Middle Island (ASX:MDI) inches closer to completion of Sandstone Feasibility

Summary

  • Middle Island Resources Limited (ASX:MDI) is in the process of completing FS before recommissioning its Sandstone processing plant.
  • The Company has received the majority of assay data relevant to the FS.
  • MDI expects FS reporting to be completed in January 2021.
  • The updated or maiden MREs have been finalised for eight out of ten gold deposits at the Sandstone project.
  • The Company intends to confirm recommissioning funding in January 2021 prior to the finalisation of remaining approvals.
  • The Sandstone gold operation is anticipated to be recommissioned in the September quarter 2021.

Gold explorer Middle Island Resources Limited (ASX:MDI) has recently updated the market on the status of Feasibility Study (FS) for the Sandstone gold project. Middle Island is in the process of completing FS before recommissioning its Sandstone processing plant, which has been kept on care and maintenance.

The Company informed that Mr Linton Kirk, Sandstone Project Manager, is taking care of FS. Mr Kirk also supervises a team of reputable and highly experienced independent consultants.

Middle Island has received the majority of assay data relevant to the FS and expects FS reporting to be completed in January 2021. The study timeframe has been set based on the success of the 2020 drilling campaign, resolution of recent assay backlog and the decision to expand the study confidence from a Pre-Feasibility Study (PFS) to an FS.

To Read About Middle Island’s September Quarter Developments, Click Here!

MREs Completed for Eight Gold Deposits

Middle Island notified that updated or maiden Mineral Resource Estimates (MREs) have been finalised for eight out of ten gold deposits at the Sandstone project. These deposits comprise Two Mile Hill, Shillington, Wirraminna, Plum Pudding, Old Town Well, McIntyre, Goat Farm and Twin Shafts open pit deposits.

The near-term gold developer is in the process of finalising MREs for the Ridge and McClaren open pit deposits. It is worth noting that the success of the 2020 drilling campaign has expanded the number of open pit deposits being evaluated in the FS to ten.

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As MREs are completed, the Company has embarked on pit optimisations and selected appropriate shells for detailed pit design. Notably, pit optimisations and pit designs have been finalised for the first five quantified deposits. Moreover, the Company has also initiated work on haul road and waste dump designs.

Recommissioning of Processing Plant Expected in Q3 2021

With the resolution of the backlog of about 10,000 resource definition samples in the assay laboratory, Middle Island now has a clearer line of sight on the FS schedule. Along with FS reporting, the Company intends to confirm recommissioning funding in January 2021 prior to the finalisation of remaining approvals.

The Company expects a positive recommissioning decision during or prior to January 2021 and receipt of statutory approvals in due course. Based on this timeline, the Sandstone gold operation is anticipated to be recommissioned in the September quarter 2021.

Middle Island shares closed the day’s trade at $0.016 on 26 October 2020. 


 


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