Troy Resources Limited (Troy) has accepted A$250,000 as payment for the cancellation of the legacy 2% royalty.
MDI assumed the obligation to pay this royalty when it purchased Sandstone Gold Project in 2016. The Company's ASX release of 19 April 2021 regarding the Sandstone Feasibility Study, stated 'The total quantities for all pit designs are 2,068 kt of mill inventory at 1.32 g/t Au' and 'the weighted average gold recovery is 92.9%'.
On the resultant potential yield of 89,453oz of gold, the extinguishment of the Troy royalty at the feasibility study assumed gold price of A$2,300/oz (after refining costs), means the project costs will be reduced, and the net return increased, by $4.1M. MDI considers that removing the third-party royalty payments for production provides an accretive value to the Sandstone Gold Project, whilst simultaneously simplifying administration both prior to and during production
AUGER DRILLING EXPLORATION COMMENCES
As per ASX release of 1 June 2021 the Company estimates over 70% of the Sandstone region is covered by transported cover, with historical soil geochemistry being ineffective. The Company therefore is pleased to announce it has commenced an auger drilling geochemical survey to test five (5) new targets, including the Jew Well Central Target which comprises 5km of untested greenstone, all of which are largely veneered by transported cover.
EUREKA MINERAL RESOURCE ESTIMATE
The estimation of JORC Code 2012 Mineral Resources for the Eureka deposit, the last pit mined by Troy in 2010, is a modest increase to Resources and potential mill feed. A small open pit was mined at Eureka between May and August 2010. A total of 30,461 t at 2.33 g/t Au for 2,281oz were produced.
Contact:
Tel: +61 (8) 9322 1430
Email: info@middleisland.com.au
Web: www.middleisland.com.au
Forward Looking Statements
Statements contained in this release, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of Middle Island, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties.
TROY RESOURCES