415.2m at 1.34g/t Au intersected in Two Mile Hill diamond drilling at Sandstone gold project, WA
Diamond Drilling Results Announcement - 7 June 2017
Diamond Drilling Results Announcement - 7 June 2017
- Gold intersection of 415.2m at 1.34g/t Au, ending in mineralisation, encountered in deepest diamond hole, MSDD156, drilled to date at the Two Mile Hill prospect within Middle Island’s Sandstone gold project.
- Cored portion of MSDD156 mineralised from start to finish and remains open at depth, with the final interval comprising 66.9m at 3.27g/t Au (from 432m to end of hole at 498.9m).
- When combined with the RC pre-collar (MSDD155) immediately adjacent to MSDD156, the extended mineralised intercept becomes 457.9m at 1.28g/t Au.
- Veining, alteration and associated gold mineralisation in MSDD156 is consistently developed throughout the entire hole.
- The intercept in MSDD156 is entirely consistent with previous diamond drilling at Two Mile Hill, which includes:-
372.7m at 1.52g/t Au
230.4m at 1.62g/t Au
353.3m at 1.04g/t Au
141.0m at 2.30g/t Au
156.3m at 1.14g/t Au
230.4m at 1.62g/t Au
353.3m at 1.04g/t Au
141.0m at 2.30g/t Au
156.3m at 1.14g/t Au
- Drilling confirms the presence of a substantial and ubiquitously mineralised system measuring 250m in strike and up to 80m in width that is mineralised to at least 500m depth.
- Result increases the possibility of bulk underground mining beneath the proposed open-pit cutback at Two Mile Hill.
Drilling represents part of three-hole programme supported by WA Government drill funding.
http://www.middleisland.com.au/html/s02_article/article_view.asp?keyword=InvestmentHighlights
RC drilling results from McIntyre & Two Mile Hill prospects at Sandstone gold project, WA
- New 29-hole RC drilling results on two prospects - McIntyre and Two Mile Hill - within Sandstone gold project in WA enhance gold inventory potential.
- Results confirm broad intervals of very shallow dipping gold mineralisation at McIntyre.
- Persistence of a broad mineralised zone at McIntyre suggests more significant grades may be encountered down dip from initial lower grades.
- McIntyre to be further drilled along strike and down dip in 2H 2017.
- New Two Mile Hill results to be incorporated into an updated resource estimate for this deposit as part of ongoing pit re-optimisation.
- Sandstone continues to build after >400m gold mineralised intersection from diamond hole at Two Mile Hill and acquisition of adjoining >10,000oz gold resource at Wirraminna, announced this week.
- Better RC drilling results from both the Two Mile Hill and McIntyre prospects include:-
2m at 44.7g/t Au
5m at 7.59 g/t Au
25m at 0.81g/t Au
4m at 3.37g/t Au
5m at 7.59 g/t Au
25m at 0.81g/t Au
4m at 3.37g/t Au
McIntyre & Two Mile Hill RC Drilling
Gold developer, Middle Island Resources Limited (Middle Island, MDI or the Company) is pleased to announce that all gold assay results have now been returned for reverse circulation percussion (RC) drilling completed during the June quarter at the Two Mile Hill and McIntyre prospects within the Company’s Sandstone gold project in WA.
The purpose of the RC drilling programme was twofold:-
- Infill previous RC drilling in the northeast quadrant of the Two Mile Hill open pit deposit in order to clarify the mineralised continuity in an area critical to pit optimisation.
- Infill previous rotary air blast (RAB) and RC drilling at the McIntyre prospect to confirm and extend the presence of thick, shallow zones of gold mineralisation.
*Please refer to the Company’s ASX Announcements page
http://www.middleisland.com.au/html/s02_article/article_view.asp?keyword=InvestmentHighlights
- Middle Island has signed an Option Deed to acquire a 100% interest in the Wirraminna gold project at an exercise price of $300,000 payable at any time within a four-year period.
- Wirraminna is situated immediately adjacent to the Sandstone gold project and, importantly, within 1km of the Company’s processing plant.
- Wirraminna hosts an existing ~10,000oz gold resource (JORC 2004), at least two further mineralised laterite deposits and substantial deeper gold exploration potential associated with three intersecting, high grade, mineralised structures.
- Better previous drilling intercepts include:-
11m at 23.8g/t Au
16m at 14.6g/t Au
19m at 4.85g/t Au
16m at 14.6g/t Au
19m at 4.85g/t Au
- The Wirraminna acquisition represents an immediate opportunity to access higher grade open pit mineralisation that may provide a catalyst for earlier recommissioning the Middle Island’s Sandstone gold processing plant.
- The Option Deed was granted in consideration of Middle Island also entering a surface detecting rights agreement (Tribute Agreement) over agreed areas within Middle Island’s existing two Sandstone tenements.
- Under the Tribute Agreement MDI will receive 15% of the gross proceeds of any surface gold detected and recovered from those agreed areas within M57/128 & M57/129.
*Please refer to the Company’s ASX Announcements page
http://www.middleisland.com.au/html/s02_article/article_view.asp?keyword=InvestmentHighlights
Investment Highlights
- Potential near-term gold production at Sandstone requiring modest capital.
- Considerable additional resource & exploration upside.
- Opportunity to consolidate or toll-treat third-party deposits within Sandstone district.
- Deeper Two Mile Hill potential represents significant project opportunity.
- Ideally timed acquisition for an emerging developer in a more buoyant Australian gold market.
- Strong, stable, supportive share register.
- Highly experienced & credible exploration & project development team.
- Optionality of 100%-owned Reo gold project in Burkina Faso.
Processing Plant600,000tpa CIP plant. C&M since 2010. Conventional grinding, milling & leach circuits. Refurbishment costs of $8.05M, plus owner’s costs of $1.28M. Only processing plant for 150km.
Infrastructure
Contract diesel-generated power plant. Fuel tanks, workshops, laboratory & mine offices. Substantial inventory of equipment & spares. Permitted in-pit tailings facility & bore field. Fully equipped camps (accommodating 100) in nearby Sandstone. Exploration Camp and core farm. Well-maintained airport to service FIFO operations.
*Please refer to the Company’s ASX Announcements page
http://www.middleisland.com.au/html/s02_article/article_view.asp?keyword=InvestmentHighlights
- A 100% interest in the Sandstone gold project in Western Australia.
- Two adjacent, granted & fully permitted Mining Leases collectively covering 20 square kilometres.
- Mineral Resources (JORC 2004) of ~11Mt grading 1.4g/t Au for 480,000 ounces of gold, plus considerable resource & exploration upside.
- 600ktpa CIP gold processing plant on care & maintenance, associated infrastructure, spares & camps.
- Near-term production potential.
- Exceptional brownfields targets associated with the Two Mile Hill tonalite & BIF.
- Numerous greenfields exploration targets within project & third-party deposits in the district.
Location & Tenure