Growth required before Sandstone can restart - Middle Island
PERTH (miningweekly.com) – Gold miner Middle Island on Tuesday said that it was committed to bringing its Sandstone gold project, in Western Australia, into production, however, the company would work to increase output from the mine.
Middle Island told shareholders that a restart of operations would require either a longer mine life and larger milling inventory, higher weighted average gold grades, a higher plant throughput or a higher gold price.
A recent feasibility study into the Sandstone project estimated that the project could produce some 81 500 oz of gold based on more than 2-million tonnes of mill inventory at 1.32 g/t gold, with a weighted average gold recovery of 92.9%.
To increase the gold production targeted in the feasibility study, Middle Island would need to conduct further exploration, source mill feed grades higher than 1.5 g/t from other regional explorers on toll treat or profit share basis, or conduct a corporate transaction of sufficient scale to justify not only restarting the mill but to upgrade the mill throughput to 750 000 t/y.
Middle Island told shareholders that the company was actively pursuing all of these options.
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