Midland Enters Strategic Alliance With SOQUEM in the Grenville and Regains 100% Interest in the Casault and Jouvex Projects
MONTREAL, Feb. 27, 2020 - Midland Exploration Inc. (“Midland”) (TSX-V: MD) is pleased to announce a new strategic alliance with SOQUEM in the Grenville Province and an agreement to regain 100% interest in the Casault and Jouvex gold projects, previously in joint venture with SOQUEM. In exchange, Midland relinquishes 50% interest in its seven (7) properties grouped under the Gatineau Zinc project located in the Grenville Province, south of the town of Maniwaki, Quebec.
Strategic alliance in the Grenville
SOQUEM and Midland agree to enter into a joint venture agreement and a strategic alliance in the Grenville. SOQUEM and Midland will jointly implement a targeting approach to identify and assess the mineral resource potential and to acquire mining rights covering the best targets for base metals.
Projects acquired under the target generation program will be declared “Designated Projects” once the mining rights have been acquired. Each Designated Project will be the object of a distinct joint venture agreement, the terms of which will be similar to the joint venture agreements to be signed relating to the active properties.
A management committee composed of four members, two nominated by each party, will manage activities conducted under the target generation program for the duration of the agreement. The parties are not subject to budgetary obligations under the target generation program. The budget will be defined by the management committee. The target generation program will last for a period of 2 years, unless it is extended by mutual written consent of both parties.
SOQUEM will be project manager under the target generation program and for all joint ventures formed on Designated Projects; Midland may assign up to 30% of personnel.
Midland regains 100% interest in the Casault and Jouvex projects (the “Properties”)
Under the agreement, SOQUEM transfers to Midland its 50% interest in the Properties in exchange for:
- A 1% NSR royalty; Midland may, at any time, buy back the royalty, in all or in part, by making a cash payment of $1,000,000 per tranche of 0.5% NSR; and
- 50% undivided interest in a joint venture relating to seven (7) existing mining properties located in the La Vallée-de-la-Gatineau regional county municipality (“MRC”), wholly owned by Midland (the “Existing Properties”).
The Properties
The Casault project is located approximately 140 kilometres north of the town of La Sarre in Abitibi, Quebec. The property consists of 316 claims covering a surface area of approximately 174 square kilometres, about 40 kilometres east of the Detour Lake gold deposit. Gold is associated with quartz veining in altered mafic volcanic rocks with disseminated pyrite mineralization. Drill hole CAS-12-07 intersected 10.4 g/t Au over 1.45 m from 176.60 to 178.05 m (see press release dated April 26 2012) and drill hole CAS-15-53 intersected 6.9 g/t Au over 1.1 m in the same area between 395.00 and 396.10 m (see press release dated October 22 2015). A gold-bearing porphyry intrusion (QFP) was also recognized on the property in 2017 (Vortex zone). Drill hole CAS-17-96 yielded a grade of 1.38 g/t Au over 26.5 m in this zone between 155.80 and 182.00 m, including 7.9 g/t Au over 2.2 m from 179.80 to 182.00 m (see press release dated January 18 2018). The property is well positioned less than 10 km of the Tabasco / Fenelon and Area 51 gold discoveries of Wallbridge. A new drilling program is currently in preparation.
The Jouvex property is located approximately 50 kilometres west of the town of Matagami in Abitibi, Quebec. The property consists of 248 claims covering a surface area of approximately 138 square kilometres. The property covers a 10-kilometre-long segment of the Casa Berardi fault zone that exhibits a regional flexure. Numerous gold-bearing drill intercepts are reported in sedimentary rocks and iron formations, in a setting similar to the Casa Berardi mine located 65 kilometres further west.
The Existing Properties
The Bouchette property is located east and southeast of the municipality of Messines, and 12 kilometres south of the town of Maniwaki in the La Vallée-de-la-Gatineau MRC. It consists of 31 map-designated cells totalling 1,843.48 ha. The property hosts the Bouchette prospect. Hole BO-94-03, drilled in 1994 (GM53111) had returned 3.3 % Zn over 9.6 m between 9.5 and 19.1 m.
The Leitch property is located 7 kilometres northeast of the municipality of Gracefield in the La Vallée-de-la-Gatineau MRC. It consists of 40 map-designated cells covering a surface area of 2,384.84 ha. The property encompasses the Leitch zinc prospect and the former Lafontaine zinc mine. Two channels completed on the Leitch surface showing had returned 24.1 % Zn over 3.0 metres and 32.4 % Zn over 2.0 metres (unpublished data). Another channel cut on the Lafontaine showing had returned 21.0 % Zn over 2.0 metres (unpublished data).
The Aumond property is located 3 kilometres east of the municipality of Aumond in the La Vallée-de-la-Gatineau MRC. It consists of 37 map-designated cells totalling 2,191.61 ha. An historical channel had yielded 6.08 % Zn over 0.8 metre (GM56261).
The Chute-Rouge property is located 7 kilometres west of the town of Grand-Remous in the La Vallée-de-la-Gatineau MRC. It consists of 50 map-designated cells covering a surface area of 2,955.45 ha.
The Blue Sea property is located 1.5 kilometres southeast of the municipality of Blue Sea in the La Vallée-de-la-Gatineau MRC. It consists of 3 map-designated cells totalling 169.53 ha.
The Bois Franc property is located 2.5 kilometres north of the town of Maniwaki and borders, to the east, the Egan-Sud and Bois-Franc municipalities in the La Vallée-de-la-Gatineau MRC. It consists of 71 claims covering a surface area of 4,127.67 ha.
The Zone A property is located 1.5 kilometres southeast of the municipality of Blue Sea in the La Vallée-de-la-Gatineau MRC. It consists of 27 map-designated cells covering a surface area of 1,610.04 ha.
Cautionary statements:
Mineralization occurring at the Detour Lake mine and on the Fenelon project/Tabasco/Area 51 is not necessarily representative of mineralization that may be found on the Casault property.
Note that the true thickness of reported drill and channel intervals cannot be determined with the information currently available.
About SOQUEM
SOQUEM, a subsidiary of Investissement Québec, is dedicated to promoting the exploration, discovery and development of mining properties in Quebec. SOQUEM also contributes to maintaining strong local economies. A proud partner and ambassador for the development of Quebec’s mineral wealth, SOQUEM relies on innovation, research and strategic minerals to be well-positioned for the future
About Midland
Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, platinum group elements and base metals. Midland is proud to count on reputable partners such as SOQUEM INC., BHP Billiton Canada Inc., Agnico Eagle Mines Ltd., O3 Mining, Nunavik Mineral Exploration Fund, and Abcourt Mines Inc. 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.
This press release was prepared by Mario Masson. P.Geo., VP Exploration for Midland and Qualified Person as defined by NI 43-101, who also approved the technical content of this press release.
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
Email: info@midlandexploration.com
Website: https://www.midlandexploration.com/
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.
Photos accompanying this announcement are available at:
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