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Middle Island Resources Grabs More Barkly IOCG Ground

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) has been allocated between 19 per cent and 95 per cent of each of four competing exploration licence applications, located within the newly available IOCG-prospective former Barkly moratorium area of the Northern Territory.

Middle Island had already had a further six Middle Island exploration licence applications accepted in full (100%).

The latest Barkly super-project allocations to Middle Island comprise:

ELA32297 – 35 of 186 blocks allocated (19%), representing 110.92 square kilometres;
ELA32298 – 137 of 228 blocks allocated (60%), representing 443.37sqkm;
ELA32301 – 230 of 242 blocks allocated (95%), representing 740.7sqkm; and
ELA32304 – 21 of 73 blocks allocated (29%), representing 67.8sqkm.

The newly allocated Middle Island applications include three sites that have been reserved for government basement stratigraphic drilling in 2020, and five applications surround or immediately adjoin those of Newcrest Mining.

Subject to normal approval procedures, Middle Island’s awarded super-project blocks collectively comprise 10 applications covering 3,253sqkm, extending semi-continuously for over 350km along the axis of the East Tennant ridge from Tennant Creek east to the Queensland border.

Competing applications with Rio Tinto (in the Tennant Creek area) and Newcrest Mining (in the Barkly moratorium area) gave the applications a ringing endorsement of the project’s technical merit and strategy.

Middle Island believes the project represents a low entry cost and low initial exploration cost opportunity for the company to identify high value, Tier 1 IOCG targets of interest to major and mid-tier resources companies.

“We are extremely pleased with the outcome of what appears to have been a very equitable process involving the allocation of various competing exploration licence applications within the now former Barkly moratorium area,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island has secured priority areas and targets in several cases, and the allocated areas also include or immediately adjoin three sites planned for much anticipated government stratigraphic basement drilling during 2020.”

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

THE DAILY ROADHOUSE

 

De Grey Mining Releases Further Hemi Hits

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) kept the good news rolling with further results from follow up aircore drilling at the newly discovered Hemi prospect within the company’s Pilbara gold project located just outside Port Hedland in Western Australia.

Middle Island Drilling at Sandstone to Improve Mill Recommissioning Chances

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) is set to commence a substantial multi-rig, reverse circulation (RC) drilling campaign of over 1200 metres within four kilometres of the company’s 100 per cent-owned gold processing plant at the Sandstone gold project in central Western Australia.

Southern Gold Raises $10 Million From Institutional Placement

THE BOURSE WHISPERER: Southern Gold (ASX: SAU) received binding commitments from sophisticated and institutional investors to raise $10 million.

 

Middle Island Drilling at Sandstone to Improve Mill Recommissioning Chances

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) is set to commence a substantial multi-rig, reverse circulation (RC) drilling campaign of over 1200 metres within four kilometres of the company’s 100 per cent-owned gold processing plant at the Sandstone gold project in central Western Australia.

Middle Island said the drilling is being carried out to confirm, expand and/or test some 14 open pit gold targets in order to increase and/or upgrade existing open pit Mineral Resources.

This is expected to be finished prior to the completion of an updated pre-feasibility study (PFS) in the June quarter and revisiting a project recommissioning decision.

“Commencing 2020 with approximately $2.8 million in cash (at bank or fully underwritten) provides a rare opportunity to realise a long-held ambition to deploy significant drilling metres across a multitude of open pit gold targets (and deposits) that have remained untested or poorly tested due to prior funding constraints,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“The planned multi-phase drilling campaign has the potential to add significant open pit Mineral Resources to the Sandstone gold project.

“With the Australian dollar gold price near record levels, any additional Mineral Resources identified during the drilling campaign should significantly enhance the outcome of the current Sandstone updated PFS, which is planned to be completed in the June quarter of 2020, prior to reviewing a recommissioning decision.”

The company completed an initial aircore drilling program, comprising 200 holes late in January, in advance of the RC drilling to determine the limits of previously defined gold anomalies and maiden palaeosurface drilling of one new target.

At this stage, the aircore drilling results are pending, but Middle Island anticipates they will be returned in sufficient time to refine planned RC drilling of the palaeo-surface gold geochemical targets.

The company explained the aircore and RC drilling programs are the first of a substantial multi-phase drilling campaign, the progressive results of which will be reported on a continuous basis.

If required, additional RC and diamond drilling programs are planned for late in the March quarter to upgrade any defined Inferred Mineral Resources to an Indicated classification, and confirm oxide bulk densities, metallurgical and geotechnical parameters, and waste rock characterisation for a planned tailings facility expansion.

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

THE DAILY ROADHOUSE

 

NTM Gold Encounters Further High-Grades to Increase Hub Strike

THE DRILL SERGEANT: NTM Gold (ASX: NTM) increased the mineralised strike at the Hub prospect within the company’s 100 per cent-owned Redcliffe gold project near Leonora in Western Australia.

Middle Island Kicks Off Major Sandstone Drilling Campaign

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) has commenced the first in a planned series of drilling programs to be undertaken at the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Matsa Resources Releases Final Red October First Round Drill Results

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) announced results from the final three holes of grade-control drilling undertaken at the company’s Red October gold mine in the Eastern Goldfields of Western Australia.

Galan Lithium Returns ‘Remarkable’ Lithium Results From Hombre Muerto

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) added to previous news with the announcement of another exceptional lithium assay result from the company’s Hombre Muerto lithium brine project in Argentina.

 

Middle Island Kicks Off Major Sandstone Drilling Campaign

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) has commenced the first in a planned series of drilling programs to be undertaken at the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Middle Island Resources explained the drilling will collectively comprise a major exploration and resource definition drilling campaign at the Sandstone gold project and will target around 17 identified prospects and deposits within the company’s existing Sandstone tenure.

The primary objective of the drilling campaign is to confirm (and/or identify) and quantify additional open pit gold deposits and deposit extensions to supplement existing Mineral Resources prior to completing, in the June quarter, an update of the pre-feasibility study (PFS) commenced in the December quarter of 2019.

The 17 identified open pit gold targets and deposit extensions have been prioritised following a detailed internal and external technical review with the majority located on existing permitted tenure (M57/128 & M57/129) and all within five kilometres of the company’s 600,000 tonnes per annum gold processing plant.

“Commencing 2020 with around $2.8 million in cash, either at bank or fully underwritten, provides a rare opportunity to realise a long-held ambition to deploy significant drilling metres across a multitude of targets that have remained untested (or poorly tested) due to previous financial constraints,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“The planned multi-phase drilling campaign has the potential to add significant open pit Mineral Resources to the Sandstone gold project.

“With the Australian dollar gold price near record levels, any additional Mineral Resources identified during the drilling campaign should significantly enhance the outcome of the updated PFS, which is planned to recommence in the June quarter of 2020, hopefully leading to a positive recommissioning decision once completed.

“Middle Island Directors acknowledge Mr Stephen Copulos and his associates for their vision in identifying, not only the more immediate gold production scenario, but endorsing a broader vision to create a significant regional gold processing hub, centred on Middle Island’s Sandstone processing plant, via cornerstone investments in the recent and current capital raisings.

“By its very nature, results from initial AC drilling are unlikely to generate significant excitement, however it is reasonable to anticipate more significant results from the subsequent Phase 1 RC drilling program.”

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

Middle Island Resources’ Bid for Alto Metals Hits the Wall

THE BOURSE WHISPERER: To quote The Eagles, “It seems like a dream now, it was so long ago”, but it was only in March this year the Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

Back then, Middle Island Resources said it had formed the view that the combination of the assets of the two companies would create, among other material benefits to the shareholders, a company with near-term cash flow potential and considerable production and exploration upside.

The company said the all scrip off-market takeover offer would give Alto shareholders five Middle Island ordinary shares for each Alto ordinary share, which the hunter said valued its prey at approximately $9.4 million representing a 61 per cent premium over Alto’s last closing price at the time.

According to Middle Island this upside would include access to its processing plant, even though it is currently on care and maintenance, saying this would provide Alto shareholders with an immediate, proximal and cost-effective processing solution for their company’s gold resources that is not otherwise available.

Middle Island is keen to restart its Sandstone gold processing plant and clearly the Alto deposits would provide initial mill feed and critical mass to support its early recommissioning in conjunction with the former’s Two Mile Hill deposits.

Middle Island declared it has received indicative broker support with respect to the takeover for an equity capital raising of approximately $5 million in additional funds to advance the feasibility and recommissioning of the Sandstone plant. Claiming the combination of Middle Island and Alto will consolidate the entire Sandstone greenstone belt and dataset under a single entity.

“Middle Island’s offer is compelling for Alto shareholders, who will receive a significant premium based on the last closing price for their shares and will benefit in the future growth potential of the proposed Combined Group,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island will integrate Alto’s assets with Middle Island’s Sandstone gold project, and immediately embark on an updated feasibility study, incorporating Alto’s Mineral Resources, to determine the economics of recommissioning the Sandstone gold processing plant.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.

“In the view of the Middle Island directors, the premium offered, the funding support, Middle Island’s technical and management expertise, and participation in the combined Middle Island‐Alto upside, makes the bid a compelling proposal.”

The Resources Roadhouse spoke to Rick Yeats when both attended the RIU Resources Roadshow in Melbourne.

The deal, howver, failed to gain traction and Middle Island this week announced its off-market takeover bid for fully paid ordinary shares Alto Metals has lapsed.

The reason being that Middle Island’s 50 per cent minimum acceptance condition, to which the Offer was subject, had not been met as of close of the Offer period at 5.00pm (Perth time), Friday, 29 November 2019.

Middle Island thanked those Alto shareholders who had taken up the offer, acknowledging that as the offer had lapsed, they would have their Alto shares returned.

Undeterred, Middle Island said it strongly believes that combining Middle Island and Alto’s gold assets offers a substantial growth opportunity for current and future shareholders of a combined entity.

The company declared the combined entity would have low start-up costs and near-term gold production, utilising Middle Island’s existing Sandstone gold processing plant and infrastructure, along with the consolidation of healthy gold resource upside and exploration potential within the combined entity’s highly complementary tenure.

Middle Island made note that over the past two years, it has unsuccessfully endeavoured to engage the Alto Board on what it considers is a clear, compelling and commercially logical strategy that is widely endorsed by all stakeholders.

Middle Island indicated it intends to continue to pursue meaningful dialogue with the Alto Board of Directors as it seeks to add value for both Alto and MDI shareholders.

 

 

Middle Island Receives Positive Results from Sandstone Stand-Alone Re-Optimisation

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) has had an independent re-optimisation completed at the company’s 100 per cent- owned Sandstone gold project in Western Australia.

Middle Island Resources engaged Mining Focus Consultants (MFC) to undertake a series of Whittle Optimisations based on two input parameters being updated from those applied in the previously conducted Pre-Feasibility Study (PFS).

The company said the Whittle re-optimisation has demonstrated that the Sandstone gold plant can be profitably refurbished utilising feed from MDI’s existing Mineral Resources.

Mining Focus Consultants utilised current gold prices and revised pit slope parameters, with around 90 per cent of the optimised JORC 2012 Mineral Resources classified in the higher confidence Indicated category.

In all other respects the inputs to the Pre-Feasibility Study (PFS) were applied.

The re-optimisation study utilised a range of contemporary gold prices of $2,000 per ounce and $2,500 per ounce, consistent with the current gold price of $2,180 per ounce and considerably higher than the base-case gold price of $1,600 per ounce utilised in the PFS.

The Two Mile Hill, Shillington and Wirraminna open pit deposits were included in the re-optimisation.

“Based on the positive result of this re-optimisation study, MDI has commenced an update of the PFS,” Middle Island Resources said in the company’s ASX announcement.

“The update will revisit several key inputs, and expected to be of particular significance, re-evaluation of the geotechnical parameters.

“No additional resource definition drilling is planned at this stage, as over 90 per cent of the Mineral Resource is classified in the Indicated category.”

Middle Island indicated that its drilling database records over 265,000m of historic and contemporary, representing approximately 7,163 drill holes located within the company’s tenure.

This represents an average depth of only 37m per drill hole with all gold discoveries claimed to date based on outcropping mineralisation.

Drill holes deeper than 50m have been focussed mainly on the Two-Mile Hill tonalite deeps deposit, much of which has been completed by Middle Island.

“MDI considers the Sandstone project to have excellent exploration potential, combined with the potential stand-alone gold production operation defined by the recent study,” the company said.

Middle Island went on to explain that as part of the Sandstone acquisition, it has proprietary rights to the original Sandstone database including over 1.07 million meters of drilling in over 25,000 drillholes.

This includes the physical drillcore and metadata covering the entire Sandstone greenstone belt, inclusive of all historical drilling completed within the Alto Metals permits.

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

Middle Island Resources (ASX: MDI)

THE CONFERENCE CALLER: Middle Island Resources (ASX: MDI) has outlined a schedule of exploration and corporate activities focused on its stated intentions of recommissioning its 100 per cent-owned Sandstone gold processing plant at the earliest opportunity.

The Resources Roadhouse had a brief chat with Middle Island Resources managing director at the recent RIU Resources Investor Roadshow in Melbourne to hear the company’s latest strategy.

CLICK ON THE PIC BELOW TO VIEW VIDEO

Middle Island’s exploration to date at the Sandstone project has been largely focussed on assessing brownfields targets, such as the Two Mile Hill deposit.

This has left the majority of greenfields targets untested or inadequately tested.

Advancing the Two Mile Hill deposit will remain a priority, but while that carries on, further exploration will hone in on identifying and quantifying additional open pit deposits of sufficient gold grade to facilitate a recommissioning decision.

“A recommissioning decision for the Sandstone gold operation is predicated on defining adequate gold resources, at an acceptable grade, to justify the modest recommissioning costs and ensure sustainable production,” Middle Island Resources managing director Rick Yeates said in a previous announcement.

“This is being progressively achieved via a dual approach; systematic exploration on Middle Island’s own tenure and engagement with neighbouring companies to consolidate adjacent deposits.”

Middle Island recently reached out to neighbour Alto Metals (ASX: AME), offering an all scrip off‐market take‐over offer for all that company’s issued ordinary shares.

Middle Island considers combining of the assets of the two companies would create a company with near-term cash flow potential and considerable production and exploration upside.
The company believes access to the Sandstone processing plant would provide Alto with an immediate, proximal and cost-effective processing solution for its gold resources that is not otherwise available.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile,” Yeates said.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.”

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

Middle Island Resources Completes Reo Sale

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) informed the market that Vancouver-based Tajiri Resources Corporation (TSXV: TAJ) has exercised its option to fully acquire Middle Island’s Reo gold project in Burkina Faso, West Africa.

Middle Island said the completion of the transaction resulted from Tajiri’s payment to Middle Island of the final US$150,000 Option Extension and Exercise Fee.

The company explained that the transaction collectively comprised a combination of a US$335,000 cash payment and five million fully paid TAJ ordinary shares, at the time representing around eight per cent of Tajiri’s register on a fully diluted basis.

The deal sees Middle Island shareholders retain exposure to the Reo gold project via the TAJ shares, along with a residual 2 per cent NSR production royalty that Tajiri may acquire at any time for US$5 million.

The TAJ shares also provide Middle Island shareholders exposure to Tajiri’s gold exploration projects in Guyana, South America.

“Middle Island welcomes Tajiri’s commitment to the Reo gold project and looks forward to facilitating the orderly transfer of the exploration permits and other assets in Burkina Faso, once registration of Tajiri’s local entity is finalised,” Middle Island Resources said in its ASX announcement.

 

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

Middle Island Resources Limited (ASX: MDI)

Middle Island Resources has outlined a schedule of exploration and corporate activities focused on its stated intentions of recommissioning its 100 per cent-owned Sandstone gold processing plant at the earliest opportunity.

Middle Island’s exploration to date at the Sandstone project has been largely focussed on assessing brownfields targets, such as the Two Mile Hill deposit.

This has left the majority of greenfields targets untested or inadequately tested.

Advancing the Two Mile Hill deposit will remain a priority, but while that carries on, further exploration will hone in on identifying and quantifying additional open pit deposits of sufficient gold grade to facilitate a recommissioning decision.

Identification of the targets to be drilled goes back to 2017 when a Weights of Evidence (WoE) targeting study of the Sandstone gold project was carried out by structural geologist Dr Brett Davis that identified and ranked prospective areas within the project area.

Of these targets only one target, the Davis prospect, has so far been tested.

Two traverses of reconnaissance RC holes (5 holes) were drilled across the Davis East and Davis West anomalies to determine the nature and tenor of associated saprolitic mineralisation, encountering broad zones of ferruginous quartz veining within saprolitic ultramafic rocks.

Initial results included a best intercept at Davis West of:

MSRC259
1 metre at 1.88 grams per tonne gold from 23m depth.

The new program of eight RC holes will test the two blind gold anomalies that were not drilled previously, and to follow up on the results from the previous RC drilling.

Other WoE targets were identified besides the Davis target, situated within the southern portion of the Sandstone project.

Historical exploration activities in this area were restricted to broad spaced soil sampling and limited shallow vacuum and RAB drilling that failed to adequately test beneath the transported cover.

A planned program of geochemical auger and aircore drilling, comprising approximately 200 holes, will test eleven WoE targets across the southern portion of Mining Lease M57/129.

Other proposed work will follow up a 2018 program of geological mapping, rock chip sampling, and soil sampling on the Dandaraga tenement.

Three cohesive gold in soil anomalies were identified as the Agnes, Enigma and Central (Swede) gold anomalies.

A 20-hole RC drill program is proposed to test these gold soil anomalies for a mineralised bedrock source.

Drilling will comprise several East-West orientated sections across the trend of the soil anomalies, these will also test the extension along strike of mineralisation associated with historic gold workings at Swede, Agnes, and Enigma.

Middle Island recently acquired the 158.4 square kilometre Well Exploration Licence (E57/1102), subject to finalising a heritage agreement that occupies the southern end of the western limb of the Sandstone anticlinorium.

The tenement has received minimal exploration activity in the past, and what was done was mainly broad spaced soil sampling across the northern third of the tenement.

An initial, more systematic, low cost programme of geological mapping, rock chip sampling and soil sampling is proposed to determine to gold potential of the tenement.

Results from a 2018 RC program on the McIntyre project have encouraged Middle Island to test the extensions of the intersected mineralisation.

“A recommissioning decision for the Sandstone gold operation is predicated on defining adequate gold resources, at an acceptable grade, to justify the modest recommissioning costs and ensure sustainable production,” Middle Island Resources managing director Rick Yeates said.

“This is being progressively achieved via a dual approach; systematic exploration on Middle Island’s own tenure and engagement with neighbouring companies to consolidate adjacent deposits.”

Middle Island recently reached out to neighbour Alto Metals (ASX: AME), offering an all scrip off‐market take‐over offer for all that company’s issued ordinary shares.

Middle Island considers combining of the assets of the two companies would create a company with near-term cash flow potential and considerable production and exploration upside.

The company believes access to the Sandstone processing plant would provide Alto with an immediate, proximal and cost-effective processing solution for its gold resources that is not otherwise available.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile,” Yeates said.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.”

At the time of writing, Alto Metals had advised its shareholders to take no action and await further advice from the Board.

 

Email: info@middleisland.com.au
Web: www.middleisland.com.au

Directors: Peter Thomas, Rick Yeates, Beau Nicholls, Dennis Wilkins