Midland Exploration Inc.
TSX VENTURE : MD

Midland Exploration Inc.

December 16, 2010 09:00 ET

Midland Exploration Options Its Patris Gold Project to Aurizon Mines

MONTREAL, QUEBEC--(Marketwire - Dec. 16, 2010) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to announce the signing of an option agreement with Aurizon Mines Ltd ("Aurizon") on the Patris gold project, currently held 100% by Midland. The project, which comprises 50 claims covering a surface area of 22 square kilometres, is located in La Pause and Clericy townships, only 30 kilometres northeast of Rouyn-Noranda, in the Abitibi region of Quebec.

Aurizon can acquire 50% of Midland's interest during a four-year period under the following conditions:

  • A total of $230,000 in cash payments including a payment of $40,000 upon signing the agreement;
  • A total of $3,000,000 in exploration expenditures including a firm commitment of $600,000 in the first year.

Midland will be the initial operator. Upon acquiring a 50% interest, Aurizon will have the option to acquire an additional 10% interest by delivering a positive pre-feasibility study on the property within a four-year period under the following terms and conditions:

  • Make cash payments of $80,000 per year to Midland, until the delivery of the pre-feasibility study; and
  • Incur exploration work, including 40,000 metres of drilling, until the delivery of the pre-feasibility study.

Midland is proud to join forces with an important gold producer such as Aurizon, and is looking forward to the start of its first exploration program with this new partner.

Recent exploration work by Midland on Patris consisted of line cutting followed by ground-based geophysical surveys, namely a magnetic survey and an IP survey totalling about 30 kilometres. The latter geophysical method has the ability to detect even small amounts of mineralization, often occurring as finely disseminated sulphides in country rocks, which may contain gold. The newly defined targets mainly consist of weak chargeability highs combined with higher resistivity values. This type of IP anomaly is typical of strongly silicified zones and mineralized felsic intrusive zones. These new anomalies are all located proximal to the La Pause Fault (Destor-Porcupine South), in both ultramafic rocks of the Malartic Group and sedimentary rocks of the Kewagama Group.

This new property has a very strong potential for gold discoveries similar to deposits in the Cadillac and Malartic gold mining camps, as it covers the faulted and folded contact between sedimentary rocks of the Kewagama Group and mafic to ultramafic volcanic rocks of the Malartic Group over more than 4 kilometres strike length. Several new folded structures were recently interpreted based on magnetic data, which represent favourable sites for the injection of porphyry intrusions and deposition of gold mineralization. Many gold showings occur near this contact, namely the Gadoury showing, grading 6.3 g/t Au over 0.98 m, and the McDermott showing, which graded 8.6 g/t Au over 1.2 m (Source: Sigeom-MRNF).

About Aurizon

Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, one of the world's most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing its asset base through accretive transactions. Aurizon shares trade on the Toronto Stock Exchange under the symbol "ARZ" and on the NYSE Amex under the symbol "AZK".

About Midland

Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and REE. Midland is proud to count on reputable partners such as Aurizon Mines Ltd., Agnico-Eagle Mines Limited, Osisko Mining Corporation, North American Palladium Limited, Japan Oil, Gas and Metals National Corporation, Zincore Metals Inc. and SOQUEM Inc. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.

This press release was prepared by Gino Roger, registered engineer and Qualified Person as defined by NI 43-101.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland's periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities.

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