Middle IslandResources Ltd. said July 12 that on July 11 it completed the A$2.5million acquisitionof the Sandstone gold project in Western Australia fromBlack Oak Minerals Ltd.

An approximately 4,200-meter infill and reverse circulationdrilling program will begin as soon as the state's Department of Mines andPetroleum approves the program of work. The program, slated for completion inAugust, aims to upgrade existing gold resources at the project's Shillington,Shillington North and Two Mile Hill open pit deposits into the indicatedcategory for inclusion in the prefeasibility study.

A positive outcome on the study, which is set for completionin the December quarter, will provide confidence for Middle Island to beginrefurbishing the on-site 600,000-tonne-per-annum processing plant andassociated infrastructure, with a view to restarting gold production in 2017.