- Middle Island Resources Limited (ASX:MDI) has recently released its Annual General Meeting (AGM) presentation on the ASX.
- The presentation outlines the Company’s progress in 2020 exploration program, which has been extremely successful till date.
- Middle Island is also exploring consolidation opportunities at Sandstone project and intends to commence exploration at Barkly Super Project in 2021.
Middle Island Resources Limited’s (ASX:MDI) A+ performance in 2020 has certainly become the talk of the town. What’s garnering everyone’s attention is the Company’s speedy progress in 2020 exploration program at Sandstone despite COVID-19-driven repercussions.
Middle Island’s recently released Annual General Meeting (AGM) presentation outlines the Company’s progress in its continuing exploration program to date at Sandstone. The presentation also sheds some light on the Company’s consolidation opportunities at Sandstone project and the current state of Barkly Cu-Au Super-Project.
Let us quickly scroll through each of these aspects in some detail below:
Progress in 2020 Exploration Program
Middle Island has so far completed 50,000m drilling campaign under its major exploration program, doubling open pit Mineral Resources at the Sandstone project to 746,500oz gold.
The Company assessed five deposit extensions and fourteen new targets as a part of its extensive drilling campaign. The drilling program enabled the discovery of five new, shallow, satellite gold deposits at Sandstone, including McClaren, McIntyre, Ridge, Old Town Well and Plum Pudding.
All these five new deposits are located on permitted Mining Leases within 2.5km of the processing plant. While updated resource estimates have been completed for these deposits, pit optimisations and designs are currently being finalised.
Middle Island has also achieved substantial success in expanding resource base through 500,000oz Two Mile Hill tonalite deeps and BIF underground deposits.
Consolidation Opportunities at Sandstone Project
Middle Island’s Sandstone gold processing plant is the only plant within 150km, which can be refurbished at the cost of $10.3 million and will take about five months to refurbish. At least fifteen stranded gold deposits totalling ~1.8Moz are situated within 100km of range.
Middle Island has noted significant M&A activity in the Sandstone district (SPX & AME). The Company is pursuing any or all of multiple consolidation opportunities in the area and is flexible on milling options. The gold explorer believes that these opportunities may ultimately justify expanded or new processing plant.
It is worth noting that the scoping study on an expanded plant is currently being finalised. Besides, the Company has also secured 10 per cent shareholding in immediate neighbour, Alto Metals Limited (ASX:AME).
State of Barkly Super Project
The Barkly super-project positions Middle Island as a first mover and one of the largest tenement holders within the newly identified East Tennant province. The Company’s Barkly super-project comprises 10 exploration licences covering 3,253km2 between Tennant Creek & Mount Isa and is considered highly prospective for Tier 1 IOCG (iron-oxide-copper-gold) targets.
Significantly, some of Middle Island’s exploration licences in the Barkly area surround or adjoin Newcrest Mining applications or immediately adjoin new Rio Tinto tenements, endorsing the project’s merit & strategy. The Company expects the exploration to commence in 2021 at the Barkly Copper-Gold Super-Project.
Middle Island anticipates the completion of the Sandstone Feasibility Study (FS) in January 2021, with the study being already well advanced. The Company’s remarkable success in ~50,000m exploration and resource definition drilling campaign to date has further bolstered the prospects of imminent, low capital intensity recommissioning of the Sandstone processing facility.
Middle Island shares traded at $0.013 on 27 November 2020.