Middle Island Resources has discovered another gold deposit at the Sandstone project in Western Australia, its third in the past three weeks.
The prospect, called Old Town Well, is defined by new, shallow drill intercepts including 20 metres at 0.87 grams per tonne, eight metres at 2.17 grams per tonne and eight metres at 1.45 grams per tonne.
It is part of the phase one reverse circulation (RC) drilling at Sandstone and adds to similar gold discoveries at McIntyre and McClaren prospects in the past weeks.
While the discoveries at Old Town Well are generally of modest grade, Middle Island stated the deposit contained substantial tonnage of relatively shallow oxide mineralisation.
The Old Town Well discovery is also of particular interest to Middle Island as the deposit is situated just 600 metres north of the company’s gold processing plant, which has a capacity to process 600,000 tonnes per year and a granted mining lease.
Middle Island managing director Rick Yeates said the company would assess the Old Town Well prospect as part of the updated pre-feasibility study, subject to one metre re-sampling and infill RC and diamond drilling.
Middle Island has so far tested 14 gold prospects, all within four kilometres of the company’s gold processing plant. The Old Town Well was the fifth target, with Middle Island planning to continue the RC drilling program for 95 remaining holes in the coming weeks.
Given the success of the phase one RC program to date, the company considered going forward with the planned phase two RC drilling program, which covers 3000 metres of drilling.
“The directors look forward to sharing further phase one RC drilling results with you as they are received and compiled,” Yeates said.
“At this stage, the results of this program, coupled with the resources upgrade announced last week and the strong prevailing gold price, significantly heighten the prospect of a positive mill recommissioning decision.”