Midas Gold Corp.
TSX : MAX

Midas Gold Corp.

August 02, 2012 07:30 ET

Midas Gold Confirms Scout as a Major New Antimony-Gold System at Its Golden Meadows Project, Idaho

Hole MGI-12-249 Intersects 1.85% Sb and 0.77 g/t Au Over 183.3m

Including: 13.9m Grading 1.77 g/t Au, 2.96% Sb; and 23.8m Grading 1.04 g/t Au, 2.69% Sb

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 2, 2012) - Midas Gold Corp. (TSX:MAX) today announced assay results from three exploration holes drilled at the Scout Prospect of its Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. These new results are from follow-up holes drilled after Midas Gold's winter reverse circulation ("RC") drilling program successfully cut thick intervals of gold-silver-antimony mineralization, as reported in a news release dated April 25, 2012. These results, which include significant gold and antimony intercepts, not only confirm historic drill results but also extend the known mineralized area approximately 150 metres to the south of the prior RC holes, demonstrating the presence of a major gold-antimony mineralizing system at Scout. Highlights of significant assay results from these new drill holes are summarized in Table 1, below, while more detailed results are in Table 2 at the end of this release.

Table 1: Highlights of Recent Drill Results from the Scout Prospect
Hole ID From
(m)
To
(m)
Interval
(m)
Gold
(g/t)
Silver
(g/t)
Antimony
(%)
MGI-12-238 93.6 240.5 146.9(1) 0.86 4.5 0.46
Including 203.0 227.7 24.7 1.46 5.0 0.64
MGI-12-244 93.1 134.7 41.6 2.14 5.3 0.45
MGI-12-249(2) 48.3 58.8 10.5 0.71 2.9 0.14
And 79.6 262.9 183.3(1) 0.77 13.1 1.85
Including 79.6 141.7 62.2 1.16 12.1 1.15
And 149.7 169.6 20.0 0.35 15.5 2.13
And 211.4 225.3 13.9 1.77 5.9 2.96
And 239.1 262.9 23.8 1.04 14.6 2.69
(1) These broader intervals of antimony mineralization are composited on the basis of the overall zone of antimony mineralization, whereas the sub-intervals are estimated on the basis of gold cut-offs as detailed in the QA/QC section below, which zones lie within, but are not identical to, the antimony zones. In some cases, the antimony composite has been expanded to encompass all of an overlapping gold composite to simplify reporting.
(2) Based upon the current 3D interpretation of the Scout prospect, the intervals quoted here are at or near true thickness. For intervals in hole MGI-12-249, true thickness is approximately 90% of reported interval.

"The results of our recent drilling at Scout clearly demonstrate the presence of a major new gold-silver-antimony system at our Golden Meadows Project. These most recent results confirmed mineralization reported in nearby historic drill holes by intersecting significant thicknesses of gold-silver-antimony mineralization where predicted and, in addition, at depths below those previously tested by past operators," said Stephen Quin, President and CEO of Midas Gold Corp. "The considerable thicknesses of high grade antimony mineralization, with significant associated gold and silver values, intercepted in the most recent holes, suggests potential to define a major new gold-silver antimony mineral resource in this area." More drilling is planned in the coming months to evaluate the extent and tenor of this system as it remains wide open to expansion along strike, to depth and toward surface. "Scout is the first of more than a dozen high priority exploration targets identified by Midas Gold on its Gold Meadows Project to be drill tested, and drilling of more of these targets is planned for later in 2012 and into 2013," said Mr. Quin.

2012 Drill Program

To the end of July, Midas Gold has completed a total of 32,166 meters in 120 holes during its 2012 drill campaign, with between six and nine core and RC rigs operating on the property at various times through the season. Drilling with six core rigs is currently focused on continued in-fill and step-out drilling at the West End and Yellow Pine deposits with a view to upgrading the confidence levels of prior mineral resource estimates as well as testing unclassified material within the resource-limiting pits used to constrain the mineral resource estimates that are currently treated as waste but may, in some locations, be mineralized. In addition, core drilling to collect metallurgical samples, hydrological drilling (with a seventh, sonic rig), baseline environmental programs and other activities are proceeding with the objective of supporting completion of a pre-feasibility study ("PFS") in 2013 and, subsequently, commencing the permitting of a mining operation, if supported by the PFS. Exploration focused on new targets and prospects within the Golden Meadows property will occur intermittently throughout the summer and fall of 2012 with the objective of discovering additional mineral deposits as has been successfully achieved at Scout. In parallel with these activities, work is proceeding on preparation of a preliminary economic assessment, due for completion in Q3/12, and components of the PFS.

Scout Prospect Description & History

The Scout Prospect is situated approximately 1.25km northeast of the Hangar Flats deposit, along a north-south fault system that hosts widespread gold-silver and antimony mineralization that can be traced along strike for approximately 650m in widely spaced drill holes. This fault system, all of which may not be mineralized, can be inferred to be present for several km to the north-northwest, based on Midas Gold's 2011 airborne magnetics and EM surveys. Scattered soil anomalies and geologic mapping along this fault shows that it lies approximately 1km to the east of, and parallel to, the Meadow Creek fault system, which controls the Hangar Flats and Yellow Pine gold-silver-antimony-tungsten deposits.

The Scout Prospect was first discovered in the 1940s, after US Geological Survey and US Bureau of Mines workers conducted experimental biochemical sampling in the district, which outlined a large gold and antimony biogeochemical anomaly. The area that hosts the biochemical anomaly occurs in a distinct, linear, north-south trending topographic depression, interpreted to be a less resistant structural zone, which is marked by strong geophysical anomalies. A series of weak but pronounced soil anomalies occur parallel to this trend, slightly uphill to the east, where the drilled zones would project to the surface but are covered by talus and slope debris. Several small pits and trenches, which were likely excavated during the 1940s during government-sponsored antimony-tungsten exploration, exposed massive, blocky, slightly schistose quartzite containing narrow, gold-bearing, high-grade stibnite veins and altered, sulfide-bearing igneous dikes. Stratigraphic relationships, derived from outcrop mapping and drill data, indicate the valley itself is underlain by calc-silicates and silicified and dolomitized carbonates, similar to those that host the nearby Garnet Prospect. The Garnet prospect lies approximately 0.8km to the east of Scout and was the site of a 1995 open pit mining operation that produced approximately 35,000 ounces of gold from oxidized ores in skarn and calc-silicates that graded approximately 6 g/t gold.

Between 1948 and 1990 three companies explored the Scout area with 20 drill holes, totaling approximately 2,435m of drilling. Six east-west IP geophysical lines (by past operators and Midas Gold) run across the Scout Prospect area and delineate a large resistivity low and numerous IP chargeability anomalies that could be indicative of a much larger sulphide mineralized system than currently defined by drilling.

Mineralization can be traced down dip at least 250m and along strike for several hundreds of meters and occurs within a thick section of fractured, sheared and brecciated quartzites, felsic intrusive rocks, calcareous schists and thin dolomitic marbles impregnated with disseminated pyrite and stockwork veins of stibnite.

About Antimony

Antimony is a metal produced dominantly in China that is primarily used as a flame retardant in the manufacture of a variety of materials and, to a lesser extent, as an alloy with lead in the manufacture of batteries. Recent pricing for antimony was US$12,750 per tonne (or US$5.78 per pound), or about 70% more per pound than copper. The British Geologic Survey identified antimony as one of the metals with the highest supply risk in a recent survey, while the European Commission placed antimony on the list of fourteen raw materials on a list of critical concerns for the European Union in the face of serious potential supply shortages. In its 2012 Mineral Commodity Outlook, the US Geologic Survey noted that, 'In China, the world's leading antimony producer, the Government continued to shut down antimony mines and smelters in an effort to control environmental issues and resolve safety problems. The local Government in Lengshuijiang, Hunan Province, which accounts for about 60% of the world antimony supply, shuttered almost all of its mines and smelters. Also, officials in Lengshuijiang announced that after more than 110 years of continuous mining, the area now had only 5 years of mining life left."

Illustrations

To view illustrations, please click here: http://media3.marketwire.com/docs/max802i.pdf.

Quality Assurance

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 ("NI43-101") and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., and a Qualified Person. The exploration activities at Golden Meadows were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Exploration Manager for the Golden Meadows Project.

All gold assays are by a 30g Fire Assay charge followed by an atomic absorption finish (with a 0.005g/t lower reporting limit). Samples reporting values > 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 0.5g/t lower reporting limit). Samples reporting values > 10g/t Ag are reanalyzed using a 2g ICP-AES, four acid digest, while samples reporting > 750g/t Ag are reanalyzed using a 30g Fire Assay charge followed by a gravimetric finish. Antimony is analyzed via a 4-acid digestion followed by an ICP finish (with a 5.0g/t lower reporting limit). Samples reporting values > 2,000g/t Sb are reanalyzed using XRF with a 0.9g charge in a Lithium Borate fusion (with a 0.01% lower reporting limit).

All gold composites utilize a 0.3g/t cut off and may include internal waste. Some intervals may not add or subtract correctly due to rounding, but are deemed insignificant. Analyses are carried out by ALS CHEMEX in their Reno and Winnemucca, Nevada and Vancouver, British Columbia laboratories. Blank and standard samples are used for quality assurance and quality control and a review of the results of analyses of the blanks, standards and duplicates by the Corporation's Qualified Person indicates values are within normal and acceptable ranges.

About Midas Gold and the Golden Meadows Project

Midas Gold Corp., through its wholly owned subsidiaries Midas Gold Inc. and Idaho Gold Resources, LLC, is focused on the exploration and, if warranted, development of the Golden Meadows Project in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Golden Meadows Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors. Independent mineral resource estimates were reported for all three deposits in a news release dated April 20, 2011 and are detailed in a consolidated technical report entitled "NI 43-101 Technical Report on Mineral Resources, Golden Meadows Project, Valley County, Idaho" dated June 6, 2011 (the "Technical Report") and updated on June 12, 2012 is available on Midas Gold's website at www.midasgoldcorp.com or under Midas Gold's profile on SEDAR at www.sedar.com.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation's properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "suggests", "potential", "confirm" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Statements concerning mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that may be encountered if the Golden Meadows Project is developed. In making the forward-looking statements in this news release, the Corporation has applied several material assumptions, including, but not limited to, that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in 2012 will be consistent with the Corporation's expectations; that the current exploration and other objectives concerning the Golden Meadows Project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration on the Golden Meadows Project will be obtained in a timely manner and on acceptable terms; the continuity of the price of gold and other metals, economic and political conditions and operations.

Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in exploration programs based upon results of exploration; changes in estimated mineral reserves or mineral resources; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks, including environmental matters under U.S. federal and Idaho rules and regulations; impact of environmental remediation requirements and the terms of existing and potential consent decrees on the Corporation's planned exploration on the Golden Meadows Project; certainty of mineral title; community relations; delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Corporation's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Corporation's lack of operating revenues; governmental regulations and the ability to obtain necessary licences and permits; risks related to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict operations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the Corporation's public disclosure record. Although the Corporation has attempted to identify important factors that could affect the Corporation and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information.

Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Table 2: Table of Scout Drill Results
(To accompany Midas Gold news release dated August 2, 2012)
Hole ID Hole
Type
Bearing Inclination Total
Depth
(m)
From
(m)
To
(m)
Interval
(m)
Gold
(g/t)
Silver
(g/t)
Antimony
(%)
MGI-12-238 Core 077 -66 267.2 93.6 240.5 146.9(1) 0.86 4.5 0.46
Including 93.6 130.5 36.9 1.20 6.0 0.54
And 152.1 178.3 26.2 1.14 2.1 0.10
And 203.0 227.7 24.7 1.46 5.0 0.64
MGI-12-244 Core 077 -45 212.1 22.0 25.9 4.0 0.53 0.6 0.01
Including 37.8 55.5 17.7 0.43 0.7 0.05
And 93.1 134.7 41.6 2.14 5.3 0.45
And 148.6 170.4 21.8 0.33 0.3 0.08
MGI-12-249(2) Core 115 -53 278.9 48.3 58.8 10.5 0.71 2.9 0.14
And 79.6 262.9 183.3(1) 0.77 13.1 1.85
Including 79.6 141.7 62.2 1.16 12.1 1.15
And 149.7 169.6 20.0 0.35 15.5 2.13
And 211.4 225.3 13.9 1.77 5.9 2.96
And 239.1 262.9 23.8 1.04 14.6 2.69
(1) These broader intervals of antimony mineralization are composited on the basis of the overall zone of antimony mineralization, whereas the sub-intervals are estimated on the basis of gold cut-offs as detailed in the QA/QC section below, which zones lie within but are not identical to the antimony zones. In some cases, the antimony composite has been expanded to encompass all of an overlapping gold composite to simplify reporting.
(2) Based upon the current 3D interpretation of the Scout prospect, the intervals quoted here are at or near true thickness. For intervals in hole MGI-12-249, true thickness is approximately 90% of reported interval.

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