Why have two new Serbian licences put Middle Island Resources (ASX:MDI) next to the Majdanpek copper-gold mine?

Sonal Goyal

12 November 2026 06:01 PM AEDT

Why have two new Serbian licences put Middle Island Resources (ASX:MDI) next to the Majdanpek copper-gold mine?

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Key Highlights

Serbia's Ministry of Energy and Mining has issued two exploration licences for the Timok Project.
The Majdanpek West licence lies about 3 kilometres west of the Majdanpek copper-gold mine.
Two strict nature reserves within the Majdanpek West licence area are excluded from exploration, with a 2-kilometre buffer prohibiting trenching and drilling.
Each licence runs for two years, with extensions subject to meeting exploration commitments.

Middle Island Resources (ASX:MDI) announced on 9 November 2026 that Serbia's Ministry of Energy and Mining had issued two exploration licences for its Timok Project. The Majdanpek West licence was issued on 30 September and the Kulmea Albina licence on 30 October 2026.

Both are held through the company's wholly owned Serbian subsidiary, Konstantin Resources. Each licence runs for two years, with extensions subject to meeting exploration commitments.

Prominent neighbours

Majdanpek West lies about 3 kilometres west of the Majdanpek copper-gold mine, a joint venture between the Serbian Government and Zijin Mining (SHA:601899) operated by Serbia Zijin Copper. According to the company, the mine hosts 6 million tonnes of copper and 11 million ounces of gold.

The licence is also about 1 kilometre from the Čoka Marin polymetallic deposit and roughly 10 kilometres north of DPM Metals' (TSX:DPM) Dumitru Potok project, which has a resource of 64.1 million tonnes at 1.07 grams per tonne gold and 1.09% copper. About 12 kilometres north lies Čoka Rakita, a gold skarn deposit with 7.3 million tonnes at 6.44g/t gold for 1.5 million ounces.

Proximity to major deposits does not mean similar mineralisation exists on Middle Island's ground, but it does place the company within one of Europe's most productive copper-gold districts.

Restrictions and conditions

Two strict nature reserves, Felješana and Mustafa, fall within the Majdanpek West licence area and are excluded from exploration. A 2-kilometre buffer around the reserves prohibits trenching and drilling. These exclusions reduce the area that can be explored and may affect where targets can be tested.

Raiden Resources (ASX:RDN) retains a 1% net smelter return Royalty over Majdanpek West, which Middle Island can elect to reduce to 0.5%. The licence is also subject to a sale and purchase agreement with Raiden, with conditions precedent still outstanding.

Historical work

Previous explorers drilled seven diamond holes for 2,407.7 metres at Majdanpek West between 2010 and 2012, and two holes for 1,244 metres in 2019.

Kulmea Albina covers the northern part of the historic Blagojev Kamen goldfield, which contains workings dating from before the First World War, including the Brodica underground working, the Cubera mine and numerous shallow adits and pits.

Management comment

Executive Chairman Daniel Raihani said the company now had enough ground to define a target set, and that the team would begin desktop studies and fieldwork to identify priority targets.

The wider portfolio

The Timok Project lies about 120 kilometres east-south-east of Belgrade. Middle Island's Serbian portfolio spans 12 licences and applications covering about 582 square kilometres across the Bobija, Timok and Priboj projects. Assays are pending from soil sampling at the Tisovik silver-lead-zinc target at Bobija and from rock-chip sampling at the Beli Potok gold target at Priboj.

Why Serbia

The Timok Magmatic Complex has produced several significant discoveries over the past two decades, attracting major miners and juniors. Exploration in Serbia does carry considerations around permitting, community engagement and environmental protection, as the reserve exclusions show.

The Timok region is also home to the Čukaru Peki copper-gold deposit, which Zijin brought into production, and that success has driven a wave of licence applications by juniors. Competition for ground near major deposits is intense, which is one reason licence grants such as these can be valuable even before any drilling. Middle Island's challenge will be to convert its position into a drill-ready target set within the two-year licence terms. Extensions will depend on meeting the committed work programme.

Next steps

Planned work at Timok includes mapping, soil and rock-chip sampling, trenching, Geophysical surveys and drilling. The pending assays from Bobija and Priboj, and completion of the Raiden transaction conditions, are the nearest milestones.

FAQs

Q: Which licences were issued?

A: Majdanpek West, issued on 30 September, and Kulmea Albina, issued on 30 October 2026.

Q: Who holds the licences?

A: The company's wholly owned Serbian subsidiary, Konstantin Resources.

Q: What restricts exploration?

A: Two strict nature reserves, Felješana and Mustafa, are excluded, and a 2-kilometre buffer around them prohibits trenching and drilling.

Q: What royalty applies to Majdanpek West?

A: Raiden Resources retains a 1% net smelter return royalty, which Middle Island can elect to reduce to 0.5%.

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