Middle Island Resources Establishing Neighbourhood Ties

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) took heart from dispatches by neighbouring gold-hopeful Alto Metals (ASX: AME).

Middle Island Resources drew the market’s attention to recent public statements by Alto Metals and a research report commissioned by that company referring to the potential opportunity for Alto to regionally process some of its hard rock gold inventory through gold processing plants within a 200-kilometre radius to service such a requirement.

Middle Island noted its Sandstone tenements are close to Alto’s acreage and include an existing 600,000 tonnes per annum gold processing plant.

“The company plans to refurbish that plant to service both MDI’s own future gold treatment requirements, and offer toll treatment or production sharing options to gold miners in the wider Sandstone district,” Middle Island Resources said in its ASX announcement.

“Strategically, MDI’s Sandstone mill is within 25 kilometres of Alto’s deposits, offering the potential for distinct competitive cartage and revenue upside compared to the nearest operating mills, which are at least a further 150 kilometres distant.

“Critically, not only has the Sandstone mill historically treated softer oxide ores, but between 1994 and 2010 under previous ownerships, processed a proportion of harder primary and lateritic gold ores.”

Middle Island reiterated results from its Pre-Feasibility Study (PFS) completed earlier this year into refurbishing and recommissioning its Sandstone mill, which included a focus on being able to process hard rock ore.

Key PFS outcomes included:

A suitably designed contract crushing circuit was incorporated into the PFS, producing an approximate 12mm SAG mill feed size, to achieve target mill throughput using a blend of hard and soft ore;

GR Engineering Services and MDI completed a detailed mill refurbishment plan and cost estimate as part of the PFS;

There is significant supporting infrastructure and services at or near the Sandstone mill; and

Due to the significant cost, and hence impact on Ore Reserves, of long distance road ore haulage, the MDI mill will be a competitive option for third party deposits.

Email: info@middleisland.com.au

Website: www.middleisland.com.au