Today Middle Island Resources Ltd [ASX:MDI] released an update on the Sandstone Gold Project, which they fully own.
Middle Island is an Aussie gold developer and explorer. Their focus is on Sandstone, an advanced project located in Western Australia, about 400km northwest of Kalgoorlie. Middle Island also owns 100% of the Barkly Copper-Gold Project in the Northern Territory.
Sandstone Gold Project passes 746,000oz
The company released the maiden mineral resource estimates for new Ridge and McClaren.
Middle Island estimates both deposits have 24,500oz, which would take Sandstone’s aggregate mineral resources to 746,000oz.
According to the company’s release, over 72% of the Ridge and 80% of McClaren’s resource estimates have ranked in the indicated category.
New Ridge and McClaren are the last two of five new satellite open-pit deposits the company evaluated during their 2020 drilling program, which extended for 50,000m.
For this exploration and resource definition program, Middle Island looked at several areas (you can take a look in the map below), all located within 3kms of the company’s processing facility.
Source: Middle Island Resources
Rick Yeates, Middle Island’s Managing Director had this to say:
‘The Ridge and McClaren satellite open pit deposits represent the final Mineral Resource estimates contributing to the current FS, which is scheduled for competition in January 2021. Prior to commencement of the 2020 drilling campaign, the anticipated best case scenario was a doubling of Sandstone’s open pit Mineral Resources which, with the addition of Ridge and McClaren, we have now achieved. This is an extremely pleasing outcome that should ensure a positive FS outcome and a project recommissioning in 2021.’
What could happen next for the MDI share price?
The company is conducting a Phase 3 infill drilling to test the extensions to the McIntyre deposit and the Shillington Gap target. Middle Island expects they’ll finish this drilling phase by late December this year.
The Middle Island Resources share price went up over 7% on an early trade to 1.5 cents but are now muted, trading back at 1.4 cents. So far though, the MDI share price is up 180% in the last 12 months.
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’.
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