Published: May 6, 2016 |

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Middle Island Resources Ltd’s has acquired 100 percent of the Sandstone gold project including an existing CIP processing plant for $2.5 million, located 600 kilometers northeast of Perth.

Southern Cross Gold acquired the Sandstone project from Troy Resources which had mined 4.4 million tonnes of ore at 3.6g/t gold for 508,000 ounces.

Southern Cross was then placed into administration in September 2015.

There are two granted Mining Leases on which a 600,000 tonnes per annum carbon-in-pulp (CIP) gold processing plant, with associated infrastructure is located.

The Sandstone gold project has a JORC 2004 indicated and inferred mineral resources of 480,000 ounces of gold grading 1.4 g/t gold, so it will be need to be brought up to JORC 2012 status.

The headline acquisition price of A$2.5 million is a cost of US$4 per resource ounce compares favorably with values paid for gold projects of equivalent status.

Historical drilling at the Sandstone project had identified two significant exploration targets at the Two Mile Hill prospect, located 3.2 kilometers north of the processing plant.

Middle Island has completed a private placement to professional and sophisticated shareholders at $0.01 per share to raise $400,000 to provide working capital for the Sandstone acquisition.

The company is also in the process of identifying a partner to invest in resource definition drilling and feasibility studies at the Reo gold project in Burkina Faso.

Source: (May 4, 2016) Proactive Investors

About Middle Island Resources
Middle Island Resources Ltd is listed on the Australian Securities Exchange.

To stop by Middle Island’s website, CLICK HERE

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