VERMILLON PROJECT

43-101 report: PDF file

• On June 30, 2006, the Company entered into an option agreement with Soquem Inc. ("Soquem") whereby Midland was offered the right to earn a 50% interest in the Vermillon Property subject to the following conditions:
  • A commitment to carry out work a maximum of $210,000 of work:
  • $100,000 on or before December 31, 2006; and
  • a maximum of $110,000 to match Soquem's investments on or before December 31, 2007;
• A 1% NSR royalty on specific claims of the property was granted, which can be purchased back for $500,000 per each 0.5%, to an individual from which Soquem bought the claims on June 26, 2006;
• Soquem is the operator of the project; and if the option is exercised, Soquem and Midland will form a joint venture.

In June 2006, an exploration campaign was carried out on the Vermillon property, consisting of Beep-Mat prospecting and regional mapping. The Vermillon property is located about 100 km west of the town of La Tuque. The highlight of the Vermillon property is the presence of gold-copper-bearing floats recently found and yielded assays up to 2.1 g/t Au, 1.13% Cu, and 12.6 g/t Ag.