MONTREAL, QUEBEC--(Marketwired - July 25, 2013) - Midland Exploration Inc. ("Midland") (News - Market indicators) is pleased to report that the recent drilling campaign on the Maritime-Cadillac property completed by Agnico Eagle Mines Limited ("Agnico Eagle") extended the Dyke West zone over more than 300 metres deep, thus opening a vast unexplored favourable area. The Maritime-Cadillac property is contiguous to the Lapa gold mine property (2.1 million tonnes in proven and probable reserves at a gold grade of 6.0 g/t, for 395,000 ounces of gold), in commercial production since May 2009.
The recent drilling campaign, totalizing 2,373 metres on the Maritime-Cadillac property included five (5) underground drill holes drilled from the exploration drift on the Lapa property at a depth of 1,000 metres and one (1) drill hole completed from the surface. The main objective was to test in depth the gold potential of the Dyke West and V4 West zones in the northern portion of the Maritime-Cadillac property. Several analytical results from the underground drill holes are still pending.
Gold potential extension of the Dyke West zone
The drill hole 141-13-35 aiming the Dyke West zone at a vertical depth of 600 metres returned 1.5 g/t Au over 18.9 metres between 673.3 and 692.2 metres, including a 1.85 g/t Au over 12.9 metres interval between 679.3 and 692.2 metres. This intersection consists of a porphyritic felsic dyke, with albite alteration, locally containing up to 1% disseminated pyrite. This drill hole was completed about 300 metres below drill hole 141-10-26 which returned a value of 8.6 g/t Au over 5.5 metres between 383.1 and 388.6 metres, including an interval of 13.8 g/t Au over 3.0 metres. The Dyke West zone remains completely open above drill hole 141-10-26, below hole 141-13-35, and laterally below the vertical depth of 500 metres.
Also, higher in the same drill hole, a new high grade zone was intersected between 375.4 and 376.4 metres and returned 14.8 g/t Au over 1.0 metre associated to a pyritic quartz-vein with visible gold.
The Maritime-Cadillac property is well located in the eastern part of the Cadillac mining camp, south of the Lapa gold mine. The presence of significant lithological contacts (Pontiac-Piché-Cadillac) within the Cadillac-Larder Lake deformation zone provides excellent potential for the development of lode gold or disseminated gold deposits.
A surface plan and a longitudinal section showing these recent intersections are available on Midland's website.
Terms of the Exploration Agreement
On June 1, 2009, Agnico Eagle acquired a 50% undivided interest in the Maritime-Cadillac property. They paid $100,000 and completed $1,000,000 of exploration work from fiscal 2006 to fiscal 2009. They also have the option to increase its undivided interest in the property from 50% to 65% over a period of 4 years, by financing a bankable feasibility study or by solely assuming all mining operations on the Maritime Cadillac Property, earning a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million). Agnico Eagle is currently exercising its option to increase its interest in the project by solely funding ongoing exploration expenditures on the project. With this program, Agnico Eagle completed its option to acquire an additional 1% interest and now holds a 51% interest in the Maritime-Cadillac project.
About Midland
Midland targets the excellent mineral potential 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 Agnico Eagle, 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.
