VANCOUVER, British Columbia, Feb. 15, 2018 (GLOBE NEWSWIRE) —
Tajiri Resources Corp. (the “Company”) (TSXVENTURE:TAJ) is pleased to announce that, subject to TSX Venture approval, it has entered into an Agreement with Australian-listed Middle Island Resources Limited (or ‘MDI’), that will see it acquire, through option, an 100% interest in the advanced Reo Gold Project, located in Burkina Faso, West Africa. The Reo Project is of regional scale, covering 1,002km2 at the confluence of the prolific Houndé and Boromo greenstone belts which are hosts to several substantial gold deposits of including: Karma 3.8Moz, Bissa 6.6Moz, Hounde 4.9Moz and Mana 8.6 Moz (reported inclusive of all P&P reserves and all M,I&I Resources)1
The Reo Project, which has had approximately USD$8 million spent on exploration since the mid 2000s, contains two advanced prospects: The Morley Prospect – where shallow Reverse Circulation (RC) and Aircore drill intercepts include: KRAC011-aircore: [email protected]/t, KRAC128-aircore: [email protected]/t, KR020-RC: [email protected]/t, KRC022-RC: [email protected]/t, MRRC0005-RC: [email protected]/t, and the K4-K5 Prospect – where RAB, aircore, RC and diamond drill intercepts include MRRB0076-RAB: [email protected]/t, including 12m@ 4.11g/t, MRRB009-RAB: 8m @ 8.20g/t, MRRB1611-RAB: 8m @ 4.68g/t, MRRB0062- RAB: [email protected]/t, NAC037-aircore:- [email protected]/t, NAC027-aircore: 18m @ 2.51g/t, MRRC0081-RC: 16m @ 1.95g/t, and 13m @ 2.19g/t, MRRC0091-RC: 10m @ 3.47g/t, MRRC0047-RC: [email protected]/t, MRDD001-diamond: 3m @ 11.5g/t including 1m @ 23.2g/t and MRDD003-diamond: 2m @ 16.8g/t including 1m @ 31.9g/t. These mineralised intercepts and all others reported in this press release including those shown in figures are reported as down hole intervals not true widths, which are yet to be determined.
Summary commercial terms involve aggregate cash payments to MDI of USD$335,000 and issuance of 5 million Tajiri shares over a period of 21 months. The agreement also includes a 2% net smelter return royalty in favour of MDI, which may be purchased by Tajiri for USD$5 million.
Tajiri considers the exploration upside at the project to be of the highest order, with immediate well-defined drill targets at the K4- K5 Prospect to be followed on from past drilling, combined with a large regional land package that hosts the smaller drilled Morley Prospect and several remaining auger geochemical targets yet to be tested by drilling.
Information contained in this press release relies on information provided by Middle Island, other public and unpublished documents which include technical reports from previous explorers and Middle Island. including all figures which were prepared by Middle Island. Tajiri has used reasonable efforts to review the technical information but until it conducts further due diligence, as envisaged by the Heads of Agreement, including site visits and independent data verification it relies on information supplied by Middle Island. However, it is Tajiri’s opinion that historical exploration and assay procedures were executed to a high standard consistent with industry best practices in effect at the time and that these practices conform to acceptable standards for further use, albeit subject to inherent risks.
Details of the Agreement
The reader is referred to the release made by Middle Island on 11/2/2018 which is attached to this news release.
The terms of the agreement are as follows:
- Pay MDI USD$35,000 to secure a 3 month period of due diligence.
- Pay MDI USD$150,000 and issue 2.5 Million shares at any time during the due diligence period to enter into the option representing 4.139 % of the listed shares of Tajiri on a fully diluted basis.
- Pay to MDI USD$50,000 within 12 months of entering into the option, if the option has not been exercised.
- Pay MDI USD$100,000 and issue MDI 2.5 Million* shares of Tajiri within 18 months if the payment made under 2) above to exercise the option and acquire 100% of the Project.
- Maintain the REO project licences in good standing during the Option Period and meet mandated exploration expenditures.
- MDI will retain a 2% NSR on any future production and Tajiri may acquire the NSR at any time after the exercise of the option for USD$5 million.
*The stipulated number of shares to be issued to Middle Island in each Tranche are calculated on a fully diluted basis, based on Tajiri’s current capital structure. The number of shares to be issued to Middle Island at the time a tranche is issued shall be fixed at, and adjusted accordingly to, 4.139% of the fully diluted equity of Tajiri. All shares issued to MDI will be subject to any mandatory minimum TSX-V restriction periods.
Reo Project highlights:
- Large regional 1,002km2 gold project of 6 contiguous tenements located astride 50km strike of highly prospective West African greenstone belt geology (Figure 1). Two tenements are granted and four are subject to extension applications. Importantly the tenement overlying the K4-K5 prospect is in good standing and the second granted tenement, Nebya in the south west of the project is granted but has not yet been transferred to MDI from the original vendor.
- Project located 150km west-northwest of the capital of Burkina Faso, Ouagadougou, has good infrastructure – bitumen road from the capital, process water (15km from the Black Volta), grid power to the centre of the project and a rail line at Koudougou (35km).
- Burkina Faso is favourable to mining with a sound Mining Act in West Africa and a competitive fiscal regime. The 2016 Fraser Institute Annual Survey of Mining Companies ranks Burkina Faso as third most attractive mining jurisdiction in West Africa in both its Policy Perception Index survey and Investment Attractiveness Index and fourth in all of Africa
- USD$8 million prudently expended since mid-2000s by both Newmont Mining’s subsidiary Newmont Ventures and Middle Island, with past work including 70,666m of geochemical auger drilling in 9,543 holes, 67,148m of RAB drilling in 1,918 holes, 22,150m of aircore drilling in 439 holes, 12,791m of RC drilling in 146 holes and 1,649m of diamond drilling in 11 holes. In addition, a high resolution 100m line spaced airborne magnetic and radiometric survey covers the entire Project along with 128km2 coverage by ground magnetic surveys 8km2 of IP/Resistivity surveys.
- The Project hosts numerous untested auger geochemical targets and the smaller, drilled Morley Prospect (see Figure 2).
- The Project hosts the substantial and advanced K4-K5 prospect where a gold in auger anomaly with a strike of 4.5km and width of 3km has returned robust grade drill intersections from multiple targets (further detailed below).
- Excellent local community relations have been established by MDI. Since it began work at Reo MDI has sponsored a water supply project that now supplies potable water to some 1,000 residents and a market gardening project.
Figure 1:
http://www.globenewswire.com/NewsRoom/AttachmentNg/e07e0e5d-2188-4ad1-bab9-e9ef8b0146fb
Geological Summary
The geology of the Project is dominantly covered by transposed to transported ferruginous laterites, interspersed with minor outcrops of granite and granitic gneiss. Outcrop over the volcanic and meta-sedimentary units is extremely limited. Thus, regional geological information on the Project largely relies on interpretation of a high resolution (100m line spacing) aeromagnetic and radiometric survey conducted by Middle Island in 2011.
The project area is interpreted to comprise volcanic, sedimentary and felsic intrusive rocks of the Boromo and Houndé greenstone belts that come close to intersecting, and are in thrust contact with the major central Burkina granitoid massif to the east.
Known gold mineralisation styles are largely hosted within greenstone belts and at granitoid contacts, and are of orogenic style (quartz vein and shear zone related).
Figure 2:
http://www.globenewswire.com/NewsRoom/AttachmentNg/19678b68-ed58-4a61-9c54-66414fc4b4e4
Regional Exploration
In addition to several phases of stream sediment, lag and soil geochemistry, the Project was subject to extensive auger drilling by MDI between 2011-2012. This work was completed on grids ranging from 1,600 x 200m, down to a 400 x 100m pattern, which defined four main prospects- K4-K5, Morley (formerly Didyr), Dassa and East Prospect. Of these, the most significant prospects are K4-K5 and Morley, which were both identified and subject to scout drilling by Newmont.
Follow-up RAB/Aircore drilling on mostly 400m spaced lines (25m -100m spaced holes) at the other auger geochemical targets (Dassa and East targets) produced limited intersections above 1g/t Au. A series of Auger geochemical anomalies stretching SW from the Dassa target have not yet been tested by any form of drilling (see Figure 3).
The Morley Prospect
The Morley prospect was a blind discovery by Newmont identified via drainage sampling and subsequent lag and soil geochemistry. This was followed with an initial 120 hole aircore drilling program, producing an exceptional intercept of 34m at 16.48g/t Au from 3m depth (KRAC011) and follow up drilling (83 holes) produced 39m @ 2.62g/t Au from 5m (KRAC 128), drilled in alternate directions toward the NW and SE. Better intercepts were derived from holes oriented toward 345 degrees. 2
Newmont then drilled six diamond core holes behind significant aircore intercepts (-55⁰ to -65⁰ towards 345⁰). These holes were generally disappointing and did not intercept targeted mineralisation. Subsequently Newmont completed trenching, RAB (66 holes) and a final RC program (37 holes). Selected significant intercepts from RC included 38m @ 2.33g/t Au from 3m depth (KRC020), 10m @ 7.55g/t Au from 16m (KRC022) and 10m @ 2.32g/t Au from 78m (KRC029bis) (reported as down hole intercepts not true widths).3
Figure 3:
http://www.globenewswire.com/NewsRoom/AttachmentNg/e53ba036-708f-4ed6-a1d4-3064ec1d1c72
MDI completed 12 trenches for 550 metres and 58 RC holes for 4,931m at the Morley Prospect. All holes were drilled at -60⁰ toward grid 180⁰. Mineralisation intercepted in Newmont drilling was interpreted to dip at approximately 50⁰ to the north, with a shallow plunge to the east. MDI drilling was planned to test down dip and along strike extents of known mineralisation. Drilling intercepted numerous robust intercepts (Table 1), notably 2m at 18g/t Au including 1m at 32.5g/t Au (MRRC001), 10m at 9.63g/t Au including 1m at 43g/t Au (MRRC0005), 6m at 2.47g/t Au (MRRC0006), 5m at 4.72g/t Au including 1m at 10.1g/t Au (MRRC0016) and 1m at 75.5g/t Au (MRRC0040)4
Host rocks at the Morley Prospect are granodiorite with rafts of mafic rocks. MDI RC Drilling confirmed the interpretation of stacked, east-west trending and moderately north dipping lodes, and delineated two lodes at Morley approximately 100 metres apart.
Exploration at the Morley Prospect has traced the mineralised structure over 1,000m in an east-west direction. However, it appears that mineralisation at the peripheries is relatively thin and low grade and that thicker higher grade zones are confined to a 200-300m zone straddling the granodiorite contact. Exploration results for the central part of the of the Morley Prospect are shown in Figure 4 below.
It is recognised that Morley represents a smaller, albeit high grade, potential satellite deposit to a more a substantial resource if identified elsewhere on the property, and that further work will be readily justified if this proves the case.
Figure 4:
http://www.globenewswire.com/NewsRoom/AttachmentNg/6b4a4f87-3b8a-46e4-9def-18b04cfbbbf7
The K4-K5 Prospect
The K4-5 Prospect, located in the southeast of the tenement package, is the most significant Prospect located at the Reo project. Although no geology is exposed, as the area is veneered by transported laterite, an extensive auger geochemical anomaly of 4.5km strike and 3.5km width has been defined, with numerous values exceeding 100ppb and a peak value of 1,577ppb.
A large artisanal mining pit (c.500m x 250m) exists in the central part of the prospect, where up to 5,000 miners have worked palaeo-alluvial material at the ‘interface’ between laterite and saprolite.
The K4-K5 Prospect was initially defined by soil sampling by Newmont and later Auger geochemical sampling by Middle Island, and since has been variously assessed by rotary air blast (RAB), aircore, reverse circulation (RC) and limited diamond core drilling.
The geology comprises a package of meta-sediments and felsic volcanics irregularly on-lapping a shallowly south-plunging granodiorite. Mineralisation is interpreted to be associated with the Madi Shear and hosted in all lithologies, but is structurally controlled, with quartz veining and strong shearing developed around the brittle ductile contacts between the granodiorite and volcano-sedimentary rocks. Alteration observed is outwardly zoned, variously dominated by silica/pyrite, sericite and chlorite assemblages, with more distal carbonate alteration.
K4-K5 Exploration Summary
After conducting both lag and soil geochemical sampling, Newmont completed ground geophysics at the prospect and drilled several aircore fences on a 400m line spacing and a 50m to 100m hole spacing, completing 193 holes for 10,319m. The best intercept for the program was NAC027 at the K5 Prospect, which returned 18m at 2.5g/t Au, however numerous other broad lower grade intercepts were returned.6
After defining the K4-K5 anomaly by auger geochemistry, Middle Island conducted several phases of RAB, RC and diamond drilling, completing 825 holes for 34,953m of RAB drilling, 26 holes for 2,627m of RC drilling and 5 diamond drill holes for 724m.
Shallow RAB drilling (sampled as 4m composites), performed predominantly on 400m spaced lines to better investigate anomalous auger geochemistry, succeeded in defining a broad, 2.5km long, open ended zone of continuous gold mineralisation lying along the southeast margin of the K4/K5 geochemical anomaly, coincident with the Madi Shear.
Better 4m RAB composite sample intercepts included 13m at 2.47g/t Au. 44m at 1.48g/t (including 12m at 4.11g/t), 16m at 1.95g/t, 13m at 2.19g/t and 10m at 3.47g/t Au., 12m at 4.99g/t (including 4m at 14.0g/t) and 8m at 8.20g/t (including 4m at 16.2g/t Au). 36m at 1.25g/t, 16m at 2.66g/t (incl. 12m at 3.23g/t), 20m at 1.65g/t (incl. 8m at 3.17), 8m at 4.68g/t (incl. 4m at 8.21g/t), 8m at 1.70g/t, 4m at 3.54g/t, 4m at 2.25g/t, 6m at 1.24g/t, 18m at 2.51g/t, 44m at 1.48g/t (incl. 12m at 4.11g/t), 12m at 4.99g/t (incl. 4m at 14.0g/t) and 8m at 8.20g/t (incl. 4m at 16.2g/t), 8m at 2.25g/t, 20m at 1.73g/t, 4m at 8.54g/t, 18m at 1.59g/t and 4m at 12.2g/t Au (see Table 2).7
RAB drilling was followed up by a 5-hole program of diamond drilling with holes designed to assess the geological and structural framework, alteration and host rock lithologies. As such holes were planned at four distinct mineralised areas across the prospect. Significant results were 2m at 16.8g/t Au from 160m depth including [email protected]/t and [email protected]/t from 48m depth including [email protected]/t (see Table 4).8
RC drilling was largely completed after the completion of RAB and Diamond drilling and RC drilling was planned to in to confirm RAB intercepts and test down dip extensions. Significant intercepts include; 13m at 2.47g/t Au., 16m at 1.95g/t, 13m at 2.19g/t and 10m at 3.47g/t Au. (See Table 3).9
Drill results and geology are summarised visually in Figure 5.
Based on the presence of strong silica-pyrite alteration encountered in drilling, an IP survey was conducted comprising 58 line kilometres of gradient array and 4km of pole-dipole IP. The survey defined the major structural controls along the Madi Shear and identified a new parallel trend to the southeast, which remains untested by drilling.
Middle Island also conducted initial bottle roll cyanidation metallurgical test work on 17 individual samples derived from diamond core which strongly suggests that mineralisation tested to date is amenable to conventional CIP/CIL extraction. The metallurgical samples tested various oxidation states, rock types, gold grades and alteration styles. Samples were prepared at a nominal grind-size of 80% passing 75 microns and subjected to 72 hour bottle roll tests, with cyanide solution readings taken at 12, 24, 36, 48 and 72 hour intervals. Final solution readings (72 hours) against calculated head grades generated average indicative recoveries of 93%, 97% and 95% from oxide, transitional and primary mineralisation types respectively.
K4-K5 Exploration Potential
Tajiri believes that the K4-K5 prospect presents excellent exploration potential evidenced by the combination of processed IP results with historic drilling as presented in Figure 6. This shows that the inference pattern between resistivity and chargeability, believed to be consistent with zones of silica-pyrite alteration, is often associated with the better drill intersections and that these zones to date have only been tested by wide spaced drilling.
Evident, upon a close inspection of Figure 6, is that the majority of significant drill intersections are spatially associated with the resistive-chargeable zones. Further that drill line spacing has resulted in seven resistive-chargeable zones of between 400-700m being tested by only one or two lines of drilling and where those zones have been tested, significant drill intercepts have mostly been returned. There is therefore a large strike of each resistive-chargeable zone as yet untested by drilling. Furthermore, the largest resistive-chargeable zones, located to the south of drilling and east of UTM 533,500 remain completely untested by drilling.
It is Tajiri’s opinion that the K4-K5 project offers substantial potential to move quickly from drill testing both the along strike potential of historic drill intersections, guided by IP, and drill testing the undrilled largest resistive-chargeable zones into a resource definition drill program.
Figure 5:
http://www.globenewswire.com/NewsRoom/AttachmentNg/a80c4f68-f842-4e4c-b1ec-c0119145f615
Figure 6:
http://www.globenewswire.com/NewsRoom/AttachmentNg/7828a660-16c3-4c88-8fdb-1e325d87b48c
Of Particular Significance:
1) The largest resistive-chargeable zones of the Prospect in the south and east of 533,500 are untested by drilling.
2) The majority of significant drill intersections are associated with resistive-chargeable zones.
3) Most of the drilled resistive-chargeable zones that have returned significant intersections are untested by drilling for 200-400m of strike.
Tajiri President Mr. Graham Keevil stated:
“Tajiri looks forward to beginning Project due diligence as early as possible and conducting in country reviews in early March. We look forward to working closely with Middle Island during the due diligence period in order to complete the transaction and subsequently continue building on the excellent work that Middle Island have completed to date.”
“The board of Tajiri believes that the Reo Project offers compelling upside, at an attractive entry price, and gives shareholders exposure to an advanced gold project, located in an excellent mining jurisdiction that with minimal work can become subject of a resource definition drilling program. The agreement also further validates the Company’s growing portfolio of Guyana based Gold Projects and the potential value they represent.”
John Higgins, a Member of the AusIMM is an independent consulting geologist and has practiced for 14 years. He is a qualified person with respect to the technical information contained within this press release as define by NI43-101 and has reviewed and approved this press release.
On Behalf of Tajiri Resource Corp,
John Higgins, MAusIMM #202299
| Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. |
| This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements.
Neither Tajiri, nor the author of this report, is qualified to provide extensive comment on any legal issues associated with the tenure of the Reo Project. Assessment and reporting of these aspects relies on information provided by Middle Island and has not been independently verified by Tajiri or Mr. Higgins. No warranty or guarantee, be it express or implied, is made by Tajiri or Mr. Higgins with respect to the completeness or accuracy of the legal aspects of the tenure of the Reo Project. Neither Tajiri, nor Mr. Higgins accepts any responsibility or liability in any way whatsoever to any person or entity in respect of these parts of this document, or any errors in, or omissions from it, whether arising from negligence or any other basis in law whatsoever. |
Contact Information:
Tajiri Resources Corp.
Graham Keevil
President, CEO
604-642-0115 or Toll Free 866-345-0115
604-642-0116 (FAX)
[email protected]
| Tables of Results |
| Table 1: Morley Prospect -Selected MDI Significant RC drill intercepts |
|
Hole |
Prospect |
East (m) |
North (m) |
RL (m) |
Total Depth (m) |
From (m) |
To (m) |
Width (m) |
Au (g/t) |
| MRRC0001 | Morley | 540,261 | 1,388,183 | 299 | 84 | 17 | 19 | 2 | 18.0 |
| including | 17 | 18 | 1 | 32.5† | |||||
| 26 | 27 | 4 | 2.85 | ||||||
| MRRC0002 | Morley | 540,240 | 1,388,220 | 301 | 86 | 31 | 32 | 1 | 3.54* |
| 36 | 37 | 1 | 21.9 | ||||||
| 44 | 45 | 1 | 3.35 | ||||||
| 69 | 71 | 2 | 2.11 | ||||||
| MRRC0003 | Morley | 540,263 | 1,388,219 | 299 | 72 | 39 | 45 | 6 | 2.37 |
| including | 40 | 41 | 1 | 4.66* | |||||
| and | 44 | 45 | 1 | 3.26* | |||||
| MRRC0004 | Morley | 540,430 | 1,388,195 | 313 | 102 | 96 | 97 | 1 | 3.74 |
| MRRC0005 | Morley | 540,440 | 1,388,155 | 299 | 84 | 33 | 34 | 1 | 2.05 |
| 74 | 84 | 10 | 9.63 | ||||||
| including | 74 | 75 | 1 | 43.0† | |||||
| and | 82 | 83 | 1 | 13.5† | |||||
| MRRC0006 | Morley | 540,400 | 1,388,200 | 305 | 106 | 90 | 96 | 6 | 2.47 |
| including | 93 | 94 | 1 | 8.78* | |||||
| MRRC0008 | Morley | 540,200 | 1,388,185 | 300 | 84 | 29 | 30 | 1 | 2.00 |
| 46 | 47 | 1 | 7.41 | ||||||
| MRRC0009 | Morley | 540,202 | 1,388,230 | 298 | 114 | 70 | 71 | 1 | 2.90 |
| MRRC0010 | Morley | 540,396 | 1,388,236 | 307 | 126 | 101 | 102 | 1 | 2.49 |
| MRRC0015 | Morley | 540,498 | 1,388,246 | 298 | 84 | 24 | 25 | 1 | 2.30 |
| MRRC0016 | Morley | 540,400 | 1,388,160 | 303 | 88 | 60 | 65 | 5 | 4.72 |
| including | 60 | 61 | 1 | 10.1† | |||||
| MRRC0027 | M -Satellite 3 | 539,155 | 1,387,125 | 293 | 90 | 32 | 33 | 1 | 3.01 |
| MRRC0028 | M -Satellite 4 | 539,200 | 1,387,100 | 295 | 84 | 23 | 24 | 1 | 2.87 |
| MRRC0033 | Morley | 540,160 | 1,388,200 | 294 | 90 | 34 | 36 | 2 | 3.08 |
| MRRC0036 | Morley | 540,256 | 1,388,257 | 304 | 132 | 78 | 80 | 2 | 5.9 |
| MRRC0040 | Morley | 540,400 | 1,388,120 | 306 | 82 | 33 | 34 | 1 | 75.5 |
| 37 | 38 | 1 | 7.13 | ||||||
| 45 | 50 | 5 | 2.15 | ||||||
| MRRC0043 | Morley | 540,436 | 1,388,236 | 314 | 54 | 33 | 35 | 2 | 2.51 |
| MRRC0062 | Morley | 540,360 | 1,388,170 | 302 | 84 | 77 | 78 | 1 | 5.44 |
| MRRC0067 | Morley | 540,380 | 1,388,170 | 300 | 80 | 29 | 30 | 1 | 5.32 |
NB: All holes drilled to grid 180o and inclined at -60o
Initial significant intercepts calculated at a 1 g/t cutoff including 2m of internal waste
* Denotes calculated using 3g/t cutoff and no internal waste.
† Denotes calculated at a 10g/t cutoff and no internal waste.
| Table 2: K4-K5 Prospect Selected significant MDI RAB intercepts | |||||||||||||||||
| Hole | Prospect | East | North | RL | Dip | Azi | From | To | Width (m) |
Au g/t | |||||||
| MRRB0009 | K5 | 532,470 | 1,371,406 | 282 | -50 | 360 | 0 | 8 | 8 | 8.20 | |||||||
| including | 4 | 8 | 4 | 16.2 | |||||||||||||
| MRRB0030 | K5 | 532,630 | 1,371,235 | 289 | -50 | 360 | 4 | 40 | 36 | 0.87 | |||||||
| including | 12 | 16 | 4 | 2.83 | |||||||||||||
| and | 28 | 32 | 4 | 1.78 | |||||||||||||
| MRRB0037 | K5 | 532,706 | 1,371,311 | 288 | -50 | 360 | 56 | 60 | 4 | 0.98 | |||||||
| MRRB0044 | K5 | 532,790 | 1,371,352 | 291 | -50 | 360 | 32 | 36 | 4 | 1.88 | |||||||
| MRRB0049 | K5 | 532,787 | 1,371,144 | 289 | -50 | 360 | 48 | 52 | 4 | 1.59 | |||||||
| MRRB0062 | K5 | 532,946 | 1,371,054 | 297 | -50 | 360 | 28 | 40 | 12 | 4.99 | |||||||
| including | 28 | 32 | 4 | 14.0 | |||||||||||||
| MRRB0076 | K5 | 532,470 | 1,370,948 | 288 | -50 | 360 | 4 | 48 | 44 | 1.48 | |||||||
| including | 4 | 16 | 12 | 4.11 | |||||||||||||
| MRRB0256 | K5 | 532,638 | 1,371,305 | 282 | -50 | 180 | 40 | 44 | 4 | 5.83 | |||||||
| MRRB0256 | and | 52 | 56 | 4 | 1.1 | ||||||||||||
| MRRB0268 | K5 | 532,652 | 1,370,776 | 296 | -50 | 360 | 12 | 16 | 4 | 1.07 | |||||||
| MRRB0268 | and | 20 | 24 | 4 | 1.12 | ||||||||||||
| MRRB0277 | K5 | 531,816 | 1,370,118 | 290 | -50 | 360 | 52 | 56 | 4 | 1.63 | |||||||
| MRRB0278 | K5 | 531,815 | 1,370,158 | 309 | -50 | 360 | 16 | 20 | 4 | 1.68 | |||||||
| MRRB0281 | K5 | 531,812 | 1,369,869 | 299 | -50 | 360 | 20 | 24 | 4 | 8.54 | |||||||
| MRRB0287 | K5 | 531,529 | 1,370,281 | 285 | -50 | 360 | 0 | 4 | 4 | 1.6 | |||||||
| MRRB0290 | K5 | 531,531 | 1,370,378 | 279 | -50 | 360 | 36 | 44 | 8 | 1.135 | |||||||
| MRRB0389 | K5 | 532,047 | 1,372,817 | 288 | -50 | 360 | 76 | 80 | 4 | 3.16 | |||||||
| MRRB0390 | K5 | 532,044 | 1,372,875 | 289 | -50 | 360 | 24 | 28 | 4 | 1.26 | |||||||
| MRRB0412 | K4 | 531,701 | 1,372,669 | 276 | -50 | 360 | 20 | 24 | 4 | 12.2 | |||||||
| MRRB0423 | K4 | 533,303 | 1,372,097 | 277 | -50 | 360 | 12 | 16 | 4 | 3.92 | |||||||
| MRRB0427 | K4 | 533,306 | 1,372,196 | 272 | -50 | 360 | 48 | 56 | 8 | 2.745 | |||||||
| MRRB0427 | and | 360 | 64 | 66 | 2 | 1.14 | |||||||||||
| MRRB0428 | K4 | 533,305 | 1,372,237 | 275 | -50 | 360 | 16 | 20 | 4 | 1.29 | |||||||
| MRRB0515 | K5 | 533,378 | 1,371,292 | 296 | -50 | 360 | 28 | 32 | 4 | 1.16 | |||||||
| MRRB0535 | K5 | 532,012 | 1,370,563 | 296 | -50 | 360 | 32 | 36 | 4 | 1.44 | |||||||
| MRRB0575 | K4 | 531,406 | 1,371,465 | 263 | -50 | 360 | 0 | 4 | 4 | 1.57 | |||||||
| MRRB0585 | K5 | 530,059 | 1,370,590 | 287 | -50 | 360 | 16 | 20 | 4 | 3.4 | |||||||
| MRRB0610 | K4 | 532,709 | 1,372,128 | 274 | -50 | 360 | 20 | 24 | 4 | 2.38 | |||||||
| MRRB0671 | K5 | 533,566 | 1,374,915 | 275 | -50 | 360 | 8 | 12 | 4 | 1.38 | |||||||
| MRRB1551 | K4 | 532,014 | 1,370,673 | 292 | -50 | 360 | 52 | 54 | 2 | 2.82 | |||||||
| MRRB1588 | K4 | 531,296 | 1,370,132 | 292 | -50 | 360 | 12 | 20 | 8 | 1.475 | |||||||
| MRRB1588 | K4 | 531,296 | 1,370,132 | 292 | -50 | 360 | 24 | 28 | 4 | 1.65 | |||||||
| MRRB1588 | and | 360 | 36 | 48 | 12 | 1.69 | |||||||||||
| MRRB1591 | K4 | 532,304 | 1,370,315 | 298 | -50 | 360 | 12 | 16 | 4 | 1.19 | |||||||
| MRRB1595 | K4 | 532,302 | 1,370,456 | 300 | -50 | 360 | 44 | 48 | 4 | 1.66 | |||||||
| MRRB1596 | K4 | 532,303 | 1,370,491 | 301 | -50 | 360 | 20 | 28 | 8 | 1.7 | |||||||
| MRRB1607 | K4 | 532,663 | 1,370,998 | 286 | -50 | 360 | 12 | 16 | 4 | 1.5 | |||||||
| MRRB1608 | K4 | 532,664 | 1371,016 | 283 | -50 | 360 | 4 | 16 | 12 | 3.23 | |||||||
| MRRB1611 | K4 | 532,667 | 1,371,063 | 282 | -50 | 360 | 20 | 26 | 6 | 1.24 | |||||||
| MRRB1624 | K5 | 531,702 | 1,372,742 | 286 | -50 | 360 | 60 | 68 | 8 | 3.16 | |||||||
| MRRB1625 | K5 | 531,702 | 1,372,794 | 291 | -50 | 360 | 68 | 76 | 8 | 4.68 | |||||||
| MRRB1649 | K5 | 532,042 | 1,373,237 | 280 | -50 | 360 | 16 | 24 | 8 | 1.06 | |||||||
| MRRB1663 | K4 | 532,970 | 1,370,877 | 293 | -50 | 360 | 44 | 48 | 4 | 3.54 | |||||||
| MRRB1664 | K4 | 532,972 | 1,370,908 | 271 | -50 | 360 | 4 | 8 | 4 | 2.25 | |||||||
| Calculated using Micromine, 1ppm trigger | |||||||||||||||||
| Table 3: K4-K5 Prospect Selected significant MDI RC intercepts | ||||||||||
|
Hole |
Prospect |
East (m) |
North (m) |
RL (m) |
Total Depth (m) |
From (m) |
To (m) |
Width (m) |
Grade (g/t) |
|
| MRRC0073 | K5 | 532,039 | 1,373,219 | 284 | 80 | 36 | 42 | 6 | 2.73 | |
| 53 | 55 | 2 | 1.19 | |||||||
| MRRC0074 | K5 | 532,040 | 1,373,182 | 284 | 120 | 73 | 77 | 4 | 1.65 | |
| 88 | 89 | 1 | 2.66 | |||||||
| MRRC0076 | K5 | 531,692 | 1,372,710 | 287 | 120 | 64 | 68 | 4 | 2.82 | |
| including | 64 | 66 | 2 | 4.6 | ||||||
| 100 | 102 | 2 | 8.04 | |||||||
| MRRC0077 | K5 | 531,701 | 1,372,770 | 287 | 123 | 46 | 50 | 4 | 3.20 | |
| 79 | 80 | 1 | 2.23 | |||||||
| 97 | 98 | 1 | 1.06 | |||||||
| 109 | 112 | 3 | 4.52 | |||||||
| including | 110 | 112 | 2 | 5.68 | ||||||
| MRRC0081 | K4 | 532,661 | 1,371,008 | 290 | 102 | 7 | 23 | 16 | 1.95 | |
| 54 | 60 | 6 | 2.27 | |||||||
| including | 55 | 56 | 1 | 5.3 | ||||||
| 80 | 81 | 1 | 1.03 | |||||||
| 85 | 98 | 13 | 2.19 | |||||||
| including | 86 | 87 | 1 | 9.31 | ||||||
| MRRC0082 | K4 | 532,664 | 1,370,973 | 290 | 102 | 94 | 96 | 2 | 1.59 | |
| MRRC0083 | K4 | 532,646 | 1,370,767 | 297 | 23 | 19 | 20 | 1 | 9.41 | |
| MRRC0084 | K4 | 532,653 | 1,370,732 | 298 | 86 | 19 | 20 | 1 | 4.19 | |
| 27 | 28 | 1 | 2.33 | |||||||
| 59 | 60 | 1 | 2.50 | |||||||
| MRRC0085 | K4 | 532,474 | 1,370,943 | 289 | 123 | 5 | 11 | 6 | 2.23 | |
| including | 7 | 8 | 1 | 5.96 | ||||||
| 33 | 34 | 1 | 1.00 | |||||||
| 46 | 50 | 4 | 1.11 | |||||||
| 53 | 54 | 1 | 1.54 | |||||||
| 61 | 64 | 3 | 3.48 | |||||||
| including | 62 | 63 | 1 | 7.64 | ||||||
| MRRC0087 | K4 | 532,009 | 1,370,538 | 296 | 94 | 69 | 70 | 1 | 1.50 | |
| 76 | 77 | 1 | 2.95 | |||||||
| MRRC0089 | K4 | 532,302 | 1,370,406 | 301 | 141 | 22 | 23 | 1 | 2.14 | |
| 36 | 37 | 1 | 2.16 | |||||||
| 104 | 105 | 1 | 2.26 | |||||||
| 131 | 132 | 1 | 1.10 | |||||||
| MRRC0090 | K4 | 532,474 | 1,370,901 | 290 | 124 | 56 | 57 | 1 | 1.24 | |
| MRRC0091 | K4 | 531,815 | 1,370,144 | 297 | 100 | 20 | 23 | 3 | 1.70 | |
| MRRC0091 | 25 | 35 | 10 | 3.47 | ||||||
| including | 25 | 28 | 3 | 7.70 | ||||||
| 38 | 39 | 1 | 1.57 | |||||||
| 43 | 44 | 1 | 1.20 | |||||||
| MRRC0092 | K4 | 531,815 | 1,370,016 | 299 | 123 | 63 | 64 | 1 | 1.41 | |
| 70 | 71 | 1 | 1.21 | |||||||
| MRRC0093 | K4 | 531,525 | 1,370,010 | 296 | 116 | 62 | 63 | 1 | 1.05 | |
| 82 | 83 | 1 | 1.42 | |||||||
| 94 | 95 | 1 | 1.35 | |||||||
| Table 3: K4-K5 Prospect Selected significant MDI RC intercepts (continued) | |||||||||
|
Hole |
Prospect |
East (m) |
North (m) |
RL (m) |
Total Depth (m) |
From (m) |
To (m) |
Width (m) |
Grade (g/t) |
| MRRC0094 | K4 | 531,524 | 1,370,054 | 296 | 90 | 27 | 31 | 4 | 1.47 |
| including | 30 | 31 | 1 | 3.53 | |||||
| 39 | 40 | 1 | 1.17 | ||||||
| 69 | 71 | 2 | 2.29 | ||||||
| 89 | 90 | 1 | 1.66 | ||||||
| MRRC0095 | K4 | 531,308 | 1,369,943 | 295 | 121 | 51 | 52 | 1 | 2.56 |
| MRRC0097 | K4 | 532,658 | 1,371,051 | 290 | 93 | 13 | 17 | 4 | 2.62 |
|
including |
15 | 17 | 2 | 4.32 | |||||
| 19 | 24 | 5 | 1.82 | ||||||
| Including | 19 | 20 | 1 | 4.80 | |||||
| 28 | 30 | 2 | 1.25 | ||||||
| 32 | 33 | 1 | 1.12 | ||||||
| 34 | 35 | 1 | 1.29 | ||||||
| 38 | 39 | 1 | 1.38 | ||||||
| MRRC0098 | K4 | 532,634 | 1,370,764 | 296 | 69 | 18 | 19 | 1 | 1.23 |
| 30 | 36 | 6 | 1.87 | ||||||
Notes: Significant intersections calculated at a 1g/t cut-off, including 2m of internal waste.
Included intervals calculated using 3 g/t cut-off and no waste.
| Table 4: K4-K5 Prospect – Significant MDI Diamond Drilling Intercepts | ||||||||||
|
Hole_ID |
Prospect |
East (m) |
North (m) |
RL (m) |
Dip (o) |
Azimuth (o) |
From (m) |
To (m) |
Width (m) |
Grade (g/t) |
| MRDD0001 | K4-5 | 532635 | 1371340 | 277 | -60 | 180 | 18 | 19 | 1 | 2.16 |
| MRDD0001 | K4-6 | 26 | 28 | 2 | 1.54 | |||||
| MRDD0001 | K4-7 | 33 | 34 | 1 | 1.49 | |||||
| MRDD0001 | K4-8 | 48 | 51 | 3 | 11.5 | |||||
| including | 48 | 49 | 1 | 23.2 | ||||||
| MRDD0001 | K4-5 | 58 | 59 | 1 | 1.1 | |||||
| MRDD0002 | K4-5 | 531815 | 1370069 | 299 | -50 | 360 | 43 | 47 | 4 | 1.13 |
| MRDD0002 | K4-5 | 67 | 68 | 1 | 1.28 | |||||
| MRDD0002 | K4-5 | 126 | 127 | 1 | 6.14 | |||||
| MRDD0003 | K4-5 | 532469 | 1370858 | 288 | -60 | 360 | 55 | 56 | 1 | 3.37 |
| MRDD0003 | K4-5 | 66 | 67 | 1 | 5.41 | |||||
| MRDD0003 | K4-5 | 149 | 150 | 1 | 3.03 | |||||
| MRDD0003 | K4-5 | 160 | 162 | 2 | 16.8 | |||||
| including | 161 | 162 | 1 | 31.9 | ||||||
| MRDD0004 | K4-5 | 532630 | 1371172 | 282 | -60 | 360 | 41 | 43 | 2 | 1.05 |
| MRDD0005 | K4-5 | 533306 | 1372160 | 281 | -60 | 360 | 148 | 149 | 1 | 1.42 |
Notes: Calculated using Micromine software at a 1g/t Au cut -off, with included intervals calculated at a 5g/t Au cut-off.
Middle Island Resources Ltd ACN 142 361 608 ASX code: MDI www.middleisland.com.au
ASX Release – 13 February 2018
Heads of Agreement executed for option over Reo gold project in Burkina Faso, West Africa
▪ Middle Island today executed a Heads of Agreement with Tajiri Resources Corp. (TSX-V:TAJ, “Tajiri”) for Tajiri to be granted an option to acquire a 100% interest in the Reo gold project in Burkina Faso, West Africa.
▪ Summary commercial terms involve aggregate cash payments to Middle Island of US$335,000 and the issue of 5 million shares, representing 8% of Tajiri’s then post-issue expanded capital, plus a 2% net smelter return (NSR) royalty, which can be purchased by Tajiri for US$5 million.
▪ Via the equity and royalty components, the transaction structure allows Middle Island to retain a significant indirect interest in the upside potential of the Reo project. The equity component also offers considerable exposure to Tajiri’s significant gold project interests in Guyana, South America.
▪ On completion, the Reo project transaction would represent the divestment of Middle Island’s remaining gold interests in West Africa, allowing the Company to fully focus on its advanced Sandstone gold project development in Western Australia.
▪ The Company looks forward to working closely with Tajiri to finalise the transaction.
REO GOLD PROJECT (West Africa)
Heads of Agreement for an Option to Purchase
Middle Island Resources Limited (“Middle Island”, “MDI” or “the Company”) is pleased to advise that it has executed a Heads of Agreement (“HoA”) relating to divesting its 100% interest in the Reo gold project in West Africa to Tajiri Resources Corp. (TSX-V:TAJ, “Tajiri”) via an Option to Purchase Agreement.
Transaction Terms
Tajiri will pay MDI US$35,000 on execution of the HoA in return for a three-month exclusivity period in which to complete its due diligence.
On satisfactory completion of due diligence and signing of a formal Option to Purchase Agreement, the essential terms of which are set out in the HOA, Tajiri is required to pay a further US$150,000 and issue to Middle Island 2.5 million Tajiri shares. By that agreement, Middle Island will grant Tajiri an exclusive option to purchase MDI’s entire interest in the Reo project (the “Option”). The term of the Option is 18 months. During the Option term Tajiri must pay all expenses associated with maintaining the Reo Project permits in accordance with Burkinabe law.
Should Tajiri elect to exercise the Option, it will pay a further US$150,000 and issue Middle Island with a further 2.5 million Tajiri shares.
If Tajiri has not exercised the Option within 12 months, it will be required to pay US$50,000 to Middle Island as a non-refundable advance on the Option exercise cash consideration, with the balance of US$100,000 payable if the Option is exercised during the remaining six months of the Option term. If the Option is exercised within the first 12 months the full US$150,000 is payable on exercise.
The stipulated number of shares the subject of the two tranches to be issued to Middle Island were calculated on a fully diluted basis based on Tajiri’s current capital structure, with additional shares to be issued to Middle Island at no cost if Tajiri issues further shares or options prior to exercising the Option. All shares issued to MDI will be subject to any mandatory minimum TSX-V restriction periods.
If the Option is exercised by Tajiri, Middle Island will retain a 2% net smelter return (NSR) royalty on any minerals derived from the Reo project. Tajiri will have the right to acquire that royalty from Middle Island for US$5 million.
If the Option is not exercised by Tajiri, Middle Island will retain all consideration already paid to Middle Island and it will continue to own its 100% interest in the Reo Project.
Middle Island Managing Director, Mr Rick Yeates:
“The transaction structure allows Middle Island shareholders to retain a significant indirect interest in the upside potential of the Reo project via the Tajiri equity and royalty components. The full equity component, which will represent some 8% of Tajiri’s issued capital on a fully diluted, post issue basis, also offers shareholders considerable exposure to Tajiri’s highly prospective gold project interests in Guyana, South America.
“On completion, the Reo project transaction will represent the divestment of Middle Island’s remaining gold interests in West Africa, allowing the Company to fully focus on its advanced Sandstone gold project development in Western Australia.”
“Middle Island looks forward to working closely with Tajiri to facilitate remaining aspects of the due diligence and documentation, in order to complete the transaction and progress the Reo project towards feasibility.
“Middle Island will keep shareholders updated on progress with the Reo project transaction during 2018.”
ASX Release – 13 February 2018
COMPANY CONTACTS:
Rick Yeates – Managing Director +61 (0)401 694 313
MEDIA CONTACT:
Kevin Skinner Field Public Relations +61 (0)8 8234 9555 / +61 (0)414 822 631
WEBSITE: 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. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors.
We Seek Safe Harbour.
1 All Resources noted in paragraph 2 above have not been independently verified by Tajiri and rely on publicly reported and referenced Resource and Reserve statements of other public listed companies as noted below. The Resources reported in paragraph 2 are totals of Measured, Indicated and Inferred Resources inclusive of Proven and Probable Reserves.
Karma – Endeavour Mining Corporation MI&I resources, inclusive of P&P Reserves of 3.772 Moz https://www.endeavourmining.com/our-portfolio/reserves-and-resources/default.aspx. Bissa – Nord Gold – Bissa and Bouly deposits MI&I resources, inclusive of P&P Reserves of 6.577 Moz http://www.nordgold.com/upload/iblock/f05/Nordgold%202016%20Mineral%20Resources%20and%20Ore%20Reserves%20Update_1.pdf Hounde – Endeavour Mining Corporation MI&I resources, inclusive of P&P Reserves of 4.90 Moz https://www.endeavourmining.com/our-portfolio/reserves-and-resources/default.aspx Mana– Semafo MI&I resources, inclusive of P&P Reserves of 8.581 Moz http://www.semafo.com/English/operations-and-exploration/reserves-and-resources/default.aspx
2 All mineralised intercepts reported as down hole not true widths
3 All mineralised intercepts reported as down hole not true widths
4 All mineralised intercepts reported as down hole not true widths
5 All mineralised intercepts shown as down hole intercepts and not true widths
6 All mineralised intercepts reported as down hole not true widths
7 All mineralised intercepts reported as down hole not true widths
8 All mineralised intercepts reported as down hole not true widths
9 All mineralised intercepts reported as down hole not true widths
10 All mineralised intercepts reported as down hole not true widths