-- Posted Wednesday, 20 July 2011 | | Disqus
MONTREAL, QUEBEC--(Marketwire - July 19, 2011) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD, MIDLF.PK) is pleased to announce that its partner, Agnico-Eagle Mines Limited ("Agnico-Eagle"), has reported new gold- bearing drill intersections along the south extension of the Dyke East Zone, as well as the discovery of a new gold-bearing structure located just a few metres below surface. The Maritime-Cadillac Property is contiguous to the Lapa gold mine property (700,000 gold ounces in proven and probable reserves, with 2.8 million tonnes at 7.4 g/t Au), in commercial production since May 2009 (Source: Agnico- Eagle, Lapa Mine Reserves and Resources published December 31, 2010).
Extension of the Dyke East Gold Zone
Drill hole 141-11-31, recently completed along the south extension of the Dyke East Zone, intersected three high-grade gold intervals respectively grading 21.1 g/t Au over 1.2 metres from 412.80 to 414.00 metres, 3.0 g/t Au over 5.20 metres from 425.30 to 430.50 metres, and 4.50 g/t Au over 3.40 metres from 442.00 to 445.40 metres. These intervals are included within a larger gold zone grading 1.7 g/t Au over 46.40 metres, from 399.00 to 445.40 metres. Gold values are mainly associated with silica and biotite alteration zones in felsic dykes with disseminated sulphides (1-2% pyrite and 2-3% arsenopyrite). Many visible gold grains were observed locally over a span of about 20 centimetres in the drill core.
Drill hole 141-11-31 is located about 80 metres south and about 50 metres below drill hole 141-10-23, which yielded a grade of 1.7 g/t Au over 37.85 metres, including an interval at 4.8 g/t Au over 6.0 metres (see Midland press release dated November 23, 2010). The gold-bearing intersections in drill holes 141-10-23 and -31 define a zone that is now interpreted as trending NW-SE rather than N- S. This new orientation for gold-bearing dykes hosted in komatiites may result in new drilling targets in this part of the property. The Dyke East Zone remains untested both above and below drill holes -23 and -31.
Table 1: Significant results from drill hole 141-11-31
Discovery of a new near-surface gold-bearing structure
In addition, drill hole 141-11-31 intersected a new gold-bearing structure located very near the surface, grading 2.2 g/t Au over 1.5 metres, in the very first segment of core sampled following the tubing, from 12.0 to 13.5 metres. This new gold-bearing structure was also intersected in drill hole 141-11-29, but results for the latter are still pending.
In this latest campaign, five (5) holes totalling 2,145.0 metres were drilled, including hole 141-11-29, which was abandoned due to technical problems at 102.4 metres depth. Drill hole 141-11-28, collared about 50 metres north of hole 141-10-23, obtained a grade of 0.5 g/t Au over 2.8 metres, from 352.0 to 354.8 metres. Two other drill holes were completed to test the V4 West Zone discovered in 2010 but no significant values were obtained, although complete analytical results are still pending.
Midland believes these new results on Maritime-Cadillac warrant further drilling in order to test the extensions of the Dyke East Zone as well as the new gold-bearing structure discovered near surface in the north part of the property.
The Maritime-Cadillac Property is well located in the eastern part of the Cadillac mining camp, south of the Lapa gold mine. The presence of significant lithological contacts (Pontiac-Piche-Cadillac) within the Cadillac-Larder Lake deformation zone provides excellent potential for the development of lode gold or disseminated gold deposits.
Maps showing the strategic location of the Maritime-Cadillac Property, as well as a regional longitudinal section, may be consulted using the following links:
For Figure 1 - Map of the Abitibi region showing the location of the Maritime-Cadillac project, click here: http://media3.marketwire.com/docs/Figure_1_Maritime-Cadillac.pdf
For Figure 2 - Regional longitudinal section showing new gold intersections, click here: http://media3.marketwire.com/docs/Figure_2_Longitudinal_Section.pdf
A surface plan and a longitudinal section showing the new intersections are also available on Midland's website.
Quality Control
The exploration program on the Maritime-Cadillac project is conducted by Agnico-Eagle and the data are reviewed by Mario Masson, VP Midland Exploration and Qualified Person as defined by National Instrument 43-101. Assay samples are taken from BQ-size drill core sawn in half; one half is shipped to a commercial laboratory and the other half is kept for future reference. Assays were conducted by ALS Chemex-Chimitec in Val-d'Or. Significant assay results are duplicated at the original laboratory as well as in a second independent laboratory by Lab Expert in Rouyn-Noranda, Quality control samples, standards and blanks, were inserted in the sample stream for mineralized zones. Drill intersections are reported as core lengths and their true thickness remains to be determined.
Terms of the Exploration Agreement
On June 1, 2009, Agnico-Eagle Mines fulfilled all its obligations under the June 1, 2006 agreement and has acquired a 50% undivided interest in the Maritime-Cadillac property. Agnico-Eagle paid $100,000 and completed $1,000,000 of exploration work from fiscal 2006 to fiscal 2009. The company will also have the option to increase its undivided interest in the property from 50% to 65% over a period of 3 years, by solely financing a bankable feasibility study or by solely assuming all mining operations on the Maritime Cadillac Property, earning a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million). Agnico-Eagle is currently working to increase its interest in the project by fully funding ongoing exploration work on the project.
About Midland Exploration
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 Agnico-Eagle Mines Limited, Osisko Mining Corporation, Aurizon Mines Limited, North American Palladium Limited, Japan Oil, Gas and Metals National Corporation, Zincore Metals Inc. 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.
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.
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