Midas Gold Corp.
TSX : MAX

Midas Gold Corp.

April 10, 2012 17:05 ET

Midas Gold Reports Drill Results from Hangar Flats & Yellow Pine, Golden Meadows Project, Idaho

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 10, 2012) - Midas Gold Corp. (TSX:MAX) -

  • Hole MGI-12-199 intersects 92.7m of 2.90g/t Au at Yellow Pine
  • Hole MGI-12-205 intersects 38.1m of 4.37g/t Au at Yellow Pine
  • Hole MGI-12-164 intersects 18m of 3.46g/t Au and 44.0m of 3.50 g/t Au, 17g/t Ag and 1.8% Sb at Hangar Flats
  • Hole MGI-12-192 intersects 15.8m of 4.15g/t Au, 21.0m of 1.00g/t Au and 89.6m of 1.54g/t Au at Hangar Flats

Midas Gold Corp. (TSX:MAX) today announced additional assay results from its ongoing core and reverse circulation ("RC") drilling program on its Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. Results include infill and extensions to the Hangar Flats and Yellow Pine deposits, with continued progress in both confirming and expanding previously defined mineralization below and laterally from previous deposit boundaries as established in mineral resource estimates reported in 2011.

Significant assay results from the most recent holes are summarized in Table 1, below, with more detailed results in Table 2 at the end of this release. Previous 2011 assay results were reported in other news releases that can be found on Midas Gold's web site at www.midasgoldcorp.com. Additional results from the ongoing program will be released when assays are received and validated.

Table 1: Highlights of Recent Drill Results from Golden Meadows
HOLE ID HOLE TYPE AREA FROM
(m)
TO
(m)
Interval
(m)
Gold
(g/t)
Silver
(g/t)
Antimony
(%)
Tungsten
(%)
MGI-11-124 Core Yellow Pine 153.0 237.4 84.4 1.64 3.7 0.02 0.002
MGI-11-125 Core Yellow Pine 101.2 114.9 13.7 1.16 3.8 0.23 0.001
135.8 160.9 25.1 2.30 0.6 0.00 0.002
165.5 190.7 25.1 3.85 1.0 0.00 0.001
MGI-12-1641 RC Hangar Flats 82.9 100.9 18.0 3.46 1.8 0.01 0.002
146.5 169.0 22.6 1.43 2.7 0.01 0.004
189.0 233.0 44.0 3.50 17.5 1.80 0.015
MGI-12-187 Core Yellow Pine 192.9 293.8 100.9 1.20 P P P
MGI-12-192 Core Hangar Flats 104.9 120.7 15.8 4.15 1.5 0.01 0.006
165.5 186.5 21.0 1.00 2.2 0.09 0.004
306.6 396.2 89.6 1.54 P P P
MGI-12-199 Core Yellow Pine 20.7 113.4 92.7 2.90 P P P
129.8 140.5 10.7 1.58 P P P
202.7 223.0 20.3 0.93 P P P
MGI-12-205 RC Yellow Pine 4.6 42.7 38.1 4.37 P P P
  1. Assays for portions if this hole were previously reported.
  2. Based upon the current 3D interpretation of the Hangar Flats, West End and Yellow Pine deposits the intervals quoted here are at or near true thickness unless otherwise noted in the text 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.
  3. P - Results pending.

"We are pleased with the recent results from our ongoing winter drilling program at our Golden Meadows Project, particularly at Yellow Pine, where we continue to locate mineralization below and laterally away from the previously known limits of mineralization," said Stephen Quin, President and CEO of Midas Gold Corp. "These most recent drill results again confirm the potential to add significant gold-silver mineralization around the Hangar Flats and Yellow Pine deposits, as we have yet to define the limits of these large mineralized systems," he said. "Drilling is continuing and, with the recently completed financing, Midas Gold plans to continue drilling with two to three rigs through spring break-up and then resume full scale drilling in May 2012 with seven or more drill rigs." Drilling for the remainder of 2012 will be focused firstly on continuing to step out in an attempt to find the limits of each of the three main deposits along strike, to depth and laterally; secondly to convert inferred mineral resources to the indicated category; and, thirdly, to explore for completely new deposits.

2012 Drill Program

Midas has completed 16,778m of its planned 17,000m Phase I winter drilling program and anticipates this phase to be completed in the next month, dependent on weather and site conditions during spring break-up. Significant additional drilling is planned for the balance of the year, subject to applicable permitting, and will be focused on continued in-fill and step out drilling on the three known mineral deposits (Hangar Flats, West End and Yellow Pine) as well as drilling new targets within the Golden Meadows property with the objective of discovering additional mineral deposits. During spring break-up, drilling has been temporarily curtailed from seven to two or three active rigs but, once road conditions improve, Midas Gold plans to ramp back up to seven or more drill rigs for the summer and fall drilling season.

Drill results from 2011 and early 2012 are being used to complete updated mineral resource estimates for all three deposits, anticipated for completion in Q2/12, and will be incorporated in an independently prepared Preliminary Economic Assessment, scheduled for completion in Q3/12. Drilling completed for the balance of 2012 will be used to support updated mineral resource estimates and a Pre-feasibility Study scheduled for completion 2013.

Yellow Pine

Results from nine holes, drilled to in-fill and step-out from the Yellow Pine pit and Homestake portions of the Yellow Pine deposit, are reported herein and are located on a map accompanying this release.

Results from a series of in-fill and step-out holes drilled along drill fences between the main Yellow Pine pit area and the Clark Tunnel-Homestake zones, within the Yellow Pine deposit, indicate the mineralized system is still open at depth. Hole MGI-11-125, drilled to the southeast as an in-fill hole, cut thick intervals of mineralization in several zones near the bottom of the 2011 modeled resource-limiting pit. Two step-out holes, drilled in the same direction along the same drill fence, MGI-11-124 and MGI-12-187, cut mineralization approximately 50m and 100m below the resource-limiting pit, respectively. Results from other holes recently completed in this area include: MGI-12-187 which cut 100.9m at 1.2g/t Au; MGI-12-194, which cut several zones (including a zone averaging 4.01g/t Au over 26.8m) and MGI-12-199, which cut several mineralized intervals (including 92.7m grading 2.90g/t Au).

Farther to the northeast, in the Homestake portion of the Yellow Pine deposit, a single hole (MGI-12-205) was completed as a follow-up step-out hole from MGI-11-108, which was drilled this summer and reported previously. MGI-12-205 cut a thick interval of strong mineralization grading 4.37g/t Au over 38.1m and cut mineralization across a fault previously thought to limit mineralization to the east. Assays are still pending for the bottom half of this hole.

In the southwest portion of the main Yellow Pine Deposit, MGI-11-145 (portions of which have been previously reported) and MGI-11-147 (reported herein), tested for and successfully located extensions of mineralization across a fault previously thought to limit mineralization in this area, with hole MGI-11-145 reporting 36.7m grading 2.08g/t Au, 9.1g/t Ag, 0.56% Sb and 0.1% W.

Hangar Flats

Results for twenty-three additional holes completed in late 2011 and early 2012 in the Hangar Flats deposit area are reported herein. Late fall and winter drilling have been concentrated in two areas at Hangar Flats: (1) within and around the main mineral resource area on the south end of the Hangar Flats trend, and (2) to the north, 300-600m along strike near the crest of the hill above the main mineral resource area. The latter area was targeting the near surface projections of deeper gold-antimony mineralization intersected in 1950's era US Department of Defense's Defense Minerals Exploration Administration ("DMEA") underground exploration and drilling activities.

Drilling along the southern portion of the Hangar Flats deposit continues to cut significant mineralization in-filling and testing down-dip and along strike from previously drilled areas. Hole MGI-12-164, an inclined hole directed to the northwest (portions of which were previously released), cut strong mineralization, including 44.0m grading 3.5 g/t Au, 17.5g/t Ag and 1.8% Sb.

Drill holes MGI-12-163, MGI-12-167, MGI-12-170, MGI-12-174 (all previously reported), MGI-12-178 and MGI-12-179 were RC holes drilled in the northern area to test 2009 and 2011 trench intercepts and to test for mineralization along a northeast trending fault system cut in the trenches and at depth in historic underground workings. These holes cut multiple lenses of low grade and sub-grade mineralization near surface and at depth, but the zones were narrow, on the order of 4-6m on average, suggesting mineralization is weaker in this area, away from the main Meadow Creek Fault zone (which is located approximately 100m to the west).

Drill holes MGI-12-181, 12-183 and 12-185 were collared closer to the Meadow Creek Fault and to the south of the holes described in the paragraph above and all cut significant stacked mineralized lenses averaging 10-20m in thickness and with better grades then the holes farther east and north.

A series of six holes were drilled at various orientations proximal to the main Meadow Creek Fault Zone and above and just north of the intercepts reported in historic underground workings. These holes included MGI-12-182 (previously reported), MGI-12-188, MGI-12-191, MGI-12-192, MGI-12-195 and MGI- 12-197. With the exception of MGI-12-192, these holes all cut multiple, but narrow lenses of stacked mineralization averaging 10-15m true thickness. MGI-12-192 cut a thick interval averaging 1.54 g/t Au over 89.6m. The true width of the zone is likely less than the reported down hole interval, but the true width is unknown.

Results from the initial holes drilled east of the Meadow Creek Fault to test the up-dip projection of the deep DMEA zone were reported in the February 27, 2012 news release and additional results are reported herein. As previously reported, the up-dip projection of the deeper DEMA zone (as represented by the deep intercept in MGI-12-192 discussed above), horsetails out from a single (20-40m thick) higher grade (2-7 g/t gold) lens at depth to multiple, thinner, lower grade (0.1-1.0 g/t gold) lenses up-dip and farther away from the Meadow Creek Fault Zone. Drill hole MGI-12-166 (previously reported), MGI-12-172 and MGI-12-184 evaluated this up-dip projection and are reported herein. As noted in other drill holes in this area, the up-dip and lateral extent of mineralization away from the Meadow Creek Fault is weaker and thinner than those areas proximal to the fault and limits potential for near surface mineralization amenable to open-pit extraction to mineralization close to the fault itself.

A series of in-fill and step-out holes were drilled on the periphery of the main mineralized area at Hangar Flats, on the south end of the mineralized trend. On the northeast end, holes MGI-12-173, MGI-12-175 and MGI-12-177 tested the along strike extension on the northeast-trending mineralization cut to the southwest in previous 2009 and 2010 Midas drilling. These holes cut several lenses of mineralization with the best intercepts in MGI-12-173 grading 1.10 g/t Au over 19.8m and in MGI-12-177 grading 1.04 g/t Au over 19.8m and 1.48 g/t Au over 18.3m, indicating the northeast trending zone is still open in this direction, along strike. Farther to the southwest, closer to the Meadow Creek Fault, MGI-12-190 reported a broader, but low grade interval averaging 0.83 g/t Au over 33.5m.

Adjacent to the Meadow Creek fault itself, MGI-12-193 cut a thick interval of mineralization grading 1.37 g/t Au over 93.6m. As in other holes previously reported, the corridor adjacent to the main Meadow Creek fault often carries the best grade and thickest intercepts as evidenced by the bottom portion of MGI-12-164, which reported a 44.0m intercept grading 3.50 g/t Au, 17.5 g/t Ag and 1.8% Sb. Results from other drill holes in this area are pending.

Illustrations

To view the locations of current drill holes, please click here: http://media3.marketwire.com/docs/max-0410-maps.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 0.002g/t lower reporting limit). Samples reporting values > 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. All composites utilize a 0.5g/t cut off and may include up to 3 meters of internal waste. Internal waste has been assigned a nominal grade of 0.0g/t. Composites above cut-off grade, but less than 4.6 meters in length, are not reported. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 1.0g/t lower reporting limit). Samples reporting values > 10g/t Ag are reanalyzed using a 50g Fire Assay charge followed by a gravimetric finish. 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. Umpire samples are routinely submitted to third party labs and 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 Company'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.

Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made 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 deposit located at the northeast end of the Yellow Pine deposit and was operated by Hecla Mining Company from 1987 through 1989. The area between Yellow Pine and Homestake, known as the Clark Tunnel prospect, was the site of early 1930's and 1940's era exploration, but no mining has occurred and it has seen only minimal modern exploration drilling. Historical geologic, ground geophysical and drilling data obtained by Midas suggested the possibility that significant mineralization might be present in this area and recent drill results confirm this potential. The West End deposit was the site of open pit mining with heap leach recovery of gold from the 1970s to the late 1990s.

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.

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.

To view, "Table 2: Detailed Assay Results to Accompany Midas Gold Corp. News Release dated April 11, 2012", please visit the following link: http://media3.marketwire.com/docs/0410drill2.pdf.

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