July 16, 2008
First Exploration Program With Agnico-Eagle on Midland’s James Bay Gold Properties
Midland Exploration Inc. ("Midland") (TSX VENTURE: MD) in partnership with Agnico-Eagle Mines Ltd ("Agnico-Eagle") is pleased to announce the beginning of an important field campaign on its gold properties located in the James Bay Area; an area that could become a major gold district in Quebec after the Abitibi Belt. These gold properties are currently held 100% by Midland Exploration Inc.
To evaluate the gold potential of Midland's portfolio searching for deposits similar to the Eleonore gold deposit, owned and now being developed by Godlcorp, a helicopter-borne magnetic and radiometric survey has been initiated. This new survey, intended to cover most of the properties comprises 3440 kilometres of flight lines using a 200 metres line separation. In addition, to source the gold and arsenic lake bottom geochemical anomalies found on Midland's properties, a regional till sampling program is planned, this, in conjunction with a prospecting program to follow up also the results of the helicopter-borne survey. The field programs are scheduled to begin in early August.
Midland's properties share similar geological and geochemical features with those observed in the vicinity of the Eleonore major gold discovery made by Virginia in 2004-05. They are located near the contact between volcanic-plutonic units of the La Grande Subprovince and the metasedimentary units of the Opinaca Subprovince. This contact is recognized as a favourable setting for gold mineralization in the northeast Superior Province. The Eleonore gold deposit, recently acquired by Goldcorp, is also located along this favourable contact.
Agnico Eagle may earn 50% of Midland's interest in the property, by spending a total of $4,500,000 in exploration work and making payments totalling $300,000 over four years. The company must spend $600,000 in exploration work during the first year (firm commitment). Midland will be the initial operator until Agnico-Eagle acquires 50% interest in the project. Upon acquiring 50% interest, the company will have the option to increase its undivided interest in the project from 50% to 65% over a period of three years, by solely financing a bankable feasibility study on the James Bay Gold project or by solely assuming all mining operations on the project, earning 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).
About Midland Exploration
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 uranium. Midland is proud to count on reputable partners such as Agnico-Eagle Mines Limited, Breakwater Resources Ltd, Soquem Inc. and Quest Uranium Corporation. The Company quickly executed its business plan by signing four important agreements adding up to nearly $16,000,000 in work and payments of up to $1,000,000 over four years. Midland is currently evaluating other opportunities and other projects in order to increase the portfolio of the Company. Midland prefers to work in partnership and intends to conclude quickly additional agreements in regard to lately acquired properties.
This press release was prepared by Gino Roger, geological engineer and a 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. Midland undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Midland Exploration Inc. Gino Roger President and Chief Executive Officer 450-420-5977 450-420-5978 (FAX) [email protected]www.midlandexploration.com
SOURCE: Midland Exploration Inc.