Midland Starts First Exploration Program With OsisOct 06, 2009 08:00 ET
MONTREAL, QUEBEC--(Marketwire - Oct. 6, 2009) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD), in partnership with Osisko Mining Corporation ("Osisko"), is pleased to announce the beginning of a major exploration program on its Dunn gold property. The Dunn property, currently held 100% by Midland, is located approximately 35 kilometres northeast of Rouyn-Noranda in the Abitibi region of Quebec. It consists of 51 claims covering a surface area of about 1,990 hectares in Clericy and La Pause townships.
In order to assess the gold potential of the Dunn property, line-cutting has already started on a 115 kilometres grid, which will be covered in the coming weeks by ground geophysical surveys, namely a magnetic survey and a frequency-domain induced polarization ("IP") survey. This type of IP survey has already demonstrated its ability to detect small amounts of mineralization, often occurring as finely disseminated in the host rock and potentially gold-bearing. The exploration program approved by Osisko for a total of $539,000 will also include geological mapping followed by a 2,000 metres drilling program on selected anomalies.
The Dunn property offers excellent potential for gold mineralization as it covers an 8-kilometre-long stretch of the Manneville fault zone, a secondary splay fault that is an offshoot of the well-known Destor-Porcupine fault, a major gold-bearing structure in the Abitibi. The geological setting on the Dunn property is similar to that of the South Barnat deposit on Osisko's Canadian Malartic property, i.e. fault-juxtaposed clastic sediments and ultramafics cut by a porphyry dyke swarm. Gold showings occur east and west of the property along the Manneville fault, including relatively recent finds by Typhoon Exploration, Cartier Resources and Clifton Star Resources Inc. Midland now controls more than 8 kilometre stretch of the fault structure on the property that has seen less than ten drill holes from previous exploration programs.
Terms of the Exploration Agreement
Osisko can earn 50% of Midland's interest in the property by spending a total of $1,300,000 in exploration work and making payments totalling $140,000 over a period of three years. The company must spend $320,000 in exploration work during the first year (firm commitment). Midland will be project operator until completion of a positive pre-feasibility study. Upon acquiring an initial 50% interest, Osisko will have the option to acquire an additional 15% interest, by delivering a bankable feasibility study, making annual cash payments of $40,000 and spending a minimum of $200,000 in exploration each year, up to the delivery of a bankable feasibility study within three years; or by solely assuming all exploration, development and mining operations on the Dunn property, earning 1% additional interest for each $1,000,000 invested on the property (up to 15% interest by spending $15,000,000).
About Osisko
Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones.
About Midland Exploration
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, uranium and REE. Midland is proud to count on reputable partners such as Osisko Mining Corporation, Agnico-Eagle Mines Limited, North American Palladium Limited 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.
This press release was prepared by Mario Masson, Midland registered senior geologist and a Qualified Person as defined by NI 43-101.