Middle Island Resources has completed the acquisition of the Sandstone gold project in Western Australia.
The Sandstone Project and processing facility is situated 12km south of the township of Sandstone. It comprises two granted Mining Leases on which the processing plant is situated.
The operation also includes an operating licence, permitted tailings storage facility and bore field, with the fully equipped camps located on various freehold titles within the nearby village of Sandstone.
Middle Island said it will launch a programme of infill & extension reverse circulation (RC) resource definition drilling – comprising ~4,200m – immediately after the programme of work (POW) has been approved by the WA’s Department of Mines & Petroleum (DMP).
“The initial drilling programme is designed to upgrade exiting gold resources at the Project’ Shillington, Shillington North and Two Mine Hill open pit deposits into the Indicated category for inclusion in the pre-feasibility study (PFS),” the company told the ASX.
“Completion of resource definition drilling in August will provide the key information required to commence the PFS. This study is planned to be completed in the December quarter and, assuming a positive outcome, provide confidence for the Company to commence refurbishment of the on-site 600,000tpa processing plant and associated infrastructure, with a view to re-commencing gold production in 2017.”
The project was formerly owned by Black Oak Minerals Limited which was placed into administration in September 2015 and subsequently liquidation in early 2016.