MARITIME-CADILLAC PROJECT

New significant gold discovery on Maritime Cadillac.PDF

43-101 report: PDF file
 

On June 1, 2006, the Company entered into an option agreement with Agnico-Eagle Mines Limited (¨Agnico-Eagle¨) whereby Agnico-Eagle was offered the right to earn a 50% undivided interest in the Maritime- Cadillac property and, after having earned such interest, to participate with Midland in a joint operation to further explore and develop the property. The consideration is:

• Four annual payments of $25,000 each for a total of $100,000;
• A commitment to carry out work in the amount of $300,000 the first year, $300,000 the second year and $400,000 for the third year for a total of $1,000,000;
• Agnico-Eagle is the operator of the project; and
• Agnico-Eagle contributed $200,000 at the March 2, 2007 IPO.

Following the acquisition of a 50% undivided interest upon exercising its option, Agnico-Eagle will have the option to increase its undivided interest in the Property from 50% to 65% during a period of 3 years by solely financing a bankable feasibility study in respect of the Maritime Cadillac property or by solely assuming all mining operations on the Maritime Cadillac Property and will earn 1% additional interest for every $1,000,000 spent on the Maritime Cadillac Property (up to 15% by spending $15 millions).

The Maritime Cadillac Property is well located south of the Lapa gold mine along the Cadillac-Larder Lake Fault Zone, a regionally extensive structure that is spatially related to numerous gold prospects and past producers including the historic Lake Shore, Macassa and Kerr Addison gold mines in Kirkland Lake and Larder Lake, Ontario. On the Maritime Cadillac property, the Fault Zone is almost entirely taken up by the Archean-age Piché Volcanic Group (mafic to ultramafic schists) and marks the Western contact between the Cadillac Group sediments (wacke, conglomerate and iron formation) to the West and the Pontiac Group (wacke) to the East.  The presence of these major lithological contacts (Pontiac-Piché-Cadillac) within the deformation zone associated with the Cadillac-Larder Lake Break provides a highly prospective setting for lode gold or disseminated gold deposits. All the rock units are sub vertically dipping with a north-south trend.

A total of approximately 2,500 metres have been recently completed. Agnico-Eagle Mines Limited the operator of the project recently drilled hole 141-08-14B between Zulapa and Maritime Cadillac gold deposits and intersected a new gold zone of significant interest. This new gold zone intersected along the  Maritime Cadillac structure returned 3.30 g/t Au over 14.65 m from 364.00 to 378.65 metres depth (approximately 6.60 metres true thickness), including 6.11 g/t Au over 5.65 metres from 373.00 to 378.65 metres (approximately 2.50 metres true thickness). Locally, this zone returned values up to 16.01 g/t Au over 1.15 metres.  This new gold bearing zone intersected at a shallow depth (250 m) is open at depth and along strike.  Hole 141-08-14B was the last drill hole from a 5 holes program recently completed on the property. The previous drill hole 141-08-12 intersected the same gold structure (100 metres north and 100 metres up-dip) which returned anomalous gold values of 0.24 g/t Au over 29.7 metres from 219.30 to 249.00 metres. This new gold zone intersected in hole 141-08-14B occurs along the Maritime Cadillac structure near the contact between the mafic volcanics and the ultramafic schists of the Piche Group.  This zone is characterized by the presence of 3-5% disseminated arsenopyrite and 1-2% pyrite overall reaching up to 10-15% arsenopyrite locally. The gold mineralization is hosted within a sheared mafic volcanic rock injected by a well developed network of quartz-carbonate veins with strong biotite alteration.

Midland Exploration is very encouraged with the size, grade and location of this new gold zone hosted in the right geology within the prolific Cadillac gold district.  Additional drill holes to follow-up and test the extension of this new gold-bearing zone will be undertake by the operator and drilling will resume shortly.