Middle Island Resources Limited (ASX: MDI) has achieved further significant gold results emerging from the company’s recently completed 13,400m, Phase 1, reverse circulation (RC) drilling programme at the 100%-owned Sandstone gold project in the central goldfields of Western Australia.
Managing Director, Rick Yeates, says the current campaign has defined the McIntyre mineralised zone, which represents a potential new, very low strip ratio, open pit deposit.
He said that McIntyre, along with the recently defined McClaren deposit, readily justifies further infill and extension drilling as part of a planned Phase 2 RC drilling programme.
Better RC drill intercepts from the McIntyre prospect include 24m at 1.66g/t (from surface in MSRC351), 23m at 1.40g/t (from 11m depth in MSRC352), 11m at 1.39g/t (from 25m depth in MSRC353) and 18m at 1.35g/t Au (from 32m depth in MSRC354).
Along with the Ridge and McClaren prospects, McIntyre was originally identified by historic reconnaissance drilling, variously completed by Herald Resources, Troy Resources and Middle Island. All three prospects lie in close proximity and are interpreted to be hosted by a southeast striking, sub- horizontal to very shallow northeast dipping package of BIF units, consistent with those hosting the Shillington and Shillington North gold deposits to the northwest.
Gold mineralisation at McIntyre is hosted in an 8m to 25m thick, very shallow northeast dipping BIF unit that is mineralised from surface. Mineralisation of consistent grade appears to persist down dip for at least 140m, presently appears to be some 180m in lateral extent and remains open down dip/plunge to the northeast.
The broad, consistent gold intercepts returned from Phase 1 RC drilling at the McIntyre prospect provide further exciting encouragement that the prospect may well prove to represent a second new, low strip ratio, open pit deposit to supplement the planned Sandstone mill recommissioning inventory,” Mr Yeates said.
“This follows close on the heels of significant intercepts of 4m at 90.6g/t and 8m at 3.35g/t Au from the adjacent McClaren prospect as announced last week.
“Recently completed geological mapping of the proximal McIntyre, McClaren and Ridge prospects, all of which are hosted in the Shillington BIF package, reveal a structural link between the McIntyre and McClaren prospects that offers opportunities for resource extensions to both.
“The McIntyre and McClaren prospects lie within granted Mining Lease M57/129 and only 2.5km from the company’s 100%- owned, 600ktpa gold processing plant.
“The directors look forward to sharing further Phase 1 RC drilling results with you as they are received and compiled. At this stage, the results of this program, coupled with the resources announced last week and the prevailing gold price, significantly heighten the prospect of a positive mill recommissioning decision.”
The current campaign is one of four planned programmes that collectively comprise a total 17,300m of exploration and resource definition drilling at the rapidly developing Sandstone gold project.
Mr Yeates said the Phase 1 RC programme, exclusively focussed on open pit targets, has tested some 14 gold deposits and prospects, all within 4km of the company’s 100%-owned gold processing plant and the majority on existing Mining Leases.
In the case of existing deposits, drilling is designed to variously extend Mineral Resources, reclassify Mineral Resources from Inferred to Indicated status, and/or upgrade JORC Code 2004 Mineral Resources to JORC Code 2012 compliance. These comprise the Two Mile Hill, Shillington, Wirraminna, Goat Farm, Twin Shafts and Plum Pudding deposits.
Mr Yeates said the additional eight prospects assessed by Phase 1 RC drilling represent those which have had little or no drilling, but represent targets prioritised on the basis of their interpreted potential to generate open pit gold Mineral Resources. These targets variously include the Ridge, McIntyre, McClaren, Old Town Well, Wirraminna Laterite (East & West), Davis, Tailings (South & East) prospects, and the G2 & G3 gravity targets.
