Midland Exploration and Aurizon Mines Resume Drilling on the Patris Gold Property
MONTREAL, QUEBEC -- (Marketwire) -- 10/12/11 -- Midland Exploration Inc. ('Midland')(TSX VENTURE: MD) is pleased to report that ground-based geophysical surveying and diamond drilling, conducted in partnership with Aurizon Mines Ltd ('Aurizon'), has resumed on the Patris gold project, currently held 100% by Midland. This property consists of 74 claims covering a surface area of 31 square kilometres in La Pause and Clericy townships, about 10 kilometres northeast of the Joanna gold deposit owned by Aurizon, which contains an indicated and measured global resource of 2.2 million ounces of gold.
Over the coming weeks, extensive exploration work will target new structures identified in mafic and ultramafic volcanic rocks of the Malartic Group cut by numerous porphyry intrusions. This work will mainly consist of trenching in the vicinity of the historical KE-3 showing, where grades of 6.34 g/t Au and 0.32% Cu are reported in grab sample (Source: Sigeom MRNF, NTS sheet 32D07), line cutting and an induced polarization survey totalling about 25 kilometres in the southeast part of the property, and more than 1,000 metres of diamond drilling.
To date, twelve (12) drill holes totalling 2,111.0 metres have been drilled in 2011 to test several induced polarization anomalies, all located proximal to the La Pause Fault (Destor-Porcupine South), in both ultramafic rocks of the Malartic Group and Kewagama Group sediments. Several gold anomalies associated with structures and deformed, pyrite-bearing felsic intrusions with sericite, chlorite, and hematite alteration, were intersected during this campaign.
For 2011, an exploration budget totalling $600,000 has been allocated on this property, which shows tremendous potential for gold discoveries similar to the Cadillac and Malartic gold mining camps, since it covers, over more than 4 kilometres, the faulted and folded contact between sediments of the Kewagama Group and mafic to ultramafic volcanics of the Malartic Group. Many new folded structures were recently interpreted based on magnetic data, which represent prospective zones for porphyry intrusion and gold deposition. Several gold showings are known near this contact, namely the Gadoury showing, which graded 6.3 g/t Au over 0.98 m, and the McDermott showing, at 8.6 g/t Au over 1.2 m (Source: Sigeom MRNF, NTS sheet 32D07).
Terms of the Option Agreement with Aurizon
Aurizon can acquire 50% of Midland's interest during a four-year period under the following conditions:
-- A total of $230,000 in cash payments including a payment of $40,000 upon
signing the agreement;
-- A total of $3,000,000 in exploration expenditures including a firm
commitment of $600,000 in the first year.
Midland will be the initial operator. Upon acquiring a 50% interest, Aurizon will have the option to acquire an additional 10% interest by delivering a positive pre-feasibility study on the property within a four-year period under the following terms and conditions:
-- Make cash payments of $80,000 per year to Midland, until the delivery of
the pre-feasibility study; and
-- Incur exploration work, including 40,000 metres of drilling, until the
delivery of the pre-feasibility study.
Quality Control
The exploration program on the Patris project is conducted by Midland Exploration Inc. under the supervision of Mario Masson, VP Midland Exploration and Qualified Person as defined by National Instrument 43-101. Assay samples are taken from NQ-size drill core sawn in half; one half is shipped to a commercial laboratory and the other half is kept for future reference. Analyses are conducted by Techni-Lab in Sainte-Germaine-Boule, where a strict internal quality control program is in place. Quality control samples, standards and blanks are inserted in the sample stream for mineralized zones. Drill intersections are reported as core lengths and their true thickness remains to be determined. Core angles are typically on the order of 70 to 90 degrees.
About Aurizon
Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, one of the world's most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing its asset base through accretive transactions. Aurizon shares trade on the Toronto Stock Exchange under the symbol 'ARZ' and on the NYSE Amex under the symbol 'AZK'.
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 rare earth elements. Midland is proud to count on reputable partners such as Agnico-Eagle Mines Limited, Osisko Mining Corporation, Aurizon Mines Limited, North American Palladium Limited, Japan Oil, Gas and Metals National Corporation, Zincore Metals Inc. and SOQUEM Inc. 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 Mario Masson, VP Midland Exploration and 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.
Contacts:
Gino Roger
President and Chief Executive Officer
450 420-5977
450 420-5978 (FAX)
info@midlandexploration.com
www.midlandexploration.com
