Midland Exploration and Aurizon Mines Commence a First Exploration Program on Patris
MONTREAL, QUEBEC -- (Marketwire) -- 01/19/11 -- Midland Exploration Inc. ('Midland') (TSX VENTURE: MD) is pleased to announce the start of an important exploration program in partnership with Aurizon Mines Ltd ('Aurizon') on the Patris gold project, currently held 100% by Midland. The property, which comprises 50 claims covering a surface area of 22 square kilometres, is located in La Pause and Clericy townships, just 30 kilometres northeast of Rouyn-Noranda, in the Abitibi region of Quebec.
For 2011, an exploration budget totalling $600,000 has been allocated on this property, which covers a 4-kilometre segment of the La Pause Fault, a major structure known for its excellent potential for gold discoveries similar to major ore deposits located in the gold mining camps of the Abitibi Greenstone Belt.
Over the coming weeks, an important drilling program totalling at least 4,000 metres will begin on the Patris property, to test several new geological and geophysical (induced polarization) targets identified in close proximity to the La Pause Fault.
Terms of the Option Agreement with Aurizon
Aurizon can acquire 50% of Midland's interest during a four-year period under the following conditions:
-- A total of $230,000 in cash payments including a payment of $40,000 upon
signing the agreement;
-- A total of $3,000,000 in exploration expenditures including a firm
commitment of $600,000 in the first year.
Midland will be the initial operator. Upon acquiring a 50% interest, Aurizon will have the option to acquire an additional 10% interest by delivering a positive pre-feasibility study on the property within a four-year period under the following terms and conditions:
-- Make cash payments of $80,000 per year to Midland, until the delivery of
the pre-feasibility study; and
-- Incur exploration work, including 40,000 metres of drilling, until the
delivery of the pre-feasibility study.
About Aurizon
Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, one of the world's most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing its asset base through accretive transactions. Aurizon shares trade on the Toronto Stock Exchange under the symbol 'ARZ' and on the NYSE Amex under the symbol 'AZK'.
About Midland
Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and REE. Midland is proud to count on reputable partners such as Aurizon Mines Ltd., Agnico-Eagle Mines Limited, Osisko Mining Corporation, North American Palladium Limited, Japan Oil, Gas and Metals National Corporation, Zincore Metals Inc. and SOQUEM Inc. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.
This press release was prepared by Mario Masson, VP Midland Exploration and Qualified Person as defined by NI 43-101.
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.
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.
Contacts:
Midland Exploration Inc.
Gino Roger
President and Chief Executive Officer
450-420-5977
450-420-5978 (FAX)
info@midlandexploration.com
www.midlandexploration.com