-- Posted Tuesday, 22 November 2011 | | Disqus
MONTREAL, QUEBEC--(Marketwire -11/22/11)- Midland Exploration Inc. ("Midland") (TSX-V: MD.V, MIDLF.PK) is pleased to announce the signing of an option agreement with Osisko Mining Corporation ("Osisko") for its Casault gold property. This property currently held 100% by Midland and is located about 40 kilometres east of the Detour Lake gold deposit.
Osisko can acquire a 50% interest in the Casault property during a five-year period under the following conditions:
-- A total of $600,000 in cash payments including a payment of $80,000 upon signing the agreement; and
-- A total of $6,000,000 in exploration expenditures including $1,000,000 in the first year (firm commitment).
Midland will be the operator during the first year of the option agreement. 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).
The Midland Casault Gold Property which includes 321 wholly-owned claims covering a total surface area of about 176.4 square kilometres is located about 40 kilometres east of the Detour Lake gold deposit. Midland controls over 20 kilometres along the major Sunday Lake Deformation Zone hosting the major Detour Lake gold deposit, which currently contains an aggregate 16.45 million ounces of gold in measured and indicated resources based on a cut-off grade of 0.5 g/t Au, including 14.86 million ounces of gold in near-surface mineral reserves, and commercial production is expected to begin in early 2013 (Source: NI 43-101 report by BBA for Detour Gold dated March 15, 2011).
The Casault Property is also adjacent to the west of the Martiniere property held by Balmoral Resources Ltd, where drill intersections grading 2.4 g/t Au over 72.0 metres, including a high-grade interval at 11.18 g/t Au over 12.0 metres, were recently reported (source: Balmoral Resources Ltd press release dated March 2, 2011).
Midland is pleased to team up again with a solid mining company like Osisko. A $1,000,000 exploration program will begin shortly with an important drilling campaign of selected high priority anomalies.
About Midland
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, Aurizon 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.
About Osisko
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. 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.
-- Posted Tuesday, 22 November 2011 | Digg This Article
| Source: GoldSeek.com
