Midlands Minerals Corporation (TSX VENTURE:MEX) has announced a resource update confirming the gold indicated resource has increased by 67% and the gold indicated resource tonnage has increased by 109% on the Sian property.
"These interim estimates, based on less than half of the planned 20,000 metres of drilling, substantially increase the level of confidence in the main Esaase (Sian) resource estimates. With the remaining 11,000 metres still to be drilled in this present campaign, Midlands has the potential to significantly increase its mineral resources," said Claude Duplessis, PEng, SGS Canada Inc., and a Qualified Person within the meaning of National Instrument 43-101.
The overall resource on Sian is now over half a million ounces of gold with ongoing drilling continuing to add value. The increases shown take into account assays received up until the cut off date of September 15, 2010. Assays from holes drilled after September 15, 2010 are not included in the increases shown below.
The following is a summary of the highlights in this interim update:
- indicated mineral resource has increased by 67%
- indicated resource tonnage has increased by 109%
- inferred resource tonnage has increased by 49%
- inferred resource tonnage from extensions of the Sian pit has increased by 89%
- inferred mineral resources from extensions have increased by 30%
"We are pleased to be well beyond half a million ounces of gold on Sian and look forward to even better results from drilling the remaining 11,000. We expect the new drill targets generated by the compilation of soil gold geochemistry and airborne geophysical data to significantly add value to our ongoing drilling activities," said Kim Harris, President and Chief Executive Officer.
This interim progress report is based on drilled metres representing approximately 45% of the planned 20,000 metre program. Results to date have substantially increased the level of confidence in the Main Esaase (Sian) resource estimates with the indicated resource for the Main Esaase deposit increasing by 67%, going from 192,000 oz Au to 322,100 oz Au. Overall inferred resources increased 7% going from 203,350 oz Au to 216,800 oz Au. The lower increase in the inferred mineral resources is explained by the increase of the confidence level as current drilling upgraded inferred resources into the indicated higher quality category. Indicated resource tonnage has gone up from 2.6 million tonnes to 5.4 million tonnes, an increase of 109% grading 2.79 g/t at a cut off grade of 1.5 g/t, and 1.87 g/t at a cut off grade of 0.5 g/t.
This interim resource estimation update is based on drilling in and around the Sian pit, and around the main Esaase (Sian) deposit. Further drilling in satellite prospects and extensions is expected to result in an increase to the overall resources on Sian/Praso.
The Company retained the services of SGS Geostat Canada Inc. in September 2010 to evaluate the current drilling results, and to prepare an interim resource estimate based on metres drilled to date. The Company will conduct an NI 43-101 compliant resource estimation upon completion of the 20,000 metre drilling program. Midlands retained the services of Geostat Systems International Inc. to prepare a National Instrument 43-101 Resource Estimation in May 2008, as filed on SEDAR.
The new drilling data has allowed the Company to confirm extensions of the Sian gold mineralized structure at depth and to the north of the Sian gold deposit. Assays show a shift in the structure in the northern extension. The possible continuity of the Esaase East Zone towards the main Sian deposit could pose significant interest and the Company is currently drilling the northern extensions of the Sian deposit.
The present interim resource update is an update of the 2008 Resource Estimation conducted by Geostat. For the most part, the geological model remains the same but has been extended at depth and along strike length in this interim update. The new resource model has used 2 metres by 2 metres by 5 metre blocks with 2 search passes using 2 ellipsoids oriented down dip and along strike length respectively. A total of 161,999 blocks were estimated using inverse square distance method. Added to the block model, conventional section interpretation produced prisms with estimated grades. Resources are classified between indicated (57% of the total tonnage) and inferred (43% of the total tonnage).
Sian/Praso is a 160 square kilometre prime gold district broadly delineated by a 16 kilometre gold mineralized corridor. The eight highly ranked target zones all fall within this mineralized corridor. Of the delineated priority target zones, A1 is one of three selected priority zones, which were given a "very high priority" rating because the airborne interpretation coincided with gold- in-soil geochemical anomalies.
The Company also announces that Richard Molyneux is stepping down as Chair, but is remaining on the Board as a Director of the Company. Midlands would like to thank Mr. Molyneux for his contribution as Chair, and looks forward to the benefit of his continued participation. John Carruthers will become the Chair of the Company.
The technical information in this news release has been reviewed by Claude Duplessis, PEng, of SGS-Geostat Canada Inc., and David Groves, PhD, Technical Advisor to Midlands Minerals. Both are Qualified Persons under National Instrument 43-101.
Source: Midlands Minerals Corporation