A gold exploration company, Middle Island Resources Limited (ASX: MDI) today, 24 April 2019, issued the Quarterly cashflow report. The company used $394,000 in its operating activities. The primary source of cash outflow under this segment was through the expenditure on the administrative and corporate costs, mining interest, and staff costs.
The company did not deploy cash in investing activities during this period and net cash from financing activities stood at $1,356,000. The cash and cash equivalent at the end of current quarter stood at $1,160,000.
The company further reported to the exchange on its Quarterly updates for the period ended 31 March 2019.
The following are the main highlights for the quarter:
The company launched a takeover offer of Alto Metals Limited for adjoining Sandstone gold play, Alto’s gold Mineral resources are located within 30Km of Middle Island’s Sandstone gold processing plant, and finally the Middle Island Directors foresee huge potential offered by highly mineralized, underexplored greenstone belt.
On 18 April 2019, the company announced that it had received encouraging results from geochemical aircore drilling from the recently completed Weights of Evidence (WoE) targets that were defined within the Sandstone gold project in WA, which is wholly owned by the company.
During the drilling process, various new blind gold anomalies were recognised underneath the blanket of transported sheetwash cover. However, there are 18 (which included the high priority target) WoE targets that still need to be tested.
There were three cohesive gold anomalies which have a peak value up to 337ppb of gold defined over individual strike lengths of approximately 160 metres. It was found that each of the anomalies was consistent with the nearby, high-grade open pit deposits that have been mined and processed.
All new gold anomalies were found within the range of 2.5km of 600,000tpa Sandstone gold processing plant of the company. The company is confident that Sandstone WoE targets may generate similar anomalies based on the correlation between the position as well as the orientation of the anomalies along with the earlier success at the project’s Davis prospect.
This new WoE target is consistent with the primary objective of the Middle Island. This WoE target enhances the potential regarding the mill recommissioning decision.
The company will further plan for the aircore and reconnaissance RC drilling in order to extend as well as test the WoE anomalies for understanding the nature and tenor of related saprolitic and bedrock mineralization.
Financial update:
For the period ended 31 December 2018, the company incurred a loss of $1,565,363. The balance sheet of the company reported a fall in the net asset base. The decline in the net asset was driven by a fall in the total asset of the company. The total shareholders’ equity for the period was $2,942,229.
In the previous six months, the stock has generated a negative return of 25%. However, the stock has provided a good YTD return of 75%. The shares were trading at $0.006 on ASX (as at 24 April 2019, AEST: 1:14PM) down by 14.286 percent as compared to previous day’s close. MDI has a market capitalization of A$7.33 million and approximately 1.05 billion outstanding shares.
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