Source: MDI Website
- Middle Island Resources has been progressing on the feasibility study and scoping study at Sandstone gold project.
- The Company is close to finalising the two studies and will report the outcomes in the coming weeks.
- MDI has completed major technical work concerning the feasibility study where no significant issues were encountered.
- The Company prioritises to access third party deposits in proximity and broader consolidation of the Sandstone district.
Gold explorer Middle Island Resources Limited (ASX: MDI) has been focussing on activities at its Sandstone gold processing plant and had previously commenced Phase 3 RC drilling campaign. The Company has been steadfast on its strategy to make significant progress on Sandstone’s feasibility study (FS), which is close to being concluded.
Recently, MDI has announced important updates concerning the Feasibility Study and Scoping Study at its wholly-owned Sandstone gold processing plant in central Western Australia.
Sandstone Gold Project (Source: ASX Announcement 15 January 2021)
Final Contract Mining Costs Received
MDI received final contract mining costs last week, and these are to be reviewed and incorporated into the Feasibility Study (FS) to re-commission. Moreover, this would also be needed for the expansion of the Scoping Study (SS) at the Sandstone gold processing plant.
Furthermore, the Company has already completed the technical work like pit geotechnics, water supply, tailings storage, metallurgy and environmental aspects associated with the feasibility study. Notably, no material issues were identified during the process.
The Scoping Study evaluated the existing gold plant at Sandstone being expanded to 750ktpa and indicates an attractive outcome upon identification of additional mill feed, including from third parties.
Continued Assessment of Opportunities
MDI continues to reflect upon the opportunities concerning regional consolidation at the Sandstone and has retained Argonaut. Through this, the Company aims to pursue and promote such value accretive transactions that are potent for attaining value for all parties that may not otherwise be available to those entities independently.
The Company prioritises the access to nearby third-party deposits as well as and wider consolidation of the Sandstone district. Moreover, the Company is advancing discussions for this purpose.
The Company had also planned several critical activities at the Sandstone project during the March 2021 quarter that include completion of the following:
- Phase 3 sterilisation drilling of proposed waste dump locations as well as the planned tailings dam extension
- Phase 3 resource extension and exploration drilling
- All outstanding feasibility study elements as well as report the feasibility result.
Other than these, MDI had plans to compile and report Phase 3 drilling results, progress re-commissioning financing, finalise various contract tenders and estimate updated Mineral Resources for several deposits at the Sandstone Project.
All in all, MDI has been on an exciting journey at its Sandstone Project and has crossed several milestones and outcomes of the feasibility study is now awaited.
MDI looks forward to finalising the feasibility study report as well as scoping study report in the coming few weeks.
On 5 March 2021, MDI closed the day’s trade at $.230 with a market capitalisation of $29.81 million.