Midas Gold Corp.
TSX : MAX

Midas Gold Corp.

February 01, 2012 07:30 ET

Midas Gold Reports High Grade Au-Sb-Ag-W Mineralization at its Golden Meadows Project, Idaho

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2012) - Midas Gold Corp. (TSX:MAX) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

HIGHLIGHTS

  • MGI-11-057 intersects 175.9m of 2.56g/t Au, 2.4g/t Ag and 0.22% Sb, including higher grade intervals
  • MGI-11-134 intersects 23.3m of 2.12g/t Au and 332g/t Ag including 2.4m of 1.4g/t Au, 3,160g/t Ag, 0.15% Sb and 0.85% W
  • MGI-11-152 intersects 22.9m of 4.91g/t Au and 1.9g/t Ag
  • MGI-11-159 intersects 44.2m of 2.04g/t Au, 4.7g/t Ag and 0.43% Sb

Midas Gold Corp. today announced further assay results from its ongoing exploration and definition core and reverse circulation ("RC") drilling program on the Hangar Flats and Yellow Pine deposits at its Golden Meadows Project, Idaho. Previously reported 2011 assay results can be reviewed on the Corporation's web site. Newly received results are summarized in Table 1, below, and highlight the discovery of new areas of high grade gold-silver-antimony +/- tungsten mineralization within the Hangar Flats and Yellow Pine deposits. Complete results are tabulated in Table 2 attached at the end of this news release.

Table 1: Highlights of Recent Assay Results
Hole ID Type Target Area From To Inter
val
- Gold Silver Anti
mony
- Tung
sten
-
(m ) (m ) (m)(1 ) (g/t ) (g/t ) (% ) (% )
MGI-11-057(2) Core Yellow Pine 136.3 312.1 175.9 2.56 2.4 0.22 0.002
including 180.8 182.3 1.5 5.78 4.8 5.78 0.006
including 273.9 276.9 3.0 3.39 14.3 2.20 0.002
including 295.1 296.3 1.2 5.74 6.0 2.69 0.000
MGI-11-060(2) Core Yellow Pine 174.7 215.8 41.1 2.97 1.7 0.00 0.003
including 194.5 199.0 4.5 9.77 4.0 0.01 0.005
MGI-11-105 Core Yellow Pine 86.0 106.7 20.7 1.00 0.8 0.00 0.003
and 125.7 211.2 85.5 1.88 3.6 0.00 0.005
MGI-11-126 Core Yellow Pine 35.1 70.1 35.0 2.62 4.6 0.42 0.002
including 36.6 42.7 6.1 2.54 19.0 1.49 0.001
MGI-11-131(3) Core Yellow Pine 178.6 219.8 41.1 1.53 1.4 0.01 0.002
MGI-11-134 Core Hangar Flats 194.9 218.2 23.3 2.12 332.6 0.10 0.094
including 215.8 218.2 2.4 1.40 3,160.0 0.15 0.851
MGI-11-138 Core Yellow Pine 146.3 201.2 54.9 1.73 2.7 0.01 0.003
and 275.8 301.8 25.9 1.03 2.2 0.01 0.003
MGI-11-148(4) RC West End 0.0 36.6 36.6 2.24 4.3 0.01 0.001
MGI-11-152 Core Yellow Pine 88.4 111.3 22.9 4.91 1.9 0.00 0.008
MGI-11-159 Core Yellow Pine 73.2 117.4 44.2 2.04 4.7 0.43 0.004
(1) Based upon current 3D interpretations the intervals quoted here are at or near true thickness unless otherwise noted 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 these holes were previously reported, but the intervals reported herein were not.
(3) True thickness uncertain.
(4) Pre-collar, top of hole only drilled with RC, and remainder of hole using core not yet completed.

"The results from Hangar Flats hole MGI-11-134, drilled adjacent and beneath the original 1900's era discovery outcrop at Hangar Flats that led to the development of the underground Meadow Creek Mine in the 1920s, and the high grade gold-antimony-silver mineralization intercepted by in-fill drill holes at Yellow Pine illustrate the potential for adding value to our gold mineral resource base through by-products from our discoveries on our Golden Meadows Project in Idaho," said Stephen Quin, President and CEO of Midas Gold Corp. "Our ongoing exploration compilation and in-fill drilling is providing support for our emphasis on defining a multi-product process flow sheet for the metal-rich mineralized systems present on our large property position," he said.

2011 Program

This drilling is being undertaken as part of a program designed to confirm and expand known mineral resources and potentially discover new mineralized areas. Four core rigs, one sonic rig and two RC rigs are currently on site. Our in-fill and step-out drilling program is continuing through the winter, while drilling that is more exploration-focused is subject to obtaining necessary permits.

Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made by Midas Gold in 2009 adjacent to the high grade underground Meadow Creek antimony-gold-silver mine that operated in the 1920s to early 1930s. 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 from 1987 through 1989. 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 but nevertheless could represent a significant by-product opportunity. Holes MGI-11-057 and 11-134, reported herein, are good examples of narrower, high grade silver, antimony and/or tungsten occurring within a broader envelope of gold mineralization.

Recent Drill Results

During 2011, 23,860m of core and RC drilling was completed in 107 holes, excluding sonic drilling completed for geotechnical purposes. Following this announcement, approximately 940 assays remain outstanding out of 23,060 samples submitted for analysis from the 2011 drilling. 2012 drilling commenced in mid-January and currently comprises three core and two RC rigs, with a fourth core rig scheduled to commence drilling shortly. The sonic drill should resume geotechnical drilling once approval processes are completed.

Core holes MGI-11-057, 11-060, 11-105, 11-126, 11-131, 11-132 and 11-138 were drilled within and beneath the known mineral resource at Yellow Pine in order to upgrade the confidence level of the mineral resources, to test mineralization at depth and to provide metallurgical samples. Two of the holes, MGI-11-57 and 11-60 were collared, but not completed early in the 2011 field season; these partially completed holes were re-entered and completed later in the 2011 season and final results from these holes are reported herein. Results from these drill holes 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 outside the modeled pit that limited these mineral resources. This is illustrated by hole MGI-11-138 (drilled near the historic Monday Tunnel on the south end of the mineral resource model), which cut mineralization approximately 75m beneath the modeled resource-limiting pit, and hole MGI-11-131 (a geotechnical hole, drilled in the main deposit area), which cut mineralization approximately 100m west of a fault previously thought to limit mineralization and approximately 65m below the currently modeled resource-limiting pit.

Holes reported herein, including MGI-11-150, 11-152, 11-153, 11-154, 11-155, 11-157, 11-158, 11-159 and 11-160 were drilled to confirm past drilling and test beneath or laterally the area within the Homestake portion of the Yellow Pine deposit. Drill results from this area continue to show mineralization to the west of the previously modeled resource.

Drill holes MGI-11-119, 11-123, 11-134 and 11-143 were drilled at Hangar Flats. Holes 11-123 and 11-143 were geotechnical holes that cut several narrow, but good grade gold intercepts outside of the previously defined mineralizing envelope, suggesting Midas Gold has not yet found the limits of this large system. Holes MGI-11-119 and 11-134 confirm Midas Gold's geologic model in the near surface, but also indicate that portions of the previously modeled mineral resource may be cut-off by post-mineral faulting. Hole 11-134, which was drilled to test under the original 1900's era discovery outcrop, cut high grade silver-tungsten mineralization along with strong antimony-gold mineralization down dip of the discovery outcrop. This drilling confirms a historic 1919 Idaho State Mine Inspector report noting "… a bold, zonal mineral outcropping… said to carry average values of 17 ounces silver and several dollars gold associated with disseminated antimony sulphide that, is believed will afford a high grade concentrate…".

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).

To view the locations of current drill holes, please visit the following link: http://media3.marketwire.com/docs/max101i.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 Corporation has completed over 162 core and RC holes totalling over 36,700 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 planned to evaluate 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 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: Recent Assay Results from Golden Meadows Project
To accompany Midas Gold news release dated February 1, 2012
Hole ID Type Target Area From To Inter
val
-
Gold Silver Anti
mony
-
Tung
sten
-
(m ) (m ) (m)(1 ) (g/t ) (g/t ) (% ) (% )
MGI-11-057(2) Core Yellow Pine 136.3 312.1 175.9 2.56 2.4 0.22 0.002
including 180.8 182.3 1.5 5.78 4.8 5.78 0.006
including 273.9 276.9 3.0 3.39 14.3 2.20 0.002
including 295.1 296.3 1.2 5.74 6.0 2.69 0.000
MGI-11-060(2) Core Yellow Pine 174.7 215.8 41.1 2.97 1.7 0.00 0.003
including 194.5 199.0 4.5 9.77 4.0 0.01 0.005
328.9 341.1 12.2 0.80 0.9 0.00 0.002
MGI-11-105 Core Yellow Pine 86.0 106.7 20.7 1.00 0.8 0.00 0.003
And 110.5 118.3 7.8 1.89 1.5 0.00 0.011
And 125.7 211.2 85.5 1.88 3.6 0.00 0.005
MGI-11-119 Core Hangar Flats 188.7 194.8 6.1 2.61 1.0 0.00 0.006
And 218.5 223.1 4.6 1.04 0.5 0.00 0.003
MGI-11-123 Core Hangar Flats 29.6 34.1 4.6 1.11 2.7 0.01 0.010
40.5 55.8 15.2 0.48 1.5 0.01 0.009
MGI-11-126 Core Yellow Pine 35.1 70.1 35.0 2.62 4.6 0.42 0.002
including 36.6 42.7 6.1 2.54 19.0 1.49 0.001
MGI-11-131(4) Core Yellow Pine 178.6 219.8 41.1 1.53 1.4 0.01 0.002
And 236.5 245.7 9.1 0.69 0.6 0.00 0.001
MGI-11-132(2) Core Yellow Pine 122.8 127.4 4.6 1.52 1.1 0.00 0.001
160.9 171.3 10.4 1.38 3.1 0.00 0.000
192.9 207.6 14.6 1.31 4.7 0.01 0.001
MGI-11-134 Core Hangar Flats 185.3 190.4 5.0 2.73 2.4 0.17 0.005
And 194.9 218.2 23.3 2.12 332.6 0.10 0.094
including 215.8 218.2 2.4 1.40 3,160.0 0.15 0.851
MGI-11-138 Core Yellow Pine 146.3 201.2 54.9 1.73 2.7 0.01 0.003
And 216.4 224.0 7.6 0.53 2.0 0.01 0.001
And 275.8 301.8 25.9 1.03 2.2 0.01 0.003
MGI-11-143 Core Hangar Flats 133.5 138.1 4.6 0.84 5.6 0.01 0.004
And 158.8 166.4 7.6 1.26 1.4 0.00 0.003
And 299.3 303.9 4.6 2.16 1.0 0.00 0.002
MGI-11-147 RC Yellow Pine 13.7 18.3 4.6 1.64 2.3 0.04 0.001
MGI-11-148(3) RC West End 0.0 36.6 36.6 2.24 4.3 0.01 0.001
MGI-11-150 RC Yellow Pine 70.1 86.9 16.8 1.77 1.3 0.00 0.002
MGI-11-152 Core Yellow Pine 88.4 111.3 22.9 4.91 1.9 0.00 0.008
MGI-11-153 RC Yellow Pine 25.9 36.6 10.7 1.39 2.4 0.00 0.002
And 41.2 47.2 6.1 0.90 0.7 0.00 0.004
MGI-11-154 RC Yellow Pine 13.7 21.3 7.6 2.39 5.5 0.57 0.005
And 35.1 45.7 10.7 4.58 4.9 0.01 0.004
And 68.6 82.3 13.7 1.96 1.9 0.06 0.001
MGI-11-155 RC Yellow Pine 41.2 45.7 4.6 3.44 3.9 0.23 0.004
And 57.9 62.5 4.6 3.18 1.9 0.01 0.004
And 80.8 103.6 22.9 1.55 1.0 0.01 0.002
MGI-11-157 RC Yellow Pine 64.0 76.2 12.2 2.07 4.4 0.01 0.003
And 99.1 125.0 25.9 3.18 1.9 0.10 0.001
MGI-11-158 RC Yellow Pine 21.3 33.5 12.2 0.74 0.5 0.00 0.003
And 68.6 80.8 12.2 1.74 0.3 0.00 0.001
MGI-11-159 RC Yellow Pine 73.2 117.4 44.2 2.04 4.7 0.43 0.004
MGI-11-160 RC Yellow Pine 54.9 68.6 13.7 1.41 0.3 0.00 0.002
(1) Based upon current 3D interpretations the intervals quoted here are at or near true thickness unless otherwise noted 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 these holes were previously reported, but the intervals reported herein were not.
(3) Pre-collar, top of hole only and hole not yet completed.
(4) True thickness uncertain.

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