Keep one eye on Venus and Alto

I’ve been keeping one eye on what Alto Metals (AME) and Venus Metals (VMC) have been doing in their Sandstone tenements, because it directly relates to the strategy of MDI. It looks like @Noobtrader1 is doing the same. For the benefit of other holders, below is a reminder of the two key pillars of MDI's short term strategy:

1. Recommission the Sandstone gold plant at the earliest opportunity via exploration &/or consolidation of proximal third party deposits.; and
2. Consolidate additional deposits & exploration tenure within the broader Sandstone district around central processing hub.

Both VMC and AME made announcements this week that directly align with MDI’s strategy.

VMC announced a substantial increase to its Bellchambers resource at Sandstone, while AME raised $5.5M to accelerate its drilling and expansion around the historic Lord Nelson open pit.

The related announcements are here:

VMC: www.asx.com.au/asxpdf/20200925/pdf/44mznw6gmtqvxg.pdf
AME: www.asx.com.au/asxpdf/20200922/pdf/44mvxcnmh08pfv.pdf

The VMC Bellchambers resource is located approximately 25km southwest of Sandstone, while the AME Lord Nelson resource is located approximately 30km to the southwest of Sandstone.

Neither VMC or AME have processing facilities at Sandstone, and will need to either build their own mill (which may be prohibitively expensive, especially for VMC), or partner with MDI for toll milling.

It’s also worth noting that the recent takeover attempt for AME will lapse at the end of the month, giving AME a free hand to complete their exploration, finalise the MRE, enter into arrangements for toll milling and contract mining, and commence mining in 2021.

It’s worth keeping one eye on AME and VMC, because IMO, they will enter into agreements with MDI in the medium term for toll milling, which will further contribute to MDIs revenue base, and could justify the expansion of MDIs existing 600,000 tpa plant.

GLTAH and DYOR