Montreal, January 15, 2015. Midland Exploration Inc. (“Midland”) (TSX-V: MD) is pleased to provide an update on its various ongoing exploration activities across Quebec. Over the past few years, Midland has concluded several partnerships including agreements with Teck Resources Limited (“Teck”), SOQUEM INC. (“SOQUEM”), Agnico Eagle Mines Limited (“Agnico Eagle”), Sphinx Resources Limited (“Sphinx”), and Japan Oil, Gas and Metals National Corporation (“JOGMEC”).
Over the coming weeks, several drilling programs totalling more than 10,000 metres will be initiated, mainly on the Patris, Casault, Jouvex, Samson and Laflamme projects. During 2014, more than 3,400 metres of drilling were completed, as well as several geophysical surveys in the Abitibi, James Bay, and Labrador Trough areas. Midland, along with its partners, plans to invest a minimum of $3.3M in 2015 on its various projects across Quebec. In addition, Midland is confident it will conclude new partnerships shortly and thus increase the amount of drilling and the overall budget planned for 2015.
Gold projects in the Abitibi region
Maritime-Cadillac Project – Midland/Agnico Eagle JV
The Maritime-Cadillac property is located along the Cadillac-Larder Lake Break and is contiguous to Agnico Eagle’s Lapa gold mine property (2.1 million tonnes in proven and probable reserves at a gold grade of 6.0 g/t, for 395,000 ounces of gold), in commercial production since May 2009. The Maritime-Cadillac project is a joint venture currently owned 51% by Agnico Eagle and 49% by Midland.
Data compilation and integration is underway in the Lapa-Maritime Cadillac area by our partner Agnico Eagle, in order to complete the construction of a 3D model. New exploration targets will be defined for 2015 along this segment of the Cadillac Break.
Patris Project – Midland/Teck (Option)
The wholly owned Patris project comprises 218 claims covering a surface area of about 90 square kilometres, located less than 10 kilometres northwest of the prolific Doyon/Westwood-Bousquet-La Ronde gold mining camp. The Patris property offers excellent gold potential as it covers the Manneville Fault over more than 8 kilometres, and the La Pause Fault over more than 10 kilometres, both recognized as subsidiary faults to the well-known Destor-Porcupine Fault Zone.
Now that the Commission de la Protection des Terres Agricoles (“CPTAQ”) has granted authorization, a planned drilling program totalling 1,400 metres in seven (7) holes is in preparation and is scheduled to begin in January 2015. This drilling program will test several high-quality targets, including induced polarization anomalies as well as the depth extension of a gold-bearing zone intersected in drill hole PAT-11-15 that graded 0.48 g/t Au over 17.0 metres (see press release dated May 24, 2012). For more information on the terms of the option agreement with Teck, please refer to the press release dated September 17, 2013.
Casault Project – Midland/SOQUEM (Option)
The Casault gold property comprises 301 claims exclusively owned by Midland and covering an approximate area of 165 square kilometres. The Casault property covers a portion of the Sunday Lake Fault over more than 20 kilometres strike length and is located about 40 kilometres east of the Detour Lake gold deposit, which currently hosts, near surface, 15.5 million ounces of proven and probable mineral gold reserves (National Instrument 43-101 (“NI 43-101”) compliant).
Midland recently concluded an option agreement with SOQUEM for its Casault and Jouvex properties. In early 2015, exploration work including line cutting, induced polarization and electromagnetic surveys as well as 2,300 metres of drilling will be conducted on Casault. This work will mainly target the most promising gold occurrences discovered in 2012-2013. These areas include: the north contact of the Turgeon pluton, where drill hole CAS-12-07 returned 10.4 g/t Au over 1.45 metres, as well as areas immediately north and west of the conglomerate basin with pyrite and jasper clasts identified in 2013. In the northern area, drill hole CAS-13-28A had been terminated in a gold-bearing zone grading 0.29 g/t Au over 9.0 metres. This drill hole is located along the westward extension of the Martiniere zone held by Balmoral Resources Ltd (“Balmoral”). Balmoral recently announced new drill intersections with extremely high gold grades for the Martiniere zone (Bug Lake Footwall zone), with grades up to 1,138.0 g/t Au over 4.87 metres, including an interval at 9,710.0 g/t Au over 0.57 metre (Source: press release by Balmoral dated May 12, 2014).
Under the terms of this letter of intent concerning the Casault and Jouvex properties, SOQUEM has the option to earn 50% of Midland’s interest over a period of four (4) years, by fulfilling the following conditions:
- Exploration expenditures totalling $4,500,000, including a firm commitment of $1,000,000 during the first year. Midland will be project operator during the option period.
Jouvex Project – Midland/SOQUEM (Option)
The Jouvex property comprises 297 claims covering a surface area of approximately 166 square kilometres along the Casa Berardi-Douay-Cameron gold-bearing deformation zone. The Jouvex property is wholly owned by Midland and is located about 50 kilometres west of Matagami in the Abitibi region of Quebec.
This property which has a strong gold potential covers more than 10 kilometres of a prominent regional flexure along the Casa Berardi-Douay-Cameron deformation zone. This major structure hosts the Casa Berardi mine, located about 65 kilometres further west, and the Douay and Douay West deposits about 7 kilometres to the southeast of the Jouvex property. The Douay gold deposits contain 2.8 million ounces of gold in inferred resources and 238,433 ounces of gold in measured and indicated resources (Source: Aurvista Gold Corporation website).
The next drilling campaign planned on Jouvex, slated to begin in January 2015, will total nearly 1,500 metres and will test the best induced polarization and VTEM targets identified in 2013-2014. In addition, induced polarization surveys will commence shortly in the northwest part of the property, to investigate a section of non-magnetic iron formation that contains a few new VTEM conductors.
Samson project – Midland/Sphinx (Option)
The Samson project consists of 512 claims covering a surface area of about 284 square kilometres about 50 kilometres west of the town of Matagami, in Abitibi, Quebec. This new property has a strong potential for Ni-Cu-PGE and gold and is located about 5 kilometres south of the recent Ni-Cu-PGE and gold discoveries made by Balmoral Resources Ltd (“Balmoral”) on the Grasset project. Recently, Balmoral announced the discovery of a high-grade Ni-Cu-PGE zone, with values up to 1.79% Ni, 0.19% Cu, 0.42 g/t Pt, and 1.04 g/t Pd over 45.28 metres including an interval grading 10.6% Ni, 0.45% Cu, 2.04 g/t Pt, and 5.23 g/t Pd over 1.10 metre and 1.62% Ni, 0.18% Cu, 0.36 g/t Pt and 0.88 g/t Pd over 54.08 metres (see press releases by Balmoral dated May 20, 2014 and August 18, 2014). Sphinx may earn 50% of Midland’s interest over a period of four (4) years, by fulfilling the following conditions:
- Cash payments totalling $275,000, including a $40,000 payment upon signing the agreement;
- Exploration expenditures totalling $3,500,000, including a firm commitment of $500,000 during the first year. Midland will be project operator during the option period.
This property covers, over a strike length of more than 20 kilometres, a series of strongly magnetic sills located just south of the regional Lower Detour Fault, also known for its gold potential. In addition, lithogeochemistry data from historical drill holes indicate the presence of ultramafic sills, thus confirming the potential for magmatic Ni-Cu-PGE mineralization on the Samson property.
During December 2014, a major ground-based geophysical program totalling about 60 kilometres and including magnetic and electromagnetic surveys was completed in an effort to characterize a series of untested MegaTEM conductors coinciding with strong magnetic responses. About a dozen high-priority MegaTEM targets were selected for this ground follow-up, due to their association with strongly magnetic units interpreted as ultramafic rocks. The objective is to define priority targets to be tested in an initial drilling program estimated at about 2,000 metres that will follow the geophysical surveys.
Valmond Project – Midland/Sphinx (Option)
The Valmond property is located about 50 kilometres west of Matagami. The property comprises 111 claims covering a surface area of about 62 square kilometres. It covers a segment of more than 15 kilometres along the gold-bearing Bapst Fault. An option agreement was concluded with Sphinx in November 2013 for the Valmond property. Sphinx may earn a 50% interest in the Property in consideration of exploration expenditures totalling $2,500,000, including a firm commitment of $300,000 during the first year of the agreement, and cash payments totalling $250,000 over a period of four years. Midland will be the project operator for the duration of this option agreement.
In December, Midland completed a 225 metres drill hole to test an induced polarization anomaly consisting of a chargeability high with no related drop in resistivity. This target is located in a structurally complex area marked by the intersection of several NW-SE and NE-SW-trending structures. Assay results are pending. Earlier in 2014, Midland completed a drilling campaign totalling 1,450 metres. Best results were obtained in drill hole VAL-14-02, which targeted the down-plunge extension of the main showing at about 350 metres vertical depth. This hole was drilled to a final depth of 543.0 metres and intersected altered intermediate tuffs hosting quartz veinlets and arsenopyrite stringers from 454.50 to 517.65 metres, with several gold values including 0.46 g/t Au over 0.60 metre (454.50 to 455.10 metres) and 0.74 g/t Au over 0.64 metre (487.80 to 488.44 metres).
Adam Project – Midland/Sphinx (Option)
The Adam property is wholly owned by Midland and is located about 65 kilometres west of the town of Matagami and approximately 15 kilometres east of the B26 zone held by SOQUEM and about 20 kilometres east of the former Selbaie mine, which historically produced 56.5 Mt grading 1.9% Zn, 0.9% Cu, 38.0 g/t Ag and 0.6 g/t Au. It consists of 182 cells covering a surface area of about 100 square kilometres in the Abitibi region of Quebec. The B26 and East Zone gold-copper deposits, held and worked actively by SOQUEM, respectively host historical resources on the order of 600,000 metric tonnes grading 2.9 g/t Au and 2.8% Cu and 750,000 metric tonnes grading 2.0% Cu and 0.4 g/t Au (Source: SOQUEM website; historical resources non-compliant with NI 43-101). In addition, drill holes completed in 2012 by Excellon Resources Inc. (“Excellon”) on the Beschefer property (B-14 zone) located less than 7 kilometres west of the Adam property, intersected high-grade gold intervals reaching 13.07 g/t Au over 8.75 metres, including 58.5 g/t Au over 1.50 metre (Source: press release by Excellon dated April 17, 2012). This new acquisition with strong gold and copper potential covers, over more than 8 kilometres, the regional contact between tholeiitic volcanic rocks of the Enjalran Group and calc-alkaline volcanic rocks of the Brouillan Group as well as an assemblage of felsic volcaniclastic rocks.
Pursuant to this new agreement, Sphinx 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 a $20,000 cash payment upon signing the agreement;
- Exploration expenditures totalling $3,000,000, including $400,000 during the first year with a firm commitment of $200,000. Midland will be project operator during the option period.
A helicopter-borne VTEM electromagnetic survey totalling about 800 line-kilometres was completed in December 2014 to cover the entire property and the final results are pending.
Laflamme Project – Midland/Maudore JV
The Laflamme project comprises 682 claims covering a surface area of about 359 square kilometres and is a joint venture between Midland and Aurbec Mines Inc., a wholly-owned subsidiary of Maudore. This project is located about 25 kilometres northwest of the town of Lebel-sur-Quévillon and about 30 kilometres east of the Sleeping Giant mine and mill in Quebec.
During December 2014, Midland completed a grid and a ground-based electromagnetic survey in order to investigate a series of untested VTEM conductors located about 2 kilometres north of drill hole LA-11-08. The latter intersected a new zone with Ni-Cu-PGE mineralization along the contact with an ultramafic intrusion, which graded 0.66% Ni, 0.35% Cu, 0.17 ppm Pt and 0.16 ppm Pd over 8.0 metres, including a high-grade zone at 1.55% Ni, 0.53% Cu, 0.26 ppm Pt and 0.28 ppm Pd over 1.60 metres. The objective is to define priority targets to be tested in an initial drilling program estimated at about 2,000 metres that will follow the geophysical surveys.
Gold project in the James Bay region
Baie James Éléonore Project – 100% Midland
The Eléonore project encompasses the Éléonore Centre, West and East properties for a combined total of 246 claims covering 128 square kilometres. This property is located approximately 30 kilometres southwest from Goldcorp Inc.’s Éléonore deposit, in a similar geological environment. This world-class gold deposit contains 4.03 Moz Au in proven and probable reserves, 4.84 Moz Au in measured and indicated resources, and 4.10 Moz Au in inferred resources (Source: Goldcorp press release dated February 13, 2014).
The 2014 prospecting campaign led to the discovery of several new gold anomalies on the Eleonore Centre property. Additional channel sampling was also carried out in the Golden Gun and Golden Gun West trenches. The Golden Gun East (18.8 g/t Au) and Golden Gun West (11.95 g/t Au, 2.36 g/t Au, 1.69 g/t Au) showings were discovered 75 metres east and 200 metres west respectively from the Golden Gun showing (13.6 g/t Au). A total of 275 grab samples and 19 channel samples were collected on the Eleonore Centre property in 2014. Several new mineralized zones were discovered and grab samples returned values up to 0.39 g/t Au. On the IP grid located in the south part of the property, where several strong IP anomalies were identified, a new mineral occurrence with anomalous gold was discovered and given the name Sean Connery. This new showing is characterized by quartz-tourmaline-arsenopyrite veinlets hosted in deformed mafic metavolcanic rocks. Two grab samples collected in the vicinity of this showing yielded values of 0.11 and 0.13 g/t Au. South of the Eleonore Centre property, a granitic intrusion with local evidence of potassic alteration was identified. Three grab samples from this granite returned 0.18, 0.13, and 0.12 g/t Au.
New channel samples taken in the Golden Gun West trench returned values up to 0.40 g/t Au over 4.30 metres, including 0.55 g/t over 1.00 metre. Channel sampling in the Golden Gun trench did not return significant values. Midland intends to conduct ground-based geophysical work including an IP survey during the winter of 2015, and a prospecting and trenching campaign is planned for the summer of 2015.
Platinum group elements (“PGE”) project in the Labrador Trough, Quebec
Pallas Project – Midland/JOGMEC (Option)
In 2013, Midland acquired 494 claims covering a surface area of more than 225 square kilometres in the Labrador Trough. This new acquisition covered a large, folded, multi-kilometre mafic-ultramafic complex known for its strong potential for platinum group elements (PGE). In early 2014, Midland concluded an option agreement with JOGMEC, granting the latter the option to acquire 50% interest in the Pallas project by March 31, 2016 in exchange for exploration expenditures totalling $2,000,000. Midland will act as project operator as long as it holds an interest of 50% or more in the project.
During the summer, a major exploration program, carried out in partnership with JOGMEC and consisting of prospecting, channel sampling and diamond drilling, was completed in areas where the most promising PGE + Au showings were discovered in the summer of 2013.
During this program, a total of 730 grab samples and 1,220 channel samples were collected across the Ceres, Itokawa, Gaspar, and Palladin claim blocks. During this work program, a new showing named Athena returned a value of 12.6 g/t PGE+Au in grab sample. Several other grab samples yielded interesting values: up to 7.12 g/t PGE+Au (Enish East), 4.94 g/t PGE+Au on Ceres South, 4.3 g/t PGE+Au on Ceres, 3.2 g/t PGE+Au on Triton, and 2.69 g/t PGE+Au on Itokawa. The best channel samples collected on Palladin returned a grade of 2.9 g/t PGE+Au over 1.76 metre, including 4.5 g/t over 0.80 metre. The mineralized zone remains open in both directions. The Ceres, Palladin, Enish, Athena, and Triton showings were drill-tested for a total of 950 metres of drilling. Our best results yielded 0.60 g/t PGE + Au over 1.45m including 0.94 g/t over 0.66 metre and 0.28 g/t PGE +Au over 8.5 metres including 0.77 g/t PGE + Au over 1.0 metre on Palladin and Ceres respectively. Very encouraged by these results, we are currently planning our next exploration program that will include additional channel sampling and diamond drilling of our best outlined targets.
Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, PGE, base metals and rare earth elements. Midland is proud to count on reputable partners such as Teck Resources Limited, Agnico Eagle Mines Limited, SOQUEM Inc., Sphinx Resources Limited, Japan Oil, Gas and Metals National Corporation and Maudore Minerals Limited. 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.
The 2014 drilling program on the Valmond project was completed and supervised by Midland. Assay samples were collected from NQ and BQ size drill core sawn in half; one half was sent to a commercial laboratory and the other half was kept for future reference. Quality control samples (standards) and barren samples (blanks) were inserted on a regular basis in the sample stream. Analyses were conducted by ALS Minerals Laboratories in Val-d’Or. Drill intersections are reported as core lengths and their true thickness remains to be determined. Data from these exploration programs were reviewed by Mario Masson, VP for Midland and Qualified Person as defined by National Instrument 43-101.
The exploration program on the Pallas project was supervised by Robert Banville, geological engineer employed by Midland and Qualified Person as defined by National Instrument 43-101. All assay results reported in this press release for the Pallas project were obtained from ALS Minerals Laboratories in Val-d’Or, Québec and include an internal quality control program including insertion of standards, blanks, and duplicates.
This press release was prepared by Mario Masson, VP Exploration and Qualified Person as defined by NI 43-101. For further information, please consult Midland’s website or contact:
Gino Roger, President and Chief Executive Officer
Tel: 450 420-5977
Fax: 450 420-5978
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.