Discovery of Two New Gold Bearing Structures on Maritime Cadillac Property
Midland Exploration Inc. (“Midland”) (TSX VENTURE: MD) is pleased to announce the discovery of two new gold-bearing structures as well as the extension of the Maritime Contact East Horizon on its 100%-owned Maritime Cadillac Property which is currently under an option agreement with Agnico-Eagle Mines Limited (“Agnico-Eagle”). The Maritime Cadillac Property is contiguous to the Lapa gold mine property (probable reserve of 1.1 million ounces of gold with 3.8 million tonnes at 8.9 g/t Au), which is expected to go into production in mid 2009.
The project manager, Agnico-Eagle Mines Ltd, completed last summer a three-hole drilling program This program totalling 1754 metres was designed to test the extensions of the Maritime Contact East Horizon, intersected last spring in drill hole 141-08-14B with a grade of 3.3 g/t Au over 14.65 metres (6.60 metres true thickness), including a zone at 6.11 g/t Au over 5.65 metres (2.50 metres true thickness) (see press release dated June 2, 2008).
In the latest drill program, two new gold-bearing structures associated with mineralized (pyrite-arsenopyrite) felsic to intermediate porphyry dykes were intersected to the west of the Maritime Contact East structure. The two new structures, named East Dyke and West Dyke, remain essentially untested and thus show excellent potential for future exploration. Based on these very encouraging results, Agnico-Eagle intends to pursue exploration work in the following weeks with a minimum of 4000 metres of drilling on these new zones as well as on the Maritime Contact East structure.
East Dyke Structure
This new gold structure is characterized by a porphyry dyke mineralized with 3-5% arsenopyrite and 1% pyrite, located along the contact between ultramafic schists to the east and biotitic mafic volcanic rocks to the west. From 348.0 to 353.50 metres depth in drill hole 141-08-15, the dyke assayed 3.46 g/t Au over 5.50 metres (4.40 metres true thickness). Locally, this zone returned values up to 4.73 g/t Au over 1.50 metres.
West Dyke Structure
Drill hole 141-08-18A, collared to the west of hole #15, intersected from 64.15 to 72.20 metres depth, a new ultramafic schist horizon hosting a felsic porphyry dyke mineralized with 2-3% pyrite and grading 1.85 g/t Au over 8.05 metres (6.45 metres true thickness). Locally, this zone returned values up to 4.29 g/t Au over 1.50 metres. This new structure was intersected at a shallow depth (58 metres). Visible gold was observed along the edges of a quartz vein, in the half-core kept as reference material.
Maritime Contact East Zone
The Maritime Contact East Zone was intersected in all three drill holes of the program. Below hole #14B, the ultramafic schist horizon comes in direct contact with sedimentary rocks, thus showing striking similarities with the main contact at the Lapa mine. This favourable contact remains completely open below 400 metres vertical depth. In drill holes #17 and 18A, biotite alteration is observed in both ultramafic schists and sedimentary rocks. This alteration is also accompanied along the contact by strong quartz veining and 3-5% arsenopyrite. These elements are also present at the Lapa mine.
In the last drill hole 141-08-18A, the Maritime Contact East Zone was intersected about 50 metres south of drill hole 141-08-17 and assayed 0.74 g/t Au over 7.15 metres (5.60 metres true thickness), including an interval at 1.18 g/t Au over 3.20 metres (2.50 metres true thickness).
Drill hole 141-08-17 intersected the Maritime Contact East Zone about 100 metres below and 25 metres north of drillhole 141-08-14B, yielding a grade of 1.29 g/t Au over 2.45 metres (2.0 metres true thickness).
Terms of the Exploration Agreement
Agnico-Eagle signed an option agreement on June 1, 2006, to acquire a 50% interest in the Maritime Cadillac Property by investing $1,000,000 in exploration and by making payments totalling $100,000 over a 3-year period. Agnico-Eagle will have the option to increase its undivided interest in the Property from 50% to 65% over a period of 3 years, by solely financing a bankable feasibility study on the Maritime Cadillac Property, or by solely assuming all mining operations on the Maritime Cadillac Property, earning 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).
The Maritime Cadillac exploration program is conducted by Agnico-Eagle. Technical data was reviewed by Mario Masson, Senior Geologist for Midland Exploration Inc. and Qualified Person as defined by National Instrument 43-101. Assay samples are taken from BQ drill core sawed in half, with one half sent to a commercial laboratory and the other half retained for future reference. Assays were performed by Lab Expert of Rouyn-Noranda. Significant results are duplicated at the original laboratory and a second independent laboratory, namely ALS-Chemex-Chimitec of Val-d’Or.
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, Soquem Inc. and Quest Uranium Corporation. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to recently acquired properties. Management is currently considering other opportunities and other projects in order to increase the Company portfolio.
This press release was prepared by Gino Roger, geological engineer and Qualified Person as defined by NI 43-101.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements that are subject to unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Suck 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.
Contacts: Midland Exploration Inc. Gino Roger President and Chief Executive Officer 450-420-5977 450-420-5978 (FAX) firstname.lastname@example.org
SOURCE: Midland Exploration Inc.