Middle Island Resources Broadens Copper-Gold Footprint (ASX:MDI)

The Middle Island Resources Ltd [ASX:MDI] share price has been in a downwards trend since topping out in August last year at the height of the gold price rally.

Excitement in MDI shares appears to have returned however, with the discovery of significant surface copper oxide mineralisation at its new Crosswinds prospect.

ASX MDI Share Price Chart

Source: Tradingview

The last half of 2020 was a tough one for MDI.

Even an increase in their maiden mineral resource estimate at the Sandstone Gold Project in November failed to get the share price ticking upwards again.

At the time of writing, MDI’s share price is up 1 cent or 2.94%, trading at 35 cents per share.

Are base metals the gold of 2021?

Perhaps one of the more underappreciated investments opportunities last year was the strong rise in base metals like iron and copper.

In fact, both metals have outperformed gold over the last 12 months.

In the last six months, the price of copper has climbed over 23% while gold has only increased 2.37%.

Which could mean renewed confidence in the MDI share price in 2021.

MDI announced today that it has lodged two new Exploration Licence Applications (ELAs) to secure the immediate proximity of the explorer’s recent Crosswinds copper discovery.

The Crosswinds discovery forms part of the Barkly copper-gold super project in the Northern Territory.

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MDI announced its maiden discovery at Crosswinds in late December last year, boasting Spot pXRF readings between 24.8% and 76.2%.

Which were validated by composite chip sampling assays of 130m at 0.76% Cu.

Managing director, Rick Yeates, commented at the time:

Even disregarding the high-grade copper results, the Crosswinds discovery is particularly significant in that it’s interpreted to provide ‘proof of concept’ for the Barkly mineralised model.

Crosswinds is an extremely exciting discovery. While there is little doubt that more such surface occurrences will be identified by on-going exploration, the focus is the potential for significant primary copper deposits within the basement.

What’s next for Middle Island Resources

Drilling at the new tenements can only commence once MDI receives the ELAs.

In the meantime, the explorer said it will perform further open file and government drilling data research before airborne magnetic and electromagnetic survey during the 2021 dry season.

With the Barkley Project now covering an area of 4,411km2, MDI could be a stock to add to your watchlist if we see more rapid growth in the copper price.

Regards,

Lachlann Tierney
For The Rum Rebellion

PS: Check out these three deep value stocks currently underpriced: these ASX gems could potentially deliver market-beating returns as the economy recovers. Click here to learn more.


Lachlann Tierney is a writer for The Rum Rebellion and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. 


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