PERTH (miningweekly.com) – Gold junior Middle Island Resources has signed an option to acquire the Wirraminna gold project, adjacent to its own Sandstone project, in Western Australia, for A$300 000.
Wirraminna is estimated to host a gold resource of some 10 000 oz, at least two further mineralised laterite deposits and substantial deeper gold exploration potential, representing an immediate opportunity for Middle Island to access higher-grade openpit mineralisation that could provide an earlier recommissioning of the Sandstone gold processing plant.
“Wirraminna is the exciting first step in what we plan will be a series of like consolidations, each designed to extend and enhance the proposed production profile for the Sandstone gold processing operation,” said Middle Island MD Rick Yeates.
“More immediately, the existing Wirraminna resource provides a potential catalyst towards an earlier recommissioning of the Sandstone gold processing operation.”
Yeates noted that significant gold exploration potential also existed at the Wirraminna project, and subject to available funding, Middle Island has set a number of exploration targets for 2017/2018, including further drilling, a re-estimation of the project’s resource, pit optimisation studies, and a detailed ground gravity survey.
Middle Island would have four years in which to exercise its option over the Wirraminna project, and during that time, the company will have access to explore for sub-surface gold, while the vendors would retain the surface gold rights to a depth of 2 m.
Middle Island in December last year took the decision to delay the restart of the Sandstone processing plant, after the project’s mineral inventory failed to justify an immediate recommissioning of the infrastructure.
The project was acquired from Black Oak Minerals in May last year for A$2.5-million and includes a 600 000 t/y carbon-in-pulp processing plant, which has been on care and maintenance since 2010.