Middle Island Resources has embarked on the first of a planned series of drilling programs that collectively comprise a major exploration and resource definition drilling campaign at the Company’s 100 per cent-owned Sandstone gold project in Western Australia.
|Open pit gold exploration targets and deposit extensions prioritised for exploration and resource definition drilling|
The drilling campaign will target some 17 identified prospects and deposits within the Middle Island’s existing Sandstone tenure. The campaign is underpinned by recent and current capital raisings corner-stoned by Stephen Copulos, now a substantial new shareholder.
The primary objective of the drilling campaign is to confirm (and/or identify) and quantify additional open pit gold deposits and deposit extensions to supplement existing Mineral Resources prior to completing, in the June 2020 quarter, an update of the pre-feasibility study (PFS) commenced in the December quarter of 2019.
The 17 identified open pit gold targets and deposit extensions have been prioritised following a detailed internal and external technical review. The majority are located on existing permitted tenure (M57/128 & M57/129) and all are within five kilometres of the Company’s 100 per cent-owned, 600,000tpa gold processing plant.
The campaign is planned to comprise a sequential series of aircore (AC), reverse circulation (RC) and diamond drilling programs.
Middle Island Managing Director, Mr Rick Yeates noted that commencing 2020 with approximately AU$2.8 million in cash – either at bank or fully underwritten – provides a “rare opportunity to realise a long-held ambition to deploy significant drilling metres across a multitude of targets that have remained untested (or poorly tested) due to previous financial constraints”.
“The planned multi-phase drilling campaign has the potential to add significant open pit Mineral Resources to the Sandstone gold project,” explained Mr Yeates.
“With the Australian dollar gold price near record levels, any additional Mineral Resources identified during the drilling campaign should significantly enhance the outcome of the updated PFS, which is planned to recommence in the June quarter of 2020, hopefully leading to a positive recommissioning decision once completed.
“Middle Island Directors acknowledge Mr Stephen Copulos and his associates for their vision in identifying, not only the more immediate gold production scenario, but endorsing a broader vision to create a significant regional gold processing hub, centred on Middle Island’s Sandstone processing plant, via cornerstone investments in the recent and current capital raisings.
“By its very nature, results from initial AC drilling are unlikely to generate significant excitement, however it is reasonable to anticipate more significant results from the subsequent Phase 1 RC drilling program.”