Middle Island Resources has locked onto copper mineralisation at its Barkly copper-gold project in the Northern Territory. In a purposeful pursuit of iron-oxide copper gold, or “IOCG” style mineralisation, the company will shed its gold assets and launch headfirst into further exploration of the prospective Tennant Creek region.
The company is shifting lanes by selling its Sandstone operation to ASX-listed Aurumin for $12 million, half in cash and half in Aurumin shares with Middle Island expecting to hand over the keys within a week.
The strategy does appear to be one of those canny “win-win” plays. Aurumin will have landed a highly prospective gold tenement whilst Middle Island shareholders will retain exposure to gold prices via their shareholding in Aurumin. Perhaps most notably however, with a market cap of only around $14 million, the impending $12 million sale of Middle Island’s Sandstone gold project stamps an appealing valuation on its remaining Barkly project.
In the event of a successful transaction, it appears Middle Island will be well-funded to advance Barkly with the Crosswinds prospect shaping up to be an exciting target.
The last round of work revealed a 130 metre section at surface grading 0.75 per cent copper and intriguingly an IP survey delineated a chargeable target 500m below the surface.
In following up the finding, the junior has planned five lines of induced polarisation work hoping to constrain the dimensions of the new target with work expected to commence soon.
The ongoing aeromagnetic and radiometric work has been delayed due to the extreme weather conditions across northern Australia with high-quality results unable to be achieved when pools of water sit at the surface.
Approximately 10,000 kilometres of the 39,500 kilometre airborne survey has already been completed, which in the circumstance is no small achievement. Middle Island expects the aeromagnetic work to prove extremely useful as the ASX-listed pair Inca Minerals and Greenvale Mining have generated over 50 targets in the region with its application.
In addition, ground magnetic work is planned across the Crosswinds prospect in March and the results will assist in aiming drill holes.
The junior has secured a contract for two drills available in April and plans to have them spinning at Crosswinds before moving to other targets yet to be identified. The explorer has budgeted to keep the rigs on the roster in the April to November prime drilling season.
Following completion of the spin off, Middle Island will be keen to roll up its sleeves and start turning the drill bit to ensure that its all-in copper play brings home the bacon.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
