Midland Options to NioBay its La Peltrie Gold Property, Southeast of Detour Gold's Zone 58N
MONTREAL, QUEBEC--(Marketwired - Sep 6, 2017) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to announce the execution of a new option agreement with Niobay Metals Inc. ("NioBay") for its La Peltrie gold property, currently wholly owned by Midland. The La Peltrie property consists of 511 claims totalling approximately 285 square kilometres and covers, over more than 25 kilometres, a series of interpreted NW-SE-trending subsidiary faults to the south of the regional Lower Detour Fault.
This property with strong gold potential is located approximately 25 kilometres southeast of Zone 58N, a high-grade gold zone in the Lower Detour area held by Detour Gold Corp. ("Detour Gold"). Best results obtained so far in drilling in Zone 58N in the Lower Detour area include values of 11.82 g/t Au over 32.40 metres and 12.74 g/t Au over 28.0 metres (see press release by Detour Gold dated June 2, 2014). Phase 2 drilling results include gold values reaching 14.22 g/t Au over 13.0 metres and 28.14 g/t Au over 9.0 metres (Note that assays are reported as core lengths and that true thicknesses cannot be determined at this time with the information currently available).
The La Peltrie property is also located about 25 kilometres northwest of the former Selbaie mine, which historically produced 56.5 million tonnes grading 1.9% Zn, 0.9% Cu, 38.0 g/t Ag and 0.6 g/t Au (Midland cautions that the mineralization at the Selbaie Mine may not be indicative of the mineralization that may be identified on the La Peltrie property). In addition, the property is next to the B26 deposit, currently held by SOQUEM, which contains indicated resources of 3.97 million tons at a grade of 0.88 % Cu, 0.38 % Zn, 0.34 g/t Au and 12.40 g/t Ag (pit) as well as 2.81 million tons at a grade of 1.32 % Cu, 0.69 % Zn, 0.54 g/t Au and 13.32 g/t Ag (underground). It contains also inferred resources of 3.99 million tons at a grade of 1.57 % Cu, 0.84 % Zn, 0.38 g/t Au and 10.22 g/t Ag (underground) as well as 3,000 tons at a grade of 1.20 % Cu, 0.02 % Zn, 0.14 g/t Au and 4.34 g/t Ag (pit) (Source: SGS Canada Inc. NI 43-101 Technical Report dated February 3 2016). Recent drilling by Soquem on this deposit returned new Zn-Ag and Cu-Au zones yielding up to 21.2% Zn, 526.6 g/t Ag, 3.8% Pb and 0.7% Cu over 3.4 metres (drill hole 1274-16-228) and 12.2% Cu, 1.3 g/t Au and 14.0 g/t Ag over 2.0 metres (drill hole 1274-16-236).
Under the terms of this new agreement, NioBay may earn 50% of Midland's interest over a period of four (4) years, by fulfilling the following conditions:
- Cash payments totalling $250,000, including the payment of $30,000 in common shares upon signing the agreement;
- Exploration expenditures totalling $3,000,000, including a firm commitment of $500,000 during the first year. Midland will be project operator during the option period.
Following the initial earn-in of its 50% interest, NioBay may earn an additional tranche of 15% interest for an undivided 65% interest in the Properties, by producing a Preliminary Economic Study on or before August 31, 2023.
Midland and NioBay will begin shortly a diamond drilling campaign totaling more than 1,500 metres aiming to test the best geophysical targets identified with the OreVision® IP (« OreVision ») surveys completed in 2016 and 2017 (see Midland press release dated April 19 2017).
Maps showing the location of the new option agreement with NioBay for the La Peltrie property may be consulted using the following link: http://media3.marketwire.com/docs/La-Peltrie-Sept_1101863.pdf
About Midland
Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, platinum group elements, base metals and rare earth elements. Midland is proud to count on reputable partners such as Niobay Metals Inc., Agnico Eagle Mines Ltd., Teck Resources Ltd., Osisko Mining Inc., Altius Minerals Corp., SOQUEM INC., Japan Oil and Gas and Metals National Corporation and Abcourt Mines 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 Exploration for Midland, certified geologist and Qualified Person as defined by NI 43-101. For further information, please consult Midland's website: www.explorationmidland.com
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.
Contact
Midland Exploration Inc.
Gino Roger
President and Chief Executive Officer
450 420-5977
450 420-5978
info@midlandexploration.com
www.explorationmidland.com
