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.
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.