STTCOMP MDI, FA Long Middle Island Resource Limited (ASX: MDI)...

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    STTCOMP MDI, FA Long

    Middle Island Resource Limited (ASX: MDI)
    SP: 7.3c
    MC: $34.23 Million
    Shares: 469,000,000 ordinary
    Cash as at 30th June 2016: $3.6Million

    Middle Island Resources Limited (ASX:MDI) is a gold exploration and development company focused on Australia and West Africa.

    Catalysts: There have been a number of significant developments for the company in recent months.

    1. 1. file:///C:/Users/Richard/Downloads/nASX9NNttk_MDI_1469168234.pdf
    As outlined in the Quarterly Report for the period ended 30 June 2016, The Company raised an aggregate of $5.45 million (before costs) during the quarter by way of two heavily over-subscribed Placements and a Rights Issue. The proceeds of the Rights Issue were not reflected in the cash balance at 30 June 2016, leaving the cash position at A$3.6 million and no debt.

    2. On 8 May 2016, Middle Island announced a binding agreement to acquire a 100% interest in the Sandstone gold project, located in the East Murchison gold district of Western Australia. The acquisition, completed on 11 July 2016, includes substantial gold resources, several significant brownfields and greenfields exploration targets, a 600ktpa carbon-in-pulp (CIP) gold processing plant (on care and maintenance), significant associated infrastructure, camps, and a substantial inventory of equipment and spares.

    3. Securing a new gold project that meets the following key criteria:- Mitigates shareholder exposure to sovereign risk. -Represents an advanced asset with a clear path to early production and cash flow. - Limited capital required to develop the project.

    4. file:///C:/Users/Richard/Downloads/nASX6DbqRL_MDI_1468448984.pdf ASX announcement 14th July outlining “Middle Island Managing Director, Mr Rick Yeates: “…the current review confirms the Two Mile Hill BIF deposit as a very real, high value, readily accessible, underground target that could supplement the initial open pit operation, thereby significantly enhancing the grade, mine life and envisaged production profile at the Sandstone gold project…”

    5. file:///C:/Users/Richard/Downloads/nASXc4Rcqj_MDI_1469744635%20(1).pdf ASX announcement 29th July Middle Island Resources Limited (MDI, Middle Island or the Company) is pleased to advise that a programme of infill resource definition drilling commenced today at the Sandstone gold project, in the East Murchison goldfield of Western Australia.


    6. The Company’s maiden drill programme at Sandstone comprises some 153 holes for ~4,200m of reverse circulation percussion (RC) drilling. § The programme is focussed on infill and limited extension drilling at Sandstone’s Two Mile Hill, Shillington and Shillington North gold deposits in order to upgrade all existing open pit resources into an Indicated category for inclusion in a pre-feasibility study (PFS) initiated by Middle Island since formally acquiring the project earlier this month. § Subject to weather conditions, the drilling programme is anticipated to take approximately three weeks to complete, with final assay results likely to take a further two weeks to compile and process.

    Certainly appears to be a significant time for the Company with extensive works well underway and a further pipeline of opportunities as well.

    This is not a buy or sell recommendation and please always DYOR.

    Cheers
    GF
 
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