MONTREAL, QUEBEC -- (Marketwire) -- 03/11/13 -- Midland Exploration Inc. ("Midland") (TSX VENTURE: MD), in partnership with Osisko Mining Corporation ("Osisko "), is pleased to report the start of a new drilling campaign to test several first order and favourable targets identified by the recent induced polarisation ("IP") survey on its Casault property. The property covers the Sunday Lake Fault over more than 20 kilometres strike length and is located about 40 kilometres east of the Detour Lake gold deposit, which currently hosts a total of 23.3 million ounces of gold in measured and indicated resources (NI 43-101 compliant) and 5.8 million ounces of gold in inferred resources (NI 43-101 compliant), including 15.6 million ounces of gold in near-surface proven and probable mineral reserves (NI 43-101 compliant) (source: press release by Detour Gold Corporation dated January 25, 2012).
The proposed 2,500 metres drill program has for principal objective to test up to fifteen new IP anomalies that have never been tested. Most of these anomalies are located within the highly favourable Sunday Lake deformation corridor.
Several New Promising Areas Identified by the IP Survey
In February 2013, a 70 kilometres-long IP survey was completed in two areas (East Block and West Block) which covered up to 3 kilometres north of the Sunday Lake fault and located less than 3 kilometres west of the Martiniere gold project owned by Balmoral Resources Ltd ("Balmoral"). The surveys were also situated as a follow-up to the new auriferous structure intersected by drill hole CAS-12-07 which had returned 10.4 g/t Au over 1.45 metres during the 2012 drill program.
On the East block, the IP survey was successful in identifying several new anomalies characterized by combined increases of chargeability and resistivity, often typical of gold-bearing alteration zones. The IP trends show preferential ENE and NW-SE directions which intersect in the middle of a complex kilometre-scale magnetic formation, which is folded, faulted and never drill tested. This new favourable area is located in the western extension of Balmoral's Martiniere West zone where they recently announced that the structure possibly extends over more than 500 metres west, with intersections up-to 6.71 g/t Au over 7.4 metres (source: press release by Balmoral dated March 4th 2013).
On the West block, untested IP trends were identified in the hinge of a regional fold located hundreds of metres north of the Sunday Lake fault where a gold anomalous zone was identified by drill holes CAS-12-20 and 22 in 2012.
Furthermore, three additional IP lines were completed in the immediate area surrounding drill hole CAS-12-07 which had returned 10.4 g/t Au over 1.45 metres hosted by a up-to 14 metres thick structure anomalous in gold. The central line tested directly over DDH CAS-12-07, while the other two were located 250 metres on either side. Results from the survey on these additional lines suggest a strong chargeability anomaly, forming an IP axis with a minimum length of 500 metres and interpreted to be directly associated to the mineralized interval (drill hole CAS-12-07) which remains untested at depth or along strike.
Besides an additional priority IP axis which coincides with VTEM conductors at 400 metres north of drill hole CAS-12-07, other chargeability anomalies are found associated with a magnetic anomaly occurring within the granodiorite.
The Casault gold property consists in a total of 326 claims exclusively owned by Midland and covering an approximate area of 179.5 square kilometres.
Figures locating the IP target areas can be consulted at the following links:
For Figure 1 - Map of the Abitibi showing the location of the Casault project, click here: http://media3.marketwire.com/docs/AbitibiGeologyMar2013.pdf
For Figure 2 - Regional geology map of the Casault project, click here: http://media3.marketwire.com/docs/RegGeologyMar2013.pdf
For Figure 3 - Map showing the location of IP target areas, click here: http://media3.marketwire.com/docs/IPTargetsMar2013.pdf
Terms of Exploration Agreement
Osisko can earn 50% of Midland's interest in the property by spending a total of $6,000,000 in exploration work and making payments totaling $600,000 over a period of five years. Midland will be the operator during the first year of the option agreement. The 100 000$ first anniversary payment was just completed. Upon acquiring a 50% interest, Osisko will have the option during a three year period to acquire an additional 15% interest by delivering a bankable feasibility study or by solely assuming all exploration, development and mining operations on the Casault Property, earning a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).
Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and rare earth elements. Midland is proud to count on reputable partners such as Osisko Mining Corporation, Agnico-Eagle Mines Limited, North American Palladium Limited, Japan Oil, Gas and Metals National Corporation and SOQUEM Inc. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.
Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec, and is pursuing exploration on a number of properties, including the Hammond Reef Gold Project in Northern Ontario and the Queenston Upper Beaver Project in the Kirkland Lake area. Osisko employs more than 700 individuals.
This press release was prepared by Mario Masson, VP Midland Exploration and Qualified Person as defined by NI 43-101.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland's periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities.
Neither 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.
Midland Exploration Inc.
Gino Roger, President and Chief Executive Officer
450 420-5978 (FAX)
Most Popular Stories
- Alabama House Speaker Arrested on Felony Ethics Charges
- 'Fury' Blows 'Gone Girl' Out of the Box Office
- Turkey to Help Kurds Reach Fight in Kobani
- Microsoft's Cloud Platform Shines
- German Intelligence Blames Ukraine Rebels for MH17
- ISIS Seeks to Expand Terror War
- Perez Leads Push for Obama's Job Proposals
- 2016 Camaro Shrinks, Moves to Caddy Platform
- Prius Drivers Battle Stereotypes
- Clinton Rallies Early Vote for Landrieu