Midland Exploration Inc. is pleased to announce the execution of an option agreement with IAMGOLD Corporation for its Heva gold property.
This property is currently wholly owned by Midland and is located near the prolific Cadillac Break, about 5 kilometres northwest of the Canadian Malartic gold mine, jointly held by Agnico Eagle Mines Limited and Yamana Gold Inc., where as of December 31, 2016 proven reserves are estimated at 51.12 million tonnes grading 0.95 g/t Au (1.57 Moz Au) and probable reserves at 152.55 million tonnes grading 1.13 g/t Au (5.53 Moz Au), for a total of 7.1 Moz Au. The Heva project consists of two claim blocks, Heva West and Heva East, totalling 33 claims and covering a surface area of more than 1,400 hectares.
IAMGOLD may earn 50% interest in the Heva property over a period of four and a half years in consideration of the following:
- Cash payments totalling $500,000, including $50,000 upon signing; and
- Exploration expenditures totalling $4,000,000, including $500,000 during the first year.
Upon exercising this first option to earn 50% interest, IAMGOLD may increase its interest to 60% (Second Option) over a period of two years, in consideration of the following:
- Exploration expenditures totalling $500,000 for each additional 1% interest, to a maximum interest of 60%.
Upon exercising this second option to earn 60% interest, IAMGOLD may further increase its interest to 65% (Third Option) over a period of two years, in consideration of the following:
- Exploration expenditures totalling $1,000,000 for each additional 1% interest, to a maximum interest of 65%.
Soil geochemistry surveys, trenching and prospecting were conducted in 2016 and led to the discovery of new auriferous quartz veining systems grading up to 19.9 g/t Au, 6.5 g/t Au, 5.4 g/t Au, 3.5 g/t Au and 2.7 g/t Au (see press release by Midland dated July 5, 2016). Following a channel sampling program carried out on these new gold-bearing veins in August, best results were obtained from a channel sample showing visible gold in vein #100W40, which graded 24.1 g/t Au over 0.50 metre (see press release by Midland dated September 14, 2016) (Note that true thicknesses are unknown and cannot be determined at this time with the information available). In addition, a grab sample collected about 5 metres west of the channel sample returned a gold value of 38.5 g/t Au. Further trenching and prospecting work carried out in the fall led to the discovery of several new high-grade gold showings, with grab samples yielding gold values of 41.0 g/t Au and 9.2 g/t Au (East area) and 13.9 g/t Au and 8.0 g/t Au (Central area) (see press release by Midland dated December 20, 2016) (Note that gold values from grab samples may not be representative of the mineralized zones).
Midland is proud to join forces once more with a solid mining company such as IAMGOLD. The project manager, IAMGOLD, will launch a major exploration program in the coming weeks.