Middle Island Resources’ (ASX: MDI) Sandstone gold project has proven to be a boon this week, with the company disclosing bonanza gold intercepts and a 500,000 ounce resource for the Two Mile Hill deposit.
Assays from reverse circulation drilling at the project’s McClaren prospect have returned 4m at 90.6 grams per tonne gold and 8m at 3.35g/t gold.
The assays are from the first 30 holes for 2,394m of the phase one campaign which comprises a total of 13,400m.
Middle Island managing director Rick Yeates said the 90.6g/t gold bonanza intercept was an “exciting” early outcome from drilling at McClaren.
He added that initial results from McClaren indicate the potential for an open pit deposit that would complement the project’s mill recommissioning inventory.
McClaren makes up a cluster of three close gold prospects which also comprise McIntyre and Ridge and are about 2.5km from the 600,000 tonne per annum Sandstone gold processing plant.
“We eagerly await drilling results for the nearby McIntyre and Ridge prospects, and the current geological mapping, which may provide evidence that mineralisation associated with all three prospects may be linked,” Mr Yeates said.
Meanwhile, infill and extension drilling at the Two Mile Hill deposit unearthed better results of 16m at 1.64g/t gold, 4m at 8.04g/t gold and 3m at 7.81g/t gold.
Mr Yeates said he was “equally encouraged” by the results at Two Mile Hill which could potentially add to the current resource.
Two Mile Hill gold resource
As well as debuting positive early assays, Middle Island has revealed a 500,000oz gold resource for Two Mile Hill this morning – comprising 480,000oz gold within the tonalite-hosted portion and 20,000oz within the banded iron formation.
The addition boosts the project’s global resource to 624,000oz gold.
Mr Yeates said the updated resource inventory offers a “far greater degree of transparency” in valuing the project and the company.