MiddleIsland Resources Ltd. said May 4 that it will fully acquire the gold project in theEast Murchison gold district of Western Australia for A$2.5 million.
The Sandstone project comprises two granted miningleases owned by Black Oak MineralsLtd.
The operation also includes a 600,000-tonne-per-annumcarbon-in-pulp processing facility, which is on care and maintenance, and associatedinfrastructure. Middle Island expects recommissioning costs for the CIP facilityto range between A$5 million and A$8 million.
Indicated andinferred resources at the property stand at 11 million tonnes at 1.4 g/t of goldfor 480,000 ounces of gold, the company noted, with existing drilling indicatingconsiderable potential to rapidly expand the resource base.
The companyseeks to rapidly progress to pre-feasibility, which would allow it to move to productionwithin 18 months from deal completion.
Meanwhile, MiddleIsland raised about A$400,000 from a private placement of 40 million ordinary sharesat 1 cent apiece. Proceeds will be used to provide working capital for the acquisition.