Montreal, May 21, 2015. Midland Exploration Inc. (“Midland”) (TSX-V: MD) is pleased to provide an update on its various ongoing exploration activities across Quebec. Over the past few years, Midland has concluded several partnerships including agreements with Teck Resources Limited (“Teck”), SOQUEM INC. (“SOQUEM”), Agnico Eagle Mines Limited (“Agnico Eagle”), Sphinx Resources Limited (“Sphinx”), and Japan Oil, Gas and Metals National Corporation (“JOGMEC”).
During the winter of 2015, four (4) diamond drilling programs including 38 holes were completed in the Abitibi region, on the Patris, Casault, Jouvex, and Samson projects, for a total of more than 7,600 metres drilled. Highlights from these drilling campaigns include the identification of a new gold-bearing felsic porphyry (“QFP”) intrusion in the north part of the Casault project in partnership with SOQUEM and the discovery of an extensive hydrothermal alteration zone located near the Destor-Porcupine Fault on the Patris project in partnership with Teck. Midland and its partners are currently assessing various possible scenarios for follow-up work programs.
Gold projects in the Abitibi region
Casault Project – Midland/SOQUEM (Option)
The Casault gold property comprises 301 claims exclusively owned by Midland and covering an area of approximately 165 square kilometres. The Casault property covers a portion of 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, near surface, 15.0 million ounces of proven and probable mineral gold reserves (National Instrument 43-101 (“NI 43-101”) compliant).
During the winter of 2015, Midland, in partnership with SOQUEM, completed seventeen (17) drill holes totalling 3,467.2 metres. The highlights of this campaign include the identification of a new gold-bearing QFP in drill hole CAS-15-44. The latter drill hole intersected a series of silica, sericite and hematite alteration zones with anomalous gold values (> 100 ppb Au), occurring in discontinuous fashion over more than 100 metres and locally grading up to 0.47 g/t Au over 1.0 metre from 146.0 to 147.0 metres. The entire contact of the QFP body has not been explored yet, and the contact with the magnetic gabbros remains untested. This new exploration target is located about 5.5 kilometres west of the Bug Lake zone held by Balmoral Resources Ltd (“Balmoral”), where felsic porphyry intrusions were observed and where a drill intersection grading 19.55 g/t Au over 44.45 metres was recently reported (Source: press release by Balmoral dated April 20, 2015).
In addition, three (3) drill holes were completed at a 100-metre spacing around drill hole CAS-12-07, where a grade of 10.4 g/t Au over 1.45 metres was obtained during the 2012 campaign. Drill hole CAS-15-40 yielded two gold values associated with quartz veins with pyrite mineralization hosted in a quartz monzodiorite intrusion (Turgeon Pluton), grading 6.27 g/t Au over 0.50 metre and 1.54 g/t Au over 0.50 metre. In the same drill hole, a grade of 1.25 g/t Au over 0.50 metre was also obtained about 100 metres below drill hole CAS-12-07. Drill holes CAS-15-41 and CAS-15-42, respectively drilled 100 metres to the west and east of CAS-12-07, yielded values of 1.19 g/t Au over 2.50 metres including 3.65 g/t Au over 0.50 metre (CAS-15-41) and 1.46 g/t Au over 0.85 metre (CAS-15-42).
The remaining holes drilled during this campaign, designed to test induced polarization anomalies, did not yield significant gold values. Midland and SOQUEM are currently completing a geological and structural reinterpretation of the area around the gold-bearing QFP and the area around drill hole CAS-12-07, in order to prepare the next drilling program which will include testing of the best electromagnetic (VTEM) and induced polarization (Orevision IP) anomalies identified during recent geophysical surveys.
Patris Project – Midland/Teck (Option)
The wholly owned Patris project comprises 227 claims covering a surface area of about 93 square kilometres, located less than 10 kilometres northwest of the prolific Doyon/Westwood-Bousquet-La Ronde gold mining camp. The Patris property offers excellent gold potential as it covers the Manneville Fault over more than 8 kilometres and the La Pause Fault over more than 10 kilometres, both recognized as subsidiary faults to the well-known Destor-Porcupine Fault Zone.
A total of seven (7) diamond drill holes were completed this winter in partnership with Teck on the Patris property, for a total of 1,298.0 metres drilled. Drill hole PAT-15-05 tested an induced polarization anomaly located near the Destor-Porcupine Fault. The drill hole intersected a wide alteration zone with pyrite, pyrrhotite, chalcopyrite, galena, and molybdenite within ultramafic rocks strongly altered to fuchsite, quartz and carbonates. This alteration zone was intersected over a drill length of approximately 100 metres and locally yielded anomalous copper, molybdenum, silver, and lead values. Grades of 82.6 g/t Ag, 0.10 g/t Au, 0.22% Cu and 1.0% Pb over 1.0 metre were obtained from 176.5 to 177.5 metres.
Midland and Teck are currently working on a reinterpretation of the entire area and are considering a follow-up campaign in light of these encouraging results obtained in the strongly altered ultramafic rocks occurring north of the Lac Caste sediments. See press release dated September 17, 2013 for terms of the option agreement with Teck.
Maritime-Cadillac Project – Midland/Agnico Eagle JV
The Maritime-Cadillac property is located along the Cadillac-Larder Lake Break and is contiguous to Agnico Eagle’s Lapa gold mine property (2.1 million tonnes in proven and probable reserves at a gold grade of 6.0 g/t, for 395,000 ounces of gold), in commercial production since May 2009. The Maritime-Cadillac project is a joint venture currently owned 51% by Agnico Eagle and 49% by Midland.
Data compilation and integration are ongoing in the Lapa-Maritime Cadillac area by our partner Agnico Eagle, in an effort to complete a 3D model of this area. New exploration targets will be defined for 2015 along this segment of the Cadillac-Larder Lake Break.
Jouvex Project – Midland/SOQUEM (Option)
The Jouvex property comprises 297 claims covering a surface area of approximately 166 square kilometres along the Casa Berardi-Douay-Cameron gold-bearing deformation zone. The Jouvex property is wholly owned by Midland and is located about 50 kilometres west of Matagami in the Abitibi region of Quebec.
This property which has a strong gold potential covers more than 10 kilometres of a prominent regional flexure along the Casa Berardi-Douay-Cameron deformation zone. This major gold-bearing structure hosts the Casa Berardi mine, located about 65 kilometres further west, and the Douay and Douay West deposits about 7 kilometres to the southeast of the Jouvex property. The Douay gold deposits contain 2.8 million ounces of gold in inferred resources and 238,433 ounces of gold in measured and indicated resources (Source: Aurvista Gold Corporation website and compliant with NI 43-101).
In February and March 2015, Midland completed eight (8) drill holes totalling 1,258.0 metres on the Jouvex property in partnership with SOQUEM. This drilling campaign was mainly designed to test geophysical (IP and VTEM) anomalies identified during recent surveys. Drill hole JOU-15-02 returned a grade of 0.43 g/t Au over 1.40 metres, from 41.26 to 42.66 metres, in a semi-massive pyrite zone in sedimentary rocks. Another drill hole, JOU-15-08, testing a VTEM conductor, yielded an anomalous gold value grading 0.22 g/t Au over 1.50 metres, from 136.20 to 137.70 metres. The remaining drill holes did not yield significant gold values.
Samson project – Midland/Sphinx (Option)
The Samson project consists of 512 claims covering a surface area of about 284 square kilometres about 50 kilometres west of the town of Matagami, in Abitibi, Quebec. This new property has a strong potential for Ni-Cu-PGE and gold and is located about 5 kilometres south of the recent Ni-Cu-PGE and gold discoveries made by Balmoral Resources Ltd (“Balmoral”) on the Grasset project. Recently, Balmoral announced the discovery of a high-grade Ni-Cu-PGE zone, with values up to 1.79% Ni, 0.19% Cu, 0.42 g/t Pt, and 1.04 g/t Pd over 45.28 metres including an interval grading 10.6% Ni, 0.45% Cu, 2.04 g/t Pt, and 5.23 g/t Pd over 1.10 m and 1.62% Ni, 0.18% Cu, 0.36 g/t Pt and 0.88 g/t Pd over 54.08 m (see press releases by Balmoral dated May 20, 2014 and August 18, 2014).
This property covers, over a strike length of more than 20 kilometres, a series of strongly magnetic rocks located just south of the regional Lower Detour Fault, also known for its gold potential. In addition, lithogeochemistry data from historical drill holes indicate the presence of ultramafic rocks, thus confirming the potential for magmatic Ni-Cu-PGE mineralization on the Samson property.
On the Samson project, Midland completed six (6) diamond drill holes for a total of 1,625.5 metres drilled in partnership with Sphinx, in order to test a series of ground-based electromagnetic conductors occurring along the edges of strongly magnetic anomalies. Two of these drill holes (SAM-15-01 and SAM-15-06) confirmed the presence of ultramafic intrusive rocks over a distance of more than 15 kilometres in the north part of the property. Drill hole SAM-15-01 returned values of 101 ppb Au and 263 ppb Pd over 1.0 metre, from 240.0 to 241.0 metres, associated with fracturing in ultramafic rocks. About 15 kilometres to the east and just south of these ultramafic rocks, drill hole SAM-15-05 intersected a sequence of graphitic mudstones and cherty tuffites with pyrite mineralization and anomalous gold grades of 0.12 g/t Au over 1.0 metre (146.0 to 147.0 metres) and 0.20 g/t Au over 1.0 metre (150.0 to 151.0 metres). In addition, hole SAM-15-06 showed the beginning of a weak “Off-Hole” anomaly near the end of the hole. Assay results for drill hole SAM-15-06 are pending.
Adam Project – Midland/Sphinx (Option)
The Adam property is wholly owned by Midland and is located about 65 kilometres west of the town of Matagami and approximately 15 kilometres east of the B26 zone held by SOQUEM and about 20 kilometres east of the former Selbaie mine, which historically produced 56.5 Mt grading 1.9% Zn, 0.9% Cu, 38.0 g/t Ag and 0.6 g/t Au. It consists of 182 cells covering a surface area of about 100 square kilometres in the Abitibi region of Quebec. The B26 and East Zone gold-copper deposits, held and worked actively by SOQUEM, respectively host 600,000 metric tonnes grading 2.9 g/t Au and 2.8% Cu and 750,000 metric tonnes grading 2.0% Cu and 0.4 g/t Au (Source: SOQUEM website). In addition, drill holes completed in 2012 by Excellon Resources Inc. (“Excellon”) on the Beschefer property (B-14 zone) located less than 7 kilometres west of the Adam property, intersected high-grade gold intervals reaching 13.07 g/t Au over 8.75 metres, including 58.5 g/t Au over 1.50 metre (Source: press release by Excellon dated April 17, 2012). This new acquisition with strong gold and copper potential covers, over more than 8 kilometres, the regional contact between tholeiitic volcanic rocks of the Enjalran Group and calc-alkaline volcanic rocks of the Brouillan Group as well as an assemblage of felsic volcaniclastic rocks.
A helicopter-borne VTEM-type electromagnetic survey totalling about 225 line kilometres was completed in December 2014. The final interpretation of this survey is pending but preliminary results indicate the presence of several new conductors located along the regional contact zone between the Enjalran Group and the Brouillan Group.
Laflamme Project – Midland/Maudore JV
The Laflamme project comprises 682 claims covering a surface area of about 359 square kilometres and is a joint venture between Midland and Aurbec Mines Inc., a wholly-owned subsidiary of Maudore Minerals Ltd. This project is located about 25 kilometres northwest of the town of Lebel-sur-Quévillon and about 30 kilometres east of the Sleeping Giant mine and mill in Quebec.
In December 2014, Midland completed a ground-based electromagnetic survey to follow-up on VTEM anomalies associated with strongly magnetic rocks interpreted as the northward extension of ultramafic rocks that host Ni-Cu-Pt-Pd mineralization intersected in drill hole LA-11-08, which graded 0.66% Ni, 0.35% Cu, 0.17 ppm Pt and 0.16 ppm Pd over 8.0 metres, including a higher-grade zone at 1.55% Ni, 0.53% Cu, 0.26 ppm Pt and 0.28 ppm Pd over 1.60 metres. A drilling campaign is being designed to test these geophysical targets.
Gold project in the James Bay region
Baie James Éléonore Project – 100% Midland
The Éléonore project, which encompasses the Éléonore Centre and West properties, is constituted of a total of 327 claims covering 172 square kilometres, and is located approximately 30 kilometres southwest from and in a geological environment similar to Goldcorp Inc.’s Éléonore deposit. This world-class gold deposit contains reserves of 4.97 Moz Au (proven and probable categories), combined measured and indicated resources of 1.06 Moz Au and inferred resources estimated at 2.80 Moz Au, for a total of 8.83 Moz of gold. (Source: Goldcorp press release dated February 19, 2015).
Prospecting conducted by Midland from 2009 to 2014 on the Éléonore Centre property identified the presence of several gold showings associated with quartz-tourmaline pyrite bearing veinlets occurring in sheared metasediments, as well as mafic and felsic metavolcanics which returned up to 18.8 g/t Au. In addition, the 2013 ground induced polarisation (“IP”) survey identified many north-south trending IP anomalies and several remain unexplained. The 2011 soil geochemistry survey allowed the delineation of a series of As-Cu-Sb anomalies clustered along a north-south-trending axis. The 2014 airborne high definition magnetic survey also identified the presence of an important north-south oriented structure associated with several gold showings and soil anomalies.
Ground-based IP and magnetic surveys totalling 31.5 kilometres were completed in the eastern part of the Eleonore Centre property. This survey completes and expands the coverage of the 2013 survey, in which several gold showings were uncovered by Midland (Golden Gun and Golden Gun South showings). The final results of the surveys are pending. The IP and magnetic surveys totalling 31.5 kilometres were designed to locate sulphide-rich gold targets that will be investigated during the upcoming summer exploration program, which will include stripping, channel sampling and prospecting work.
Platinum group elements (“PGE”) project in the Labrador Trough, Quebec
Pallas Project – Midland/JOGMEC (Option)
In 2013, Midland acquired 494 claims covering a surface area of more than 225 square kilometres in the Labrador Trough. This new acquisition covered a large, folded, multi-kilometre mafic-ultramafic complex known for its strong potential for platinum group elements (PGE). In early 2014, Midland concluded an option agreement with JOGMEC, granting the latter the option to acquire 50% interest in the Pallas project by March 31, 2016 in exchange for exploration expenditures totalling $2,000,000. Midland will act as project operator as long as it holds an interest of 50% or more in the project.
To date, a total of 730 grab samples, 1,220 channel samples, and 767 drill core samples have been collected and have confirmed the presence of several PGE + Au showings that share many similarities with reef-type deposits associated with the Great Dyke in Zimbabwe and the Bushveld Complex in South Africa. Midland and JOGMEC are highly encouraged by these results and intend to continue their work in 2015. A summer exploration program is in preparation and will include prospecting along selected and promising mineralized corridors, where grades reaching 12.6, 7.12, 4.94, and 4.3 g/t PGE + Au were obtained. The program is scheduled to begin at the end of June.
Gold project in the Labrador Trough, Quebec
Willbob Project – 100% Midland
Wholly owned by Midland, the Willbob property consists of 51 mining titles covering a surface area of 23.2 square kilometres. The property is located about 60 kilometres west-southwest of the town of Kuujjuaq, Quebec.
Historical prospecting in this area led to the discovery of several gold showings grading up to 21.9, 19.8, 6.4, and 3.8 g/t Au in grab samples on the Lafrance, Kuni, Polar Bear, and Dupuis showings respectively. These showings are characterized by strong iron carbonate, fuchsite and quartz alteration with disseminated arsenopyrite, chalcopyrite, pyrrhotite and pyrite, observed over thicknesses ranging up to 100 metres and followed along strike over more than 8 kilometres. Channel sampling on the Lafrance showing namely yielded grades of 3.0 g/t Au over 2.90 metres, and about 40 metres down the same mineralized corridor, 2.6 g/t Au over 3.90 metres. These showings remain open in all directions and have never been drill-tested.
Midland is currently planning its first exploration program for 2015, which will namely include prospecting and channel sampling of alteration halos at the Polar Bear, Kuni and Lafrance showings.
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 Teck Resources Limited, Agnico Eagle Mines Limited, SOQUEM Inc., Sphinx Resources Limited 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.
The 2015 drilling programs on the Casault, Jouvex and Samson projects were completed and supervised by Midland. Assay samples were collected from NQ size drill core sawn in half; one half was sent to a commercial laboratory and the other half was kept for future reference. Quality control samples (standards) and barren samples (blanks) were inserted on a regular basis in the sample stream. Analyses were conducted by Actlabs Laboratories in Ste-Germaine de Boulé, Quebec and in Ancaster, Ontario. Drill intersections are reported as core lengths and their true thickness remains to be determined. Data from these exploration programs were reviewed by Mario Masson, VP for Midland and Qualified Person as defined by National Instrument 43-101.
The 2015 exploration program on the Patris project was completed and supervised by Teck. Assay samples were collected from NQ and BQ size drill core sawn in half; one half was sent to a commercial laboratory and the other half was kept for future reference. Quality control samples (standards) and barren samples (blanks) were inserted on a regular basis in the sample stream. Analyses were conducted by the laboratory Bureau Veritas Commodities Canada Ltd. in Vancouver. Drill intersections are reported as core lengths and their true thickness remains to be determined.
This press release as well as the data of the exploration programs was revised by Mario Masson, VP Exploration 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.