Middle Island Resources Limited · ASX:MDI
Middle Island Resources — Africa Downunder 2014
24 slides from Middle Island Resources's conference presentation, Sep 3, 2014
Slide 1: Exploring Golden Frontiers
For personal use only Exploring Golden Frontiers Middle Island Resources Africa Downunder - September 2014
Slide 2: 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 3: Capital Structure
Capital Structure ASX Code: MDI For personal use only Shares on Issue 125m Unlisted Options 16.5m Number of Shareholders ~600 Top 20 Shareholders ~63% Newmont ~10% Institutions ~22% Directors ~21% Cash (as at 30 June 2014) ~A$1.6m Market Cap (at A$0.02) A$2.5m 3 3
Slide 4: 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 5: Corporate Strategy
Corporate Strategy • For personal use only Gold. • West Africa. • Define minimum 1Moz ‘stand-alone’ resource base. • Self-sustaining gold production & cash flow. • Leverage off management’s 24 years local experience & contacts. • Jurisdictions where gold sales & costs are denominated in USD. • Domai
Slide 6: Projects
Projects • 3 West African countries For personal use only (combined area of ~3,156km2). • 100% of Reo gold project – Burkina Faso (1,134km2). • 70-100% interest in permits comprising the Sirba gold project – Niger (1,942km2). • 100% of Nuon River gold project – Liberia (80km2). • Reviewing a new, hi
Slide 7: Reo Project (Burkina Faso) - Overview
Reo Project (Burkina Faso) - Overview • 100% interest in For personal use only seven contiguous permits covering 1,134km2. • 150km west of Ouagadougou in prolific Houndé Belt. • Excellent access and infrastructure; bitumen road, grid power, process water. • Proximal to new gold operations (Mana, Bis
Slide 8: Reo Project – Geochemical Auger Drilling
Reo Project – Geochemical Auger Drilling • ~70,000m For personal use only (9,341 holes) geochemical auger drilling completed. • Identified, refined and prioritised prospects via aircore, RAB & RC drilling. • K4/K5 & Morley Prospects confirmed as significant targets. 8 8
Slide 9: Reo Project - K4/K5 Prospect
Reo Project - K4/K5 Prospect • 6km diameter composite For personal use only anomaly. • Dominated by 7km long coincident gold-arsenic- potassium anomaly along SE margin - Madi Shear. • Other elements associated with E- W splays. • Veneered by 4m of transported laterite cover. • 60m deep oxide profile
Slide 10: Reo Project - K4/K5 Prospect
Reo Project - K4/K5 Prospect • Reconnaissance RAB, RC For personal use only & diamond drilling & ground geophysical programs completed. • More significant intersections include:- 18m at 2.51g/t 4m at 16.2g/t 4m at 14.0g/t 12m at 4.99g/t 12m at 4.11g/t 4m at 12.2g/t 36m at 1.25g/t 16m
Slide 11: Reo Project - K4/K5 Prospect
Reo Project - K4/K5 Prospect For personal use only • Predominantly RAB & RC drilling on a 200m to 400m line spacing. • Significant resource opportunity. • 2.5km long, open-ended mineralised zone - Madi Shear. • Plus four higher grade satellite targets within 4km radius. • Untested parallel geophysic
Slide 12: Reo Project - Morley Prospect
Reo Project - Morley Prospect • Two, broad, high grade For personal use only east-west trending lodes that dip moderately north. • Numerous significant trench & drill results defined to date:- - 34m at 16.4g/t - 10.6m at 17.4g/t - 39m at 2.62g/t - 10m at 9.63g/t - 38m at 2.51g/t - 11m at 7.97g/t - 1
Slide 13: Reo Project – Exploration Strategy
Reo Project – Exploration Strategy For personal use only • Having defined all key targets, the Reo Project now requires substantial resource definition drilling. • As a priority, seek a meaningful partial divestment to fund the project through to feasibility. • Failing this, MDI will investigate & p
Slide 14: Sirba Project (Niger) - Overview
Sirba Project (Niger) - Overview • Consolidates 100km For personal use only strike length of Sirba greenstone belt straddling the Samira Hill gold operation. • 70-100% interest in 7 permits covering 1,942km2 of under- explored Birimian greenstones. • Samira Hill processing plant centrally located. •
Slide 15: Sirba Project – Technical History
Sirba Project – Technical History • For personal use only The Niger strategy revolved around proximity to the Samira Hill processing plant, with a view to toll-milling satellite discoveries or acquiring the ageing operation. • Defined some 300,000oz in two deposits at Songonduari & Forbemi, which we
Slide 16: Sirba Project – Technical History
Sirba Project – Technical History • For personal use only Re-evaluated & re-estimated the 285,000oz JICA discovery at Sefa Nangue that could be toll-milled at Samira Hill some 30km away. • Identified a further six targets within a 35km radius of Samira Hill, including the 7.5km long Deba Hill anomal
Slide 17: Sirba Project – Financial History
Sirba Project – Financial History • For personal use only To date MDI has expended a total of US$6.54 million (~FCFA3 billion or A$7.03 million) in shareholders’ funds on gold exploration and administration in Niger since 2010. • In 2012, MDI agreed to pay US$120,000 in outstanding (frais de formati
Slide 18: Sirba Project – Community Development
Sirba Project – Community Development • MDI has actively recruited personnel from local communities & For personal use only provided training where required. • Wherever possible MDI has procured local goods & services to supply its programs & camps. • Community development projects have included:- -
Slide 19: Sirba Project – Deba & Tialkam Permits
Sirba Project – Deba & Tialkam Permits • Extension Applications for D&T permits lodged in August 2013 under Article 21 of For personal use only the Mining Code. • Article 21 entitles the holder to an extension if a deposit of sufficient economic potential has been identified to justify the completio
Slide 20: Sirba Project – Niger Status
Sirba Project – Niger Status • MDI believes that the Niger Mines For personal use only Ministry’s refusal to extend the D&T permits is incorrect and not sustainable under the rule of law. • MDI has commenced a legal appeal process & reapplied for the D&T permits in its own name. • MDI is endeavourin
Slide 21: Nuon River Project (Liberia) - Overview
Nuon River Project (Liberia) - Overview • 100% interest in a For personal use only single (Zwedru North) permit covering 80km2. • BLEG stream sediment sampling & airborne magnetic surveys completed. • Covers priority Middle East gold stream sediment anomaly. • Least advanced (yet high value) target
Slide 22: Community Development
Community Development • Essential to build political & social capital from the For personal use only outset. • Up to 5% of annual exploration budget dedicated to community development activities. • 14 projects completed in all three jurisdictions. 22 22
Slide 23: Corporate
Corporate • Since the collapse of the opportunity to acquire For personal use only the Samira Hill Project, multiple strategies have been implemented to conserve the Company’s remaining cash:- Mr Nicholls has moved from an executive to non-executive Board role. Directors’ fees and salaries have
Slide 24: Conclusions
Conclusions • Highly experienced West African team. For personal use only • Capital structure intact, ~A$1.6M cash & no debt. • Newmont a supportive cornerstone corporate shareholder (10.15%). • Strong, supportive register, including ~22% comprising major international institutions. • Quality advanc