Midland Exploration Inc. ("Midland") is pleased to announce plans for the initial drilling program on the Patris gold property, wholly owned by Midland and currently under option by Teck Resources Limited ("Teck"). This project comprises 218 claims covering a surface area of about 90 square kilometres in La Pause and Clericy townships and is located only 30 kilometres northeast of Rouyn-Noranda and less than 10 kilometres northwest of the prolific Doyon/Westwood-Bousquet-LaRonde gold mining camp.
This initial drilling campaign consists of seven (7) shallow diamond drill holes for a planned total of about 1,400 metres. This program is designed to test several high-priority induced polarization ("IP") geophysical targets located along the strike extensions of the Fayolle Prospect held by Typhoon Exploration Inc. and currently under option by Hecla Quebec Inc. One of these targets, a strong chargeability anomaly coincident with a resistivity low occurring at the northern contact between Lac Caste sediments and mafic volcanic rocks, will be tested in two shallow drill holes. Another IP anomaly located along the southeast strike extension of drill hole PAT-11-15, which intersected an interval grading 0.48 g/t Au over 17.0 metres (see press release dated May 24th 2012), will also be tested during this campaign. In addition, drill hole PAT-11-16 will be deepened in order to test the gold-bearing zone about 100 metres below drill hole PAT-11-15. That zone is characterized by a hematite alteration zone in a strongly deformed felsic intrusive. Preparations are underway and the drilling campaign is expected to commence in mid-February.
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 famous Destor-Porcupine Fault Zone. The geological setting on the Patris property, where clastic sediments and ultramafic rocks are juxtaposed along a faulted contact and intruded by a porphyry dyke swarm, is similar to the Malartic mining camp and the South Barnat ore deposit on the Canadian Malartic property held by Osisko.
Exploration Agreement Terms
Teck has the option to earn an initial 50% interest in the Patris property ("the Property") by incurring a cumulative aggregate of $3,000,000 in expenditures on the Property over a period of four years, with $500,000 in exploration expenditures to be completed in the first year. After earning an initial 50% interest, Teck may elect to increase its interest in the Property up to 60% over a period of two years, by incurring an additional $2,500,000 in exploration expenditures and making $300,000 in cash payments, earning a 2% additional interest for each tranche of $500,000 in additional exploration expenditures and $60,000 in cash payments. Upon earning a 60% interest, Teck will then have the option to increase its interest to 65% over a period of two years, earning a 1% additional interest for each tranche of $1,000,000 in additional exploration expenditures incurred over a period of two years.
About Midland
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, Donner Metals Ltd, Maudore Minerals Limited, Japan Oil, Gas and Metals National Corporation and SOQUEM 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 Midland Exploration and Qualified Person as defined by NI 43-101. For further information, please consult Midland's website.
Source: http://www.midlandexploration.com/