Middle Island Resources Ltd Hits ‘Very High-Grade’ Gold (ASX:MDI)
The Middle Island Resources Ltd’s [ASX:MDI] share price is up today over 11%, with MDI shares trading at time of writing at two cents.
Middle Island Resources is an Australian gold explorer. Their focus is the Sandstone Gold Project, located in the central goldfields in Western Australia, of which they own 100%.
What’s going on with Middle Island today?
The company announced their drilling program at the new Ridge deposit in Sandstone intersected four metres at 99.5 grams per tonne gold, including one-metre at 390 g/t gold. A repeat test returned 502 g/t Au.
The company hit the drill result during Phase 2 of their reverse circulation (RC) drilling program that had started earlier in the month. The purpose of the drilling is to infill and extend existing and new deposits already defined in Phase 1 of the program.
The intercept, hole MSR530, is at the northern end of the Ridge satellite gold deposit, which is still open to the north into the Shillington Gap target, and where drilling is scheduled to happen at the end of Phase 2.
So far, the company has completed 9,000m on Phase 2 drilling and confirmed they are running on schedule.
Middle Island says they will still need more results from Phase 2 drilling to fully understand what the results announced today mean. Yet the fact that this intercept is about 40m along-strike from the Phase 1 RC drill intercept of three metres at 8.77 g/t Au, gives some support to the idea that this style of mineralisation could carry on to the north, into the Shillington Gap target area.
What could happen next?
Anyway, this drilling result and the previous ones are reflected in the share price, which so far has had a 400% increase since February this year.
Investing in explorers can bring big rewards, but can also be risky. It’s not easy to know which explorers will strike gold and which ones will run out of money.
A safer way to get some exposure to gold is by owning the yellow metal directly. Check out
The Daily Reckoning Australia’s Editor Shae Russell’s step-by-step guide on ‘How to Buy, Sell and Store Gold.’
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