DUNN PROJECT

Dunn Gold Project.PDF

The Dunn property recently acquired is located about 35 kilometres northeast of the town of Rouyn-Noranda. It consists of 51 claims, wholly owned by Midland and covering about 1,990 hectares in Cléricy and La Pause townships. This new acquisition covers a strategic imbrication zone involving the Destor-Porcupine, Manneville, and La Pause gold structures.

August 11, 2009. Midland Exploration announced the signing of an option agreement with Osisko Mining Corporation for its Dunn gold property. This property currently held 100% by Midland is located approximately 35 kilometres northeast Rouyn-Noranda in the Abitibi region of Quebec. It consists of 51 claims covering about 1,990 hectares in Cléricy and La Pause townships.

Osisko can acquire a 50% interest in the Dunn property during a three-year period under the following conditions:
·    A total of $140,000 in cash payments including a payment of $50,000 upon signing  the agreement;
·    A total of  $1,300,000 in exploration expenditures including $320,000 in the first year (firm commitment).

Midland will be the operator until completion of a positive pre-feasibility study. Upon acquiring a 50% interest, Osisko will have the option to acquire an additional 15% interest by delivering a bankable feasibility study under the following conditions:
·    Annual cash payments of $40,000;
·    A minimum of $200,000 of exploration work each year until the delivery of a bankable feasibility study within a three-year period; or by solely assuming all exploration, development and mining operations on the Dunn Property, earning a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).

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 and Cartier Resources. 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.

Midland is pleased to team up with a solid mining company like Osisko. A $539,000 exploration program will begin immediately and will include geological mapping and ground geophysics (magnetic and induced polarization surveys) followed by drilling of selected anomalies (2000 metres).

March 16, 2010.  Midland  announced the start of an important drilling program totalling 2,000 metres on the Dunn property. The program is designed to test several new gold targets identified during a recent frequency-domain induced polarization ("IP") survey.

From December 2009 to February 2010, a total of 108 kilometres of IP surveying, as well as a ground magnetic survey, were completed on a 156-kilometre grid. The IP survey largely focused on an 8-kilometre stretch along the Lac Caste Formation sediments, in order to detect porphyry-type gold mineralization similar to deposits in the Malartic and Duparquet areas, as well as Harker/Holloway-type gold-bearing structures associated with ultramafic volcanic rocks near the Destor-Porcupine Fault.

IP survey results indicate the presence of several extensive chargeability zones within and along the margins of the Lac Caste sedimentary Formation. These anomalies, which have never been tested, represent potential disseminated sulphide zones hosted in sedimentary rocks and associated with porphyry intrusions, and thus constitute priority drilling targets. Other IP anomalies were also detected in association with ultramafic volcanic rocks; these represent another set of important targets. A few anomalies were also identified in felsic volcanic units that were recently compared to felsic rocks in the Kidd-Munro assemblage, host to the Kidd Creek deposit in Timmins.

This first drilling program on the Dunn project, totalling about 2,000 metres, is set to begin in the next few days and will test close to a dozen first-order targets.