- Middle Island recently released its September quarter 2020 report on the ASX, outlining key developments reported during the period.
- The Company actively progressed with its 2020 drilling campaign, reporting significant intercepts for five new gold deposits, and defining several extensions at existing deposits.
- MDI completed Phase 2 of its substantial 2020 drilling campaign during the quarter.
- The Company utilised the CPA with Acuity Capital and received the NT Government’s approval for Barkly project’s exploration licences during the period.
- MDI held aggregate cash and investments worth $7.55 million as of 30 September.
- The Company remains well-funded and debt-free to finalise the 2020 drilling campaign and FS.
Gold exploration company Middle Island Resources Limited (ASX:MDI) recently released its September quarter 2020 report on the ASX, outlining key developments reported during the period. During the quarter, Middle Island’s activities were focused on the recommissioning of its Sandstone gold processing plant as early as feasible.
The Company actively progressed with its 2020 drilling campaign over the period, reporting significant intercepts for five new satellite gold deposits and defining several extensions at existing deposits.
Pleased over the September quarter’s performance, Middle Island’s Managing Director Rick Yeates commented:
Let us quickly gaze through the key developments reported by the Company during the reported quarter:
Successfully Completed Phase 2 of 2020 Drilling Campaign
Middle Island completed Phase 2 of its substantial 2020 drilling campaign during the quarter, which comprised an additional 20,000m of resource definition and exploration RC and diamond drilling.
The Company’s Phase 2 campaign was concentrated on infilling and extending the five new satellite gold deposits to an Indicated Resource category to build up the proposed recommissioning inventory for the project’s fully permitted on-site mill.
To date, the Company has finalised ~50,000m of exploration and resource definition drilling at the Sandstone project under 2020 drilling campaign. The drilling programs have been extremely successful, with MDI discovering five new satellite gold deposits - McClaren, McIntyre, Plum Pudding, Ridge, and Old Town Well – and defining several deposit extensions at Two Mile Hill, Goat Farm, Shillington and Twin Shafts.
Below figure summarises some exciting results obtained from the Phase 1 & 2 drilling programs at the five new satellite gold deposits to date:
So far, Middle Island has finished updated Mineral Resource Estimates (MREs) for the Shillington, Wirraminna, Two Mile Hill, Twin Shafts, and Goat Farm deposits. Moreover, maiden MREs have also been prepared for the new Old Town Well, Plum Pudding, and McIntyre satellite deposits.
It is worth noting that Maiden and upgraded mineral resources aggregated 692,000oz gold (Au) at the Sandstone Project by September quarter’s end. However, the project’s mineral resources further rose to 732,000oz Au subsequent to the quarter.
The Company is yet to quantify maiden mineral resources for the Ridge and McClaren deposits.
Utilised Controlled Placement Agreement with Acuity Capital
In September 2020, Middle Island utilised the Controlled Placement Agreement (CPA) with Acuity Capital to raise $800k. The Company agreed to issue ~38.1 million ordinary MDI shares to Acuity Capital at an issue price of $0.021 per share.
The settlement for the agreement occurred on 2 October 2020. The capital raised was targeted to progress with the exploration and development at the Sandstone project.
To Read More about this capital raising activity, Click Here!
Received NT Government’s Approval for Barkly Cu-Au Project’s Exploration Licences
During the quarter, Middle Island was advised by the NT government that its 10 Exploration licences at the new Barkly Cu-Au project have been listed for the grant once coronavirus travel restrictions are eased or at its earlier election.
The Company plans to conduct a reconnaissance site visit to the Barkly Cu-Au project at the first opportunity once travel curbs are lifted. Following the formal grant, the Company will initially focus on:
- re-modelling of exploration targets,
- securing any remaining open file and pre-competitive data, and
- planning of high-resolution geophysical surveys to refine modelled targets intended for drill testing.
Pre-competitive stratigraphic basement drilling has lately started at the project, the result of which is eagerly awaited.
Subsequent to the September quarter, Middle Island exercised the option to acquire the Wirraminna tenement (P57/1395) that includes the Wirraminna open pit deposit. The Company informed that the formal transfer of the tenement is currently in process. Once the transfer is registered, the Company intends to instantly apply for a Mining Lease over the tenement.
Review of Financial Performance
Middle Island held aggregate cash and investments worth $7.55 million as of 30 September 2020, which comprised $6.5 million in cash and $1.05 million in Tajiri Resources Corporation (TSXV:TAJ) ordinary shares.
The Company exercised an additional 458.7 million options during the quarter, which bolstered its cash balance by $4.55 million. A further 496.8 million in-the-money options are yet to be exercised, which means potential proceeds of an additional $3.88 million can become available to MDI before the option exercise date of 31 January 2022.
The next planned option exercise date will be 27 November 2020 as per the Company’s revised policy.
Middle Island is expected to initiate Phase 3 RC drilling campaign late in October. Initially, the drilling campaign will focus on ~20,000m of sterilisation drilling for expanded and new waste dumps, and a tailings expansion. This will be followed by an additional ~10,000m of exploration drilling in the Ridge, McIntyre and Shillington Gap areas.
All in all, the Company is targeting a total of 80,000m of drilling on Sandstone project alone in CY 2020. The feasibility study (FS) is now well advanced and rescheduled for completion in January 2021 owing to delay in assaying.
With AUD gold price near record levels and chances of further price increases, Middle Island believes the timing of the FS and recommissioning decision is ideal. Besides, the Company remains well-funded and debt-free to finalise the 2020 drilling campaign and FS.
MDI last traded at $0.017 on 23 October 2020.