Midas Gold Reports Discovery of New Mineralized Zones at its Golden Meadows Project
Hole MGI-11-99 intersects 46.3m of 1.3 g/t Au, 12 g/t Ag & 0.65% Sb, including 10.7m of 2.4 g/t Au, 31 g/t Ag, & 1.24% SbHole MGI-11-108 intersects 71.6m of 2.2 g/t Au, including 41.1m of 3.1 g/t Au
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/12/11 -- Midas Gold Corp. (TSX: MAX) today announced assay results from two newly discovered mineralized zones, along with additional assays from its ongoing exploration and development core and reverse circulation ('RC') drilling program on the Hangar Flats and Yellow Pine deposits at its Golden Meadows Project, Idaho. Assays are available for the first 61 of 103 holes (totalling approximately 21,430 metres) completed so far this season. Previous 2011 assay results were reported in news releases on August 18, September 28, October 3, and November 1, 2011. Newly received results are summarized in Table 1, below, and highlights include two new zones of mineralization discovered adjacent to historic property boundaries, one at Hangar Flats and the other at Yellow Pine. These results highlight the opportunities resulting from Midas Gold's consolidation of the long-fragmented land ownership in this prolific gold district. Complete results are tabulated in Table 2 attached at the end of this news release.
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Table 1:Highlights of Recent Assay Results
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Target From To Interval Gold Silver Antimony
Hole ID Type Area (m) (m) (m) (1) (g/t) (g/t) (%)
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MGI-11-061(2) Core Yellow Pine 62.8 135.6 72.8 1.50 1.3 0.00
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And 140.2 167.6 27.4 3.14 1.2 0.02
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And 194.3 222.8 28.5 2.71 1.5 0.01
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And 235.9 304.8 68.9 2.58 2.1 0.01
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MGI-11-83 RC Yellow Pine 6.1 48.8 42.7 2.56 0.6 0.00
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including 9.1 21.3 12.2 5.92 0.8 0.01
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MGI-11-93 RC Yellow Pine 64.0 73.2 9.1 1.09 4.0 0.00
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And 88.4 109.7 21.3 3.43 0.9 0.00
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MGI-11-099 (3) Core Hangar Flats 459.3 505.7 46.3 1.29 11.7 0.65
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including 487.4 498.0 10.7 2.35 31.0 1.24
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MGI-11-108 RC Yellow Pine 6.1 24.4 18.3 2.11 0.9 0.01
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And 32.0 45.7 13.7 0.99 0.0 0.01
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And 70.1 74.7 4.6 1.18 0.6 0.00
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And 80.8 152.4 71.6 2.20 2.2 0.00
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Including 99.1 140.2 41.1 3.14 2.9 0.01
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(1) Based upon the current 3D interpretation of the Hangar Flats and Yellow
Pine deposits the intervals quoted here are at or near true thickness and
are composited using a 0.5 g/t Au cut-off and may include short intervals of
internal waste below the cut-off grade.
(2) Assays for portions of this hole were previously reported.
(3) Hole MGI-11-099 was drilled as a geotechnical hole west of the Meadow
Creek Fault at Hangar Flats, a previously untested area.
'The new mineralized zones intersected in hole MGI-11-99 at Hangar Flats and in MGI-11-108 at Yellow Pine illustrate the potential for new discoveries evolving from our continued data compilation and current drilling program on our Golden Meadows Project in Idaho,' said Stephen Quin, President and CEO of Midas Gold Corp. 'Our ongoing exploration is providing new insights into this old district that may lead to more discoveries and the results from MGI-11-99, which was drilled in the essentially untested area west of the Meadow Creek Fault in the Hangar Flats area, and MGI-11-108, drilled in the poorly tested area east of the Meadow Creek fault in the Yellow Pine area, suggest this large structural feature holds a few more surprises,' he said.
2011 Exploration Program
This drilling is being undertaken as part of an exploration program designed to confirm and expand known mineral resources and potentially discover new mineralized areas. Four core rigs, one sonic rig and two reverse circulation rigs are currently on site and plans are underway to continue the drilling program through the winter, based on continued success and subject to obtaining all the necessary permits. Since acquiring the property in the spring of 2009, Midas Gold has completed over 158 core and reverse circulation drill holes totalling approximately 34,300 metres.
Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made by Midas Gold in 2009 adjacent to the high grade underground Meadow Creek antimony-gold-silver mine that operated in the 1920s to early 1930s. Yellow Pine is a significant past producer of gold, silver, antimony and tungsten from the 1930s through the mid-1950s. The Homestake pit, located at the northeast end of the Yellow Pine deposit, was operated by Hecla Mining Company from 1987 through 1989. While gold, silver and antimony tend to occur in approximately the same areas, the mineralizing events are distinct and, as a result, the gold-based cut-off used to report results herein do not necessarily best illustrate the silver and, especially, the antimony values. Tungsten values tend to be much more geographically limited and, where they do occur, tend to be diluted down to low values over the long intervals of gold mineralization reported but nevertheless could represent a significant by-product opportunity.
Recent Drill Results
A total of 17 holes have been completed in the main open pit area of the Yellow Pine Deposit so far this season. Drill holes 11-61, 11-63 and 11-63, and 11-83, an RC hole, reported herein, were drilled within and beneath the known mineral resource at Yellow Pine in order to upgrade the confidence level of those mineral resources, to test mineralization at depth and to provide metallurgical samples. Results from these drill holes in this area are consistent with historic drill program results, providing confidence in Midas Gold's prior mineral resource models and, in some cases, indicate that additional mineralization may be present outside the modeled pit that limited these mineral resource estimates as illustrated by hole 11-63, which cut over 100 metres of strong mineralization outside of the modeled pit boundary.
Twelve holes have been completed in the Hangar Flats deposit so far this season. Holes reported herein, 11-80 and 11-99, were drilled for confirmation and mineral resource development and geotechnical purposes, respectively. Hole 11-80 was designed to expand and further upgrade the existing mineral resource and it bottomed in mineralization after the hole was lost due to caving from old workings. Hole MGI-11-99 was drilled to the west, through the foot wall of the Meadow Creek fault, and cut a previously unrecognized, strongly mineralized zone at depth. The drill intercept in this hole lies directly underneath a 1974 El Paso Oil and Gas induced polarization (IP) anomaly that was unsuccessfully tested with a vertical, shallow (less than 15m) drill hole in 1975 that did not drill deep enough to penetrate the IP anomaly that is likely associated with the strong mineralization cut in hole 11-99. The spatial extent and geometry of this zone has not been determined so the thickness reported may not be representative of the zones true thickness. This intercept is noteworthy, since it represents the first indications that significant mineralization could lie west of the Meadow Creek fault, that was previously assumed to limit mineralization and opens up an important new exploration opportunity within the previously modelled pit shell, suggesting potential to add mineral resources and reduce strip ratios.
A total of 53 holes have been completed so far this season in the Clark Tunnel-Homestake area of the Yellow Pine Deposit. Holes reported herein including 11-93, 11-108, 11-109 and 11-111 through 11-114 confirm the Homestake model. In addition, holes 11-111 and 11-108 cut significant thicknesses of mineralization outside of the current limits of the pit used to limit Midas Gold's mineral resource estimates, suggesting room for expansion in this poorly explored and drilled portion of the mineralized system. Hole 11-108 is particularly significant, as the intercept lies east of the Meadow Creek fault, in an area that has previously seen very little drilling and offers potential for the discovery of additional mineral resources in this area. A series of holes to the northeast of the previously mined pit show strong alteration, but lack significant thicknesses of gold mineralization and the main mineralized trend may be offset by post-mineral faulting or pinch out in this direction and further drilling will be directed to this area to determine if the system persists.
Details of prior mineral resource estimates can be found in the NI 43-101 Technical Report filed under Midas Gold's profile on SEDAR (www.sedar.com).
Quality Assurance
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 ('NI 43-101') and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp. (the 'Corporation'), and a Qualified Person. The exploration activities at Golden Meadows were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
All gold assays are by a 30g Fire Assay charge followed by an atomic absorption finish (with a 0.005g/t lower reporting limit). Samples reporting values greater than 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 0.5g/t lower reporting limit). Samples reporting values greater than 10g/t Ag are reanalyzed using a 2g ICP-AES, four acid digest, while samples reporting greater than 750g/t Ag are reanalyzed using a 30g Fire Assay charge followed by a gravimetric finish. Antimony is analyzed via a 4-acid digestion followed by an ICP finish (with a 5.0g/t lower reporting limit). Samples reporting values greater than 2,000g/t Sb are reanalyzed using XRF with a 0.9g charge in a Lithium Borate fusion (with a 0.01% lower reporting limit).
All composites utilize a 0.5g/t gold cut off and may include up to 3.05 meters of internal waste. Internal waste has been assigned a nominal grade of 0.0g/t. Composites above cut-off grade, but less than 6.1 meters in length, are not reported. Some intervals may not add or subtract correctly due to rounding, but are deemed insignificant. Analyses are carried out by ALS CHEMEX in their Reno and Winnemucca, Nevada and Vancouver, British Columbia laboratories. Blank and standard samples are used for quality assurance and quality control and a review of the results of analyses of the blanks, standards and duplicates by the Corporation's Qualified Person indicates values are within normal and acceptable ranges.
About Midas Gold and the Golden Meadows Project
Midas Gold Corp., through its wholly owned subsidiaries Midas Gold Inc., and Idaho Gold Resources, LLC, is focused on the exploration and, if warranted, development of the Golden Meadows Project in the Stibnite-Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Golden Meadows Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors. Independent mineral resource estimates were reported for all three deposits in a news release dated April 20, 2011 and are detailed in a consolidated technical report entitled 'NI 43-101 Technical Report on Mineral Resources, Golden Meadows Project, Valley County, Idaho' dated June 6, 2011 (the 'Technical Report') is available on Midas Gold's website at www.midasgoldcorp.com or under Midas Gold's profile on SEDAR at www.sedar.com.
The Hangar Flats, West End and Yellow Pine deposits remain open to expansion along strike and to depth. In addition, Midas Gold continues to review and assess information contained within an extensive exploration database developed by Midas Gold from almost 100 years of exploration activity by multiple owners and operators with the objective of identifying opportunities for the potential discovery of additional gold mineralization. Since Midas Gold's acquisition of the project in the spring of 2009, the company has completed over 158 core and RC holes totalling over 34,300 metres, as well as completing an extensive airborne geophysical program that not only outlined the three known gold deposits, but has identified a number of significant new anomalies within Midas Gold's extensive property holdings. Regional exploration programs are in process to begin the evaluation of these newly identified, extensive anomalies.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are 'forward-looking information' or 'forward-looking statements' (collectively, 'Forward-Looking Information') within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation's properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', 'potential' or 'does not anticipate', 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'.
Statements concerning mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that may be encountered if the Golden Meadows Project is developed. In making the forward-looking statements in this news release, the Corporation has applied several material assumptions, including, but not limited to, that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in 2011 will be consistent with the Corporation's expectations; that the current exploration and other objectives concerning the Golden Meadows Project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration on the Golden Meadows Project will be obtained in a timely manner and on acceptable terms; the continuity of the price of gold and other metals, economic and political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information.
Such risks and other factors include, among others, risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in exploration programs based upon results of exploration; changes in estimated mineral reserves or mineral resources; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks, including environmental matters under U.S. federal and Idaho rules and regulations; impact of environmental remediation requirements and the terms of existing and potential consent decrees on the Corporation's planned exploration on the Golden Meadows Project; certainty of mineral title; community relations; delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Corporation's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Corporation's lack of operating revenues; governmental regulations and the ability to obtain necessary licences and permits; risks related to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict operations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the Corporation's public disclosure record. Although the Corporation has attempted to identify important factors that could affect the Corporation and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information.
Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Table 2:Recent Assay Results from Golden Meadows Project
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Type Target From To Interval Gold Silver Antimony Tungsten
Hole ID Area (m) (m) (m) (1) (g/t) (g/t) % (%)
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MGI-11- Yellow
61(2) Core Pine 62.8 135.6 72.8 1.50 1.3 0.00 0.004
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And 140.2 167.6 27.4 3.14 1.2 0.02 0.002
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And 194.3 222.8 28.5 2.71 1.5 0.01 0.004
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And 235.9 304.8 68.9 2.58 2.1 0.01 0.002
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MGI-11- Yellow
63(2) Core Pine 72.1 77.7 5.6 1.63 0.6 0.00 0.011
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And 112.8 208.8 96.0 1.59 0.8 0.01 0.003
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And 214.6 234.4 19.8 2.21 0.6 0.00 0.001
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And 241.7 250.9 9.1 1.27 0.3 0.00 0.000
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And 257.0 270.7 13.7 1.00 0.5 0.00 0.001
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And 275.2 326.4 51.2 0.86 1.1 0.00 0.001
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And 342.9 369.7 26.8 1.24 2.5 0.01 0.001
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MGI-11-80 Hangar
(2) Core Flats 6.1 39.6 33.5 0.99 0.8 0.01 0.006
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And 51.2 77.0 25.8 1.77 1.0 0.01 0.005
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And 84.9 100.3 15.4 2.09 1.5 0.01 0.077
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And 188.7 199.2 10.5 2.51 4.4 0.01 0.003
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Yellow
MGI-11-83 RC Pine 6.1 48.8 42.7 2.56 0.6 0.00 0.004
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including 9.1 21.3 12.2 5.92 0.8 0.01 0.004
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Yellow
MGI-11-93 RC Pine 64.0 73.2 9.1 1.09 4.0 0.00 0.005
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And 88.4 109.7 21.3 3.43 0.9 0.00 0.003
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Yellow
MGI-11-94 Core Pine 109.0 133.8 24.8 1.40 0.7 0.00 0.002
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And 143.0 160.3 17.4 1.06 0.5 0.00 0.001
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And 182.9 190.5 7.6 1.10 1.3 0.00 0.001
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Yellow
MGI-11-096 RC Pine 0.0 10.7 10.7 0.56 0.3 0.01 0.003
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Hangar
MGI-11-099 Core Flats 459.3 505.7 46.3 1.29 11.7 0.65 0.005
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including 487.4 498.0 10.7 2.35 31.0 1.24 0.002
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Yellow
MG-11-100 RC Pine 27.4 33.5 6.1 2.41 0.5 0.01 0.020
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Yellow
MGI-11-101 RC Pine 0.0 15.2 15.2 1.57 1.3 0.04 0.013
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Yellow
MGI-11-102 RC Pine 3.1 13.7 10.7 0.43 0.4 0.01 0.003
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Yellow
MGI-11-106 RC Pine 0.0 19.8 19.8 0.75 0.8 0.01 0.022
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Yellow
MGI-11-107 RC Pine 0.0 13.7 13.7 0.93 0.5 0.02 0.005
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Yellow
MGI-11-108 RC Pine 6.1 24.4 18.3 2.11 0.9 0.01 0.010
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And 32.0 45.7 13.7 0.99 0.0 0.01 0.004
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And 70.1 74.7 4.6 1.18 0.6 0.00 0.004
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And 80.8 152.4 71.6 2.20 2.2 0.00 0.003
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Including 99.1 140.2 41.1 3.14 2.9 0.01 0.003
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Yellow
MGI-11-109 RC Pine 6.1 30.5 24.4 1.20 0.5 0.01 0.005
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And 35.1 47.2 12.2 1.34 0.2 0.00 0.002
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Yellow
MGI-11-111 RC Pine 18.3 24.4 6.1 3.99 0.7 0.01 0.061
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Including 19.8 24.4 4.6 4.77 0.9 0.01 0.080
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And 115.8 129.5 13.7 1.48 1.0 0.00 0.001
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And 138.7 149.4 10.7 0.52 0.8 0.00 0.002
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And 153.9 167.6 13.7 0.64 1.5 0.00 0.001
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Yellow
MGI-11-112 RC Pine 33.5 45.7 12.2 1.73 0.9 0.00 0.003
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Yellow
MGI-11-113 RC Pine 6.1 13.7 7.6 0.89 3.1 0.01 0.006
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Yellow
And RC Pine 19.8 38.1 18.3 1.13 0.8 0.00 0.003
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Yellow
And RC Pine 44.2 59.4 15.2 2.23 1.0 0.00 0.002
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Yellow
MGI-11-114 RC Pine 24.4 44.2 19.8 0.95 1.1 0.00 0.002
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And 48.8 57.9 9.1 0.96 0.8 0.00 0.006
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Yellow
MGI-11-126 RC Pine 6.1 15.2 9.1 0.46 3.3 0.07 0.000
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Yellow
MGI-11-127 RC Pine 12.2 19.8 7.6 1.1 6.1 0.13 0.001
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(1) Based upon the current 3D interpretation of the Hangar Flats and Yellow
Pine deposits the intervals quoted here are at or near true thickness and
are composited using a 0.5 g/t Au cut-off and may include short intervals of
internal waste below the cut-off grade.
(2) Assays for portions of this hole were previously reported.
Contacts:
Midas Gold Corp.
Liz Caridi
Manager, Investor Relations
778.724.4704
info@midasgoldinc.com
www.midasgoldcorp.com