The Middle Island Resources Ltd [ASX:MDI] share price opened up 17% higher this morning on an early trade. At time of writing shares are trading at $1.9 cents, almost 12% higher from yesterday’s close.
Middle Island Resources is an ASX-listed gold explorer and aspiring developer. Their main activity is in the Sandstone gold project, which they fully own. The project is located 400km northwest of Kalgoorlie in Western Australia.
Why are Middle Island shares up today?
Middle Island released their latest results from their phase two reverse circulation (RC) drilling program at Plum Pudding deposit. Plum Pudding is in the Sandstone gold project, 850m south from the company’s gold processing plant.
This phase of the drilling focused on in filling and extending the company’s five new satellite open pit deposits: McLaren, McIntyre, Ridge, Old Town Well and Plum Pudding.
You can check out their locations here:
Source: Middle Island Resources
So far, they’ve done more than 45,000m of drilling between both phase one and two.
The results released today though only include results from Plum Pudding and the 62 RC holes they’ve carried out there during the campaign. You can check out previous results from drilling in Plum Pudding here.
And as it turns out, the campaign has returned several high-grade gold results.
Here are some of the intercepts:
7m @ 24.1 grams per tonne gold, 7m @19 g/t Au, 12m @7.22 g/5 Au, 3m @ 24.7 g/t Au, 27 m @1.42 g/t Au, 3m @10 g/t Au and 12m @2.46 g/t Au.
In the words of the company: ‘Phase 2 drilling at Plum Pudding has identified that saprolite gold mineralisation is associated with a broad, sub-vertical, north-trending zone of brecciated and quartz-veined ultramafic rocks, with internal mineralised lenses interpreted to be dipping moderately east.’
What could happen next?
Middle Island Resources still has about 10,000 RC samples from phase two drilling at the laboratories in Perth, waiting for results. These will be included in the feasibility study which the company is giving priority to.
And, since they’ve had so much success in both phase one and two, they’ve decided to do more drilling. Phase three will look at testing other open pit targets that weren’t tested or identified during the previous phases.
It’s an exciting time for gold with prices close to US$2,000 an ounce. If you are interested in gold stocks check out Greg Canavan’s guide on ‘How to pick winning gold stocks’.
You can access the free report here.
PS: Check out our latest coverage of the MDI share price here.