JOHANNESBURG (miningweekly.com) – ASX-listed Middle Island said on Friday that nonexecutive director Linton Kirk would resign from its board to take on the role of project manager of the Sandstone project, in Western Australia, upon completion of the acquisition later this month.
A mining engineer with over 35 years’ experience in operations worldwide and a Middle Island director since September 2011, Kirk was a key part of the due diligence team for the Sandstone project acquisition.
He would lead the prefeasibility study for the Sandstone project and, assuming a positive outcome, the operation’s subsequent refurbishment and re-commissioning through to commercial gold production.
Kirk would be employed as project manager on a consulting basis, with part of his remuneration package to comprise incentive share options, predicated on achieving agreed stretch targets and milestones.
Middle Island is buying the Sandstone project from Black Oak Minerals for A$2.5-million.
The project is estimated to host a mineral resource of 480 000 oz of gold, with existing drilling indicating that there is significant potential to rapidly expand the resource base. The Sandstone project also includes a 600 000 t/y carbon-in-pulp processing plant, associated infrastructure and a considerable inventory of spares. The plant has been on care and maintenance since 2010, and recommissioning costs have been estimated at between A$5-million and A$8-million.
The tenements also come with a legacy 2% net smelter royalty payable to previous owner Troy Resources, along with a royalty on one of the mining tenements of A$1/t of ore mined and processed, payable to Herald and National Resources Exploration.