MONTREAL, QUEBEC--(Marketwire - Aug. 22, 2012) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD), in partnership with Osisko Mining Corporation ("Osisko"), is pleased to report that preparation of upcoming work on its Casault gold property, beginning with an induced polarization ("IP") survey, is currently underway and fieldwork is expected to begin shortly.
This area with strong gold potential is located less than 3.5 kilometres directly west of the new discovery in the Bug Lake zone held by Balmoral Resources Ltd, where very high-grade drill intersections were recently reported, namely 273.0 g/t Au over 3.88 metres (source: press release by Balmoral Resources Ltd dated August 16, 2012) in addition to 11.42 g/t Au over 9.3 metres in the Martiniere East zone (source: press release by Balmoral Resources Ltd dated March 29, 2012).
Over the 2012 winter, a total of nineteen (19) diamond drill holes totalling 4,562 metres were completed in the volcaniclastic sequence located north of a granodioritic intrusion. This drilling campaign led to the identification of a new high-grade gold-bearing zone that graded 10.4 g/t Au over 1.45 metres in drill hole CAS-12-07, and also resulted in a new geological interpretation by positioning the Sunday Lake Deformation Zone further north than originally inferred. Midland controls over 20 kilometres along the major Sunday Lake Deformation Zone hosting the major Detour Lake gold deposit. This new geological interpretation thus opens up a vast area, entirely unexplored over a strike length of more than 10 kilometres, which will initially be investigated by way of an IP survey totalling about 60 kilometres. The geological and structural framework of this part of the property is very similar to what is observed in areas around the Detour Lake ore deposit and the Martiniere and Bug Lake zones, with the presence of several structures trending ENE-WSW and NW-SE. The most promising targets delineated by the IP survey will then be tested during the next drilling campaign.
The Casault gold property consists of 324 claims, wholly owned by Midland and covering a total surface area of about 178.4 square kilometres. This high-priority area targeted with this exploration program, is located about 40 kilometres east of the Detour Lake gold deposit, which currently hosts 23.3 million ounces of gold in measured and indicated resources (43-101) and 5.8 million ounces of gold in inferred resources (43-101), including 15.6 million ounces of gold in near-surface proven and probable mineral reserves (43-101) (source: press release by Detour Gold Corporation dated January 25, 2012).
Maps showing the location of the IP survey may be consulted using the following links:
For Figure 1 - Map of the Abitibi showing the location of the Casault project, click here: http://media3.marketwire.com/docs/Fig1_Casault_Abitibi_Geology.pdf
For Figure 2 - Map showing the regional geology of the Casault project, click here: http://media3.marketwire.com/docs/Fig2_Casault_Regional_Geology.pdf
For Figure 3 - Map showing the location of the IP survey, click here: http://media3.marketwire.com/docs/Fig3_Casault_IP_Surveys.pdf
Terms of Exploration Agreement
Osisko can earn 50% of Midland's interest in the property by spending a total of $6,000,000 in exploration work and making payments totaling $600,000 over a period of five years. Midland will be the operator during the first year of the option agreement. Upon acquiring a 50% interest, Osisko will have the option during a three year period to acquire an additional 15% interest by delivering a bankable feasibility study or by solely assuming all exploration, development and mining operations on the Casault Property, earning a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).
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 rare earth elements. Midland is proud to count on reputable partners such as Osisko Mining Corporation, Agnico-Eagle Mines Limited, Aurizon Mines Limited, North American Palladium Limited, Japan Oil, Gas and Metals National Corporation 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.
Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec, and is pursuing exploration on a number of properties, including the Hammond Reef Gold Project in Northern Ontario. Osisko employs more than 700 individuals.
This press release was prepared by Mario Masson, VP Midland Exploration and Qualified Person as defined by NI 43-101.
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.
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.