- Explorer and aspiring gold developer, Middle Island Resources (MDI), has found a third gold discovery at its Sandstone Gold Project
- The new discovery took place at Sandstone’s Old Town Well prospect and is the third deposit to be uncovered this month
- The discovery was uncovered during testing of the Old Town Well and Davis prospects in the company’s phase one reverse circulation (RC) drilling program
- Given the success of the phase one program, the company says its planned phase two drilling program will need to be expanded
- Meanwhile, results from the remaining 95 holes from the phase one program are expected in the coming weeks
- Middle Island is up 7.69 per cent on the market this morning, trading for 1.4 cents each
Explorer and aspiring gold developer, Middle Island Resources (MDI) has found a third new gold discovery at Sandstone Gold Project in Western Australia.
The new discovery took place at Sandstone’s Old Town Well prospect and is the third deposit to be uncovered this month. It was uncovered during testing of Old Town Well and the Davis prospect in the company’s phase one reverse circulation (RC) drilling program
The phase one RC drilling represents one of four planned programs, which includes a total of 17,300 meters of exploration and resource definition at Sandstone.
Significantly, this new gold deposit is located just 600 meters north of Middle Island’s gold processing plant.
According to Middle Island, the Old Town Well deposit includes broad, consistent, shallow drill intercepts over 60 meters aggregate width and 340 meters strike length, including 20 meters at 0.87g/t, eight meters at 2.17g/t and eight meters at 1.45g/t of gold.
As a result, Middle Island said the deposit is likely to represent a substantial oxide gold deposit.
“High hydrothermal fluid flows are clearly evident at the Old Town Well prospect and it is possible that the quartz veining and intense alteration observed in drilling to date is peripheral to far more significant gold mineralisation along strike or down dip/plunge,” the company said.
This announcement follows similar gold discoveries this month at the McIntyre and McClaren prospects.
Additionally, Middle Island said the three gold discoveries it has found this month could help the company get the project’s Sandstone mill back up and running.
“At this stage, the results of this program, coupled with the resource upgrade announced last week and the strong prevailing gold price, significantly heighten the prospects of a positive mill recommissioning decision,” Rick added.
Given the success of the phase one drilling program, the company said it is clear that the planned phase two drilling program will need to be expanded.
Results from the remaining 95 holes from the phase one program are expected to be reported within the coming weeks.
Middle Island is up 7.69 per cent on the market this morning, trading for 1.4¢ each at 11:07 am AEST.