Middle Island Resources Share Price Returns to Upward Trajectory
The Middle Island Resources Ltd [ASX:MDI] share price has almost reclaimed the losses made last week thanks to its latest drilling results.
Last week we took a look at what could have been pushing the MDI share price down.
It seemed that investors were a little disappointed with the resource upgrade at the Sandstone Gold Project, amongst other things.
Today’s announcement of drilling results appears to have swept away some of those previous concerns.
MDI shares are trading 0.2 cents higher, or 9.09% to 2.4 cents per share.
Despite the downwards trend last week, the moving averages on the chart still show some decent upwards momentum in the share price.
If you follow The Daily Reckoning Australia, you might have heard what I’ve been saying a fair bit recently:
‘Expectation is key’.
This is not a novel take — and I certainly don’t profess it to be my own.
But it seems to be a good explanation for the share price action of gold explorers and producers recently.
Australia may be set to become the next global epicentre for gold, which could have big impacts on the price of Aussie gold stocks.
Which might be why investors will turn their noses up at anything less than ‘bonanza grade’.
I’m being hyperbolic, of course. But you get my drift.
That’s what we might be seeing with the MDI share price.
Last week, the share price slumped even with an indicated resource upgrade — though it wasn’t huge.
But today the share price jumps close to 10% as drilling results have again bolstered investor expectation.
Satellite gold comes in clutch for Sandstone
And perhaps investors have a good reason to be optimistic today.
Highlights from the latest drilling results include:
- 13m at 1.94 grams of gold per tonne (g/t)
- 9m at 3.53g/t
- 26m at 1.38g/t
- 18m at 1.36g/t
These are from phase 2 of the drilling extension, drilling of the new McIntyre satellite gold deposit.
The results are decent and the grade seems to have a continuity with the previous drilling phase.
But according to MDI, what these results really indicate is a high likelihood that the McIntyre deposit will make a significant contribution to the resource at Sandstone.
MDI managing director, Rick Yeates had this to say:
‘[The results] provide further encouragement that McIntyre will likely represent a new, low strip ratio, open pit deposit to supplement the planned Sandstone mill recommissioning inventory.’
The Daily Reckoning Australia
PS: Check out our free report where gold expert Shae Russell reveals why Australia is set to become the next ‘gold epicentre’ — which could result in a HUGE spike in Aussie gold stock prices. Click here to learn more.