Midas Gold Corp.
TSX : MAX

Midas Gold Corp.

May 01, 2012 07:45 ET

Midas Gold Reports Additional Drill Results at Yellow Pine and Hangar Flats, Golden Meadows Project, Idaho

Additional results extend intercept in hole MGI-12-199 to 102.4m grading 3.10 g/t Au at Yellow Pine Hole MGI-12-203 intersects 46.0m grading 2.54 g/t Au, 3.6 g/t Ag, 0.28% Sb plus 20.9m grading 1.39 g/t Au, 118.9 g/t Ag, 6.37% Sb and 0.12% W below Hangar Flats

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2012) - Midas Gold Corp. (TSX:MAX) today announced additional assay results from its continuing drilling campaign at its Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. Drilling at both Hangar Flats and Yellow Pine intersected strong gold-silver-antimony-tungsten mineralization over significant intervals beneath or adjacent to the limits of conceptual pits used to constrain prior mineral resource estimates.

Significant assay results from these most recent drill holes are summarized in Table 1, below, with a detailed list of intercepts in Table 2 at the end of this release.

Table 1: Highlights of Recent Golden Meadows Drill Results
Hole
ID
Hole
Type
Target
Area
From
(m)
To
(m)
Interval
(m)2
Gold
(g/t)
Silver
(g/t)
Antimony
(%)
Tungsten
(%)
MGI-12-186 Core Yellow Pine 122.5 202.7 80.2 1.56 0.8 0.00 0.003
MGI-12-187 Core Yellow Pine 192.9 293.8 100.9 1.24 1.3 0.02 0.005
MGI-12-1921 Core Hangar Flats 104.9 143.0 38.1 2.24 1.2 0.01 0.005
306.6 396.2 89.6 1.57 43.1 2.76 0.067
MGI-12-1931 Core Hangar Flats 15.9 56.1 40.2 1.58 2.8 0.04 0.003
246.1 356.6 110.5 1.27 24.5 1.77 0.028
MGI-12-194 Core Yellow Pine 61.9 84.1 22.3 4.77 1.4 0.00 0.004
MGI-12-1991 Core Yellow Pine 20.7 123.1 102.4 3.10 1.4 0.00 0.003
MGI-12-201 Core Hangar Flats 113.1 146.0 32.9 2.03 16.3 0.73 0.020
190.5 232.0 41.5 3.02 11.3 0.68 0.004
including 204.2 228.5 24.2 4.24 15.5 0.90 0.004
MGI-12-203 Core Hangar Flats 210.6 256.6 46.0 2.54 3.6 0.28 0.003
including 238.8 248.1 9.3 8.59 4.3 0.04 0.003
306.6 327.5 20.9 1.39 118.9 6.37 0.118
MGI-12-205 RC Yellow Pine 4.6 42.7 38.1 4.40 1.4 0.01 0.005
131.1 153.9 22.9 1.84 2.2 0.00 0.002
MGI-12-206 Core Yellow Pine 4.3 75.1 70.9 2.57 1.5 0.00 0.003
(1) Portions of this hole or preliminary results from this hole previously reported.
(2) Based upon the current 3D interpretation of the Yellow Pine and Hangar Flats deposits, the intervals quoted here are at or near true thickness unless otherwise noted in the text.

"Our ongoing drill program at both Hangar Flats and Yellow Pine is outlining areas of good grade gold-silver-antimony (+/- tungsten) mineralization over significant intervals beneath or adjacent to pits used to limit our prior mineral resource estimates," said Stephen Quin, President and CEO of Midas Gold Corp. "These holes, completed during our Phase I drilling program, will continue to add confidence to our geologic and resource models for both Hangar Flats and Yellow Pine deposits and offer potential for increases in the overall mineral resources for each deposit," he said. "The values for silver, antimony and, on occasion, tungsten, in these holes offer significant potential for by-product credits." Additional drilling is planned in the coming months, with the objective of further expanding and refining the mineral resource models for both deposits, as well as for the West End deposit.

2012 Drill Program

Midas completed its 17,000m Phase I winter drilling program earlier in April, but drilling is continuing through spring break-up with three core rigs before ramping up for the planned summer drill campaign. The Phase II drill program, to be conducted over the balance of the year, will be focused on continued in-fill and step out drilling on the three known mineral resources (Hangar Flats, West End and Yellow Pine), while parallel exploration drilling (subject to applicable permitting) will focus on new targets and prospects within the Golden Meadows property with the objective of discovering additional mineral deposits.

Recent Results

In the northeastern portion of the Homestake area of the Yellow Pine Deposit, hole MGI-12-205 was collared approximately 34m northeast of hole MGI-11-108 (a hole completed in 2011). That 2011 hole intersected 71.6m grading 2.2 g/t Au (reported previously) and this 2012 step-out hole intersected two intercepts that correlate with the zone cut in the 2011 hole, including an interval 33.5m in length grading 0.61 g/t Au and an interval 22.9m in length grading 1.84 g/t Au. The intercepts from these holes occur to the southeast of a northeast trending fault previously thought to limit mineralization in this direction and both intercepts lie outside of the pit used to limit the prior mineral resource estimate for the Yellow Pine Deposit. This new zone remains open along strike and up dip and, to a lesser extent, down dip and opens up a significant area for exploration for potential additional mineral resources between the Yellow Pine and West End pits.

Recent drilling has also encountered mineralization along the western margin of the Yellow Pine deposit, south of the Clark Tunnel area and north of the former centre of historic mining at Yellow Pine. Drilling here demonstrates that good grades and thicknesses of gold mineralization exist northwest of a northeast trending fault that was previously thought to limit mineralization in this direction, as illustrated by the results in holes MGI-11-124 and MGI-12-187. These intercepts open up a large area of patented claims that has seen little exploration in the past 75 years, and which is largely covered by waste dumps from prior mining activities.

Although drilling on the upper, northern end of the Hangar Flats Deposit has been curtailed for the spring, in part due to lower than expected grades and thicknesses in that area, drilling beneath the Hangar Flats deposit along the lower, southern end of the deposit continues to intersect strong gold-silver-antimony-tungsten mineralization down dip from previous drilling. Final results for holes MGI-12-192, MGI-12-193, MGI-12-203 (portions of which were reported previously), are reported herein and, along with holes MGI-12-168 and MGI-12-169, demonstrate the presence of widespread gold-silver-antimony-tungsten mineralization as much as 100m beneath pits used to limit the prior mineral resource estimate for Hangar Flats. Some of these intercepts have significant antimony and silver associated with the gold mineralization, as illustrated by hole MGI-12-193, which intersected 110.5m grading 1.27 g/t Au, 24.5 g/t Ag and 1.77% Sb and hole MGI-12-203, which intersected 20.9m grading 1.39 g/t Au, 118.9 g/t Ag, 6.37% Sb and 0.118% W.

Illustrations

To view the locations of current drill holes, please click here: http://media3.marketwire.com/docs/max501_F1-4.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 ("NI 43-101") 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 0.005 g/t lower reporting limit). Samples reporting values > 6 g/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 0.5 g/t lower reporting limit). Samples reporting values > 10 g/t Ag are reanalyzed using a 2g ICP-AES, four acid digest, while samples reporting > 750 g/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 5.0 g/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 0.5 g/t gold cut off and may include up to 6 meters of continuous internal waste. Composites above cut-off grade, but less than 10 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.

About Antimony

Antimony is a metal dominantly produced 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$13,100 per tonne (or US$5.94 per pound), or about 50% 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.'

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" "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 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 Golden Meadows Drill Results

Hole
ID
Hole
Type
Target
Area
Bearing Inclin-
ation
Total
Depth
(m)
From
(m)
To
(m)
Interval
(m)2
Gold
(g/t)
Silver
(g/t)
Antimony
(%)
Tungsten
(%)
MGI-12-164 Core Hangar Flats 320 -60 294.4 84.1 96.3 12.2 4.78 2.5 0.01 0.003
190.5 206.0 15.5 4.15 8.3 0.65 0.003
212.8 228.8 16.0 4.42 6.3 0.48 0.003
MGI-12-186 Core Yellow Pine 71 -71.5 309.1 122.5 202.7 80.2 1.56 0.8 0.00 0.003
MGI-12-187 Core Yellow Pine 120 -72.5 365.8 192.9 293.8 100.9 1.24 1.3 0.02 0.005
MGI-12-1901 RC Hangar Flats 140 -62.5 274.3 79.3 94.5 15.2 0.57 1.6 0.04 0.003
MGI-12-1911 Core Hangar Flats 320 -72.5 315.5 12.5 27.6 15.1 1.25 4.1 0.03 0.008
48.8 86.6 37.8 0.80 1.4 0.04 0.004
270.4 282.6 12.2 0.91 2.1 0.06 0.006
MGI-12-1921 Core Hangar Flats 280 -83 396.2 7.3 20.9 13.6 0.73 1.3 0.01 0.006
49.1 78.9 29.9 0.93 0.7 0.01 0.007
104.9 143.0 38.1 2.24 1.2 0.01 0.005
165.5 186.5 21.0 1.03 2.4 0.09 0.004
306.6 396.2 89.6 1.57 43.1 2.76 0.067
MGI-12-1931 Core Hangar Flats 0 -90 368.5 15.9 56.1 40.2 1.58 2.8 0.04 0.003
175.9 187.6 11.7 1.00 1.6 0.04 0.003
246.1 356.6 110.5 1.27 24.5 1.77 0.028
MGI-12-1941 Core Yellow Pine 120 -45 184.1 0.0 19.5 19.5 2.49 6.1 0.00 0.002
27.7 54.7 27.0 1.80 2.7 0.01 0.004
61.9 88.7 26.8 4.06 1.3 0.00 0.003
117.4 135.2 17.8 0.66 1.7 0.00 0.002
MGI-12-1971 Core Hangar Flats 0 -90 338.9 4.4 39.6 35.2 1.87 1.9 0.04 0.006
249.2 271.0 21.8 2.00 3.2 0.06 0.006
MGI-12-1991 Core Yellow Pine 120 -45 286.2 20.7 123.1 102.4 3.10 1.4 0.00 0.003
Including 43.3 88.7 45.4 3.22 1.2 0.00 0.003
and 95.0 111.0 16.0 3.86 1.5 0.00 0.003
MGI-12-201 Core Hangar Flats 0 -90 340.8 113.1 146.0 32.9 2.03 16.3 0.73 0.020
190.5 232.0 41.5 3.02 11.3 0.68 0.004
204.2 228.5 24.2 4.24 15.5 0.90 0.004
MGI-12-203 Core Hangar Flats 320 -65 392.3 210.6 256.6 46.0 2.54 3.6 0.28 0.003
including 238.8 248.1 9.3 8.59 4.3 0.04 0.003
278.1 296.9 18.8 1.54 1.3 0.00 0.003
306.6 327.5 20.9 1.39 118.9 6.37 0.118
MGI-12-204 Core Hangar Flats 320 -66 321.9 126.8 142.0 15.2 0.66 0.9 0.01 0.003
MGI-12-205 RC Yellow Pine 120 -60 189.0 4.6 42.7 38.1 4.40 1.4 0.01 0.005
53.3 67.1 13.7 0.79 0.6 0.00 0.003
91.4 125.0 33.5 0.61 1.0 0.00 0.002
131.1 153.9 22.9 1.84 2.2 0.00 0.002
MGI-12-206 Core Yellow Pine 120 -75 306.3 4.3 75.1 70.9 2.57 1.5 0.00 0.003
including 4.3 14.0 9.8 6.32 2.3 0.00 0.002
48.5 60.2 11.7 5.47 1.5 0.00 0.004
88.4 130.2 41.8 0.56 1.1 0.00 0.003
(1) Portions of this hole or preliminary results from this hole previously reported.
(2) Based upon the current 3D interpretation of the Yellow Pine and Hangar Flats deposits, the intervals quoted here are at or near true thickness unless otherwise noted in the text.

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