Midland Exploration Inc.
TSX VENTURE : MD

Midland Exploration Inc.

September 17, 2013 08:30 ET

Midland Signs a New Option Agreement with a Major for the Patris Gold Property

MONTREAL, QUEBEC--(Marketwired - Sept. 17, 2013) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to announce the signing of a new Option agreement with Teck Resources Limited ("Teck") for its Patris gold property, currently wholly owned by Midland. The Patris project now includes the former Dunn property and comprises 218 claims covering a surface area of about 90 square kilometres. This property is located in La Pause and Clericy townships, only 30 kilometres northeast of Rouyn-Noranda, in the Abitibi region of Quebec.

Under this new agreement, Teck may earn an initial 50% interest (First Option) in the Patris property over a period of four years, by fulfilling the following conditions:

  • Exploration expenditures totalling $3,000,000, including $500,000 in the first year.

After earning an initial 50% interest, Teck may elect to increase its interest to 60% (Second Option) over a period of two years by fulfilling the following conditions:

  • Exploration expenditures totalling $2,500,000 and cash payments totalling $300,000, earning 2% additional interest for each tranche of $500,000 in exploration expenditures and $60,000 in cash payments.

After earning 60% interest, Teck will then have the option to increase its interest to 65% (Third Option) over a period of two years by fulfilling the following conditions:

  • Exploration expenditures totalling $1,000,000 for each 1% additional interest, to a maximum 65% interest.

Teck will be the project operator through the option period and has the right but not the obligation to appoint Midland as the project manager through a technical services agreement. It is envisaged that the initial exploration program, with a minimum commitment of $500,000 to be completed before the first anniversary of signing, will include prospecting, soil geochemistry, trenching, as well as a diamond drilling program. This program will test the best geophysical and geological targets along the traces of the Destor-Porcupine and Manneville Fault zones. This will include testing a strong, discrete, induced polarization anomaly occurring at the northern contact of the Lac Caste sediments with mafic volcanic rocks and the immediate extensions of the KE-3 showing, (4.7 g/t Au over 0.4 metre in channel sample), and drill hole PAT-11-15, (0.48 g/t Au over 17.0 metres).

In addition, a prospecting campaign completed in the summer of 2013 led to the discovery of a new gold showing, which graded 15.5 g/t Au (grab sample). The new showing consists of a network of quartz-pyrite/veinlets injected in a carbonatized felsic intrusion enclosed in sheared basalts with strong iron carbonate alteration. The gold mineralization remains open in all directions and will be the focus of a trenching program.

The Patris property offers excellent gold potential as it covers the Manneville Fault over more than 8 kilometres and the La Pause Fault over more than 10 kilometres, both recognized as subsidiary faults to the famous Destor-Porcupine Fault Zone. The geological setting on the Patris property, where clastic sediments and ultramafic rocks are juxtaposed along a faulted contact and intruded by a porphyry dyke swarm, is similar to the Malartic mining camp and the South Barnat ore deposit on the Canadian Malartic property held by Osisko. In addition, the prolific Doyon/Westwood-Bousquet-La Ronde gold mining camp is located less than 10 kilometres southeast of the Patris property.

Maps showing the location of the new Option agreement with Teck for the Patris property and the location of the new showing may be consulted using the following link: http://media3.marketwire.com/docs/midlandmap.pdf

About Midland

Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, PGE, base metals and rare earth elements. Midland is proud to count on reputable partners such as Teck Resources Limited, Agnico Eagle Mines Limited, Osisko Mining Corporation, Maudore Minerals 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. Management is currently reviewing other opportunities and projects to build up the Company portfolio and generate shareholder value.

This press release was prepared by Mario Masson, VP Midland Exploration and Qualified Person as defined by NI 43-101. For further information, please consult Midland's website.

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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