Montreal, October 21, 2014. Midland Exploration Inc. (“Midland”) (TSX-V: MD) is pleased to announce it has signed a letter of intent with SOQUEM INC. (“SOQUEM”) to grant SOQUEM the option to acquire a 50% undivided interest in its Casault and Jouvex gold properties, currently wholly owned by Midland, and to create a joint venture once the option has been exercised.
The Casault 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 15.5 million ounces of gold in near-surface proven and probable mineral reserves (NI 43-101 compliant) (source: Detour Gold Corporation website).
The Jouvex property covers, over more than 10 kilometres, a prominent regional flexure along the Casa Berardi-Douay-Cameron deformation zone. This major structure hosts the Casa Berardi mine, located about 65 kilometres further west, where proven and probable mineral reserves are estimated at 1.4 million ounces of gold (source: Hecla Mining Company website). The Douay gold deposits, located about 7 kilometres southeast of Jouvex, contain 2.8 million ounces of gold in inferred resources and 238,433 ounces of gold in indicated and measured resources (source: Aurvista Gold Corporation website).
Under the terms of this letter of intent concerning the Casault and Jouvex properties, SOQUEM has the option to earn 50% of Midland’s interest over a period of four (4) years, by fulfilling the following conditions:
– Exploration expenditures totalling $4,500,000, including a firm commitment of $1,000,000 during the first year. Midland will be project operator during the option period.
The first drilling program to be conducted in partnership with SOQUEM on the Casault property will be mainly designed to test the extensions of the most promising gold occurrences discovered in 2012 and 2013, including the extensions of drill hole CAS-12-07, which graded 10.4 g/t Au over 1.45 metres. This drilling program will also test a series of induced polarization anomalies located near drill hole CAS-13-28A, which had ended in a gold-bearing zone that graded 0.29 g/t Au over the last 9.0 metres. This new prospective area is located along the west extension of the Martiniere zone held by Balmoral Resources Ltd (“Balmoral”), who recently reported drill intersections grading up to 1,138.0 g/t Au over 4.87 metres and 8.25 g/t Au over 14.53 metres in the Bug Lake zone (source: press release by Balmoral dated May 12, 2014).
On the Jouvex property, the first drilling program will target several newly identified induced polarization anomalies, as well as some VTEM conductors located near the Casa Berardi-Douay-Cameron deformation zone. The final selection of drill targets is currently underway and the two parties intend starting a drilling program before the end of the year.
Maps showing the location of areas targeted for option pursuant to the letter of intent with SOQUEM on the Casault and Jouvex properties may be consulted using the following link: http://file.marketwire.com/release/Casault_Soquem_Oct21_2014.pdf
The letter of intent is conditional upon the execution of an option and joint venture agreement on or prior to December 1st, 2014, containing the customary clauses for this type of agreement.
About Midland Exploration
Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, PGE, base metals and rare earth elements. Midland is proud to count on reputable partners such as SOQUEM INC., Teck Resources Limited, Agnico Eagle Mines Limited, Donner Metals Ltd, Maudore Minerals Ltd, and Japan Oil, Gas and Metals National Corporation. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Management is currently reviewing other opportunities and projects to build up the Company portfolio and generate shareholder value.
About SOQUEM INC. and Investissement Québec
SOQUEM INC. is a wholly-owned subsidiary of Ressources Québec, which is a subsidiary of Investissement Québec. Investissement Québec’s mission is to promote growth and investment in Quebec, thereby contributing to economic development and job creation in all regions of the province. It offers businesses a full range of financial solutions, including loans, loan guarantees, and equity investments to provide support at every stage of their development. It also administers tax measures and oversees prospecting for foreign investment.
This press release was prepared by Mario Masson, VP Exploration for Midland, certified geologist and Qualified Person as defined by NI 43-101. For further information, please consult Midland’s website or contact:
Gino Roger, President and Chief Executive Officer
Tel: 450 420-5977
Fax: 450 420-5978
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.
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.