Just reading a post on * website about MDI;
Middle Island Resources (ASX:MDI)is more than half way towards the million ounce mark with its Sandstone project hosting a resource of 624,000 ounces of gold in open pit and underground deposits.
While the Sandstone region has seen historical production a number of times, managing director Rick Yeates has guided the company to its current position through the discovery of new satellite deposits and prospects.
Yeates told * that this was achieved through the re-evaluation of historical data, applying enhanced technology to identify and evaluate possible targets as well as following up on nugget finds by its tribute prospector.
“You must also bear in mind that when some of the legacy work was completed the gold price was circa A$300/oz, as opposed to a current gold price of circa A$2,600/oz, thereby historic results need to be recast in a contemporary context,” he added.
Sandstone also includes a 600,000 tonnes per annum conventional carbon-in-leach (CIL) processing plant that can be refurbished for just $10.3m according to independent estimates.
Besides providing Middle Island with a quick and low-cost method of bringing its project into production, its location 150km from other processing facilities means it could potentially serve as a hub for processing stranded deposits in the area.
Looking ahead Yeates noted the company is currently carrying out a substantial drilling program to identify and quantify open pit resources.
“30,000m of this campaign, variously comprising aircore, RC and diamond drilling, has been completed to date, and two drill rigs are still in operation,” he added.
The program has already identified and quantified at least five new satellite open pit deposits, far more than the single discovery that the company was looking for, and is infilling and extending existing deposits.
“It is reasonably anticipated that extensions to existing deposits and the definition of new deposits will substantially increase open pit Mineral Resources that can be applied to the planned feasibility study, leading to a project recommissioning decision in late 2020 or early 2021,” Yeates added.
