Midland Exploration Inc. is pleased to announce the signing of a definitive joint-venture agreement (50%-50%) with Osisko Exploration -James Bay Inc. ("Osisko"), whereby Midland and Osisko will collaborate and combine their efforts to explore geological settings favourable for gold deposits in the vicinity of the Éléonore gold mine and the recent gold discovery at Cheechoo (see Midland press release dated June 16, 2016). A total budget of approximately $1,000,000 has been allocated for 2016; the first phase of the field campaign is currently underway.
This new joint venture comprises several properties totalling 1,827 mining claims and covering a surface area of about 952.9 square kilometres. These new properties are located about 12 kilometres to the southeast and northwest of Goldcorp's Éléonore deposit. This world-class gold deposit contains proven reserves of 4.17 million tonnes at a grade of 6.49 g/t Au (0.87 Moz Au) and probable reserves of 24.15 million tonnes at a grade of 5.76 g/t Au (4.48 Moz Au). The deposit also contains measured resources of 0.94 million tonnes at a grade of 6.84 g/t Au (0.21 Moz Au), indicated resources of 3.65 million tonnes at a grade of 5.14 g/t Au (0.60 Moz Au), and inferred resources of 9.97 million tonnes at a grade of 7.11 g/t Au (2.28 Moz Au).
Phase 1 of the exploration program, including till and lake-bottom sediment sampling, began last June. A total of 675 till samples and 101 lake-bottom sediment samples were collected, in an effort to complete the coverage provided by SIGÉOM databases. This regional sampling program covered an area of more than 100 kilometres, deemed highly favourable and respectively located northwest of the Eleonore gold mine and southeast of the new Cheechoo gold discovery. Assay results, including those for the fine fraction of till samples, heavy mineral concentrates and gold grain counts, are pending.
This strategic alliance, on properties with strong gold potential, is favourably located relative to the recent gold discovery made by Sirios Resources Inc. ("Sirios") on its Cheechoo project. Sirios recently confirmed the presence of gold mineralization along the contact between metasedimentary rocks and a tonalitic unit, with grades of 12.08 g/t gold over 20.3 metres, including 48.38 g/t gold over 4.4 metres (see Sirios press release dated March 29, 2016). Previous drill results reported by Sirios between 2012 and 2015 on the Cheechoo property include gold-bearing intervals grading 15.04 g/t Au over 12.35 metres and 15.61 g/t Au over 9.70 metres in hole #20, drilled below hole #18, which had previously intersected the same two zones with grades of 7.24 g/t Au over 7.9 metres and 2.04 g/t Au over 8.8 metres respectively. This gold mineralization is reportedly hosted in a tonalitic intrusion.
The area covered by this new alliance has received limited exploration work in the past. The southern property covers sedimentary sequences and intrusions belonging to the La Grande Subprovince, whereas the two others cover metasedimentary rocks and intrusions of the Opinaca Subprovince. The sedimentary sequence on the southern property is believed to be similar to the one on the Cheechoo property, according to geological mapping conducted by the MERN, and therefore possesses strong potential for gold mineralization.