploration company. Their focus is on the Sandstone Gold Project, which is located 400km northwest of Kalgoorlie in Western Australia. Middle Island owns 100% of the project.

What’s moving Middle Island shares today?

The company announced the latest results of their Phase 2 reverse circulation (RC) drilling at their new Ridge deposit in Sandstone.

During Phase 1 of the drilling project, which the company completed in the first half of the year, Middle Island found five new satellite deposits. These were: McClaren, McIntyre, Ridge, Old Town Well, and Plum Pudding.

All five new deposits are located on existing mining leases. They are also within 2.5km of the company’s fully owned gold processing plant, as you can see below.

ASX MDI Gold Deposits - Middle Island Resources Shares

Source: Middle Island

The objective of Phase 2 drilling is infilling and extending these five new satellite open pit deposits.

The company released today new drilling results from 25 holes at Ridge deposit, with many of the drilling results found at shallow depth.

Some of the ‘bonanza gold grade intercepts’ include: 4m at 99.5 grams per tonne, 4m at 50.5 g/t, 4m at 2.42 g/, 9m at 5.41 g/t and 2m at 5.85 g/t of gold.

The company said these results confirm previous RC drilling results at Ridge, which included: 13m at 3.81 g/t, 8m at 4.14 g/t, 5m at 3.81 g/t, 9m at 2.21 g/t and 3m at 8.77 g/t Au.

What could happen next?

The company said mineralisation at Ridge is open to the north. They are still waiting for the results of another 37 RC holes and they will be drilling another 57 RC holes to complete Phase 2.

Throughout the drilling program this year, Middle Island’s shares have been rising. Year-to-date, the share price has increased by 400%. As of 30 June 2020, the company held $5.14 million in aggregated cash and investments.

It’s an exciting time for gold with prices at over US$2,000 an ounce. Yet it’s not easy to know which explorers will strike gold and which ones will go broke. It’s why The Rum Rebellion’s editor Greg Canavan has prepared a guide on ‘How to Pick Winning Gold Stocks’.

You can access the free report here.


Selva Freigedo

Selva Freigedo is a research analyst for The Rum Rebellion.

Born in Argentina, her passion for economic analysis started at a young age. Her father was an economist for the Argentinean governments and the family used to discuss politics and economics at the dinner table.

Argentina is a country with an unusual economic history. Growing up there gave Selva first-hand experience on different economic phenomena such as hyperinflation, devaluation and debt default.

Selva has also lived in Brazil, Spain and the USA.

Back in 2000 she was living in the US as the dot com bubble popped…
And in 2008 she was in Spain as the property market exploded and then collapsed…

She has seen first-hand what happens when bubbles burst.

Selva joined Fat Tail Investment Research’s team in 2016, as an analyst. She now writes from her vantage point in Australia, where she settled in 2015.

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