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Middle Island delays Sandstone restart

16th December 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Middle Island Resources will minimise or curtail prefeasibility work on its Sandstone gold project, in Western Australia, after its pit optimisation work failed to meet expectations.

The company told shareholders this week that the mineral inventory within the current economic pit-shell was considered insufficient to justify the immediate recommissioning of the Sandstone mill and its associated infrastructure.

Instead, priority has now been given to building a larger mineable gold inventory across the whole Sandstone project before a mine restart will be contemplated.

Middle Island acquired the Sandstone project from Black Oak Minerals in May for A$2.5-million. It includes a 600 000 t/y carbon-in-pulp processing plant, which has been on care and maintenance since 2010.

However, Sandstone this week announced an updated mineral resource estimate for the Shillington and Two Mile Hill deposits, which estimated a contained 100 000 oz of gold, with some 86% of the total resource classified as indicated.

The updated mineral resource estimate was based only on a minority portion of the total Sandstone project resource previously reported, and excluded the remaining openpit deposits and deeper mineralisation at Two Mile Hill, comprising the previously estimated 480 000 oz resource.

Middle Island told shareholders on Friday that in light of the deferral of the mill recommissioning at Sandstone, the company’s focus will be on the identification of suitable and additional mill feed.

Both brownfield and greenfield exploration will be undertaken within the Sandstone leases, while a ‘weights of evidence’ targeting study over the entire tenure will start in the early March quarter.

Middle Island will also hold discussions with third-party deposit holders, and will examine additional exploration opportunities within the wider Sandstone area.

Edited by Creamer Media Reporter

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