Middle Island Resources Hits Gold, Share Price Up (ASX:MDI)

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:
ASX MDI Phase 2 Drilling Gold Deposits

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.

Investing in gold explorers can be quite rewarding, but also very risky. It’s not easy to know which explorers will strike gold and which ones will run out of money.

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 .


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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