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Middle Island Resources Identifies Fresh Gold Targets

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) has been encouraged by results of a recent geochemical aircore drilling program on several Weights of Evidence (WoE) targets defined within the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Middle Ialnd said the new gold targets are close to five known deposits it had previously identified in fresh drilling at southern end of the Sandstone gold project.

The results from geochemical aircore drilling on several Weights of Evidence (WoE) targets have defined several new blind gold anomalies defined beneath a blanket of transported sheetwash cover with a further 18, including higher priority, WoE targets still to be tested.

Three cohesive gold anomalies, with peak values up to 337ppb gold (0.34g/t) were defined over individual strike lengths of approximately 160 metres, some of which remain open beyond the sampled area.

Each of the anomalies is consistent with nearby, high-grade open pit deposits that have been mined and processed.

All new gold anomalies lie within 2.5 kilometres of Middle Island’s 600,000 tonnes per annum Sandstone gold processing plant, consistent with an area hosting the highest density of gold deposits within the entire Sandstone greenstone belt.

The company said that the correlation between the position and orientation of the anomalies, and previous success enjoyed at the project’s Davis prospect, provides considerable confidence that other Sandstone WoE targets may generate similar anomalies.

Each of these new WoE targets enhances the potential of a mill recommissioning decision, consistent with Middle Island’s primary objective.

Further aircore and reconnaissance RC drilling will be planned to respectively extend and test the WoE anomalies in order to understand the nature and tenor of associated saprolitic and bedrock mineralisation.

“The receipt of further encouraging exploration results from the recently completed aircore geochemical drilling is extremely pleasing,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“All gold anomalies associated with these WoE targets lie on permitted Mining Leases and within 2.5 kilometres of the company’s 600,000 tonnes per annum Sandstone gold processing plant, enhancing their potential to contribute to a mill recommissioning decision.

“Following initial exploration success at Davis, the latest results also serve to further confirm the validity of the WoE study, with a further 18 targets (many of which are higher priority) yet to be tested.

“I acknowledge the efforts of the small, but effective, MDI team that is progressing our exploration strategy, while simultaneously progressing our consolidation strategy, consistent with the company’s stated objectives.”

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au

 

Middle Island Resources Launches Takeover Bid on Alto Metals

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder over the weekend by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

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

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.”

As The Roadhouse was going to print there had been no on-market response from Alto Metals, but we will keep an eye out for further developments.

 

Website: www.middleisland.com.au

 

Positive Gold Drilling and Ore Sorting Results at Sandstone

Middle Island Resources (ASX: MDI) recently completed a Stage 1 infill diamond drilling program at the company’s wholly-owned Sandstone gold project in Western Australia.

Middle Island Resources had targeted the program of infill diamond drilling in the upper half of the tonalite deeps deposit at Two Mile Hill.

The Two Mile Hill tonalite deeps deposit comprises a comprehensively gold-mineralised tonalite (granite) plug or stock, which at surface measures around 250 metres in length, 80m to 90m in width and extends to at least 700m depth.

Two Mile Hill is located four kilometres north of Middle Island’s 600,000 tonnes per annum Sandstone gold processing plant via an existing haul road.

Although there has been insufficient exploration carried out to estimate a Mineral Resource to date at the Two Mile Hill tonalite deeps deposit, Middle Island has determined an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 grams per tonne gold to 1.4g/t gold for 0.9 million to 1.5 million ounces of gold situated between 140m and 700m vertical depth, below which it remains open.

The recent program consisted seven drill holes (MSDD262-MSDD268) comprising 988m of RC pre-collar and 1,121.2m of NQ2 diamond tails, for a total of 2,109.2m.

The aim of the drilling was to infill existing diamond drilling within the upper half of the tonalite deeps deposit, extending from 140m depth (base of the open pit Mineral Resource) to approximately 420m depth.

The Stage 1 program was carried out with the following objectives in mind:

To provide enough drill density to permit the upper half of the Exploration Target to be re-classified to at least a JORC 2012 Inferred Resource;

To provide clarity on quartz vein densities and gold distribution within the tonalite to facilitate an improved structural understanding and optimise future drill targeting; and

To optimise the number of intersections of banded iron formation (BIF), marginal to the tonalite, to identify new positions of high-grade, replacement-style mineralisation within the stacked BIF units.

The tonalite results are generally consistent with previous diamond drilling with results returning:

165 metres at 1.11g/t gold from 85m, including 7m at 4.73g/t gold from 123m, 5m at 6g/t gold from 142m and 10m at 3.34g/t gold from 202m depth; and

150m at 1.03g/t gold from 84m, including 34m at 1.85g/t gold from 96m depth.

The drilling also encountered a new zone of high-grade mineralisation within the banded iron formation (BIF), returning:

5m at 21.9g/t gold from 339m, including 2m at 54g/t gold from 340m depth.

Middle Island explained that the drilling indicated the BIF-hosted gold mineralisation peripheral to the tonalite was behaving in a similar vein to elsewhere at Two Mile Hill, by returning higher grades associated with massive to semi-massive pyrite replacement of magnetite.

One hole, MSDD262, demonstrated the host comprises moderately brecciated BIF with the company noting this to be the first occasion that gold mineralisation has been identified within brecciated elements of the stacked BIF units.

Although the MSDD262 intercept represents a new mineralised BIF position, Middle Island said results across the entire program indicated additional multiple similar, high-grade intercepts were encountered peripheral to the tonalite at Two Mile Hill.

The drilling also returned intercepts from footwall and hanging-wall basalts consistent with previous drilling.

Shallow gold intercepts within basalts along the north-eastern tonalite contact returned:

93m at 2.57g/t gold from surface, including 35m at 6.27g/t gold from 58m depth; and

9m at 5.23g/t gold from 85m.

Middle Island believes that, based on these and other shallower results within the basalt, the resource model for the upper half of the Two Mile Hill tonalite deeps Exploration Target may well justify re-estimation.

“As anticipated from infill diamond drilling, the tonalite intercepts returned from the Two Mile Hill deeps gold deposit serve to confirm the earlier results,” Middle Island Resources managing director Rick Yeates said.

“It is also extremely pleasing to identify a further significant new zone of pyrite replacement-style gold mineralisation within the BIF adjacent to the tonalite contact, particularly as it is somewhat divorced from the main tonalite body.

“It is also the first significant intersection identified within brecciated elements of the BIF package and one, of only a few, recorded in the more sparsely drilled Middle BIF unit.

“Utilising these results, resource modelling of the Exploration Target will provide a formal JORC 2012 Mineral Resource for the upper half of the Two Mile Hill tonalite deeps Exploration Target, provide better resolution on the distribution of gold mineralisation within the tonalite which, together with the recently completed ore sorting campaign and geotechnical findings, will facilitate a more robust assessment of the underground mining potential.”

Earlier this year, Middle Island achieved further positive results from Stage II ore sorting trials conducted on drill core from the Two Mile Hill tonalite deeps deposit.

Middle Island’s Stage 1 ore sorting trials were commissioned after the company realised more than 96 per cent of the gold at Two Mile Hill is hosted by quartz veins within the tonalite.

The initial ore sorting campaign in 2017 was based on composite samples of quarter NQ diamond core.

The trials indicated that sorting could deliver a 185 per cent to 257 per cent increase in feed grade, with gold recoveries more than 93 per cent.

The earlier trials focussed on underground mining via more selective, open stoping, therefore utilising composites comprising broader intervals of diamond core with a higher head grade.

The Phase II trials focussed on sub-level caving, therefore utilising all primary core, representative of the entire deposit, to generate composites.

A series of four primary (fresh) composites, and a single transitional (partially oxidised) composite comprising intervals of half HQ and half PQ diamond core derived from MSDD261, were selected for crushing prior to ore sorting.

The results from the Stage II ore sorting campaign on the Two Mile Hill tonalite deeps deposit demonstrated that the ore can be upgraded substantially via a combination of Colour and X-ray sensors.

The results gave Middle Island further confidence that its use of the technology could enable it to deliver a great deal of upside for the project.

The results confirmed upgrades of between 155 per cent and 213 per cent, with sorting gold recoveries in the range of 67 to 93 per cent.

Ore sorting product yields fell within the range of 39 to 51 per cent, indicating that the sorting process rejects more than half the sorter feed material as waste.

Middle Island intimated a further campaign of bulk ore sorting would be undertaken to focus on enhancing results through the application of a Laser sensor, in conjunction with X-ray and/or Colour.

“Ore sorting trials continue to demonstrate a significant enhancement in gold grade, along with a commensurate reduction in feed mass that improves the potential viability of underground mining at the Two Mile Hill tonalite deeps deposit,” Yeates said.

“Considerable news flow associated with the Two Mile Hill deposit can be anticipated in the current quarter, including diamond drilling results, a Mineral Resource upgrade and an updated underground mining concept study.

“We look forward to keeping shareholders updated on progress with the substantial Two Mile Hill tonalite deeps deposit at the Sandstone gold project during the remainder of 2018.”

 

Middle Island Resources Limited (ASX: MDI)
…The Short Story

HEAD OFFICE
Suite 1
2 Richardson Street
West Perth WA 6005

Ph: +61 8 9322 1430

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

DIRECTORS
Peter Thomas, Rick Yeates, Beau Nicholls

 

Middle Island Extends Wirraminna Gold Mineralisation

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) advised of assay results from infill and extension RC (reverse circulation percussion) drilling recently completed at the Wirraminna gold deposit, within the company’s wholly-owned Sandstone gold project in Western Australia.

Middle Island’s Wirraminna deposit is situated one kilometre from the company’s 100 per cent-owned, Sandstone 600,000 tonnes per annum gold processing plant.

“The results of the RC drilling have extended the depth potential of the deposit, but are otherwise broadly consistent with expectations and previous drilling results,” Middle Island Resources said in its ASX announcement.

“However, holes drilled to verify historic, broad, high-grade intervals again proved unsuccessful.”

Highlight RC drill intercepts included:

MSRC274
7 metres at 1.76g/t gold from 68m;

MSRC276
6m at 6.62g/t gold from 84m;

MSRC282
14m at 1.82g/t gold from 82m;

MSRC285
14m at 1.8g/t gold from 42m, including 1m at 18.2g/t gold from 52m; and

MSRC291
5m at 2.51g/t gold from 41m.

An existing Mineral Resource estimate for the Wirraminna deposit sits at 550,000 tonnes at 1.3 grams per tonne gold for 23,000 ounces gold (at a 0.5g/t lower cut-off grade).

Around 55 per cent of this is classified as an Indicated Mineral Resource, whilst the balance is in the Inferred category.

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au

 

Middle Island Resources Encounters Promising Gold Hits at Sandstone

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) received final assay results for a Stage 1 infill diamond drilling program the company completed in July at its wholly-owned Sandstone gold project in Western Australia.

Middle Island Resources explained the drilling program comprised infill diamond drilling in the upper half of the tonalite deeps deposit at Two Mile Hill.

The drilling comprised seven drill holes (MSDD262-MSDD268) and included RC pre-collar and diamond drilling at the Two Mile Hill tonalite deeps deposit and was designed to infill existing diamond drilling within the upper half of the tonalite deeps deposit, extending from 140 metres depth (base of the open pit Mineral Resource) to approximately 420m depth.

Several intersections returned from the tonalite, including:

165 metres at 1.11 grams per tonne gold from 85m, including 7m at 4.73g/t gold from 123m, 5m at 6g/t gold from 142m and 10m at 3.34g/t gold from 202m depth; and

150m at 1.03g/t gold from 84m, including 34m at 1.85g/t gold from 96m depth.

A new zone of high-grade mineralisation was identified within the banded iron formation (BIF), returning:

5m at 21.9g/t gold from 339m, including 2m at 54g/t gold from 340m depth.

Shallow gold intercepts were also encountered within basalts along the north-eastern tonalite contact, of:

93m at 2.57g/t gold from surface, including 35m at 6.27g/t gold from 58m depth; and

9m at 5.23g/t gold from 85m depth.

“As anticipated from infill diamond drilling, the tonalite intercepts returned from the Two Mile Hill deeps gold deposit serve to confirm the earlier results,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“It is also extremely pleasing to identify a further significant new zone of pyrite replacement-style gold mineralisation within the BIF adjacent to the tonalite contact, particularly as it is somewhat divorced from the main tonalite body.

“It is also the first significant intersection identified within brecciated elements of the BIF package and one, of only a few, recorded in the more sparsely drilled Middle BIF unit.

“Utilising these results, resource modelling of the Exploration Target will provide a formal Mineral Resource the upper half of the Two Mile Hill tonalite deeps Exploration Target, provide better resolution on the distribution of gold mineralisation within the tonalite which, together with the recently completed ore sorting campaign and geotechnical findings, will facilitate a more robust assessment of the underground mining potential.”

 

Website: www.middleisland.com.au

 

Middle Island Encounters High-Grades With First Two Mile Hole

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) greeted Day One of the Diggers & Dealers forum in Kalgoorlie by releasing assay results for the first diamond hole of a recently completed, Stage 1, resource definition drilling program at the Two Mile Hill deposit within the company’s wholly-owned Sandstone gold project in Western Australia.

Middle Island said the recently completed program comprised in-fill, RC pre-collared, NQ diamond drilling (MSDD262- 268) focussed on the upper half of the Two Mile Hill tonalite deeps deposit, between 140m and 420m vertical depth.

“The latter holes were primarily designed to infill the existing drilling within the tonalite, in the process optimising the number of intersections on the adjacent banded iron formation (BIF) units, intruded by the tonalite, which are known to host high grade, pyrite replacement-style gold mineralisation,” Middle Island said in its ASX announcement.

Hole MSDD262 returned an intersection of:
8 metres at 14.5 grams per tonne gold, including 2m at 54g/t gold.

Middle Island completed seven drill holes (MSDD262-MSDD268), comprising 988m of reverse circulation percussion (RC) pre-collars and 1,121.2m of NQ2 diamond core tails at the Two Mile Hill tonalite deeps deposit during July 2018.

The company indicated that due to a high, seasonal volume of samples in the laboratory, complete assay results have only been received for MSDD262.

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au

 

Middle Island Achieves Positive Stage II Ore Sorting Results

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) reported further positive results from Stage II ore sorting trials conducted on drill core from the Two Mile Hill tonalite deeps deposit at the company’s 100 per cent-owned Sandstone gold project in Wetsrn Australia.

The Two Mile Hill tonalite deeps deposit comprises a gold mineralised, tonalite (granite) plug or stock, which at surface measures some 250 metres in length, 80-90m width and extends to at least 700m depth.

The deposit is located four kilometres north of Middle Island’s 600,000 tonnes per annum Sandstone gold processing plant and comprises an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 grams per tonne to 1.4g/t gold (0.9 million to 1.5 million ounces of gold) situated between 140m and 700m vertical depth, below which it remains open.

“Ore sorting trials continue to demonstrate a significant enhancement in gold grade, along with a commensurate reduction in feed mass that improves the potential viability of underground mining at the Two Mile Hill tonalite deeps deposit,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Considerable newsflow associated with the Two Mile Hill deposit can be anticipated in the current quarter, including diamond drilling results, a Mineral Resource upgrade and an updated underground mining concept study.

“We look forward to keeping shareholders updated on progress with the substantial Two Mile Hill tonalite deeps deposit at the Sandstone gold project during the remainder of 2018.”

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au

 

Middle Island Resources has Sandstone Ore Sorted

THE INSIDE STORY: A new approach opened the potential of the Two Mile Hill tonalite deeps deposit within Middle Island Resources’ (ASX: MDI) 100 per cent-owned Sandstone gold project.

Middle Island Resources has been tracking the extension and enhancement of the proposed gold production profile at the Sandstone project with the aim of recommissioning its on-site 600,000 tonnes per annum processing plant.

The Two Mile Hill tonalite deeps deposit is located just four kilometres north of the company’s 100 per cent-owned Sandstone gold processing plant and presently comprises an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 grams per tonne to 1.4 grams per tonne gold for 0.9 million to 1.5 million ounces of gold.

Middle Island Resources has determined the deposit’s amenability to pre-concentration of gold mineralisation via an ore sorting study.

The initial study findings increase the mill feed grade, at the same time reducing the haulage and milling costs, and, importantly, the quantum of mill feed to a level compatible with the existing processing plant’s capacity.

Middle Island Resources initiated the ore sorting study in October last year after receiving encouraging results from a mineralogical assessment of material sourced from the Two Mile Hill deeps deposit.

The aims of the initial testwork, which involved the assaying of a series of hand-sorted composites of quartz vein material and un-veined tonalite, were designed to determine the relative disposition of gold within the deposit.

The mineralogical assessment suggested that over 99 per cent of the gold is hosted within the quartz veins.

Buoyed by these results, Middle Island embarked on an initial ore sorting trial, which demonstrated that ore sorting could deliver a 185 per cent to 257 per cent increase in grade.

“We have identified that 99.6 per cent of the gold occurs in the quartz veins, it is commonly coarse, and certainly free gold,” Middle Island Resources managing director Rick Yeates told The Resources Roadhouse.

“Some 60 per cent of the gold is recoverable in a gravity circuit and, at a relatively coarse grind size of 106 microns, we are getting 93 to 97 per cent leach recoveries after gravity concentration.

“The leach kinetics are also good, with about 90 per cent leach recovery in the first two hours, with low reagent consumptions and no deleterious elements.

“The recognition that 99.6 per cent of the gold occurs in the quartz veins led us to the concept of ore sorting and we have been investigating this opportunity for the past eight to nine months.

“The indicative trials we completed early this year identified that XRT and Colour sensors provide the best results, with gold recoveries over 93 per cent delivered into some 36 per cent of the mass.

“This results in a significant increase in mill feed grade and, very importantly, a significant reduction in the quantum of mill feed, potentially compatible with our existing processing plant.”

Riding the success of the initial ore sorting program, Middle Island drilled a large diameter diamond core hole, MSDD261, from surface to a depth of 284.5m to provide sufficient material for a second, more definitive ore sorting campaign.

50-gram fire assays of 1m quarter core intervals from MSDD261 returned a best intercept of 100 metres at 2.02 grams per tonne gold from 55m downhole depth, including 7m at 18.1g/t gold from 121m depth.

This intercept in MSDD261 is entirely consistent with previous diamond drilling at Two Mile Hill, variously including intersections of:

508.3m at 1.38g/t gold;
372.7m at 1.52g/t gold;
230.4m at 1.62g/t gold;
353.3m at 1.04g/t gold;
141m at 2.3g/t gold; and
156.3m at 1.14g/t gold.

“One of the characteristics of the deposit, particularly important for its amenability to ore sorting, is the highly consistent nature of the mineralisation,” Yeates said.

“They are certainly very substantial intercepts and demonstrate that the deposit is persistently mineralised.”

Drilling carried out to date at the Two Mile Hill deeps deposit has confirmed the presence of a substantial and ubiquitously mineralised system which, at surface, measures 250m in strike, up to 90m in width and is mineralised to at least 700m depth and remains open beneath this level.

 

Middle Island believes this latest, 100m at 2.02g/t gold intercept, combined with encouraging results derived from previous diamond drilling, metallurgical testwork, mineralogical studies and ore sorting trials, presents the potential for underground mining beneath the proposed open-pit cutback at Two Mile Hill.

“Sub-level caving is certainly the preferred mining option being assessed at this stage,” Yeates said.

“There is no question that ore sorting will be key to the project economics.

“The fall-back position for us is a more selective, open stoping, mining approach, and we have identified multiple higher-grade, sub-horizontal zones within the known 700 metre vertical extent of mineralised tonalite, on which we could focus to achieve that outcome.”

At the time of writing, more definitive ore sorting trials on bulk composites from diamond hole MSDD261 were complete, however the results of 2kg bottle roll assays of the various product fractions generated by the main trials were still pending.

These more definitive ore sorting trials include iterations around crush size and grade range, designed to refine the original ore sorting results.

The company has also recently completed Stage 1 resource definition diamond drilling, designed to bring the upper half of the Two Mile Hill tonalite deeps Exploration Target (from 140m depth, which is the base of the quantified mineralisation for the open pit, and approximately 420m depth) into at least an Inferred Resource category.

Logged vein densities and alteration intensities observed in diamond core are entirely consistent with previous diamond drilling, and multiple instances of course, visible gold have been identified.

Middle Island is confident of a successful outcome for the current, more definitive, ore sorting trials.

So much so, it is already planning to progress Stage II infill drilling, designed to bring the upper half of the deposit into the Indicated Resource category, prior to a more comprehensive economic assessment of its underground mining options.

Each drilling stage is also designed to maximise the number of possible intersections on the upper and middle banded iron formations (BIFs) that are intruded by the Two Mile Hill tonalite plug, to target additional high-grade gold mineralisation within the BIF units, peripheral to the tonalite contact.

While several such BIF intercepts have been recorded around the tonalite contacts to date, only one of these has been quantified as a Mineral Resource.

“The tonalite intrudes three BIF units,” Yeates explained.

“Immediately adjacent to the tonalite we see selective massive to semi-massive pyrite replacement of magnetite within the BIFs, with which the very high-grade intercepts are associated.

“These mineralised lenses are relatively small, so in the grand scheme of things they are not hugely material, but they are very nice sweeteners.

“We have only quantified one of these lenses to date, as a dense drilling pattern is required and can be expensive, but we have identified multiple ore positions that are marginal to the tonalite on the upper two of the three BIF units – we haven’t drilled the lower BIF at all.”

 

Middle Island Resources Limited (ASX: MDI)
…The Short Story

HEAD OFFICE
Suite 1
2 Richardson Street
West Perth WA 6005

Ph: +61 8 9322 1430

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

DIRECTORS
Peter Thomas, Rick Yeates, Beau Nicholls

 

Middle Island Continues Ore Sorting at Two Mile Hill

INSIDE UPDATE: Middle Island Resources (ASX: MDI) is selling the company’s West African interests to concentrate on its 100 per cent-owned Sandstone gold project in Western Australia.

Middle Island Resources began a further campaign of ore sorting to verify positive results from initial testwork on the Two Mile Hill tonalite deeps deposit at the Sandstone gold project.

Previous scoping level testwork demonstrated sorting can deliver a 185 per cent to 257 per cent increase in grade, with gold recoveries in excess of 93 per cent and 64 per cent of the sorter feed material being rejected.

The new ore sorting campaign is to be more definitive and will include work based on crush size and grade range, designed to improve the original results.

Ore sorting validation is anticipated to have a positive impact on project economics, delivering reduced haulage and process operating costs, and lower tailings disposal requirements.

The Two Mile Hill tonalite deeps deposit comprises an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 gram per tonne to 1.4g/t gold for 0.9 million to 1.5 million ounces of gold.

Should it achieve a successful outcome on the Stage II ore sorting trials for the primary (underground) component of the Two Mile Hill deposit, Middle Island intends to immediately progress a staged drillout of the upper half of the Exploration Target via RC pre-collared diamond drilling.

The program is designed to infill the existing drill pattern, upgrading the upper portion of the underground Exploration Target into a Mineral Resource.

“Ore sorting offers the potential to make a significant positive impact on the economics of the Two Mile Hill tonalite deeps deposit,” Middle Island Resources managing director Rick Yeates said.

“Should the new, more definitive, ore sorting campaign replicate or improve on the initial trial results, bulk underground mining at Two Mile Hill becomes a very real opportunity that would substantially extend and enhance the envisaged project production schedule.

“While the focus of the current ore sorting campaign is very much on the deeper underground potential of the Two Mile Hill deposit…we will utilise the opportunity to also assess the response of the open pit mineralisation to ore sorting.”

Earlier this year, Middle Island announced a Heads of Agreement (HoA) had been signed with TSXV-listed Tajiri Resources relating to the divestment of the company’s 100 per cent interest in the Reo gold project in Burkina Faso, West Africa via an Option to Purchase Agreement.

Under the terms of the deal, Tajiri will pay Middle Island US$35,000 on execution of the HoA in return for a three-month exclusivity period, during which the buyer is conducting its due diligence.

Once due diligence is completed and the formal Option to Purchase Agreement signed, Tajiri will pay a further US$150,000 and issue Middle Island with 2.5 million Tajiri shares.

On its part, Middle Island will grant Tajiri an exclusive option to purchase the company’s entire interest in the Reo project.

During the subsequent 18-month Option term Tajiri will be required to pay all expenses associated with maintaining the Reo project permits in accordance with Burkinabe law.

Should Tajiri elect to exercise the Option, it will pay a further US$150,000 and issue Middle Island with a further 2.5 million Tajiri shares.

Middle Island will retain a two per cent net smelter return royalty on any minerals derived from the Reo project, although Tajiri will have the right to acquire that royalty from Middle Island for US$5 million.

If Tajiri doesn’t exercise the Option, Middle Island will retain all consideration already paid and continue to own the project.

“The transaction structure allows Middle Island shareholders to retain a significant indirect interest in the upside potential of the Reo project via the Tajiri equity and royalty components,” Yeates said on announcing the deal.

“The full equity component, which will represent some eight per cent of Tajiri’s issued capital on a fully diluted, post issue basis, also offers shareholders considerable exposure to Tajiri’s highly prospective gold project interests in Guyana, South America.

“On completion, the Reo project transaction will represent the divestment of Middle Island’s remaining gold interests in West Africa, allowing the company to fully focus on our Sandstone gold project development in Western Australia.”

 

Middle Island Resources Limited (ASX: MDI)
…The Short Story

HEAD OFFICE
Suite 1
2 Richardson Street
West Perth WA 6005

Ph: +61 8 9322 1430

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

DIRECTORS
Peter Thomas, Rick Yeates, Beau Nicholls

 

Middle Island Resources Progressing with Sandstone Ore Sorting and Resource Drilling

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) is conducting ongoing ore sorting trials and resource definition diamond drilling on the Two Mile Hill tonalite deeps deposit within the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Middle Island Resources’ initial mineralogical assessment involved the assaying of a series of hand-sorted composites of quartz vein material and un-veined tonalite.

The results of these suggested that greater than 99 per cent of the gold at the project is hosted in the quartz veins.

Middle Island was encouraged enough to initiate an ore sorting study on gold mineralised material sourced from the Two Mile Hill tonalite deeps deposit.

More definitive ore sorting trials on bulk composites derived from diamond core hole MSDD261 at the Two Mile Hill tonalite deeps deposit are nearing completion.

The company anticipates the more definitive ore sorting results will be available late in June.

Concurrently, Middle Island is carrying out Stage 1 resource definition diamond drilling, designed to bring the upper half (140m to 420m depth) of the Two Mile Hill tonalite deeps Exploration Target into at least an Inferred Resource category.

Of the initial program, all RC pre-collars have been completed (541m) and three NQ diamond core tails are complete (817m).

Assuming a successful outcome on the current, more definitive, ore sorting trials, Middle Island has flagged its intentions to progress Stage II infill drilling, designed to bring the upper half of the deposit into an Indicated Resource category, prior to a more comprehensive economic assessment of underground mining options.

Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.
“Despite some delays with ore sorting, we are otherwise pleased with progress on both the ore sorting and resource definition diamond drilling campaigns for the Two Mile Hill tonalite deeps deposit.

“Assuming positive results from these work streams, bulk underground mining at Two Mile Hill becomes a very real opportunity that would substantially extend and enhance the presently envisaged project production schedule.

“Middle Island looks forward to reporting the results of drilling and ore sorting during the June and September quarters of 2018.”

 

Email: info@middleisland.com.au

Website: www.middleisland.com.au