Midas Gold Corp.
TSX : MAX

November 01, 2011 07:30 ET

Midas Gold Reports Additional Drill Results From its 2011 Program at its Golden Meadows Project, Idaho

Including Hole MGI-11-59 which intersected 242m @ 2.2 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2011) - Midas Gold Corp. (TSX:MAX) today announced additional assay results from its ongoing core and reverse circulation ("RC") drilling program on the Hangar Flats and Yellow Pine deposits at the Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. Assays are available for the first 35 holes out of the 80 holes completed to date. Highlights of previous 2011 assay results were reported in news releases on August 18, September 28 and October 3, 2011. Newly received results are summarized in Table 1 below, with more detailed results in Table 2 at the end of this release. Additional results from the ongoing program will be released when assays are received and validated.

Table 1: Highlights of Recent Assay Results from Golden Meadows
Hole ID Type Target
Area
From
(m
) To
(m
) Interval
(m)
(1
) Gold
(g/t
) Silver
(g/t
) Antimony
(%
) Tungsten
(%
)
MGI-11-59 Core Yellow Pine 57.3 73.2 15.8 2.95 16.6 0.43 0.002
And 80.5 322.5 242.0 2.21 1.3 0.02 0.007
Including 160.2 225.6 65.5 3.72 1.0 0.00 0.004
MGI-11-62(2) Core Yellow Pine 41.8 107.6 65.8 2.57 2.4 0.01 0.002
Including 43.3 93.7 50.4 2.97 2.8 0.02 0.002
AND 112.5 248.1 135.6 2.30 1.2 0.00 0.002
MGI-11-63 Core Yellow Pine 112.8 208.8 96.0 1.59 0.8 0.01 0.003
MGI-11-71 Core Yellow Pine 135.9 159.7 23.8 3.90 2.9 0.04 0.001
MGI-11-78 Core Hangar Flats 55.5 95.7 40.2 2.69 11.4 0.76 0.006
Including 87.0 94.5 7.5 3.01 41.1 3.22 0.005
Which includes 87.0 91.4 4.4 2.82 66.8 5.41 0.005
And 179.2 204.4 25.1 2.38 12.5 0.44 0.004
MGI-11-81 RC Yellow Pine 0.0 30.5 30.5 2.19 1.1 0.01 0.048
MGI-11-84 RC Yellow Pine 7.6 42.7 35.1 4.07 0.5 0.23 0.045
MGI-11-92 RC Yellow Pine 29.0 45.7 16.8 1.45 2.1 0.10 0.002
And 70.1 91.4 21.3 2.85 2.0 0.00 0.001

(1) Based upon the current 3D interpretation of the Hangar Flats and Yellow Pine deposits the intervals quoted here are at or near true thickness and are composited using a 0.5 g/t Au cut-off and may include short intervals of internal waste below the cut-off grade.

(2) Assays for portions of this hole were previously reported.

"We continue to be encouraged by drilling results from the 2011 drilling program on our Golden Meadows Project in Idaho," said Stephen Quin, President and CEO of Midas Gold Corp. "Recent drilling in the Hangar Flats and Yellow Pine areas has intersected significant gold-silver-antimony mineralization in previously untested areas, near the known deposits. The intercept in drill hole MGI-11-59 is particularly encouraging, with a 242 metre intercept grading 2.2g/t gold within the Yellow Pine deposit," he said. "Based on the results received to date, Midas has mobilized a second RC drill rig to site to support continued drilling through to mid-December."

2011 Exploration Program

A total of 80 drill holes totalling approximately 16,000 metres have been completed in 2011, with results available for 35 holes. This drilling is being undertaken as part of an exploration program designed to confirm and expand known mineral resources and potentially discover new mineralized areas. Four core rigs, one sonic rig and two reverse circulation rigs are currently operating on site and plans are underway to continue our drilling program through the winter, based on our continued success. Since acquiring the property in 2009, Midas Gold has completed over 138 core and reverse circulation drill holes totaling over 30,000 metres of drilling.

Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made by Midas Gold in 2009 and these most recent drill intercepts are step-outs to the north from the areas discovered and drilled during the 2009 and 2010 field seasons. Yellow Pine is a significant past producer of gold, silver, antimony and tungsten from the 1930s through the mid-1950s. The Homestake pit, located at the northeast end of the Yellow Pine deposit, was operated by Hecla Mining Company as a shallow open pit, heap leach gold mine, from 1987 through 1989. As noted in the October 3, 2011, news release, while gold, silver and antimony tend to occur in approximately the same areas, the mineralizing events are distinct and, as a result, the gold-based cut-off used to report results herein do not necessarily best illustrate the silver and, especially, the antimony values. Tungsten values tend to be much more geographically limited and, where they do occur, tend to be diluted down to low values over the long intervals of gold mineralization reported.

Recent Drill Results

Drill holes MGI-11-59, -62 and -63 were drilled within and beneath the known mineral resource at Yellow Pine in order to upgrade the confidence level of those mineral resources, to test mineralization at depth and to provide metallurgical samples. Results from these drill holes in this area are consistent with historic drill program results, providing confidence in Midas Gold's prior mineral resource models and, in some cases, indicate that additional mineralization may be present beneath the modeled pit that limits these mineral resource estimates.

Holes MGI-11-78, 11-80 and 11-91, drilled into the Hangar Flats deposit, were designed to expand and further upgrade the existing mineral resource. The assay results from these holes continue to demonstrate the upside potential of the 5 km-long Meadow Creek Fault trend and provide encouragement for expansion of the Hangar Flats mineral resource as drilling steps-out to the north along this trend.

Holes MGI-11-71, 11-75 to 11-77, 11-79, 11-81 to 11-90 and 11-92 were drilled in the Clark Tunnel and Homestake areas of the Yellow Pine deposit, northeast of the historic past producing Yellow Pine pit and southwest of the past producing Homestake pit. Drilling here has continued to better define the geometry and spatial extent of mineralization within this promising area. For example, holes 11-79 and 11-82 both intersected significant mineralization well beneath the current limits of the pit used to limit Midas Gold's mineral resource estimates: MGI-11-79 cut 33.5m @ 1.02 g/t Au and 25.9m @ 0.72 g/t Au beneath the limiting pit and MGI-11-82 cut 30.5m @ 0.95 g/t Au, 25.3m @ 1.32 g/t Au and 15.2m @ 0.93 g/t Au beneath the limiting pit. Based on Midas Gold's current interpretations, mineralization in the Clark Tunnel – Homestake portions of the Yellow Pine deposit consists of a series of up to five stacked, gently to steeply dipping, tabular zones with similar geometries to mineralization styles in the Hangar Flats deposit (which is situated in a nearly identical structural position in the footwall and relative to the Meadow Creek Fault System, the major ore controlling structure in the district).

Details of prior mineral resource estimates can be found in the NI43-101 Technical Report filed under Midas Gold's profile on SEDAR (www.sedar.com).

A complete list of results for this year's drill program to date can be found on our website at www.midasgoldcorp.com.

To view the Hangar Flats Prospect map, please visit this link: http://media3.marketwire.com/docs/HF_DDH.pdf.

To view the West End Prospect map, please visit this link: http://media3.marketwire.com/docs/WE_DDH.pdf.

To view the Yellow Pine Prospect map, please visit this link: http://media3.marketwire.com/docs/YP_DDH.pdf.

To view maps of Yellow Pine Sections 26 and 36, please visit this link: http://media3.marketwire.com/docs/YP_S-26_36.pdf.

To view a Summary of 2011 Assay Results, please visit this link: http://media3.marketwire.com/docs/max_Sum.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. (the "Corporation"), 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 Project 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 composites utilize a 0.5g/t gold cut off and may include up to 3.05 meters of internal waste. Internal waste has been assigned a nominal grade of 0.0g/t. Composites above cut-off grade, but less than 6.1 meters in length, are not reported. 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") is available on Midas Gold's website at www.midasgoldcorp.com or under Midas Gold's profile on SEDAR at www.sedar.com.

The Hangar Flats, West End and Yellow Pine deposits remain open to expansion along strike and to depth. In addition, Midas Gold continues to review and assess information contained within an extensive exploration database developed by Midas Gold from almost 100 years of exploration activity by multiple owners and operators with the objective of identifying opportunities for the potential discovery of additional gold mineralization. Since Midas Gold's acquisition of the project in the spring of 2009, the company has completed over 138 core and RC holes totalling over 30,000 metres, as well as completing an extensive airborne geophysical program that not only outlined the three known gold deposits, but has identified a number of significant new anomalies within Midas Gold's extensive property holdings. Regional exploration programs are in process to begin the evaluation of these newly identified, extensive anomalies.

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", "potential" 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 2011 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: Detailed Assay Results - Midas Gold News Release 2011-18
Hole ID Type Target
Area
From
(m
) To
(m
) Interval (m)(1 ) Gold
(g/t
) Silver
(g/t
) Antimony
(%
) Tungsten
(%
)
MGI-11-59 CORE Yellow Pine 57.3 73.2 15.8 2.95 16.6 0.43 0.002
And 80.5 322.5 242.0 2.21 1.3 0.02 0.007
Including 160.2 225.6 65.5 3.72 1.0 0.00 0.004
MGI-11-62(2) CORE Yellow Pine 41.8 107.6 65.8 2.57 2.4 0.01 0.002
Including 43.3 93.7 50.4 2.97 2.8 0.02 0.016
112.5 248.1 135.6 2.30 1.2 0.00 0.002
269.1 282.9 13.7 0.50 1.3 0.00 0.002
287.4 292.3 4.9 0.66 5.2 0.00 0.001
MGI-11-63 CORE Yellow Pine 112.8 208.8 96.0 1.59 0.8 0.01 0.003
214.6 234.4 19.8 2.21 0.6 0.00 0.001
241.7 250.9 9.1 1.27 0.3 0.00 0.000
257.0 270.7 13.7 1.00 0.5 0.00 0.001
275.2 284.4 9.1 0.82 1.0 0.00 0.001
MGI-11-65 CORE Yellow Pine 171.0 186.5 15.5 0.74 4.7 0.00 0.001
MGI-11-71 CORE Yellow Pine 135.9 159.7 23.8 3.90 2.9 0.04 0.001
MGI-11-73 CORE Hangar Flats 15.2 61.9 46.6 2.20 3.0 0.17 0.005
And 77.4 94.2 16.8 1.93 2.1 0.04 0.006
And 173.1 183.5 10.4 1.92 22.3 1.08 0.016
And 256.3 261.5 5.2 1.60 3.8 0.01 0.006
And 294.1 301.8 7.6 0.77 0.6 0.01 0.003
MGI-11-75 CORE Yellow Pine 13.6 22.9 9.3 2.30 3.5 0.23 0.004
And 29.6 39.6 10.1 4.51 2.6 0.03 0.001
And 109.9 114.0 4.1 1.33 0.1 0.00 0.060
And 226.5 244.5 18.0 0.57 0.8 0.00 0.002
And 261.5 272.2 10.7 0.62 0.6 0.00 0.001
MGI-11-77 CORE Yellow Pine 36.1 49.2 13.1 0.68 2.3 0.09 0.002
And 62.9 72.2 9.3 2.63 2.2 0.40 0.001
MGI-11-78 CORE Hangar Flats 55.5 95.7 40.2 2.69 11.4 0.76 0.006
Including 87.0 94.5 7.5 3.01 41.1 3.22 0.005
Which Includes 87.0 91.4 4.4 2.82 66.8 5.41 0.005
And 179.2 204.4 25.1 2.38 12.5 0.44 0.004
And 254.4 271.3 16.9 1.22 1.7 0.08 0.004
MGI-11-79 RC Yellow Pine 7.6 32.0 24.4 1.59 0.2 0.01 0.002
And 118.9 152.4 33.5 1.02 0.0 0.00 0.001
And 157.0 182.9 25.9 0.72 0.0 0.00 0.001
MGI-11-80 CORE Hangar Flats 6.1 39.6 33.5 0.99 0.8 0.01 0.006
And 51.2 77.0 25.8 1.77 1.0 0.01 0.005
MGI-11-81 RC Yellow Pine 0.0 30.5 30.5 2.19 1.1 0.01 0.048
MGI-11-82 CORE Yellow Pine 28.4 35.7 7.3 1.29 0.1 0.01 0.004
And 55.5 64.9 9.4 1.29 0.5 0.00 0.004
And 87.5 104.6 17.1 0.73 0.8 0.00 0.004
And 115.2 145.7 30.5 0.95 1.1 0.00 0.003
And 150.3 175.6 25.3 1.32 0.2 0.00 0.001
And 180.4 195.7 15.2 0.93 0.0 0.00 0.001
MGI-11-84 RC Yellow Pine 7.6 42.7 35.1 4.07 0.5 0.23 0.045
And 88.4 99.1 10.7 0.46 0.3 0.00 0.002
And 112.8 137.2 24.4 0.85 0.6 0.00 0.002
MGI-11-85 RC Yellow Pine 29.0 48.8 19.8 1.97 2.7 0.01 0.004
And 62.5 76.2 13.7 3.07 2.3 0.01 0.002
MGI-11-86 RC Yellow Pine 22.9 27.4 4.6 2.42 8.4 0.85 0.006
And 51.8 57.9 6.1 1.78 2.0 0.00 0.004
And 64.0 83.8 19.8 1.75 4.5 0.03 0.003
MGI-11-87 CORE Yellow Pine 9.5 15.7 6.2 2.41 0.2 0.01 0.002
And 22.0 27.4 5.5 0.60 0.2 0.00 0.002
And 42.1 61.0 18.9 0.92 0.9 0.00 0.012
And 65.5 71.3 5.8 0.91 0.7 0.00 0.002
And 76.2 92.1 15.8 0.85 1.2 0.00 0.002
And 296.9 301.5 4.6 0.74 1.0 0.00 0.003
MGI-11-88 RC Yellow Pine 15.2 35.1 19.8 1.38 1.4 0.00 0.004
And 41.2 47.2 6.1 1.01 0.6 0.00 0.004
And 62.5 76.2 13.7 2.30 4.4 0.16 0.001
MGI-11-89 RC Yellow Pine 53.3 71.6 18.3 3.92 1.2 0.00 0.002
MGI-11-90 RC Yellow Pine 35.1 54.9 19.8 3.02 3.0 0.01 0.004
And 62.5 76.2 13.7 1.89 3.2 0.00 0.001
MGI-11-91 CORE Hangar Flats 214.3 223.1 8.8 1.07 2.0 0.12 0.002
And 227.7 236.8 9.1 0.96 1.2 0.00 0.004
And 241.4 262.4 21.0 1.57 6.0 0.22 0.004
MGI-11-92 RC Yellow Pine 29.0 45.7 16.8 1.45 2.1 0.10 0.002
And 70.1 91.4 21.3 2.85 2.0 0.00 0.001

(1) Based upon the current 3D interpretation of the Hangar Flats and Yellow Pine deposits the intervals quoted here are at or near true thickness and are composited using a 0.5 g/t Au cut-off and may include short intervals of internal waste below the cut-off grade.

(2) Assays for portions of this hole were previously reported.

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