MONTREAL, QUEBEC--(Marketwired - Oct. 8, 2013) - Midland Exploration Inc. ("Midland") (News - Market indicators) is pleased to report the commencement of the exploration program on the Patris gold property, wholly owned by Midland and currently under option to Teck Resources Limited ("Teck") where Midland is the Operator. This project consists of 218 claims covering an underexplored area of about 90 square kilometres in La Pause and Clericy townships, only 30 kilometres northeast of Rouyn-Noranda and less than 10 kilometres northwest of the prolific Doyon/Westwood-Bousquet-La Ronde gold mining camp.
The exploration program will primarily consist of trenching, prospecting, and soil geochemistry. This work will mainly focus on a new prospective area that was recently identified during the 2013 summer prospecting campaign, during which a new high-grade gold showing (Rosie) was discovered, with assay results up to 15.5 g/t Au in a grab sample. This new showing is associated with a network of quartz-pyrite veinlets injected in a felsic dyke with strong ankerite alteration, which has never been drill-tested. Trenching in this area is expected to provide a better understanding of the geological setting of this showing so as to orient future follow-up work.
In parallel with the trenching program, prospecting work will focus on several new induced polarization anomalies identified proximal to the Destor-Porcupine Fault and soil geochemistry anomalies identified during the 2013 summer field program in the vicinity of the Rosie and KE-3 (4.7 g/t Au over 0.4 metre in channel sample) showings, in order to prioritize targets for an upcoming diamond drilling program proposed for early 2014.
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.
Exploration Agreement Terms
Teck has the option to earn an initial 50% interest in the Patris property ("the Property") by incurring a cumulative aggregate of $3,000,000 in expenditures on the Property over a period of four years, with $500,000 in exploration expenditures to be completed in the first year. After earning an initial 50% interest, Teck may elect to increase its interest in the Property up to 60% over a period of two years, by incurring an additional $2,500,000 in exploration expenditures and making $300,000 in cash payments, earning a 2% additional interest for each tranche of $500,000 in additional exploration expenditures and $60,000 in cash payments. Upon earning a 60% interest, Teck will then have the option to increase its interest to 65% over a period of two years, earning a 1% additional interest for each tranche of $1,000,000 in additional exploration expenditures incurred over a period of two years.
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/Figures_Patris_Teck_Option_Oct%202013.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.
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
