Midland and Osisko Identify a New Prospective Area in the East Part of Casault Following the VTEM Survey
MONTREAL, QUEBEC -- (Marketwire) -- 02/19/13 -- Midland Exploration Inc. ("Midland") (TSX VENTURE: MD), in partnership with Osisko Mining Corporation ("Osisko"), is pleased to report that following its recent helicopter-borne VTEM survey, a new prospective area has been identified north of the Sunday Lake Fault in the eastern part of the Casault property. The Casault property is located along the Sunday Lake Fault, approximately 40 kilometres east of Detour Lake.
In the fall of 2012, a helicopter-borne VTEM survey was completed totalling approximately 320 kilometres. It covered more than 12 linear kilometres along the regional Sunday Lake Fault. The surveyed block is situated less than 2 kilometres south of new gold discoveries by Balmoral Resources Ltd ("Balmoral") on the Martiniere project, where very high-grade drill intersections were recently reported including 11.74 g/t Au over 8.9 metres (source: press release by Balmoral dated January 28, 2013) and 273.0 g/t Au over 3.88 metres in the Bug Lake zone (source: press release by Balmoral dated August 16, 2012).
On the Casault property, the survey outlined a series of new VTEM anomalies, clustered within an area of about 4 square kilometres, where previous Input surveys failed to detect any anomalies. This area is characterized by a distinct magnetic signature and by a series of intersecting structures trending NW-SE and NE-SW. Midland and Osisko are currently discussing a possible follow-up field program targeting this prospective area which coincides with a favourable setting for the emplacement of gold mineralization.
In addition, Midland and Osisko are presently completing an induced polarization ("IP ") survey in the main claim block located immediately north of the Sunday Lake Fault. To date, a total of 40 kilometres of IP survey have been completed and preliminary results reveal chargeability anomalies favourably located near ENE-trending structures. This work will be completed shortly and, pending results, a 3,000 m drill program is being planned.
The Casault gold property consists of 326 claims, wholly owned by Midland and covering a total surface area of about 179.5 square kilometres. The property covers 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 a total of 23.3 million ounces of gold in measured and indicated resources (NI 43-101 compliant) and 5.8 million ounces of gold in inferred resources (NI 43-101 compliant), including 15.6 million ounces of gold in near-surface proven and probable mineral reserves (NI 43-101 compliant) (source: press release by Detour Gold Corporation dated January 25, 2012).
Maps showing the location of VTEM anomalies may be consulted using the following links:
For Figure 1 - Map of the Abitibi showing the location of the Casault project, click here: http://media3.marketwire.com/docs/Figure_1_Casault_Abitibi.pdf
For Figure 2 - Regional geology map of the Casault project, click here: http://media3.marketwire.com/docs/Figure_2_Casault_Regional.pdf
For Figure 3 - Map showing the location of VTEM anomalies, click here: http://media3.marketwire.com/docs/Figure_3_Casault_VTEM.pdf
Terms of Exploration Agreement
Osisko can earn 50% of Midland's interest in the property by spending a total of $6,000,000 in exploration work and making payments totaling $600,000 over a period of five years. Midland will be the operator during the first year of the option agreement. Upon acquiring a 50% interest, Osisko will have the option during a three year period to acquire an additional 15% interest by delivering a bankable feasibility study or by solely assuming all exploration, development and mining operations on the Casault Property, earning a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).
About Midland
Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and rare earth elements. Midland is proud to count on reputable partners such as Osisko Mining Corporation, Agnico-Eagle Mines Limited, North American Palladium 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. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.
About Osisko
Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec, and is pursuing exploration on a number of properties, including the Hammond Reef Gold Project in Northern Ontario and the Queenston Upper Beaver Project in the Kirkland Lake area. Osisko employs more than 700 individuals.
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.
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.
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.
Contacts:
Gino Roger
President and Chief Executive Officer
450 420-5977
450 420-5978 (FAX)
info@midlandexploration.com
www.midlandexploration.com