PERTH (miningweekly.com) – Junior gold developer Middle Island Resources has unveiled a second expansion option for its Sandstone gold project, in Western Australia.
The ASX-listed company has entered into an option deed over the Dandaraga gold project, some 16 km southeast of the existing Sandstone gold project and processing plant. The option deed requires an initial option fee of A$20 000, with a further A$200 000 payable within a three-year period, if the option is exercised.
The option deed over the Dandaraga project follows a June option agreement for Middle Island to acquire the Wirraminna gold project, which lies adjacent to the Sandstone project, and which is estimated to host a gold resource of some 10 000 oz.
“Dandaraga represents a second consolidation for Middle Island in the space of three months, again delivering an opportunity to extend and enhance the proposed production schedule for the Sandstone gold processing operation,” said MD Rick Yeates.
He noted that the Agnes prospect, contained on Dandaraga, was considered to offer a significant, more immediate exploration target, while extension of the Agnes dolerite provides additional exploration upside, which could be cost-effectively explored through conventional means.