PERTH (miningweekly.com) – The share price of gold miner Middle Island Resources closed 25% higher on Tuesday after the company announced a 500 000 oz inferred mineral resource estimate for the Two Mile Hill deeps gold deposit, at its Sandstone project in Western Australia.
The ASX-listed company told shareholders that the new mineral resource comprises 480 000 oz associated with the tonalite-hosted portion of the deposit, and a further 20 000 oz within the banded iron formation hosted element.
“The addition of 500 000 oz of formal mineral resource to the Sandstone project inventory is an extremely pleasing outcome that allows a far greater degree of transparency in valuing both the Sandstone gold project and the company,” said Middle Island MD Rick Yeates.
“What is also pleasing is that, in the grade modelling applied by Mining Plus in resource estimation of the tonalite deeps deposit, the grade shells and distribution of gold mineralisation closely mirror Middle Island’s observations in logging the diamond core.
“Equally, Mining Plus’ application of contemporary mining and processing parameters and costs to confirm the deposit as a formal mineral resource, affirms the company’s view that this substantial deposit will ultimately provide a significant complement to our planned on-site gold production profile.”
Yeates noted that the current aggressive exploration and resource definition campaign was now well advanced, and there was a likelihood that additional resource could be added prior to the completion of an updated prefeasibility study at Sandstone.
Middle Island closed at a high of 1.2c a share on Tuesday, up from an opening price of 1.1c a share.