Middle Island Resources Ltd [ASX:MDI] have hit gold at their Shillington deposit in the Sandstone Gold project.
Sandstone is wholly-owned by MDI and is located in the central goldfields, in Western Australia.
Drilling turns ‘significant’ gold results
Middle Island has been involved in their Phase 2 reverse circulation (RC) diamond drilling program. The program focused on upgrading existing deposits but also looked at extending five new satellite open-pit deposits they identified during Phase 1. These are: McClaren, McIntire, Ridge, Old Town Well and Plum pudding.
All of these deposits — including Shillington — are located in a 2.5km radius from the company’s processing plant, as you can see in the map below:
Source: Middle Island
RC drilling at the Shillington deposit consisted of 20 holes extending 1,218 metres. Significant results included 6m @ 10.5 grams per tonne gold and 8m @ 9.12 grams per tonne gold. These complement results from Phase 1, which included: 10m @ 3.02 g/t Au, 8m @ 4.48 g/t Au and 10m @ 3.08 g/t Au.
According to the company:
‘The final Phase 2 RC drilling at Shillington has validated the existing resource model and is anticipated to permit the two “panels” of Inferred Mineral Resources to be upgraded to an Indicated classification for consideration as Ore Reserves. The recent drilling has also extended shallow mineralisation to the north of the existing deposit limits.’
The company also released drilling results for Twin Shafts which consisted of 24 holes and 1,524m. Drilling confirmed the deposit extends to the south. Results included 4m @ 8.12 grams per tonne gold, 4m @ 3.12 g/t Au and 10m @ 2.27 g/t Au.
More drilling planned
So far, the company has completed more than 50,000 meters of drilling between Phase 1 and 2.
The company is still awaiting results from the Ridge, McClaren and McIntyre deposits that will be included in a feasibility study.
Middle Island is now planning a phase 3 exploration drilling campaign that will focus on the McIntyre, Ridge and Shillington gap which will start this late October.
The MDI share price has increased over 6% in early trade but at time of writing, shares have fallen back to yesterday’s close at 1.5 cents.
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