- Published: 24 February 2009
- Written by Editor
New Exploration Program on Midland James Bay Gold Project
Midland Exploration Inc. ("Midland") (TSX VENTURE: MD) is pleased to announce that a new exploration program will start on its 100%-owned James Bay Gold project which is currently under an option agreement with Agnico-Eagle Mines Limited ("Agnico-Eagle"). The 2008 first year exploration campaign has been very successful in finding several new gold bearing outcrops with values as high as 9.1 g/t Au. Prospecting along aeromagnetic anomalies high has led also to the discovery of a significant new base metal and precious metal showing returning 6.1% Cu, 0.26 g/t Au and 30.8 g/t Ag. Elsewhere on the properties, prospecting and reconnaissance mapping has identified other anomalous gold-bearing outcrops and boulders which require further investigation.
A winter exploration program has been recently laid out and approved by Agnico-Eagle to further evaluate the precious and base metal targets identified during the 2008 field season. Prior to the 2009 spring break-up, the program will consist of more than 75 kilometres of line cutting which will include 75 kilometres of magnetometric survey, 30 kilometres of HLEM and 27 kilometres of IP surveys over 5 grids distributed on Midland's Lasalle (3 grids) and Galinee (2 grids) properties. Moreover, detailed geological mapping, stripping and channel sampling on well exposed showings will complete the geophysical survey follow-up. Midland is very optimistic of identifying new geophysical anomalies advancing thereby the project closer to the drilling stage.
Midland controls more than 1240 claims totalling 640 km2 in this James Bay favourable area. The Midland properties are associated with first order, isolated or combined strong unexplained gold, arsenic and antimony lake-bottom sediment anomalies. Midland's properties 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 is also located along this favourable contact.
Terms of the Exploration Agreement
Agnico-Eagle paid to Midland the second year cash payment of $60,000 and enters into the second year of the agreement. The company 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. Midland will be the initial operator until Agnico-Eagle acquires a 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 a 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, Soquem Inc. and Quest Uranium Corporation. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.
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.
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.
SOURCE: Midland Exploration Inc.