Middle Island Resources Limited (ASX: MDI) has announced a new 500,000oz JORC Code 2012 gold Mineral Resource at the Two Mile Hill deeps deposit within the company’s Sandstone gold project in Western Australia.
Managing Director, Rick Yeates, said the Two Mile Hill deeps deposit estimation takes Middle Island’s total JORC Code 2012 Mineral Resources to 624,000oz gold, with further additions anticipated once the company’s current 17,300m drilling campaign is complete.
Middle Island commissioned Mining Plus Pty Ltd to undertake an independent estimate of the Two Mile Hill deeps deposit, comprising both the tonalite deeps and BIF deeps components.
The tonalite deeps deposit was previously classified as an Exploration Target, extending from the base of the quantified open pit Mineral Resources at 140m below surface to 700m depth, below which it remains open.
The deepest diamond drillhole (MSDD156) completed to date at the Two Mile Hill tonalite deeps deposit is 713m, which generated a mineralised intercept of 508.3m at 1.38g/t Au from the commencement of coring at 83.7m depth, including 160m at 2.31g/t Au from 432m depth.
The smaller, but immediately adjacent, BIF deeps deposit at Two Mile Hill comprises substantially higher grade mineralisation hosted by a series of moderately northeast dipping banded iron formations (BIFs) intruded by the tonalite, where gold mineralisation is associated with pyrite replacement of magnetite horizons.
“The addition of 500,000oz of formal Mineral Resources to the Sandstone project inventory is an extremely pleasing outcome that allows a far greater degree of transparency in valuing both the Sandstone gold project and the company,” Mr Yeates said.
“What is also pleasing is that, in the grade modelling applied by Mining Plus in resource estimation of the tonalite deeps deposit, the grade shells and distribution of gold mineralisation closely mirror MDI’s observations in logging the diamond core.
