Middle Island Resources Limited · ASX:MDI
Middle Island Resources — Merger or Acquisition (May 2016)
21 slides from Middle Island Resources's merger presentation, May 11, 2016
Slide 1: Sandstone Gold Project Acquisition
For personal use only Exploring Golden Frontiers Middle Island Resources Sandstone Gold Project Acquisition May 2016
Slide 2: Capital Structure
Capital Structure ASX Code: MDI For personal use only Shares on Issue ~291M Unlisted Options 0.8M Number of Shareholders ~540 Top 20 Shareholders ~60% Institutions ~20% Directors ~20% Cash (as at 31 March 2016) ~A$0.36M Market Cap (at ~A$0.04) ~A$10M 2 2
Slide 3: Board and Management Team
Board and Management Team • Retired Solicitor • Corporate and commercial mining industry advice since For personal use only Peter Thomas 1980 • Served on boards of various listed companies since the 1980s (Non-Executive Chairman) • Founding Chairman of Sandfire Resources NL • Currently Chairman of t
Slide 4: Sandstone Gold Project - Summary
Sandstone Gold Project - Summary For personal use only • Secured a 100% interest in the Sandstone gold project in Western Australia. • Comprises two adjacent, granted and fully permitted Mining Leases. • Mineral Resources (JORC 2004) of ~11Mt grading 1.4g/t Au for 480,000 ounces of gold, plus consid
Slide 5: Sandstone Project Acquisition Cost
Sandstone Project Acquisition Cost For personal use only Recent Gold Asset Transactions $50 1,000,000 $40 800,000 Price/Resource (US$/oz) Mineral Resource (oz) $30 600,000 $20 400,000 $10 200,000 $0 0 5 Source: SNL Metals & Mining, Terra Studio 5
Slide 6: Location
Location For personal use only • Proximal to the settlement of Sandstone, 600km northeast of Perth. • Town lies on all-weather, sealed road between the towns of Mt Magnet and Leinster. • Processing facility situated some 12km to the south of Sandstone. • Low risk, West Australian jurisdiction, proxi
Slide 7: Tenure
Tenure For personal use only • Two granted Mining Leases; M57/128 & M57/129. • Pre-date Native Title. • Permitted tailings storage facility. • Bore field & water licence. • Camps located on freehold title within proximal Sandstone village. 7 7
Slide 8: Transaction Summary
Transaction Summary For personal use only • Headline value of A$2.5M (A$2.4M) under a binding asset sale agreement (ASA) with Black Oak Minerals Limited (in Liquidation) (Receivers and Managers appointed) (Black Oak), which is to be paid as follows:- A$250,000 non-refundable deposit within 5 days
Slide 9: History
History • In excess of 1Moz of gold has been produced from For personal use only the Sandstone area since the 1890’s. • More recent gold production attributed to Herald Resources Limited in the 1990’s & Troy Resources Limited (Troy) from 1999 to 2010. • Troy extracted and processed 4.4Mt of ore at a
Slide 10: Geology
Geology • Gold mineralisation is For personal use only hosted within the Archaean Sandstone greenstone belt. • Triangular shaped belt within the Southern Cross Province that forms the central spine of the Archaean Yilgarn Block. • Sandstone greenstone belt forms a classic ‘hourglass’ structure at th
Slide 11: Mineral Resources
Mineral Resources • The last relevant Sandstone Gold Resources (JORC 2004) For personal use only Deposit Category Tonnes Grade (g/t Au) Contained Gold (oz) Tenement Resource Statement Two Mile Hill - Tonalite Inferred 10,541,000 1.33 452,094 M57/128 included in the 2011 Shillington - BIF Indicated I
Slide 12: Processing Plant
Processing Plant • Constructed in 1994 with a For personal use only capacity of 250,000tpa. • Upgraded to 600,000tpa by Troy in 1999. • Troy operated plant from 1999 to 2010. • Processed 4.4Mt to produce ~508,000 ounces at 3.6g/t Au. • Plant placed on care & maintenance in September 2010. • Conventi
Slide 13: Infrastructure
Infrastructure • Contracted diesel- For personal use only generated power plant. • Workshops, laboratory & mine offices. • Substantial inventory of equipment & spares. • Permitted in-pit tailings facility with ~12 months’ capacity. • Permitted bore field. • Three equipped camps in nearby Sandstone:-
Slide 14: Production Potential
Production Potential • SXG completed pit optimisations For personal use only on Two Mile and Shillington deposits in 2012-13. • Modelling based on treating ~500,000tpa from Shillington & Two Mile open pit cut-backs. • Average stripping ratio of 5:1 over an initial period of just over 2 years. • Beni
Slide 15: Resource Potential - Two Mile
Resource Potential - Two Mile • Two Mile Hill tonalite; For personal use only 141m at 2.30g/t 156.3m at 1.14g/t 353.3m at 1.04g/t • Adjacent, obliquely intersecting BIF some 200m below surface; 8.5m at 49g/t 13.7m at 26g/t 4.5m at 25g/t 3.5m at 20g/t • Significant drill intercepts in basalt on east
Slide 16: Exploration Potential
Exploration Potential • Additional open pit For personal use only potential at Shillington North, Goat Farm (potential new TSF) & Eureka deposits. • Potential mineralised repetitions within prospective Shillington BIF. • Significant geochemical targets associated with BIF & tonalite at Mt Klemptz &
Slide 17: Indicative Timetable
Indicative Timetable For personal use only • An indicative pre-feasibility, financing and re-commissioning schedule is provided below. • Providing the pre-feasibility study outcome is positive, re-commencement of production within an 18 month timeframe is reasonably anticipated. 2016 2017 Key Activi
Slide 18: Enterprise Value / Resource Benchmarking
Enterprise Value / Resource Benchmarking For personal use only $75m capital costs (PFS) Enterprise Value/Resource for selected ASX-listed Gold Developers $100 $455m capital costs (PFS) $90 With treatment plant $70m capital costs (Scoping) Without treatment plant Enterprise Value / Resource (A$/oz) $
Slide 19: Investment Highlights
Investment Highlights For personal use only • Acquisition equates to a cost of US$4/oz per resource ounce of gold, considerably below the comparable industry average. • Planned near-term gold production requiring minimal capital, with considerable resource & exploration upside. • Opportunity to deal
Slide 20: Disclaimer Notice and Competent Person's Statement
Disclaimer Notice and Competent Person’s Statement For personal use only Disclaimer Notice The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in Middle Island Resources Limited (“MDI”) nor do
Slide 21: Thank you & questions
For personal use only Unit 1, 2 Richardson Street West Perth Thank you & questions Western Australia, 6005 Tel +61 (08) 9322 1430 Fax +61 (08) 9322 1474 www.middleisland.com.au
Middle Island Resources — Merger or Acquisition (May 2016) on 6ix