Middle Island Resources (ASX: MDI) has reported “bonanza” gold grades — including 4m at 99.5 grams per tonne — from its new Ridge satellite deposit at the company’s Sandstone project in Western Australia.
The company said many of the best intercepts were at a shallow depth.
The 4m intersection mentioned above started from 13m down hole. Another intersection, 4m at 50.5g/t gold, was struck just 3m down hole.
Middle Island had previously reported good intersections at the Ridge deposit including 13m at 3.81g/t gold.
The latest results cover a further 25 reverse circulation (RC) holes, with the total drilling at Sandstone this year passing 40,000m, and another 4,800m yet to be drilled.
Other notable assays in the latest program included 9m at 5.41g/t gold and 11m at 2.16g/t gold.
The Sandstone project and processing facility is situated 12km south of the township of Sandstone, about 400km north-west of Kalgoorlie, and located on a sealed highway.
It comprises two granted mining leases on which the processing plant is situated. Middle Island also has acquired a 100% interest in the nearby Ned’s, Jew Well and Telegraph tenements.
Three-point plan to progress Sandstone
The Sandstone project hosts the mothballed 600,000 tonnes per year carbon-in-leach processing plant and all associated infrastructure.
Earlier this year, Middle Island laid out a three-stage plan for the project.
One, to recommission the processing plant at the earliest opportunity; two, to consolidate additional deposits and exploration tenure around the central processing hub; and, three, to demonstrate sufficient production, resource and exploration potential to attract corporate investment.
In announcing these latest drilling results, managing director Rick Yeates said, to the north of the hole at Ridge that returned the 4m at 99.5g/t gold intercept, lay the company’s Shillington Gap target, where initial RC drill traverses are planned as part of the phase two campaign.
“Phase two RC drilling of the new Ridge satellite deposit confirms the previous drilling and, subject to pending drilling results from the northern extension, provides further encouragement that Ridge likely represents another new open pit deposit to supplement that planned Sandstone mill recommissioning inventory,” he added.
It was also likely that further work would demonstrate continuity between the McLaren, McIntyre and Ridge satellite deposits.
Results for the remaining 37 Ridge holes are expected in coming weeks, along with those from drilling at the McLaren and Plum Pudding satellite deposits.
More than 1 million ounces of gold has been produced from surface, open pit and underground operations in the Sandstone area since the 1890s.
Since the 1990s, various companies have produced gold around Sandstone including the former Herald Resources and Troy Resources (ASX: TRY).