Press Releases
MIDAS GOLD REPORTS DISCOVERY OF HIGH GRADE GOLD MINERALIZATION IN FOLLOW-UP TO 2011 AIRBORNE EM SURVEY AT ITS GOLDEN MEADOWS PROJECT, IDAHO
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced results from reconnaissance sampling and follow-up evaluation of one of the larger geophysical anomalies outlined by its 2011 DIGHEM airborne electromagnetic (“AEM”) survey, with rock samples returning values up to 39g/t gold in outcrop. In addition, soil sampling on the Rabbit prospect and rock sampling on the northern end of the West End deposit have outlined significant gold anomalies that warrant further evaluation. This work was conducted as part of Midas Gold’s ongoing exploration program on its 11,600 hectare Golden Meadows Project in Valley County, Idaho.
“Midas Gold is encouraged to encounter significant, high grade gold mineralization in outcrop coincident with one of the larger of its newly identified geophysical anomalies at its Golden Meadows Project in Idaho,” said Stephen Quin, President & CEO of Midas Gold Corp. “These results indicate potential for a significant new gold system in this area, warranting systematic exploration to evaluate this anomaly, which extends for 4km along strike and is 400-500m wide,” he said. “In addition, the results from the Rabbit and West End extension confirm the potential of these areas to be related to significant gold mineralizing systems.”
Airborne Geophysics
As announced September 28, 2011, Midas Gold conducted an airborne electromagnetic survey over its Golden Meadows Project during the summer of 2011. As a result of the trends and anomalies identified in the survey, Midas Gold staked an additional 900 unpatented federal lode mining claims encompassing approximately 7,284 hectares, more than doubling the size of the land package at Golden Meadows to 11,600 hectares. The survey not only reported anomalies at two of the three main resources, as well as possible extensions thereto, but also outlined significant anomalies coincident with areas of known surface gold mineralization, demonstrating the survey technique’s capability in defining mineralized systems. The survey also identified several extensive anomalies outside of Midas Gold’s prior property boundary, supporting the additional staking. Click here for maps locating these anomalies relative to the known mineral resources and previously defined exploration targets.
Follow-up Exploration Results - Mule Prospect
Initial follow-up on the 2011 Airborne EM surveys has generated some encouraging results. A multi-kilometre long, 400-500m wide, north-south trending conductive zone and magnetic linear was identified in the southeast portion of the recently expanded Golden Meadows property. This trend was investigated near the site of 1920’s era placer prospecting and 1980’s era trenching that cut high grade (greater than 30 g/t Au) quartz-sulphide veins. A reconnaissance traverse along the southern 1.5km trace of this geophysical feature identified a broad zone of intensely altered granite cut by numerous quartz-sulphide veins. Seven of the eight 2011 samples collected from old placer cuts, bedrock trenches, outcrops and spoil piles within this area contained anomalous gold, with four samples reporting greater than 1.0 g/t gold, including two samples reporting greater than 30 g/t gold. These samples may not be representative of the entire geophysical feature, but suggest the possibility of a large mineralizing system associated with the nearby Tertiary caldera margin. Outcrop is poor in the area of this anomaly, but some historic roads in the area could provide access for geophysical surveys and possible future drilling. Follow up work is planned for 2012. This large target area has been designated “Mule” after a prominent topographic feature in the area.
Follow-up Exploration Results - Rabbit Prospect
Results from a soil grid covering an area approximately 0.6km x 1.1km at the Rabbit prospect have been received, outlining two gold-in-soil anomalies greater than 50 parts per billion (“ppb”) gold with a central area comprised of multiple samples reporting greater than 100ppb gold. The soil grid, completed in late summer 2011, consists of 300 samples on 25 meter centers on lines spaced approximately 100m apart. The grid is centered on a large, diffuse, 300m x 400m rock chip anomaly generated during 2009 and 2010 reconnaissance work.
The western soil and rock chip anomaly, which covers an area approximately 200m wide and 400m long, is centered on a 1920’s Thunder Mountain Gold Rush era adit and is where old 1970’s era trenches cut into an intensely quartz veined, altered and sulphide-bearing quartz intrusives. Alteration consists of sulphide replacements of biotite, argillic alteration of feldspars and vuggy quartz veins, including widespread cockscomb quartz and banded quartz adularia veins with facture-fill textures indicative of epithermal mineralization. The historic trenches, sampled by previous operators, returned 3.04 meters averaging 1.85g/t Au and 6.1 metres averaging 1.06g/t Au. In 2010, Midas collected over 132 rock chip samples in this area, delineating a 250m x 300m northeast-trending area of anomalous rock chip geochemistry with over 30 samples returning greater than 1g/t gold in outcrop, with a high of 13g/t gold. A large ovoid electromagnetic anomaly is associated with the geochemical anomaly. This anomaly, designated the “West Rabbit” Anomaly, has never been drilled and is in the process of being permitted for 2012 summer drilling.
The eastern anomaly is along strike from the past producing Garnet Pit, which had reported production of approximately 40,000 ounces of gold averaging 8-10 g/t gold and appears to be along strike of the mapped trace of the Fern Marble (which hosts the Garnet deposit). Initial reconnaissance rock sampling of float and outcrop in 2009, and follow-up work in 2010, defined a large area of intense alteration comprised of pervasive vuggy silica, jasperoids and epithermal veining within mapped carbonate rocks. The soil and rock chip anomaly has a strong northwest-southeast trend, parallel to the carbonate stratigraphy underlying the area. The new soil anomaly is approximately 150m wide and 450m long, and is open along strike in both directions. This anomaly has been designated the “East Rabbit” anomaly, and is in the process of being permitted for 2012 summer drilling.
Follow-up Exploration Results - West End Extension
Exploration along the northwestern periphery of the West End deposit, host to a NI43-101 compliant indicated and inferred mineral resource (see news release dated February 22, 2011), has returned encouraging results from mapping and rock chip sampling. Twenty rock chip samples were collected during the summer of 2011 to follow up and confirm old 1970’s era road cut sampling and 2010 reconnaissance sampling work in the area. A large road cut along the trace of West End Creek (now covered by mine waste dumps) slightly northwest of the NE Extension Pit, had been sampled in the 1970’s by Superior Oil. This sampling outlined a broad (>100m wide), diffuse, apparently east-west trending zone of mineralization averaging approximately 1 g/t Au in the foot wall of the reported bounding fault to West End deposit. This area was never drilled as it was situated along a former property boundary, which inhibited follow up exploration due to the property situation.
In 2010, Midas Gold drilled a single hole 200m southeast of the Superior Oil anomaly, into the foot wall of the reported bounding fault. This hole cut significant mineralization (hole MGI-10-42, which returned 62m averaging 1.51 g/t Au), suggesting the West End mineralization extends west of the past producing pit, along the old property boundary. The 2010 reconnaissance work and 2011 rock sampling was designed to confirm the 1970’s rock chip anomaly, and further refine Midas Gold’s understanding of the style and extent of mineralization in the foot wall of the main West End deposit faults. All twenty samples collected in 2011, over a 200m x 400m area, returned anomalous gold, with multiple samples returning greater than 1.0 g/t gold from strongly altered sediments comprised of silicified and vuggy jasperoidal carbonates and epithermal veins and breccias. Many of these mineralized rocks exhibited east-west trending fabrics, suggesting a bend in the structural grain in this area as compared to the northeast trending West End deposit. The primary anomaly is a greater than 1 g/t gold anomaly approximately 150m wide 250m in strike length, and is open to the west. This anomaly’ designated the “Exit” anomaly, has never been drilled and is currently being permitted for 2012 summer drilling.
Illustrations
To view the locations of these exploration targets, please click here.
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 (“NI43-101”) and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., 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.
For Rock samples, 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 > 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 > 10g/t Ag are reanalyzed using a 2g ICP-AES, four acid digest, while samples reporting > 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 > 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).
Soil samples were sieved to -80 mesh, and had an ICP-MS multi-element analysis instead of the ICP-AES analysis carried out on rock samples. Gold assays were carried out as with rock samples, above.
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 Company’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 <emM”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.
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.
MIDAS GOLD REPORTS DISCOVERY OF NEW MINERALIZED ZONES AT ITS GOLDEN MEADOWS PROJECT, IDAHO
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% Sb Hole MGI-11-108 intersects 71.6m of 2.2 g/t Au, including 41.1m of 3.1 g/t Au
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) 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 (totaling 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.
Table 1: Highlights of Recent Assay Results
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(1) | Gold (g/t) | Silver (g/t) | Antimony (%) |
|---|---|---|---|---|---|---|---|---|
| MGI-11-061(2) | Core | Yellow Pine | 62.8 | 135.6 | 72.8 | 1.50 | 1.3 | 0.00 |
| And | 140.2 | 167.6 | 27.4 | 3.14 | 1.2 | 0.02 | ||
| And | 194.3 | 222.8 | 28.5 | 2.71 | 1.5 | 0.01 | ||
| And | 235.9 | 304.8 | 68.9 | 2.58 | 2.1 | 0.01 | ||
| MGI-11-83 | RC | Yellow Pine | 6.1 | 48.8 | 42.7 | 2.56 | 0.6 | 0.00 |
| including | 9.1 | 21.3 | 12.2 | 5.92 | 0.8 | 0.01 | ||
| MGI-11-93 | RC | Yellow Pine | 64.0 | 73.2 | 9.1 | 1.09 | 4.0 | 0.00 |
| And | 88.4 | 109.7 | 21.3 | 3.43 | 0.9 | 0.00 | ||
| MGI-11-099 (3) | Core | Hangar Flats | 459.3 | 505.7 | 46.3 | 1.29 | 11.7 | 0.65 |
| including | 487.4 | 498.0 | 10.7 | 2.35 | 31.0 | 1.24 | ||
| MGI-11-108 | RC | Yellow Pine | 6.1 | 24.4 | 18.3 | 2.11 | 0.9 | 0.01 |
| And | 32.0 | 45.7 | 13.7 | 0.99 | 0.0 | 0.01 | ||
| And | 70.1 | 74.7 | 4.6 | 1.18 | 0.6 | 0.00 | ||
| And | 80.8 | 152.4 | 71.6 | 2.20 | 2.2 | 0.00 | ||
| Including | 99.1 | 140.2 | 41.1 | 3.14 | 2.9 | 0.01 |
(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 (< 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 NI43-101 Technical Report filed under Midas Gold’s profile on SEDAR (www.sedar.com).
To view the locations of current drill hole, please click here.
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 (“NI43-101”) 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 > 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 > 10g/t Ag are reanalyzed using a 2g ICP-AES, four acid digest, while samples reporting > 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 > 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
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(1) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) |
|---|---|---|---|---|---|---|---|---|---|
| MGI-11-61(2) | Core | Yellow Pine | 62.8 | 135.6 | 72.8 | 1.50 | 1.3 | 0.00 | 0.004 |
| And | 140.2 | 167.6 | 27.4 | 3.14 | 1.2 | 0.02 | 0.002 | ||
| And | 194.3 | 222.8 | 28.5 | 2.71 | 1.5 | 0.01 | 0.004 | ||
| And | 235.9 | 304.8 | 68.9 | 2.58 | 2.1 | 0.01 | 0.002 | ||
| MGI-11-63(2) | Core | Yellow Pine | 72.1 | 77.7 | 5.6 | 1.63 | 0.6 | 0.00 | 0.011 |
| And | 112.8 | 208.8 | 96.0 | 1.59 | 0.8 | 0.01 | 0.003 | ||
| And | 214.6 | 234.4 | 19.8 | 2.21 | 0.6 | 0.00 | 0.001 | ||
| And | 241.7 | 250.9 | 9.1 | 1.27 | 0.3 | 0.00 | 0.000 | ||
| And | 257.0 | 270.7 | 13.7 | 1.00 | 0.5 | 0.00 | 0.001 | ||
| And | 275.2 | 326.4 | 51.2 | 0.86 | 1.1 | 0.00 | 0.001 | ||
| And | 342.9 | 369.7 | 26.8 | 1.24 | 2.5 | 0.01 | 0.001 | ||
| MGI-11-80 (2) | Core | Hangar Flats | 6.1 | 39.6 | 33.5 | 0.99 | 0.8 | 0.01 | 0.006 |
| And | 51.2 | 77.0 | 25.8 | 1.77 | 1.0 | 0.01 | 0.005 | ||
| And | 84.9 | 100.3 | 15.4 | 2.09 | 1.5 | 0.01 | 0.077 | ||
| And | 188.7 | 199.2 | 10.5 | 2.51 | 4.4 | 0.01 | 0.003 | ||
| MGI-11-83 | RC | Yellow Pine | 6.1 | 48.8 | 42.7 | 2.56 | 0.6 | 0.00 | 0.004 |
| including | 9.1 | 21.3 | 12.2 | 5.92 | 0.8 | 0.01 | 0.004 | ||
| MGI-11-93 | RC | Yellow Pine | 64.0 | 73.2 | 9.1 | 1.09 | 4.0 | 0.00 | 0.005 |
| And | 88.4 | 109.7 | 21.3 | 3.43 | 0.9 | 0.00 | 0.003 | ||
| MGI-11-94 | Core | Yellow Pine | 109.0 | 133.8 | 24.8 | 1.40 | 0.7 | 0.00 | 0.002 |
| And | 143.0 | 160.3 | 17.4 | 1.06 | 0.5 | 0.00 | 0.001 | ||
| And | 182.9 | 190.5 | 7.6 | 1.10 | 1.3 | 0.00 | 0.001 | ||
| MGI-11-096 | RC | Yellow Pine | 0.0 | 10.7 | 10.7 | 0.56 | 0.3 | 0.01 | 0.003 |
| MGI-11-099 | Core | Hangar Flats | 459.3 | 505.7 | 46.3 | 1.29 | 11.7 | 0.65 | 0.005 |
| including | 487.4 | 498.0 | 10.7 | 2.35 | 31.0 | 1.24 | 0.002 | ||
| MG-11-100 | RC | Yellow Pine | 27.4 | 33.5 | 6.1 | 2.41 | 0.5 | 0.01 | 0.020 |
| MGI-11-101 | RC | Yellow Pine | 0.0 | 15.2 | 15.2 | 1.57 | 1.3 | 0.04 | 0.013 |
| MGI-11-102 | RC | Yellow Pine | 3.1 | 13.7 | 10.7 | 0.43 | 0.4 | 0.01 | 0.003 |
| MGI-11-106 | RC | Yellow Pine | 0.0 | 19.8 | 19.8 | 0.75 | 0.8 | 0.01 | 0.022 |
| MGI-11-107 | RC | Yellow Pine | 0.0 | 13.7 | 13.7 | 0.93 | 0.5 | 0.02 | 0.005 |
| MGI-11-108 | RC | Yellow Pine | 6.1 | 24.4 | 18.3 | 2.11 | 0.9 | 0.01 | 0.010 |
| And | 32.0 | 45.7 | 13.7 | 0.99 | 0.0 | 0.01 | 0.004 | ||
| And | 70.1 | 74.7 | 4.6 | 1.18 | 0.6 | 0.00 | 0.004 | ||
| And | 80.8 | 152.4 | 71.6 | 2.20 | 2.2 | 0.00 | 0.003 | ||
| Including | 99.1 | 140.2 | 41.1 | 3.14 | 2.9 | 0.01 | 0.003 | ||
| MGI-11-109 | RC | Yellow Pine | 6.1 | 30.5 | 24.4 | 1.20 | 0.5 | 0.01 | 0.005 |
| And | 35.1 | 47.2 | 12.2 | 1.34 | 0.2 | 0.00 | 0.002 | ||
| MGI-11-111 | RC | Yellow Pine | 18.3 | 24.4 | 6.1 | 3.99 | 0.7 | 0.01 | 0.061 |
| Including | 19.8 | 24.4 | 4.6 | 4.77 | 0.9 | 0.01 | 0.080 | ||
| And | 115.8 | 129.5 | 13.7 | 1.48 | 1.0 | 0.00 | 0.001 | ||
| And | 138.7 | 149.4 | 10.7 | 0.52 | 0.8 | 0.00 | 0.002 | ||
| And | 153.9 | 167.6 | 13.7 | 0.64 | 1.5 | 0.00 | 0.001 | ||
| MGI-11-112 | RC | Yellow Pine | 33.5 | 45.7 | 12.2 | 1.73 | 0.9 | 0.00 | 0.003 |
| MGI-11-113 | RC | Yellow Pine | 6.1 | 13.7 | 7.6 | 0.89 | 3.1 | 0.01 | 0.006 |
| And | RC | Yellow Pine | 19.8 | 38.1 | 18.3 | 1.13 | 0.8 | 0.00 | 0.003 |
| And | RC | Yellow Pine | 44.2 | 59.4 | 15.2 | 2.23 | 1.0 | 0.00 | 0.002 |
| MGI-11-114 | RC | Yellow Pine | 24.4 | 44.2 | 19.8 | 0.95 | 1.1 | 0.00 | 0.002 |
| And | 48.8 | 57.9 | 9.1 | 0.96 | 0.8 | 0.00 | 0.006 | ||
| MGI-11-126 | RC | Yellow Pine | 6.1 | 15.2 | 9.1 | 0.46 | 3.3 | 0.07 | 0.000 |
| MGI-11-127 | RC | Yellow Pine | 12.2 | 19.8 | 7.6 | 1.1 | 6.1 | 0.13 | 0.001 |
(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.
MIDAS GOLD MAKES SENIOR TECHNICAL APPOINTMENTS FOR ITS GOLDEN MEADOWS PROJECT, IDAHO
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced that it has made a number of senior technical appointments to support its current and planned work program at its Golden Meadows Project in Idaho.
“The appointment of three very experienced and highly qualified senior technical personnel to the Golden Meadows Project team strengthens Midas Gold’s ability to continue to advance its evaluation of this significant gold-silver-antimony deposit,” said Stephen Quin, President and CEO of Midas Gold. “Midas Gold’s capability to attract such senior personnel in a highly competitive market is a reflection of the quality of the Golden Meadows Project,” he said. “With seven drills on site – four core, two reverse circulation and one sonic rig - we are and plan to continue to systematically conduct infill, step-out and exploration drilling across our expanded Golden Meadows Project while, in parallel, advancing updated mineral resource estimates and completion of an independent preliminary economic assessment on the project.”
Technical Appointments
Midas Gold has added three senior, experienced technical personnel to its Golden Meadows Project staff.
John Meyer, P.Eng., has been appointed as Development Manager for the Golden Meadows Project, effective the start of 2012. Mr. Meyer was most recently the Project Manager for Kinross Gold’s Fruta del Norte (FDN) gold project in Ecuador, where he managed the design and development of this high-grade refractory gold project. His responsibilities with FDN included management of the preliminary and final feasibility studies, drilling activities and site construction. Prior to Kinross Gold’s acquisition of Aurelian Resources, Mr. Meyer was Director of Technical Services with Aurelian Resources, where he managed preparation of the FDN scoping study. Prior to Aurelian, Mr. Meyer held a corporate position as Manager of Geotechnical Engineering with Barrick Gold and, also with Barrick, Engineering Manager for aspects of the Pascua Lama project in Chile/Argentina. Prior to his role with Barrick, Mr. Meyer was an engineering design consultant and involved in projects for Syncrude Canada, Diavik Diamond Mines, Cominco Metals, Suncor Energy and Placer Dome Canada, among others.
Richard Moses, Professional Geologist, has been appointed Field Operations Manager for the Golden Meadow Project. Mr. Moses has extensive cold-weather drill definition experience, most recently as site manager for International Tower Hill’s Livengood project, where he managed nine drills conducting mineral resource and hydrologic drilling. Prior to that, Mr. Moses was Exploration Manager for Altynalmas Gold’s Bakyrchik gold project in Kazakhstan, where he supervised a 40,000m drill program designed to convert mineral resources to NI43-101 compliant estimates. Prior to Bakyrchik, Mr. Moses spent three years as site manager and geologist at Northern Dynasty’s Pebble copper-gold project in Alaska, where he was involved in the discovery and definition of the Pebble East deposit, and spent four years with Placer Dome as project manager and geologist drilling off the Donlin Creek gold project in Alaska.
Midas has also retained Don Weaver as drilling program supervisor, to assist with managing the drilling program and oversee the logging of core and rock chips at Midas Gold’s expanded facilities in Lake Fork, Idaho. Mr. Weaver was previously responsible for exploration and definition drilling at Sumitomo’s Pogo gold mine in Alaska, including drill oversight, core logging and QA/QC and prior to that, was underground mine geologist for Teck at Pogo. Previously, Mr. Weaver worked on gold projects in the US owned by Anglo Gold, Kinross and Independence Mining, among others.
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.
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. 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.
MIDAS GOLD REPORTS ADDITIONAL DRILL RESULTS FROM ITS 2011 PROGRAM AT ITS GOLDEN MEADOWS PROJECT, IDAHO
- Including Hole MGI-11-59 which intersected 242m @ 2.2 g/t Au -
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced additional assay results from its ongoing core and reverse circulation (“RC”) drilling program on the Hangar Flats and Yellow Pine deposits at the Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. Assays are available for the first 35 holes out of the 80 holes completed to date. Highlights of previous 2011 assay results were reported in news releases on August 18, September 28 and October 3, 2011. Newly received results are summarized in Table 1 below, with more detailed results in Table 2 at the end of this release. Additional results from the ongoing program will be released when assays are received and validated.
Table 1: Highlights of Recent Assay Results from Golden Meadows
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m) (1) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) |
|---|---|---|---|---|---|---|---|---|---|
| MGI-11-59 | Core | Yellow Pine | 57.3 | 73.2 | 15.8 | 2.95 | 16.6 | 0.43 | 0.002 |
| And | 80.5 | 322.5 | 242.0 | 2.21 | 1.3 | 0.02 | 0.007 | ||
| Including | 160.2 | 225.6 | 65.5 | 3.72 | 1.0 | 0.00 | 0.004 | ||
| MGI-11-62(2) | Core | Yellow Pine | 41.8 | 107.6 | 65.8 | 2.57 | 2.4 | 0.01 | 0.002 |
| Including | 43.3 | 93.7 | 50.4 | 2.97 | 2.8 | 0.02 | 0.002 | ||
| AND | 112.5 | 248.1 | 135.6 | 2.30 | 1.2 | 0.00 | 0.002 | ||
| MGI-11-63 | Core | Yellow Pine | 112.8 | 208.8 | 96.0 | 1.59 | 0.8 | 0.01 | 0.003 |
| MGI-11-71 | Core | Yellow Pine | 135.9 | 159.7 | 23.8 | 3.90 | 2.9 | 0.04 | 0.001 |
| MGI-11-78 | Core | Hangar Flats | 55.5 | 95.7 | 40.2 | 2.69 | 11.4 | 0.76 | 0.006 |
| Including | 87.0 | 94.5 | 7.5 | 3.01 | 41.1 | 3.22 | 0.005 | ||
| Which includes | 87.0 | 91.4 | 4.4 | 2.82 | 66.8 | 5.41 | 0.005 | ||
| And | 179.2 | 204.4 | 25.1 | 2.38 | 12.5 | 0.44 | 0.004 | ||
| MGI-11-81 | RC | Yellow Pine | 0.0 | 30.5 | 30.5 | 2.19 | 1.1 | 0.01 | 0.048 |
| MGI-11-84 | RC | Yellow Pine | 7.6 | 42.7 | 35.1 | 4.07 | 0.5 | 0.23 | 0.045 |
| MGI-11-92 | RC | Yellow Pine | 29.0 | 45.7 | 16.8 | 1.45 | 2.1 | 0.10 | 0.002 |
| And | 70.1 | 91.4 | 21.3 | 2.85 | 2.0 | 0.00 | 0.001 |
(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.
“We continue to be encouraged by drilling results from the 2011 drilling program on our Golden Meadows Project in Idaho,” said Stephen Quin, President and CEO of Midas Gold, Corp. “Recent drilling in the Hangar Flats and Yellow Pine areas has intersected significant gold-silver-antimony mineralization in previously untested areas, near the known deposits. The intercept in drill hole MGI-11-59 is particularly encouraging, with a 242 metre intercept grading 2.2g/t gold within the Yellow Pine deposit,” he said. “Based on the results received to date, Midas has mobilized a second RC drill rig to site to support continued drilling through to mid-December.”
2011 Exploration Program
A total of 80 drill holes totalling approximately 16,000 metres have been completed in 2011, with results available for 35 holes. 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 operating on site and plans are underway to continue our drilling program through the winter, based on our continued success. Since acquiring the property in 2009, Midas Gold has completed over 138 core and reverse circulation drill holes totaling over 30,000 metres of drilling.
Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made by Midas Gold in 2009 and these most recent drill intercepts are step-outs to the north from the areas discovered and drilled during the 2009 and 2010 field seasons. Yellow Pine is a significant past producer of gold, silver, antimony and tungsten from the 1930’s through the mid-1950’s. The Homestake pit, located at the northeast end of the Yellow Pine deposit, was operated by Hecla Mining Company as a shallow open pit, heap leach gold mine, from 1987 through 1989. As noted in the October 3, 2011 news release, 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.
Recent Drill Results
Drill holes MGI-11-59, -62 and -63 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 beneath the modeled pit that limits these mineral resource estimates.
Holes MGI-11-78, 11-80 and 11-91, drilled into the Hangar Flats deposit, were designed to expand and further upgrade the existing mineral resource. The assay results from these holes continue to demonstrate the upside potential of the 5 km-long Meadow Creek Fault trend and provide encouragement for expansion of the Hangar Flats mineral resource as drilling steps-out to the north along this trend.
Holes MGI-11-71, 11-75 to 11-77, 11-79, 11-81 to 11-90 and 11-92 were drilled in the Clark Tunnel and Homestake areas of the Yellow Pine deposit, northeast of the historic past producing Yellow Pine pit and southwest of the past producing Homestake pit. Drilling here has continued to better define the geometry and spatial extent of mineralization within this promising area. For example, holes 11-79 and 11-82 both intersected significant mineralization well beneath the current limits of the pit used to limit Midas Gold’s mineral resource estimates: MGI-11-79 cut 33.5m @ 1.02 g/t Au and 25.9m @ 0.72 g/t Au beneath the limiting pit and MGI-11-82 cut 30.5m @ 0.95 g/t Au, 25.3m @ 1.32 g/t Au and 15.2m @ 0.93 g/t Au beneath the limiting pit. Based on Midas Gold’s current interpretations, mineralization in the Clark Tunnel – Homestake portions of the Yellow Pine deposit consists of a series of up to five stacked, gently to steeply dipping, tabular zones with similar geometries to mineralization styles in the Hangar Flats deposit (which is situated in a nearly identical structural position in the footwall and relative to the Meadow Creek Fault System, the major ore controlling structure in the district).
Details of prior mineral resource estimates can be found in the NI43-101 Technical Report filed under Midas Gold’s profile on SEDAR (www.sedar.com).
A complete list of results for this year’s drill program to date can be found on our website at www.midasgoldcorp.com or by clicking here. For figures associated with this news release, please click here.
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 (“NI43-101”) 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 > 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 > 10g/t Ag are reanalyzed using a 2g ICP-AES, four acid digest, while samples reporting > 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 > 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 138 core and RC holes totalling over 30,000 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: Detailed Assay Results - Midas Gold News Release 2011-18
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m) (1) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) |
|---|---|---|---|---|---|---|---|---|---|
| MGI-11-59 | CORE | Yellow Pine | 57.3 | 73.2 | 15.8 | 2.95 | 16.6 | 0.43 | 0.002 |
| And | 80.5 | 322.5 | 242.0 | 2.21 | 1.3 | 0.02 | 0.007 | ||
| Including | 160.2 | 225.6 | 65.5 | 3.72 | 1.0 | 0.00 | 0.004 | ||
| MGI-11-62(2) | CORE | Yellow Pine | 41.8 | 107.6 | 65.8 | 2.57 | 2.4 | 0.01 | 0.002 |
| Including | 43.3 | 93.7 | 50.4 | 2.97 | 2.8 | 0.02 | 0.016 | ||
| 112.5 | 248.1 | 135.6 | 2.30 | 1.2 | 0.00 | 0.002 | |||
| 269.1 | 282.9 | 13.7 | 0.50 | 1.3 | 0.00 | 0.002 | |||
| 287.4 | 292.3 | 4.9 | 0.66 | 5.2 | 0.00 | 0.001 | |||
| MGI-11-63 | CORE | Yellow Pine | 112.8 | 208.8 | 96.0 | 1.59 | 0.8 | 0.01 | 0.003 |
| 214.6 | 234.4 | 19.8 | 2.21 | 0.6 | 0.00 | 0.001 | |||
| 241.7 | 250.9 | 9.1 | 1.27 | 0.3 | 0.00 | 0.000 | |||
| 257.0 | 270.7 | 13.7 | 1.00 | 0.5 | 0.00 | 0.001 | |||
| 275.2 | 284.4 | 9.1 | 0.82 | 1.0 | 0.00 | 0.001 | |||
| MGI-11-65 | CORE | Yellow Pine | 171.0 | 186.5 | 15.5 | 0.74 | 4.7 | 0.00 | 0.001 |
| MGI-11-71 | CORE | Yellow Pine | 135.9 | 159.7 | 23.8 | 3.90 | 2.9 | 0.04 | 0.001 |
| MGI-11-73 | CORE | Hangar Flats | 15.2 | 61.9 | 46.6 | 2.20 | 3.0 | 0.17 | 0.005 |
| And | 77.4 | 94.2 | 16.8 | 1.93 | 2.1 | 0.04 | 0.006 | ||
| And | 173.1 | 183.5 | 10.4 | 1.92 | 22.3 | 1.08 | 0.016 | ||
| And | 256.3 | 261.5 | 5.2 | 1.60 | 3.8 | 0.01 | 0.006 | ||
| And | 294.1 | 301.8 | 7.6 | 0.77 | 0.6 | 0.01 | 0.003 | ||
| MGI-11-75 | CORE | Yellow Pine | 13.6 | 22.9 | 9.3 | 2.30 | 3.5 | 0.23 | 0.004 |
| And | 29.6 | 39.6 | 10.1 | 4.51 | 2.6 | 0.03 | 0.001 | ||
| And | 109.9 | 114.0 | 4.1 | 1.33 | 0.1 | 0.00 | 0.060 | ||
| And | 226.5 | 244.5 | 18.0 | 0.57 | 0.8 | 0.00 | 0.002 | ||
| And | 261.5 | 272.2 | 10.7 | 0.62 | 0.6 | 0.00 | 0.001 | ||
| MGI-11-77 | CORE | Yellow Pine | 36.1 | 49.2 | 13.1 | 0.68 | 2.3 | 0.09 | 0.002 |
| And | 62.9 | 72.2 | 9.3 | 2.63 | 2.2 | 0.40 | 0.001 | ||
| MGI-11-78 | CORE | Hangar Flats | 55.5 | 95.7 | 40.2 | 2.69 | 11.4 | 0.76 | 0.006 |
| Including | 87.0 | 94.5 | 7.5 | 3.01 | 41.1 | 3.22 | 0.005 | ||
| Which Includes | 87.0 | 91.4 | 4.4 | 2.82 | 66.8 | 5.41 | 0.005 | ||
| And | 179.2 | 204.4 | 25.1 | 2.38 | 12.5 | 0.44 | 0.004 | ||
| And | 254.4 | 271.3 | 16.9 | 1.22 | 1.7 | 0.08 | 0.004 | ||
| MGI-11-79 | RC | Yellow Pine | 7.6 | 32.0 | 24.4 | 1.59 | 0.2 | 0.01 | 0.002 |
| And | 118.9 | 152.4 | 33.5 | 1.02 | 0.0 | 0.00 | 0.001 | ||
| And | 157.0 | 182.9 | 25.9 | 0.72 | 0.0 | 0.00 | 0.001 | ||
| MGI-11-80 | CORE | Hangar Flats | 6.1 | 39.6 | 33.5 | 0.99 | 0.8 | 0.01 | 0.006 |
| And | 51.2 | 77.0 | 25.8 | 1.77 | 1.0 | 0.01 | 0.005 | ||
| MGI-11-81 | RC | Yellow Pine | 0.0 | 30.5 | 30.5 | 2.19 | 1.1 | 0.01 | 0.048 |
| MGI-11-82 | CORE | Yellow Pine | 28.4 | 35.7 | 7.3 | 1.29 | 0.1 | 0.01 | 0.004 |
| And | 55.5 | 64.9 | 9.4 | 1.29 | 0.5 | 0.00 | 0.004 | ||
| And | 87.5 | 104.6 | 17.1 | 0.73 | 0.8 | 0.00 | 0.004 | ||
| And | 115.2 | 145.7 | 30.5 | 0.95 | 1.1 | 0.00 | 0.003 | ||
| And | 150.3 | 175.6 | 25.3 | 1.32 | 0.2 | 0.00 | 0.001 | ||
| And | 180.4 | 195.7 | 15.2 | 0.93 | 0.0 | 0.00 | 0.001 | ||
| MGI-11-84 | RC | Yellow Pine | 7.6 | 42.7 | 35.1 | 4.07 | 0.5 | 0.23 | 0.045 |
| And | 88.4 | 99.1 | 10.7 | 0.46 | 0.3 | 0.00 | 0.002 | ||
| And | 112.8 | 137.2 | 24.4 | 0.85 | 0.6 | 0.00 | 0.002 | ||
| MGI-11-85 | RC | Yellow Pine | 29.0 | 48.8 | 19.8 | 1.97 | 2.7 | 0.01 | 0.004 |
| And | 62.5 | 76.2 | 13.7 | 3.07 | 2.3 | 0.01 | 0.002 | ||
| MGI-11-86 | RC | Yellow Pine | 22.9 | 27.4 | 4.6 | 2.42 | 8.4 | 0.85 | 0.006 |
| And | 51.8 | 57.9 | 6.1 | 1.78 | 2.0 | 0.00 | 0.004 | ||
| And | 64.0 | 83.8 | 19.8 | 1.75 | 4.5 | 0.03 | 0.003 | ||
| MGI-11-87 | CORE | Yellow Pine | 9.5 | 15.7 | 6.2 | 2.41 | 0.2 | 0.01 | 0.002 |
| And | 22.0 | 27.4 | 5.5 | 0.60 | 0.2 | 0.00 | 0.002 | ||
| And | 42.1 | 61.0 | 18.9 | 0.92 | 0.9 | 0.00 | 0.012 | ||
| And | 65.5 | 71.3 | 5.8 | 0.91 | 0.7 | 0.00 | 0.002 | ||
| And | 76.2 | 92.1 | 15.8 | 0.85 | 1.2 | 0.00 | 0.002 | ||
| And | 296.9 | 301.5 | 4.6 | 0.74 | 1.0 | 0.00 | 0.003 | ||
| MGI-11-88 | RC | Yellow Pine | 15.2 | 35.1 | 19.8 | 1.38 | 1.4 | 0.00 | 0.004 |
| And | 41.2 | 47.2 | 6.1 | 1.01 | 0.6 | 0.00 | 0.004 | ||
| And | 62.5 | 76.2 | 13.7 | 2.30 | 4.4 | 0.16 | 0.001 | ||
| MGI-11-89 | RC | Yellow Pine | 53.3 | 71.6 | 18.3 | 3.92 | 1.2 | 0.00 | 0.002 |
| MGI-11-90 | RC | Yellow Pine | 35.1 | 54.9 | 19.8 | 3.02 | 3.0 | 0.01 | 0.004 |
| And | 62.5 | 76.2 | 13.7 | 1.89 | 3.2 | 0.00 | 0.001 | ||
| MGI-11-91 | CORE | Hangar Flats | 214.3 | 223.1 | 8.8 | 1.07 | 2.0 | 0.12 | 0.002 |
| And | 227.7 | 236.8 | 9.1 | 0.96 | 1.2 | 0.00 | 0.004 | ||
| And | 241.4 | 262.4 | 21.0 | 1.57 | 6.0 | 0.22 | 0.004 | ||
| MGI-11-92 | RC | Yellow Pine | 29.0 | 45.7 | 16.8 | 1.45 | 2.1 | 0.10 | 0.002 |
| And | 70.1 | 91.4 | 21.3 | 2.85 | 2.0 | 0.00 | 0.001 |
(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.
MIDAS GOLD REPORTS ADDITIONAL GOLD, SILVER & ANTIMONY RESULTS FROM ITS GOLDEN MEADOWS PROJECT, IDAHO
Hole MGI-11-62 intersects 47.6m grading 2.97 g/t Au & 2.9 g/t Ag
Hole MGI-11-64 intersects 33.5m grading 2.29 g/t Au & 38.8 g/t Ag
Hole MGI-11-67 intersects 90.5m grading 1.79 g/t Au & 2.2 g/t Ag
Hole MGI-11-73 intersects 46.6m grading 2.20 g/t Au & 3.0 g/t Ag
Hole MGI-11-76 intersects 30.5m grading 2.67 g/t Au & 0.8 g/t Ag
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced additional assay results, including finalized antimony and silver results, from its ongoing core and reverse circulation (“RC”) drilling program on the Hangar Flats and Yellow Pine deposits at the Golden Meadows Project, Idaho. A total of 50 holes have been completed so far in 2011 and assays are available for the first nineteen holes. Highlights of gold assays from the first four drill holes were previously reported on August 18, 2011 (NR#2011-13) and gold and silver results for the next seven holes were reported on September 7, 2011 (NR#2011-14). Highlights of recently received results, including first time antimony and silver assays and some additional intercepts from previously partially reported holes, are summarized in Table 1 below. More detailed results, including antimony and silver for all holes reported to date, are attached in Table 2 at the end of this release. Additional results from the ongoing program will be released when assays are received and validated.
Table 1: Highlights of Recent Assay(1) Results from Golden Meadows Project
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(2) | Gold (g/t) | Silver (g/t) | Antimony (%) |
|---|---|---|---|---|---|---|---|---|
| MGI-11-58 | Core | Hangar Flats | 201.5 | 217.3 | 15.8 | 6.08 | 30.4 | 2.00 |
| MGI-11-62 | Core | Yellow Pine | 41.8 | 89.3 | 47.6 | 2.97 | 2.9 | 0.02 |
| MGI-11-64 | Core | Yellow Pine - Clark Tunnel area | 116.7 | 150.3 | 33.5 | 2.29 | 38.8 | 3.31 |
| MGI-11-67 | Core | Hangar Flats | 184.6 | 279.5 | 95.0 | 1.79 | 2.20 | 0.13 |
| And | 300.3 | 303.4 | 3.1 | 1.41 | 90.0 | 7.38 | ||
| MGI-11-70 | Core | Yellow Pine - Clark Tunnel area | 105.2 | 114.3 | 9.1 | 5.14 | 207.7 | 5.76 |
| And | 179.8 | 217.9 | 38.1 | 0.68 | 20.8 | 0.57 | ||
| And | 222.5 | 286.5 | 64.0 | 0.64 | 23.0 | 0.76 | ||
| MGI-11-73 | Core | Hangar Flats | 15.2 | 61.9 | 46.6 | 2.20 | 3.01 | 0.17 |
| And | 77.4 | 94.2 | 16.8 | 1.93 | 2.1 | 0.04 | ||
| And | 173.1 | 183.5 | 10.4 | 1.93 | 22.3 | 1.08 | ||
| MGI-11-76 | RC | Yellow Pine - Homestake area | 27.4 | 57.9 | 30.5 | 2.67 | 0.8 | 0.00 |
(1) Results are deemed preliminary until final assay certificates are issued. Partial results for some holes have been previously released.
(2) Based upon the current 3D interpretation of the Hangar Flats and Yellow Pine deposits, the intervals quoted here are at or near true thickness (with the exception of hole 11-64 and 11-70, where the true thickness is currently undetermined) 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.
“We are encouraged by these latest assay results from our 2011 drilling program, which continues to demonstrate significant gold, silver and antimony mineralization on our Golden Meadows Project in Idaho,” said Stephen Quin, President and CEO of Midas Gold, Corp. “The newly reported silver and antimony results are highly encouraging, as they demonstrate the potential for added by-product value from this significant past producer of these commodities,” he said.
2011 Exploration Program
A total of 50 drill holes totalling approximately 12,250 metres of drilling have been completed at Golden Meadows so far in 2011. 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 and one reverse circulation rig are currently operating on site. Since acquiring the property in 2009, Midas Gold has completed over 100 core and reverse circulation drill holes totalling over 24,000 metres of drilling. Given the encouraging results received to date, Midas Gold has mobilized a second RC drill rig to the property, bringing the number of drills to six, and plans to extend the 2011 drill program into mid-December 2011.
Hangar Flats is a high-grade gold-silver-antimony (with localized zones of tungsten mineralization) discovery made by Midas Gold in 2009. These most recent drill intercepts are step-outs to the north from the areas discovered and drilled during the 2009 and 2010 field seasons. Yellow Pine is a significant past producer of gold, silver, antimony and tungsten from the 1930’s through the mid-1950’s. The Homestake pit, located at the northeast end of the Yellow Pine deposit, was operated by Hecla Mining Company from 1987 through 1989. The area between the Yellow Pine and Homestake pits, known as the Clark Tunnel prospect, was the site of early 1930’s and 1940’s era exploration, but no mining has occurred at this prospect and it has seen only minimal modern exploration drilling. Historical geologic, geophysical and drilling data obtained by Midas suggested the possibility that significant mineralization might be present in this area and recent drill results confirm this potential.
Recent Drill Results
As previously reported, drill holes MGI-11-56, -57, -59, -60, -61 and -62 were drilled within and adjacent to the known mineral resource at Yellow Pine in order to upgrade the confidence level of those mineral resources and to provide metallurgical samples. Results from these drill holes, reported herein, are consistent with historic drill program results, providing confidence in Midas Gold’s prior mineral resource models and, in some cases, suggest that additional mineralization may be present within or beneath the modeled pit that limited those mineral resource estimates. Several of these 2011 holes have been re-entered to test deeper in the system and analytical results from these deeper drill tests are pending. Details of prior mineral resource estimates can be found in the NI43-101 Technical Report filed under Midas Gold’s profile on SEDAR (www.sedar.com).
Hole MGI-11-58, -67, and -73, drilled into the Hangar Flats deposit, were designed to expand and further upgrade the existing mineral resource. Partial drill results for portions of these holes were previously reported and final and complete results are now available and are reported herein. These results continue to outline high grade intervals within larger lower grade zones, such as the interval in MGI-11-58, which intersected 15.8m grading 6.08 g/t gold (Au), 30.42 g/t silver (Ag) and 2.0% antimony (Sb) within a broader interval grading 2.66 g/t Au, 11.64 g/t Ag and 0.76% Sb over 56.6m. Hole 11-67, collared approximately 75 metres north of 11-58, also cut significant Au-Ag-Sb mineralization, reporting multiple intercepts including an interval grading 1.90 g/t Au, 16.7 g/t Ag and 1.24% Sb over 19.2m, along with broader lower grade zones including a 95m intercept grading 1.79 g/t Au, 2.2 g/t Ag and 0.13% Sb.
Holes MGI-11-64, -65, -66, -68, -69, -70 and -71, -75 were drilled in the Clark Tunnel – Homestake area of the Yellow Pine deposit, northeast of the past producing Yellow Pine pit and beneath and southwest of the past producing Homestake pit. Final drill results reported herein indicate the presence of a much larger mineralized system than previously recognized, including large intervals with thick antimony and silver intercepts which could provide potentially economically significant by-product credits. The holes in the Clark Tunnel area outline a tabular, northeast-trending, northwest-dipping, mineralized body approximately 35-50 metres of true thickness that appears to be traceable along strike for several hundred meters and down dip for at least 250 metres, and which remains open along strike and down dip. A second mineralized zone, slightly lower and thus far less well defined, was cut in the lower portion of hole MGI-11-70, intersecting 106.7 metres averaging 0.62 g/t Au, 21.5 g/t Ag and 0.67% Sb. The significant thickness of this zone and potential for higher grades along strike or up and down dip warrants additional drilling, which is planned for later this season.
Antimony & Tungsten
U.S. Geological Survey (“USGS”), U.S. Bureau of Mines and Idaho Mine Inspector records report that the Stibnite-Yellow Pine district was the largest producer of antimony and tungsten in the U.S. during the 1940s and early 1950s. On June 7, 1939, in anticipation of United States’ involvement in World War II, President Roosevelt signed the Strategic Materials Act. Antimony and tungsten were both designated as strategic commodities at that time. During World War II, the district is reported to have produced over 90% of the antimony and 60% of the tungsten for the Allied war effort. Geologically, the gold, tungsten and antimony mineralization represent different mineralizing events and, in some cases, occur in overlapping zones while in others as discrete zones. As a result, the relationship between gold, antimony and tungsten values will be highly variable, depending which mineralizing events have affected an area. The main tungsten zone at Yellow Pine, which appears to be more geographically limited in extent, was mined out in 1945 but antimony mining continued through to the end of the Korean War. Additional tungsten intercepts in other areas suggest potential for other localized zones of tungsten mineralization.
Antimony, in various forms, is primarily used as a fire retardant, in heavy duty lead-acid batteries, in metallurgical alloys and a variety of other uses. The United States is reported by the USGS to consume approximately 16% of the world production of antimony, over 90% of which is imported with the balance made up from recycling as the U.S. has no domestic production. Production is dominated by China, which is estimated to produce almost 90% of the world supply. The price of antimony has risen significantly over the past two years, as have many other commodities, partly due to the Chinese government delaying approval of new projects and shutting down smaller, polluting ones in an effort to reduce pollution, according to the USGS. In September 2011, the British Geologic Survey published (see www.mineralsuk.com) its analysis of the supply risk for over 50 metals, ranking antimony and tungsten as two of the four having the highest supply risk of all metals surveyed.
Antimony in igneous rocks within the Golden Meadows project area is typically found in the mineral stibnite. Stibnite mineralization occurs as high grade structurally controlled veins and stockwork zones as typified in hole MGI-11-70 which reported 9.1 metres grading 5.14 g/t Au, 207.7g/t Ag, 5.76% Sb and hole MGI-11-67 which reported 3.1 metres grading 1.41 g/t Au, 90.0 g/t Ag, 7.38% Sb and 0.36% tungsten (W) or as thicker, more disseminated mineralization, such as that cut in MGI-11-67, which reported 88.9m grading 2.25g/t Au, 8.72g/t Ag, 0.73% Sb and hole MGI-11-64 which reported 33.5 metres grading 2.29 g/t Au, 38.8 g/t Ag and 3.31% Sb.
While more restricted in its distribution at Golden Meadows, tungsten is similarly dominated by Chinese production and there is minimal United States domestic production. Uses of tungsten are dominated by the production of very hard metal alloys, such as tungsten carbide, but also include a wide variety of other specialty applications. The USGS estimates that the United States consumes approximately 23% of the world production, and is dependent on imports for approximately two thirds of that demand. Midas Gold believes that there is potential for the discovery of additional zones of tungsten mineralization on the Golden Meadows Project, similar to those mined in the past, and has identified scheelite (a tungsten-rich mineral) in a number of the drill holes completed to date with large low grade intercepts and narrower higher grade intercepts such as MGI-10-21, which intersected 4.3m grading 0.41% tungsten, and MGI-11-67, which intersected 3.1m grading 0.36% tungsten, each with additional values of gold, silver and antimony. Scheelite in the district occurs as discrete sheeted vein swarms, as individual veins and in breccias bodies. As with antimony, tungsten prices have risen significantly over the past several years.
To view current drill hole locations and sections, please click here.
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 (“NI43-101”) and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., 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 0.002g/t lower reporting limit). Samples reporting values > 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. All composites utilize a 0.5g/t cut off and may include up to 1.52 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. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 1.0g/t lower reporting limit). Samples reporting values > 10g/t Ag are reanalyzed using a 50g 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 > 2,000g/t Sb are reanalyzed using XRF (with a 0.01% lower reporting limit). 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 Company’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, combined with its own regional exploration data, 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, Midas Gold has completed over 100 core and RC holes totaling over 24,000 metres of drilling.
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 Midas Gold Corp.’s (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 Information to the extent that they involve estimates of the mineralization that may be encountered if the Golden Meadows Project is developed. In providing the Forward-Looking Information 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, silver, antimony and tungsten 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: Preliminary(1) Assay Results - Midas Gold News Release 2011-17
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(2) | Gold (g/t) | Silver (g/t) | Antimony (%) |
|---|---|---|---|---|---|---|---|---|
| MGI-11-56 (3) | CORE | Yellow Pine | 16.6 | 138.8 | 122.2 | 2.28 | 1.43 | 0.10 |
| And | 145.5 | 188.1 | 42.5 | 1.49 | 1.64 | 0.03 | ||
| MGI-11-57 (3) | CORE | Yellow Pine | 30.2 | 121.0 | 90.8 | 2.92 | 2.71 | 0.06 |
| MGI-11-58 (3) | CORE | Hangar Flats | 75.7 | 121.3 | 45.6 | 2.86 | 3.98 | 0.28 |
| And | 125.9 | 130.5 | 4.6 | 1.04 | 0.90 | 0.01 | ||
| And | 160.7 | 217.3 | 56.6 | 2.66 | 11.63 | 0.76 | ||
| including | 201.5 | 217.3 | 15.8 | 6.08 | 30.42 | 2.00 | ||
| MGI-11-60 | CORE | Yellow Pine | 43.3 | 92.8 | 49.5 | 2.07 | 1.54 | 0.01 |
| And | 105.2 | 154.8 | 49.7 | 1.46 | 1.16 | 0.02 | ||
| MGI-11-61 | CORE | Yellow Pine | 62.8 | 167.6 | 104.9 | 1.86 | 1.21 | 0.01 |
| MGI-11-62 | CORE | Yellow Pine | 41.8 | 89.3 | 47.6 | 2.97 | 2.94 | 0.02 |
| MGI-11-64 (3) | CORE | Yellow Pine - Clark Tunnel area | 50.4 | 55.0 | 4.6 | 0.71 | 2.23 | 0.00 |
| And | 84.4 | 90.5 | 6.1 | 3.39 | 6.47 | 0.03 | ||
| And | 103.0 | 222.5 | 119.5 | 2.90 | 15.08 | 1.39 | ||
| including | 116.7 | 150.3 | 33.5 | 2.29 | 38.84 | 3.31 | ||
| And | 238.7 | 331.6 | 93.0 | 2.30 | 2.82 | 0.03 | ||
| And | 349.3 | 366.8 | 17.5 | 0.92 | 6.19 | 0.00 | ||
| And | 391.5 | 406.8 | 15.2 | 0.79 | 0.55 | 0.00 | ||
| MG-11-65 | CORE | Yellow Pine - Clark Tunnel area | 171.0 | 186.5 | 15.5 | 0.74 | 4.70 | 0.00 |
| MGI-11-66 (3) | RC | Yellow Pine - Clark Tunnel area | 96.0 | 149.4 | 53.3 | 4.15 | 8.47 | 0.08 |
| MGI-11-67 | CORE | Hangar Flats | 10.1 | 21.0 | 11.0 | 1.80 | 1.41 | 0.01 |
| And | 25.3 | 61.6 | 36.3 | 1.74 | 4.12 | 0.12 | ||
| And | 72.5 | 156.4 | 88.9 | 2.25 | 8.72 | 0.73 | ||
| And | 184.6 | 279.5 | 95.0 | 1.79 | 2.20 | 0.13 | ||
| And | 285.6 | 304.8 | 19.2 | 1.90 | 16.71 | 1.24 | ||
| including | 300.3 | 303.4 | 3.1 | 1.41 | 90.01 | 7.38 | ||
| MGI-11-68 | RC | Yellow Pine - Clark Tunnel area | 70.1 | 103.6 | 33.5 | 1.91 | 3.31 | 0.11 |
| And | 158.5 | 163.1 | 4.6 | 0.57 | 0.00 | 0.01 | ||
| MGI-11-69 | RC | Yellow Pine - Clark Tunnel area | 59.4 | 94.5 | 35.1 | 1.17 | 2.02 | 0.02 |
| MGI-11-70 | RC | Yellow Pine - Clark Tunnel area | 71.6 | 79.3 | 7.6 | 0.89 | 2.00 | 0.18 |
| And | 83.8 | 121.9 | 38.1 | 2.84 | 54.43 | 1.53 | ||
| including | 105.2 | 114.3 | 9.1 | 5.14 | 207.67 | 5.76 | ||
| And | 170.7 | 175.3 | 4.6 | 0.66 | 8.67 | 0.36 | ||
| And | 179.8 | 217.9 | 38.1 | 0.68 | 20.81 | 0.57 | ||
| And | 222.5 | 286.5 | 64.0 | 0.64 | 22.96 | 0.76 | ||
| MGI-11-72 | CORE | Yellow Pine - Clark Tunnel area | 11.6 | 21.3 | 9.8 | 2.63 | 5.76 | 0.05 |
| And | 26.1 | 45.4 | 19.4 | 3.26 | 3.96 | 0.11 | ||
| MGI-11-73 | CORE | Hangar Flats | 15.2 | 61.9 | 46.6 | 2.20 | 3.01 | 0.17 |
| And | 77.4 | 94.2 | 16.8 | 1.93 | 2.12 | 0.04 | ||
| And | 173.1 | 183.5 | 10.4 | 1.93 | 22.26 | 1.08 | ||
| MGI-11-74 | RC | Yellow Pine - Homestake area | 44.2 | 62.5 | 18.3 | 0.89 | 2.66 | 0.12 |
| And | 68.6 | 77.7 | 10.7 | 2.53 | 1.36 | 0.01 | ||
| MGI-11-75 | CORE | Yellow Pine - Clark Tunnel area | 13.6 | 22.9 | 9.3 | 2.30 | 3.50 | 0.23 |
| And | 29.6 | 39.6 | 10.1 | 4.51 | 2.56 | 0.03 | ||
| MGI-11-76 | RC | Yellow Pine - Homestake area | 6.1 | 10.7 | 4.6 | 1.06 | 2.13 | 0.01 |
| And | 15.2 | 21.3 | 6.1 | 0.67 | 1.15 | 0.01 | ||
| And | 27.4 | 57.9 | 30.5 | 2.67 | 0.82 | 0.00 | ||
| MGI-11-79 | RC | Yellow Pine - Homestake area | 7.6 | 32.0 | 24.4 | 1.59 | 0.23 | 0.01 |
| And | 118.9 | 152.4 | 33.5 | 1.02 | 0.03 | 0.00 | ||
| And | 157.0 | 182.9 | 25.9 | 0.72 | 0.03 | 0.00 |
(1) Results are deemed preliminary until final assay certificates are issued. Partial results for some holes have been previously reported.
(2) 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.
(3) Gold assays previously release on August 18, 2011 and September 07, 2011
MIDAS GOLD REPORTS RESULTS FROM A DISTRICT-WIDE AIRBORNE GEOPHYSICAL SURVEY PROMPTING THE STAKING OF AN ADDITIONAL 7,284 HECTARES SURROUNDING ITS GOLDEN MEADOWS PROJECT, IDAHO
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced that it has received the final results from a 958 line kilometre helicopter-supported airborne magnetic and electromagnetic survey flown over its Golden Meadows Project area in central Idaho. As a result of the trends and anomalies identified in the survey, Midas Gold has staked an additional 900 unpatented federal lode mining claims encompassing approximately 7,284 hectares, and more than doubling the size of the land package at Golden Meadows. Click here to view updated Golden Meadows property map.
“Our recently completed high resolution airborne geophysical survey has provided a never before seen look at the structural setting of this significant gold-silver-antimony-tungsten system that underlies our Golden Meadows Project area in west-central Idaho,” said Stephen Quin, President and CEO of Midas Gold. “The survey has outlined numerous geophysical features interpreted to be stratigraphic units and structural zones known to be associated with gold-silver-antimony and tungsten-bearing mineralized systems within the district, as well as a number of completely new targets.” The additional staking comprises 900 federal unpatented lode mining claims that bring the total land package to approximately 11,600 hectares of patented (private) and unpatented lands. “This expansion of our property holdings is the result of our ongoing review of the large historical database acquired and compiled by Midas Gold, spanning the nearly 100 years of past exploration and development activities, integrated with our own exploration activities within the district, including the recent airborne geophysical program,” added Mr. Quin.
2011 Exploration Program
Midas Gold is in the midst of a 30,000 metre core and reverse circulation (“RC”) drilling program at Golden Meadows, with a total approximately 11,200 metres completed so far this season. Currently there are four core rigs and one reverse circulation rig operating on the property and a second RC rig is expected to arrive on site shortly. This drilling is being undertaken as part of an integrated, property-wide exploration program designed to confirm and expand known mineral resources and potentially discover new mineralized areas. The airborne geophysical program was undertaken to assist with these objectives by helping to define the structural architecture of the district, delineate potential controls on mineralization and identify potential mineralized areas.
Airborne Geophysical Survey
The recently completed airborne geophysical survey was designed to map the magnetic and conductive properties of bedrock and surficial materials in the Golden Meadows Project area, to detect zones of known or suspected sulfide-bearing alteration systems within favorable stratigraphic units and to map structural zones associated with precious metal mineralization and antimony deposits within the project area.
The surveyed property contains many anomalous geophysical features, some of which are coincident with known mineralized zones or inferred extensions of them, while others lie in previously untested areas. Areas of interest will be prioritized on the basis of supporting geophysical, geochemical and/or geological information. After initial investigations have been carried out on the highest priority targets, Midas Gold may re-evaluate and re-prioritize the remaining anomalies based on information acquired from the follow-up program.
Of particular interest in the survey results are previously unidentified linear and circular structures that are similar to those associated with the Hangar Flats, West End and Yellow Pine deposits on the Golden Meadows Project, as well as areas of very low resistivity, suggesting the presence of alteration and/or mineralization, with signatures similar to those hosting the principal deposits at Golden Meadows. The identification of these significant new trends and anomalies on the borders of, or beyond the limits of, the previous claim boundaries prompted the extensive claim staking program to ensure such prospective areas were covered. It should be noted that the large Yellow Pine deposit was completely covered with overburden and not discovered until an accidental major washout eroded an estimated 60 metres of fill. This washout exposed high grade gold-silver-antimony-tungsten mineralization that was subsequently mined for the next twenty or so years, and became the largest supplier of antimony and tungsten in the USA in those years, as well as the largest lode gold producer in Idaho for many of those years. The survey results suggest potential for the discovery of similar buried mineralized systems within the newly expanded property area.
The geophysical survey, which covers approximately 85 square kilometres, was flown by Fugro Airborne Surveys and processed in their Toronto, Ontario office. The survey was conducted using a frequency domain DIGHEM multi-coil, multi-frequency electromagnetic system, supplemented by a high sensitivity cesium magnetometer. A GPS electronic navigation system was used to provide accurate positioning of the geophysical data with respect to the ground. A total of 958 line kilometers were flown, with survey lines spaced approximately one hundred metres apart, providing high resolution definition of structures and anomalies. Individual readings along the lines were collected approximately every three to five metres, with GPS precision estimated to be less than one metre. QA/QC included routine calibration checks for the geophysical instruments and GPS system and syn- and post-flight processing checks for instrument drift and diurnal variations.
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 (“NI43-101”) and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., 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.
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 Corporation has completed over 100 core and RC holes totalling over 23,000 metres, completed extensive district scale exploration and systematic environmental baseline data collection. Metallurgical test work and gold deportment studies are underway, as well as geotechnical drilling.
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 Midas Gold Corp’s (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, that the geophysical anomalies are detecting geological structures, alteration and mineralization, 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.
MIDAS GOLD APPOINTS BOB BARNES AS VICE-PRESIDENT, DEVELOPMENT
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) is pleased to announce the addition of Bob Barnes, P.Eng. to the Midas Gold team as Vice-President, Development.
Mr. Barnes was previously with Capstone Mining Corp. as their Vice President, Operations and was responsible for Capstone’s mines in Yukon and Mexico (from 2008 through early 2011) and for the development and operation of Capstone’s Cozamin mine in Mexico before the Capstone - Sherwood Copper Corp. merger.
Prior to Capstone, Mr. Barnes was involved in technical studies and operations in various locations, including a period with Pan American Silver. From 1985 to 1995, he worked with Wharf Resources, where he was General Manager of the Golden Reward and Wharf gold mines in South Dakota from 1988-1995. From 1981-88, Mr. Barnes played a leadership role in the feasibility, permitting, construction and operation of the original Wharf mine and, subsequently, for the permitting and implementation of a five-fold increase in production at these mines. Mr. Barnes is a mining engineer by training and spent his first three years with Teck Corporation in operations, before moving on to his Wharf-related activities.
“We are extremely pleased to welcome Bob to the Midas Gold team,” commented Stephen Quin, President and CEO of Midas Gold. “His experience in US gold production, permitting and interactions with regulators in the United States will be particularly helpful in advancing the Golden Meadows Project.”
In connection with his appointment and in accordance with the Company’s Stock Option Plan, Mr. Barnes has been granted options to acquire a total of 250,000 common shares of the Company at the exercise price of $3.76 per share for a period of 5 years, subject to vesting. The Company has also granted 200,000 additional options to new employees of the Company with the same terms as specified above.
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.
MIDAS GOLD REPORTS ADDITIONAL DRILL RESULTS FROM ITS 2011 PROGRAM AT ITS GOLDEN MEADOWS PROJECT, IDAHO
Hole MGI-11-61 intersects 104.9m @ 1.86 g/t Au & 1.2 g/t Ag
Hole MGI-11-64 intersects 36.6m @ 2.21 g/t Au& 35.0 g/t Ag
Hole MGI-11-70 intersects 38.1m @ 2.84 g/t Au & 54.4 g/t Ag
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced additional assay results from its ongoing core and reverse circulation (“RC”) drilling program on the Hangar Flats and Yellow Pine deposits at the Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. A total of 36 holes have been completed so far in 2011. Assays are available for the first eleven holes completed this year. Highlights of assays from the first four drill holes were previously reported on August 18, 2011 and highlights for an additional six holes are summarized in Table 1 below, with more detailed results, plus silver values, for all eleven holes in Table 2at the end of this release. Additional results from the ongoing program, including other potential by-product values, will be released when assays are received and validated.
Table 1: Highlights of Recent Preliminary(1) Assay Results from Golden Meadows
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(2) | Gold (g/t) | Silver (g/t) |
|---|---|---|---|---|---|---|---|
| MGI-11-60 | Core | Yellow Pine | 43.3 | 92.8 | 49.5 | 2.07 | 1.54 |
| And | 105.2 | 154.8 | 49.7 | 1.46 | 1.16 | ||
| MGI-11-61 | Core | Yellow Pine | 62.8 | 167.6 | 104.9 | 1.86 | 1.21 |
| MGI-11-64(3) | Core | Yellow Pine - Clark Tunnel area | 84.4 | 90.5 | 6.1 | 3.39 | 6.47 |
| And | 103.0 | 139.6 | 36.6 | 2.21 | 35.01 | ||
| MGI-11-67 | Core | Hangar Flats | 10.1 | 21.0 | 11.0 | 1.80 | 1.41 |
| And | 25.3 | 61.6 | 36.3 | 1.72 | 3.98 | ||
| And | 72.5 | 79.7 | 7.2 | 1.85 | 3.75 | ||
| MGI-11-68RC | RC | Yellow Pine - Clark Tunnel area | 70.1 | 103.6 | 33.5 | 1.91 | 3.31 |
| MGI-11-70RC | RC | Yellow Pine - Clark Tunnel area | 83.8 | 121.9 | 38.1 | 2.84 | 54.43 |
(1) Results are deemed preliminary until final assay certificates are issued.
(2) 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.
(3)Assays only available for upper 139.6 metres, hole completed to 432.2 metres. Assays are pending for the remainder of the hole.
“These latest assay results from our ongoing drilling program continue to demonstrate the exploration potential of our Golden Meadows Project in Idaho,” said Stephen Quin, President and CEO of Midas Gold, Corp. “The results from the Clark Tunnel area of the Yellow Pine deposit, situated between the past producing Yellow Pine and Homestake pits, are particularly encouraging, since they demonstrate the potential to develop significant gold and silver mineral resources adjacent to past producing areas that were previously thought to be well explored,” he said.
2011 Exploration Program
A total of 36 drill holes totaling approximately 9,200 metres have been completed at Golden Meadows so far in 2011. This drilling is being undertaken as part of a mineral resource definition and exploration program designed to confirm and expand known mineral resources and potentially discover new mineralized areas. Four core rigs and one reverse circulation rig are currently operating on site.
Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made in 2009 and these most recent drill intercepts are step-outs to the north from the areas discovered and drilled during the 2009 and 2010 field seasons. Yellow Pine is a significant past producer of gold, silver, antimony and tungsten from the 1930’s through the mid-1950’s. The Homestake pit, located at the northeast end of the Yellow Pine deposit, was operated by Hecla Mining Company from 1987 through 1989. The area between Yellow Pine and Homestake, known as the Clark Tunnel prospect, was the site of early 1930’s and 1940’s era exploration, but no mining has occurred and it has seen only minimal modern exploration drilling. Historical geologic, geophysical and drilling data obtained by Midas suggested the possibility that significant mineralization might be present in this area and recent drill results confirm this potential.
As previously reported, drill holes MGI-11-56 and -57 were drilled within the known mineral resource at Yellow Pine in order to upgrade the confidence level of those mineral resources and to provide metallurgical samples. Results from the more recent drill holesin this area, MGI-11-60 and -61, are reported herein and are consistent with historic drill program results, providing confidence in Midas Gold’s prior mineral resource models and, in some cases, suggest that additional mineralization may be present within or beneath the modeled pit that limited the mineral resource estimates. Details of prior mineral resource estimates can be found in the NI43-101 Technical Report filed under Midas Gold’s profile on SEDAR (www.sedar.com).
Hole MGI-11-58 and MGI-11-67, drilled into the Hangar Flats deposit, were designed to expand and further upgrade the existing mineral resource. The drill results from these holes continue to provide encouragement as drilling steps-out to the north along this promising trend.
Holes MGI-11-64, -66, -68, -69 and -70 were drilled along two fences in the Clark Tunnel area of the Yellow Pine deposit, between the historic past producing Yellow Pine and Homestake pits. The drill results, combined with historic trench, underground sample and drill data,demonstrate strong gold mineralization beneath a cap of unmineralized rock lying between the two areas. The holes outline a tabular, northeast-trending, northwest-dipping, mineralized body approximately 35-50 metres true thickness which appears to be traceable along strike for several hundred meters and down dip for at least 250 metres, and remains open along strike and down dip.
To view the locations of current drill hole, please click here.
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 (“NI43-101”) and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., 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 0.002g/t lower reporting limit). Samples reporting values = 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. All composites utilize a 0.5g/t cut off and may include up to 1.52 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. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 1.0g/tlower reporting limit). Samples reporting values =10g/t Ag are reanalyzed using a 50g Fire Assay charge followed by a gravimetric finish.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 Company’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.
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: Preliminary(1) Assay Results - Midas Gold News Release 2011-14
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(2) | Gold (g/t) | Silver (g/t) |
|---|---|---|---|---|---|---|---|
| MGI-11-56(4) | CORE | Yellow Pine | 16.6 | 138.8 | 122.2 | 2.28 | 1.43 |
| And | 145.5 | 188.1 | 42.5 | 1.49 | 1.64 | ||
| MGI-11-57(4) | CORE | Yellow Pine | 30.2 | 121.0 | 90.8 | 2.92 | 2.71 |
| MGI-11-58(4) | CORE | Hangar Flats | 75.7 | 121.3 | 45.6 | 2.86 | 3.98 |
| And | 125.9 | 130.5 | 4.6 | 1.04 | 0.90 | ||
| And | 160.7 | 217.3 | 56.6 | 2.66 | 11.64 | ||
| MGI-11-60 | CORE | Yellow Pine | 43.3 | 92.8 | 49.5 | 2.07 | 1.54 |
| And | 105.2 | 154.8 | 49.7 | 1.46 | 1.16 | ||
| MGI-11-61 | CORE | Yellow Pine | 62.8 | 167.6 | 104.9 | 1.86 | 1.21 |
| MGI-11-64(3) | CORE | Yellow Pine - Clark Tunnel area | 50.4 | 55.0 | 4.6 | 0.71 | 2.23 |
| And | 84.4 | 90.5 | 6.1 | 3.39 | 6.45 | ||
| And | 103.0 | 139.6 | 36.6 | 2.21 | 35.01 | ||
| MGI-11-66RC(4) | RC | Yellow Pine - Clark Tunnel area | 96.0 | 149.4 | 53.3 | 4.15 | 8.47 |
| MGI-11-67 | CORE | Hangar Flats | 10.1 | 21.0 | 11.0 | 1.80 | 1.41 |
| And | 25.3 | 61.6 | 36.3 | 1.72 | 3.98 | ||
| And | 72.5 | 79.7 | 7.2 | 1.85 | 3.75 | ||
| MGI-11-68RC | RC | Yellow Pine - Clark Tunnel area | 70.1 | 103.6 | 33.5 | 1.91 | 3.31 |
| And | 158.5 | 163.1 | 4.6 | 0.57 | 0.00 | ||
| MGI-11-69RC | RC | Yellow Pine - Clark Tunnel area | 59.4 | 94.5 | 35.1 | 1.17 | 2.02 |
| MGI-11-70RC | RC | Yellow Pine - Clark Tunnel area | 71.6 | 79.3 | 7.6 | 0.89 | 2.00 |
| And | 83.8 | 121.9 | 38.1 | 2.84 | 54.43 |
(1) Results are deemed preliminary until final assay certificates are issued.
(2) 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.
(3)Assays only available for upper 139.6 metres; hole completed to 432.2 metres. Assays are pending for the remainder of the hole.
(4)Gold assays previously release on August 18, 2011.
MIDAS GOLD REPORTS FIRST DRILL RESULTS FROM ITS 2011 PROGRAM ON THE GOLDEN MEADOWS PROJECT, STIBNITE-YELLOW PINE, IDAHO
Hole MGI-11-56 intersects 122.2m @ 2.32 g/t Au; Hole MGI-10-57 intersects 90.8m @ 2.92 g/t Au;
Hole MGI-11-66 intersects 53.3m @ 4.12 g/t Au, including 22.9m @ 7.48 g/t Au
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced preliminary assay results from its ongoing core and reverse circulation (“RC”) drilling program on the Hangar Flats and Yellow Pine deposits at the Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. A total of 21 drill holes have been completed so far in 2011 and assays are available for the first four. Highlights of assays from these first four drill holes are summarized in the table below and additional results from our ongoing drill program, including potential by-product values, will be released when sufficient assays are received.
Highlights of Recent Drilling at Golden Meadows
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)* | Gold (g/t) |
|---|---|---|---|---|---|---|
| MGI-11-56 | Core | Yellow Pine | 16.6 | 138.8 | 122.2 | 2.32 |
| and | 145.5 | 178.2 | 32.7 | 1.69 | ||
| MGI-11-57 | Core | Yellow Pine | 30.2 | 121.0 | 90.8 | 2.92 |
| MGI-11-58 | Core | Hangar Flats | 75.7 | 121.3 | 45.6 | 2.81 |
| and | 168.3 | 207.3 | 39.0 | 2.24 | ||
| MGI-11-66 | RC | Yellow Pine | 96.0 | 149.3 | 53.3 | 4.12 |
| including | 117.3 | 140.2 | 22.9 | 7.48 |
* 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.
“These latest results from drilling at our Golden Meadows Project confirm a robust mineralizing system with excellent grades over significant intervals,” said Stephen Quin, President and CEO of Midas Gold. “The results from the Homestake area of the Yellow Pine system are particularly encouraging, since they indicate considerable potential between two previously mined deposits,” he said. “Drilling is now proceeding apace, with four core and one RC rig working around the clock, and we look forward to a steady flow of information over the coming months as we look to determine the true scale of these substantial mineralizing systems.”
2011 Exploration Program
A total of 21 drill holes totalling approximately 5,100 metres have been completed at Golden Meadows so far this season. This drilling is being undertaken as part of a mineral resource definition and exploration drill program designed to confirm and expand known mineral resources and potentially discover new mineralized areas. Three core rigs and one reverse circulation rig have been operating on site since the end of June and a fourth core rig was added this week.
Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made in 2009 and these most recent drill intercepts are step outs and in-fill holes from the 2009 and 2010 discovery holes. Yellow Pine is a significant past producer of gold, silver, antimony and tungsten from the 1930’s through the mid-1950’s.
Drill holes MGI-11-56 and -57 were drilled within the known mineral resource at Yellow Pine in order to upgrade the confidence level of those mineral resources and to provide metallurgical samples.
Hole MGI-11-58 was drilled to expand the Hangar Flats mineral resource. The drill results from this hole, along with those from previous drilling, indicate that the Hangar Flats deposit is a series of stacked, north plunging, ellipsoidal zones along the trace of the Meadow Creek fault system, a major district-scale ore controlling structure.
Hole MGI-11-66 was drilled in the Clark Tunnel area, between the historic past producing Yellow Pine and Homestake pits, and was exploratory in nature, designed to test for potential new mineralized areas down dip of the previously defined shallow mineral resource, and yielded very encouraging results. It intersected strong gold mineralization beneath a cap of unmineralized rock lying between the two deposits, with a similar structural style to the adjacent Yellow Pine deposit, demonstrating the possibility of discovery of additional blind mineralization within this prolific mineralized trend.
To view figures of current drill hole locations, please click here.
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 and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., 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 0.002g/t lower reporting limit). Samples reporting values > 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. All composites utilize a 0.5g/t cut off and may include up to 1.52 metres 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 metres 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 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 Company’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. Gold mineralization within the Golden Meadows Project appears to be associated with an intrusion related, gold-rich system overprinted by a younger epithermal gold system with increased silver, antimony and tungsten. Historic production from the district is estimated at approximately one million ounces of gold, along with significant by-products of silver, antimony and tungsten, primarily from underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. 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 in the Stibnite-Yellow Pine gold district 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.
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; statements relating to the timing, availability and amount of financings; business objectives; costs and timing relating to the potential acquisition of interests in mineral properties; 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; anticipated results and developments in operations in future periods; 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.
MIDAS GOLD RECEIVES ADDITIONAL C$5.2 MILLION PURSUANT TO EXERCISE OF OVER-ALLOTMENT OPTION
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES AND NOT A SOLICITATION OR A PROSPECTUS FOR STOCK
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (“Midas Gold” or the “Corporation”) (TSX:MAX) today announced that, further to its news release dated July 14, 2011, the syndicate of agents led by Haywood Securities Inc. and BMO Capital Markets, and including Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. (the “Agents”) has exercised its over-allotment option to purchase an additional 1,623,155 common shares of the Corporation (being that number of shares as is equal to approximately 13% of the number of common shares sold under the Corporation’s initial public offering) at a price of C$3.25 per share for gross proceeds of C$5,275,253.75. The over-allotment option was granted to the Agents in connection with Midas Gold’s initial public offering of 12,307,700 common shares completed on July 14, 2011 in order to cover over-allotments and for market stabilization purposes.
No US Registration or Offering
Midas Gold’s common shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws and may not be offered or sold in the United States or to U.S. Persons absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction. Any public offering of securities in the United States must be made by means of a U.S. prospectus containing detailed information about the company and management, as well as financial statements.
About Midas Gold and the Golden Meadows Project
Midas Gold is focused on the exploration and, if warranted, development of the Golden Meadows Project in the Stibnite-Yellow Pine district of central Idaho. Gold mineralization within the Golden Meadows Project appears to be associated with an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver, tungsten and antimony. Historic production from the district is estimated at approximately one million ounces of gold, along with significant by-products of silver, antimony and tungsten, primarily from underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. 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”) and filed under Midas Gold’s profile at www.sedar.com. The Hangar Flats, West End and Yellow Pine deposits remain open along strike and to depth and other mineralized areas within the Golden Meadows Project remain to be evaluated.
MIDAS GOLD CORP.
Stephen Quin
President & CEO
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp. and a Qualified Person. The exploration activities at the Hangar Flats and West End deposits were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
For readers to fully understand the information in this news release, they should read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the technical information. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in the Technical Report is subject to the assumptions and qualifications contained therein.
Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permits to conduct its activities.
Cautionary Note - The mineral resource estimates referenced in this press release use the terms “Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company.
MIDAS GOLD COMMENCES US$10.5 MILLION EXPLORATION PROGRAM AT ITS GOLDEN MEADOWS PROJECT
Airborne Geophysics & 30,000m of Drilling aims to Upgrade & Expand Existing Mineral Resources
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX: TSX) today reported that the 2011 exploration program at its Golden Meadows Project, Valley County, Idaho, has commenced. The work planned by Midas Gold aims to further evaluate the mineral potential of the consolidated Golden Meadows property, unconstrained by historic property boundaries that impeded prior explorers in the area. The 2011 exploration program will use a combination of exploration methods, including airborne and ground geophysics and drilling. The program has four key objectives:
To upgrade the confidence levels in portions of the current mineral resources contained in the Hangar Flats, West End and Yellow Pine deposits which in aggregate contain an indicated mineral resource of 2.05 million oz of gold at an average grade of 1.58g/t gold and an additional inferred mineral resource of 3.74 million oz of gold at an average grade of 2.15g/t gold (see news release dated April 20, 2011 for the current mineral resource estimates for all three deposits by type and category);
To better understand the potential for economically significant by-products of antimony, silver and tungsten;
To increase the overall mineral resources at Golden Meadows by exploring on strike and down dip of the currently defined mineral resources and further drilling areas where significant mineralization has been encountered in prior drilling, but where drill density is insufficient to support mineral resource estimation; and
To discover and if warranted, explore entirely new mineralized areas, especially in areas along the major mineralized trends with little or no drilling.
All permits for the 2011 exploration program are in hand and, to date, a total of five core and four reverse circulation (“RC”) holes have already been completed on patented land owned by Midas. The flying of the airborne geophysical survey is also complete, results of which are pending.
In addition to its exploration program, Midas Gold plans to audit the existing environmental database and collect and supplement that extensive collection of scientific information with additional environmental baseline data that will facilitate future programs. Priority baseline studies requiring additional studies or data will be initiated in 2011 and the Company will continue to monitor the local environmental conditions. This information will also assist Midas Gold in developing effective mitigation strategies and best management practices to meet all applicable state and federal environmental standards related to its work. Midas Gold is also planning to undertake certain voluntary remediation and monitoring activities in cooperation with regulatory agencies, including water quality and stream flow measurements.
“Midas Gold’s 2011 exploration at the Golden Meadows Project will, for the first time, begin the evaluation of the potential of this important gold district unconstrained by historic property boundaries,” commented Stephen Quin, President & CEO of Midas Gold Corp. “All three known gold deposits at Golden Meadows are open to expansion along strike and to depth and there is excellent potential to discover entirely new deposits, based on information contained within an extensive exploration database collected and collated by Midas Gold. The 2011 exploration program aims to increase the confidence level of the known mineral resources, to expand the known deposits and to test for potential new deposits, while working to improve the local environmental conditions and our understanding thereof.”
2011 Exploration Program
During 2011, Midas Gold plans to complete approximately 30,000 metres of drilling in approximately 80 drill holes, using a combination of core and reverse circulation (“RC”) drilling. Three track-mounted and heli-portable core drills are being provided by Major Drilling and one RC drill has been provided by TJ Enterprises. Drill mobilization commenced at the end of June, once a base camp was established at Golden Meadows. Drilling is expected to continue through the end of October 2011 and updated NI43-101 mineral resource estimates are planned for completion in the first half of 2012.
The drilling will primarily target extensions and expansions to the Hangar Flats and Yellow Pine gold deposits, which contain significant sulphide gold mineral resources, as reported in news releases dated February 22 and April 20, 2011, as well as looking to better define the potential for by-product antimony, silver and tungsten, all of which were produced historically from these deposits. Additional drilling will evaluate the potential for expansion of the West End mineral resources (also reported on February 22, 2011), and on testing some of the numerous exploration targets identified through the compilation of more than 80 years of exploration and production data recovered from numerous historic operators.
In addition to drilling, an airborne EM and resistivity survey has been flown over the entire property to assist with exploration targeting, and metallurgical studies will be undertaken aimed at further characterizing the nature of the gold in the various deposits and optimizing the recovery thereof, as well as evaluating the potential recoveries of antimony, silver and tungsten.
In parallel with the exploration focused studies, Midas Gold will be conducting environmental base line studies, continuing its voluntary site remediation activities, and working with regulators to better understand the water balances in the district. This work will be designed to develop best management practices that will be utilized and monitored to measure their real efficiencies for the site-specific applications at Golden Meadows. Overall water management will be the key to considering future exploration alternatives.
Total exploration expenditures are anticipated at approximately US$10.5 million, with an additional approximately US$1.25 million to be incurred on environmental, metallurgical and other studies. Additional capital expenditures of approximately US$1.7 million will be incurred in maintaining the property interests held by Midas and establishing a base camp for up to 23 people on the Golden Meadows property, for total project expenditures of approximately US$13.4 million in 2011.
Maps
For the location of these deposits, please click here.
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. Gold mineralization within the Golden Meadows Project appears to be associated with an intrusion related, gold‐rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic production from the district is estimated at approximately one million ounces of gold, along with significant by‐products of silver, antimony and tungsten, primarily from underground higher‐grade gold-antimony production at Hangar Flats from 1925‐38, open pit mining at Yellow Pine from 1938‐52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. 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 in the Stibnite-Yellow Pine gold district 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.
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43‐101 and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp. and a Qualified Person. Current exploration activities are being carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
For readers to fully understand the information in this news release, they should read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the technical information. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in the Technical Report is subject to the assumptions and qualifications contained therein.
Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permits to conduct its activities.
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; statements relating to the timing, availability and amount of financings; business objectives; costs and timing relating to the potential acquisition of interests in mineral properties; 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; anticipated results and developments in operations in future periods; 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” 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.
Cautionary Note - The mineral resource estimates referenced in this press release use the terms “Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company.
MIDAS GOLD CORP. COMPLETES C$40 MILLION INITIAL PUBLIC OFFERING CONDITIONAL APPROVAL FOR TSX LISTING UNDER SYMBOL "MAX"
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES AND NOT A SOLICITATION OR A PROSPECTUS FOR STOCK
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (“Midas Gold” or the “Corporation”) (TSX:MAX) today announced that it has completed its initial public offering (the “Offering”) of 12,307,700 common shares of the Corporation at a price of C$3.25 per share for aggregate gross proceeds of C$40,000,025.
The common shares of the Corporation are expected to begin trading on the Toronto Stock Exchange today, July 14, 2011, under the symbol “MAX”, subject to final Toronto Stock Exchange approval.
The Offering involved a syndicate of agents led by Haywood Securities Inc. and BMO Capital Markets, and included Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. (collectively, the “Agents”). The Agents received a cash commission equal to 6% of the gross proceeds of the Offering.
“The successful initial public offering marks another milestone for Midas Gold Corp. and its Golden Meadows Project,” said Stephen Quin, President and CEO of Midas Gold Corp. “This financing provides us with the funding to further evaluate the exploration potential of the Golden Meadows Project in Idaho, with the objective of increasing the confidence level in the existing mineral resources and adding new mineral resources.”
A final prospectus relating to these securities has been filed with securities commissions or similar authorities in each of the provinces of Canada, except Quebec, and a copy may be obtained from any of the above-mentioned Agents and is also available on SEDAR at www.sedar.com.
Overallotment Option
The Corporation has also granted the Agents an option exercisable in whole or in part in the sole discretion of the Agents at any time up to 5:00 p.m. (Vancouver time) on August 15, 2011, solely to cover over-allotments, if any, and for market stabilization purposes, to purchase up to an additional 1,846,155 common shares (being that number of shares as is equal to 15% of the number of common shares sold under the Offering) at a price of $3.25 per share.
No US Registration or Offering
Midas Gold’s common shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws and may not be offered or sold in the United States or to U.S. Persons absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction. Any public offering of securities in the United States must be made by means of a U.S. prospectus containing detailed information about the company and management, as well as financial statements.
About Midas Gold and the Golden Meadows Project
Midas Gold is focused on the exploration and, if warranted, development of the Golden Meadows Project in the Stibnite-Yellow Pine district of central Idaho. Gold mineralization within the Golden Meadows Project appears to be associated with an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic production from the district is estimated at approximately one million ounces of gold, along with significant by-products of silver, antimony and tungsten, primarily from underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. 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”) and filed under Midas Gold’s profile at www.sedar.com.
The Hangar Flats, West End and Yellow Pine deposits in the Stibnite-Yellow Pine gold district 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.
MIDAS GOLD CORP.
Stephen Quin
President & CEO
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp. and a Qualified Person. The exploration activities at the Hangar Flats and West End deposits were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
For readers to fully understand the information in this news release, they should read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the technical information. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in the Technical Report is subject to the assumptions and qualifications contained therein.
Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permits to conduct its activities.
Forward-Looking Statements
Statements contained in this news release and in the final prospectus referred to herein and dated June 30, 2011 (the “Prospectus”) 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, statements relating to the timing, availability and amount of financings; expected use of proceeds; business objectives; costs and timing relating to the potential acquisition of interests in mineral properties; 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, entry into further option or joint venture agreements, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims acquired pursuant to the Reorganization (as defined in the Prospectus); anticipated results and developments in operations in future periods; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof; evaluation of the potential impact of future accounting changes; estimates concerning recovery of accounts receivable, stock-based compensation and carrying value of properties. 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” or “does not anticipate”, or “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 will be encountered if the Golden Meadows Project is developed. In making the forward-looking statements in this news release and the Prospectus, the Corporation has applied several material assumptions, including, but not limited to, the assumption that the Offering will be completed and that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in 2011 and 2012 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. Other assumptions are discussed throughout this news release and the Prospectus and, in particular, in the “Risk Factors” section in the Prospectus. 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 completion of financings and the 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 section entitled “Risk Factors” in the Prospectus. 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 or the Prospectus to reflect events or circumstances after the dates thereof or to reflect the occurrence of unanticipated events.
Cautionary Note - The mineral resource estimates referenced in this press release use the terms “Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company.
THIS PRESS RELEASE IS NOT FOR US DISTRIBUTION AND IS NOT A SOLICITATION OR A PROSPECTUS FOR STOCK
MIDAS GOLD CORP. FILES PRELIMINARY PROSPECTUS WITH REGULATORS
Initial Public Offering for C$30 million to C$40 million Planned
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (a private corporation) (“Midas Gold” or the “Corporation”) today announced that it has filed a preliminary prospectus with all provincial Securities Commissions in Canada, excluding Quebec, in connection with a proposed initial public offering of common shares of the Corporation (the “Offering”). The Offering is expected to be approximately C$30 to C$40 million and to involve a syndicate of agents led by Haywood Securities Inc. and BMO Capital Markets, and including Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. (the “Agents”). Midas Gold has also granted the Agents an option to purchase, within 30 days of the closing of the Offering, an additional number of shares equal to 15% of the common shares sold in the Offering at the same price as the Offering.
“I am pleased to have reached this significant milestone in the development of Midas Gold,” said Stephen Quin, President & CEO of Midas Gold. “A public listing, if achieved, would provide the market recognition that our Golden Meadows Project deserves, while providing the funding required to advance its significant exploration potential.”
A preliminary prospectus relating to these securities has been filed with securities commissions or similar authorities in each of the provinces of Canada, except Quebec, but has not yet become final for the purpose of the sale of securities to the public.
The Corporation’s common shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirement of such Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction. Any public offering of securities in the United States must be made by means of a U.S. prospectus containing detailed information about the company and management, as well as financial statements.
A copy of the preliminary prospectus may be obtained from any of the above-mentioned Agents and is also available on SEDAR at www.sedar.com.
About Midas Gold and the Golden Meadows Project
Midas Gold is a private company focused on the exploration and, if warranted, development of the Golden Meadows Project in the Stibnite-Yellow Pine district of central Idaho. Gold mineralization within the Golden Meadows Project appears to be associated with an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic production from the district is estimated at approximately one million ounces of gold, along with significant by-products of silver, antimony and tungsten, primarily from underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. 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 technical reports (the “Technical Reports”) filed under Midas Gold’s profile at www.sedar.com or are available on the Corporation’s website at www.midasgoldinc.com.
The Hangar Flats, West End and Yellow Pine deposits in the Stibnite-Yellow Pine gold district remain open to expansion along strike and to depth. In addition, there is potential to discover entirely new deposits based on information contained within an extensive exploration database developed by Midas Gold from almost 100 years of exploration activity by multiple owners and operators.
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold, Inc. and Midas Gold Corp. and a Qualified Person. The exploration activities at the Hangar Flats and West End deposits were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
For readers to fully understand the information in this news release, they should read the relevant Technical Reports in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the technical information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Technical Reports are each intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in those reports is subject to the assumptions and qualifications contained in the Technical Reports.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permits to conduct its activities.
Forward-Looking Statements
Statements contained in this news release and in the preliminary prospectus referred to herein and dated May 31, 2011 (the “Prospectus”) 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, statements relating to the timing, availability and amount of financings; expected use of proceeds; business objectives; costs and timing relating to the potential acquisition of interests in mineral properties; 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, entry into further option or joint venture agreements, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims acquired pursuant to the Reorganization (as defined in the Prospectus); anticipated results and developments in operations in future periods; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof; evaluation of the potential impact of future accounting changes; estimates concerning recovery of accounts receivable, stock-based compensation and carrying value of properties. 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” or “does not anticipate”, or “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 will be encountered if the Golden Meadows Project is developed. In making the forward-looking statements in this news release and the Prospectus, the Corporation has applied several material assumptions, including, but not limited to, the assumption that the Offering will be completed and that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in 2011 and 2012 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. Other assumptions are discussed throughout this news release and the Prospectus and, in particular, in the “Risk Factors” section in the Prospectus. 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 completion of financings and the 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 section entitled “Risk Factors” in the Prospectus. 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 or the Prospectus to reflect events or circumstances after the dates thereof or to reflect the occurrence of unanticipated events.
Cautionary Note - The mineral resource estimates referenced in this press release use the terms “Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company.
THIS PRESS RELEASE IS NOT FOR US DISTRIBUTION AND IS NOT A SOLICITATION OR A PROSPECTUS FOR STOCK
MIDAS REPORTS MINERAL RESOURCE ESTIMATE FOR YELLOW PINE DEPOSIT AT GOLDEN MEADOWS, IDAHO
Project Contains 2.05 million oz of Gold in Indicated and 3.74 million oz of Gold in Inferred Category
VANCOUVER, BRITISH COLUMBIA - Midas Gold, Inc., a wholly owned subsidiary of Midas Gold Corp. (a private company) today announced the results of an independent mineral resource estimate for the Yellow Pine deposit, one of the three gold deposits comprising the Golden Meadows Project, Valley County, Idaho. In aggregate, the three gold deposits within the Golden Meadows Project are estimated to contain an indicated mineral resource of 2.05 million ounces of gold and an additional inferred mineral resource of 3.74 million ounces of gold as tabulated below, with details provided at the end of this news release.
Summary of Mineral Resource Estimates for Golden Meadows Project*
| Category | Cut-off Grade (g/t gold) | Tonnes (millions) | Gold Grade (g/t) | Contained Gold (000s oz) |
|---|---|---|---|---|
| Indicated | Various** | 40.84 | 1.584 | 2,050 |
| Inferred | Various** | 54.14 | 2.148 | 3,737 |
*Note - all mineral resources are hosted within Whittle pit shells as described in the SRK technical reports
** The West End oxide mineral resource is reported at 0.274 g/t cut off and sulphide mineral resource is reported at 0.549 g/t cut-off. The Hanger Flats and Yellow Pine oxide mineral resource are reported at 0.30 g/t cut-off and sulphide mineral resources are reported at 0.65 g/t cut-off.
“The recent mineral resource estimates place the Golden Meadows Project in the ranks of the largest undeveloped gold projects in North America,” said Stephen Quin, President & CEO of Midas Gold Corp. “In addition, considerable upside potential remains to these deposits, with opportunities to expand all three known gold deposits along strike and to depth. Further, there is excellent potential to discover entirely new deposits, based on information contained within an extensive exploration database collected and collated by Midas Gold,” he said. “Midas Gold plans a major exploration program in 2011 to (a) increase the confidence level of the known mineral resources, (b) expand the known deposits and (c) to test for potential new deposits.”
Yellow Pine Mineral Resource Estimate
The mineral resource estimation for Yellow Pine is based on a geologic model consisting of a single rock type, cut by the Meadow Creek Fault Zone. The model blocks are 6m x 6m x 6m in the x, y, & z directions, respectively. Each model block is assigned a unique specific gravity based on rock type. All block grade estimates were made using 3m down hole composites. An Ordinary Kriging algorithm was employed to generate a categorical indicator grade shell based on a 0.2g/t Au threshold in oxide material and 0.5g/t Au in sulphide material. Ordinary Kriging was also used for the gold grade estimation. The results of the resource estimation provided a CIM classified, Indicated and Inferred Mineral Resource. The mineral resources have been classified as Indicated and Inferred based primarily on sample support. All mineral resources supported primarily by more recent Hecla, Ranchers and Barrick data are classified as Indicated and all resources supported primarily by the older Bradley drilling were classified as Inferred.
The base case Yellow Pine Mineral Resource estimate is reported below at two different cut-off grades, depending on the material type. The oxide material is reported at a 0.3g/t cut-off, based on a mining cost of US$1.50/t, a processing cost of US$5.00/t, recovery of 85%, G&A cost of $2.00/t, a 5% NSR and a US$1,200/oz Au value. The sulphide material is reported at a 0.65g/t cut-off based on a US$1.50/t mining cost, US$20/t processing cost, 95% recovery G&A cost of $2.00/t, a 5% NSR (which NSR Midas has the option to purchase) and a US$1,200/oz Au value. The mineral resources are confined within a conceptual Whittle(r) pit design based on the same parameters used for the cut-off grade and a 45° pit slope. Strip ratio of non-mineralized material versus mineralized material above resource reporting cut-off grade for the Whittle pit design is 2.6:1 respectively.
Summary of Mineral Resource Estimates for Yellow Pine Deposit*
| Category | Cut-off Grade (g/t gold) | Tonnes (millions) | Gold Grade (g/t) | Contained Gold (000s oz) |
|---|---|---|---|---|
| Oxide | ||||
| Indicated | 0.30 | 1.02 | 0.895 | 29 |
| Inferred | 0.30 | 0.08 | 1.370 | 4 |
| Sulphide | ||||
| Indicated | 0.65 | 4.32 | 2.187 | 303.8 |
| Inferred | 0.65 | 28.09 | 2.322 | 2,097 |
*Note - all mineral resources are hosted within Whittle pit shells as described in the SRK technical reports
These mineral resource estimates were prepared by SRK Consulting (US) Inc. (“SRK”) in accordance with Canada’s National Instrument 43-101. A summary of the mineral resource estimates for the Yellow Pine deposit is tabulated above, while a Technical Report for the mineral resource estimation is available on Midas Gold’s website at www.midasgoldinc.com. The substantial majority of these mineral resources are located on patented mineral claims.
Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
Comparison to Prior Mineral Resource Estimates
Prior mineral resource estimates for the Yellow Pine deposit, in aggregate, contained more gold ounces the current estimates for a number of reasons, the most significant of which were (a) that the Yellow Pine pit (now partially back-filled and flooded) had been mined deeper than assumed in prior estimates, (b) prior estimates used a 100m interpolation for mineral resources versus the current 50m interpolation used, (c) SRK did not incorporate some of the drill results from early drilling where data was not independently verified or the exploration techniques did not meet current standards, (d) Midas Gold recovered additional drill data not available to prior estimators, which data was utilized by SRK in its estimate and (e) SRK constrained their mineral resource estimate within a Whittle(r) pit boundary. The current SRK estimate is therefore more robust and reliable than prior estimates, and does identify a number of opportunities for mineral resource expansions.
Exploration Opportunities
The Yellow Pine deposit represents a significant mineral resource and, while containing less aggregate gold than prior estimates, the geologic interpretation provides clear direction toward opportunities for adding to the mineral resources at Yellow Pine. These opportunities include (a) re-drilling areas where historic drill data was deemed insufficiently reliable to utilize in the mineral resource estimate, (b) where drilling is too wide spaced to incorporate in a mineral resource estimates and yet indicates significant potential in an area and (c) exploring along strike, across previously restrictive property boundaries, into areas now controlled by Midas Gold. In aggregate, these opportunities suggest that the Yellow Pine deposit could be significantly expanded, and will be a major exploration focus in 2011.
Maps
For the location of these deposits, please view the accompanying illustrations.
Technical Reports
Technical reports prepared by SRK for each of the Hangar Flats, West End and Yellow Pine deposits are available on Midas Gold’s website at www.midasgoldinc.com.
About the Golden Meadows Project
The Golden Meadows Project encompasses most of the historic Stibnite-Yellow Pine Mining District in South-central Idaho. Midas Gold, Inc., a wholly owned subsidiary of Midas Gold Corp. (a private company) owns or controls over 3,700 hectares in the district.
The Stibnite-Yellow Pine district lies at the intersection of major, regional fault systems and lies on the interpreted western ring fracture margin of the Tertiary Thunder Mountain caldera complex. Gold mineralization within the Golden Meadows Project appears to be related to an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic gold production from the district is approximately one million ounces primarily from; underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. The principal gold deposits identified to date within the Golden Meadows Project are Hangar Flats, West End and Yellow Pine deposits, all of which are associated with large scale structural corridors. In addition, numerous other gold targets have been identified, with potential for both shallow oxide mineralization and deeper sulphide potential.
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp. The exploration activities at the Hangar Flats and West End deposits were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
Bart Stryhas, PhD, CPG, of SRK is the qualified person, as defined in National Instrument 43-101, responsible for the mineral resource estimates for Hangar Flats West End and Yellow Pine deposits reported herein. He has read and approved the relevant technical portions of this news release related to the mineral resource estimates for which he is responsible.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permit to conduct its activities. However, Midas is not aware of any environmental, permitting, legal or other reasons that would prevent it from advancing the project.
For readers to fully understand the information in this news release, they should read the Technical Reports (available on www.midasgoldinc.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Technical Reports are each intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in those reports is subject to the assumptions and qualifications contained in the Technical Reports.
Forward-Looking Statements
This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and Midas Gold, Inc. (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and plan to combine Vista’s Yellow Pine deposit under the terms of the letter of intent, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “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” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, 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 statements 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 statements.
Cautionary Note - This press release and the mineral resource estimates referenced in this press release use the terms “Measured Mineral Resources”, “Indicated Mineral Resources”, “Measured & Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company. This press release is NOT for U.S. distribution and is not a solicitation or a prospectus for stock.
Summary of Mineral Resource Estimates for Hangar Flats, West End & Yellow Pine Deposits*
| Category | Cut-off Grade (g/t gold) | Tonnes (millions) | Gold Grade (g/t) | Contained Gold (000s oz) |
|---|---|---|---|---|
| Hangar Flats Oxide | ||||
| Inferred | 0.300 | 1.5 | 0.789 | 38 |
| Hangar Flats Sulphide | ||||
| Indicated | 0.650 | 9.7 | 2.002 | 625 |
| Inferred | 0.650 | 15.6 | 2.437 | 1,223 |
| West End Oxide | ||||
| Indicated | 0.274 | 7.50 | 0.963 | 232 |
| Inferred | 0.274 | 1.16 | 0.826 | 31 |
| West End Sulphide | ||||
| Indicated | 0.549 | 18.30 | 1.512 | 889 |
| Inferred | 0.549 | 7.71 | 1.402 | 348 |
| Yellow Pine Oxide | ||||
| Indicated | 0.300 | 1.02 | 0.895 | 29 |
| Inferred | 0.300 | 0.08 | 1.370 | 4 |
| Yellow Pine Sulphide | ||||
| Indicated | 0.650 | 4.32 | 2.187 | 304 |
| Inferred | 0.650 | 28.09 | 2.322 | 2,097 |
| Combined | ||||
| Indicated | 40.84 | 1.584 | 2,050 | |
| Inferred | 54.14 | 2.148 | 3,737 |
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MIDAS GOLD CORP. UNVEILS ITS BOARD OF DIRECTORS
Outstanding Combination of Skills & Experience to Guide Company
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (a private company) today announced its board of directors, who will guide the Company’s growth strategy going forward.
“I am pleased to be working with such an experienced and well-qualified group of individuals,” said Stephen Quin, President & CEO of Midas Gold Corp. “I am certain that their skills and track-record over many years in all aspects of the mining sector will great benefit Midas as it advances its Golden Meadows Project in Idaho, USA.”
The board of Midas is now comprised of eight directors, as listed alphabetically below:
Frederick Earnest (Independent Director) - Fred has served as director, President and Chief Operating Officer of Vista Gold since 2007. He joined Vista in September 2006, and has over 25-years’ experience in the mining industry, most recently, as President of Pacific Rim El Salvador, and previously as General Manager and Legal Representative of Compañia Minera Dayton in Chile. He holds a B.S. in Mining Engineering from the Colorado School of Mines.
Wayne Hubert (Independent Director) - Wayne was most recently CEO and Director of Andean Resources from 2006 until December 2010. During his tenure, Andean increased its market capitalization from $70 million until it was acquired by Goldcorp for $3.5 billion. During this period, Andean built a management team, significantly expanded its resource base, completed feasibility studies, financings and was in the process of initiating mine construction when it was acquired. Prior to Andean, Mr. Hubert was Vice President Corporate Development and Investor Relations with Meridian Gold Inc. During his 14 year career at Meridian Gold, Mr. Hubert gained considerable experience in the areas of finance, exploration, project development, permitting and construction. Mr. Hubert has a bachelor of science in Chemical Engineering from the University of Cape Town and an MBA from Brigham Young University.
Jerry Korpan (Independent Director) - Jerry is a London-based investment banker involved in financing natural resource projects worldwide for the past 26 years. He was managing director of Canadian investment dealer, Yorkton Securities Inc., based in London, UK until 2000 and now works as an independent advisor internationally. He is a former director of Bema Gold Corporation, which was successfully taken over by Kinross in 2007, and is currently on the board of B2Gold Corp. He is also non-executive director of Mitra Energy Limited, a privately owned independent oil and gas company focused on the Asia-Pacific region.
Peter Nixon (Independent Director & Chairman) - Peter has spent more than three decades in the investment industry, specializing in the natural resource sector and working primarily in research and institutional sales. He helped found the investment firm Goepel Shields & Partners and was subsequently President of the firm’s U.S. subsidiary. He later joined Dundee Securities, with the mandate to expand that company’s activities in the United States. Mr. Nixon is also a director of several publicly-traded natural resource companies, including Dundee Precious Metals.
Stephen P. Quin, P.Geo. (President, CEO & Director) - Stephen is a mining geologist with over 30-years’ experience in exploration, mine development and operations. He joined Midas Gold, Inc. in January 2011 and guided the company through the completion of the acquisition of Vista Gold’s Yellow Pine deposit, the creation of Midas Gold Corp., its combination with Midas Gold Inc. in April 2011, and the recently completed C$15.3 million financing of Midas Gold Corp. Prior to joining Midas, Stephen was President and COO of Capstone Mining Corp., which operates copper mines in the Yukon and Mexico and which was created through the merger of Capstone and Sherwood Copper Corporation, a company Stephen co-founded in 2005. Prior to Sherwood Copper, Stephen was Executive VP at Miramar Mining Corporation, where he was responsible for exploration, business development and investor relations for 18 years, and notable projects included the Con Mine in NWT, the Hope Bay Project in Nunavut and the creation of Northern Orion Exploration Ltd. and its acquisition and exploration of the Agua Rica copper-gold-molybdenum porphyry copper project in Argentina. Stephen serves as a non-executive director of other public companies, including Capstone Mining Corp. and Mercator Minerals Ltd.
Michael Richings (Independent Director) - Mike has served as a director of Vista Gold Corp. since 1995 and as Executive Chairman and CEO since 2007. Mr. Richings previously served as President and CEO of Vista from 2004-2007 and from 1995-2000. He has over 40-years’ experience in development and operations in the mining industry. Previously, he was a director of Allied Nevada Gold Corp., Zaruma Resources Inc., and Triumph Gold Corp. He was previously President of Atlas Corp. which, at the time, was Granges’ (Vista Gold’s corporate predecessor) largest shareholder and, before that, President of Lac South America, based in Chile. Mr. Richings, a mining engineer, is a graduate of Camborne School of Mines (UK) and has a Master’s degree from Queens University (Canada).
Donald Young, FCA (Independent Director) - Don is a chartered accountant and was a senior audit partner with the accounting firm of KPMG LLP until his retirement after a successful career with the firm including twenty-six years as a partner. Previously, he worked for Placer Development Ltd. (now Barrick Gold Corporation). He is a Fellow and a past president of the Institute of Chartered Accountants of British Columbia. Mr. Young is a member of the board of directors of Dundee Precious Metals Inc. as well as a member of their board’s Audit Committee and Corporate Governance and Nominating Committee. He is also a board member, Audit Committee Chair and member of the Corporate Governance and Nominating Committee of Kimber Resources Inc. and a board member, Finance and Audit Committee Chair and member of the Information Technology Task Force of the British Columbia Safety Authority. He has served on the boards of directors of other publicly listed and not-for-profit organizations. Mr. Young is a member of the Institute of Corporate Directors.
John Wakeford, P.Geo. (Independent Director) - John has more than 30 years in worldwide exploration with extensive experience in Archean greenstone deposits, including the Hemlo and Timmins gold camps. His experience includes fourteen years with Noranda, where, among other things, he played a key role in the discovery and evaluation of the Holloway gold deposit. On the creation of Hemlo Gold Mines, Mr. Wakeford was appointed Director of International Exploration and led Hemlo’s international gold exploration activities. Following the merger of Hemlo with Battle Mountain Gold, he was appointed Director of Exploration, and eventually became responsible for all of Battle Mountain’s exploration efforts. After Battle Mountain, John was the Vice-President of Exploration at Miramar Mining, during which time his experience and knowledge of Archean greenstone belts enabled the company to grow the Hope Bay resource to over 10 million ounces of gold. Since 2008, John has been Senior VP, Business Development, with Sabina Gold & Silver Corporation.
MIDAS GOLD & VISTA GOLD COMPLETE COMBINATION OF IDAHO GOLD PROPERTIES & FINANCING
Consolidates Major Gold District with 3 Significant Gold Deposits & District-wide Exploration Potential
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (“Midas Gold”, a private BC company), Midas Gold, Inc. (“Midas”, a private Washington state company) and Vista Gold Corp. (“Vista”, TSX & NYSE Amex Equities: VGZ) today announced that they have completed a transaction whereby Midas, which owned the Hangar Flats and West End deposits in Idaho, and the US subsidiaries of Vista, which owned the Yellow Pine deposit adjacent to Midas’ properties, became wholly owned subsidiaries of Midas Gold in accordance with the terms of an agreement (“the Combination Agreement”), the details of which were announced February 23, 2011. In addition, Midas Gold has completed a private placement financing with institutional and individual investors comprised of approximately 6.1 million shares at C$2.50 per share for gross proceeds of approximately C$15.3 million.
“The completion of these transactions brings all of the known mineral deposits in the Stibnite-Yellow Pine gold district under one roof, and provides the financial capacity to evaluate the true potential of this significant gold district, unconstrained by artificial property boundaries,” said Stephen Quin, President & CEO of Midas Gold. “Midas contributed the Hangar Flats and West End gold deposits, with their significant gold mineral resources, along with its extensive and highly prospective land holdings, to Midas Gold, while Vista contributed its Yellow Pine deposit, the largest gold deposit in the district,” he said. “With its strengthened balance sheet following the closing of the private placement financing, Midas Gold is well positioned to more fully define and potentially expand all three known gold deposits, which remain open along strike and to depth. In addition Midas Gold intends to evaluate the potential of the district for the discovery of entirely new deposits, supported by an extensive exploration database covering Midas Gold’s land holdings in the district.”
Financing
Contemporaneously with the closing of the Combination Agreement, Midas Gold completed a non-brokered private placement financing with approximately 171 institutional and individual investors subscribing to an aggregate of 6,129,800 common shares at a price of C$2.50 per share, for gross proceeds of C$15,324,500. A finder’s fee is payable in respect of certain of these funds.
Combination Agreement
As reported on February 23, 2011, the reorganization of the ownership of the Stibnite-Yellow Pine district was to be effected pursuant to the Combination Agreement among Midas, Midas Gold, Vista Gold U.S., Inc. and Idaho Gold Resources, LLC, under a plan of share exchange to be approved by the shareholders of Midas at a special meeting. Additional details in respect of the Combination Agreement are contained in the news release referred to above and the proxy statement mailed to shareholders.
Results of Shareholders Meeting
On April 1, 2011, Midas held the special meeting of its shareholders and approved the matters contemplated in the Combination Agreement. Of the 43,827,000 shares issued and outstanding on the record date for the meeting, a total of 35,627,000 shares were present at the meeting in person or by proxy, representing 81.2% in Midas, of which all were voted in favour, with none voting against or abstaining.
Capitalization of Midas Gold Corp.
As a result of the completion of the Combination Agreement, the private placement financing and the exercise of certain options in Midas between the date of the shareholders meeting and closing, Midas Gold currently has 84.94 million shares issued and outstanding which, with 8.05 million options and warrants outstanding, gives Midas Gold a fully diluted 92.99 million shares on a fully diluted basis, as follows:
| As of April 6, 2011 | |
| Shares Issued & Outstanding | 84,994,415 |
| Options | 600,000 |
| Warrants | 7,450,000 |
| Fully Diluted Shares | 92,994,415 |
As of the closing of the transaction, Vista owns 31,802,615 shares of Midas Gold, representing 37.4% of the shares issued and outstanding on April 6, 2011, and 34.2% of the shares on a fully diluted basis.
Website & Presentation
Midas Gold’s website has recently been updated and can be viewed at www.midasgoldinc.com, which includes an updated corporate presentation reflecting the completion of the transactions discussed in this news release.
About the Golden Meadows Project
The Stibnite-Yellow Pine gold district lies at the intersection of major regional fault systems and lies on the margin of the western ring fractured margin of the Tertiary Thunder Mountain caldera complex. Gold mineralization within the Golden Meadows Project appears to be related to an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic production from the district is estimated at approximately one million ounces of gold, along with significant by-products of silver, antimony and tungsten, primarily from underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. 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 significant structural corridors. In addition, numerous other gold targets have been identified, with potential for both shallow oxide mineralization and deeper sulphide potential.
As noted in the February 22, 2011 news release by Midas, all three deposits in the Stibnite-Yellow Pine gold district remain open to expansion, with opportunities to expand all of the three currently known gold deposits along strike and to depth. Further, there is potential to discover entirely new deposits based on information contained within an extensive exploration database.
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President and CEO of Midas Gold, Inc. and Midas Gold Corp. The exploration activities at the West End deposit were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
For readers to fully understand the information in this news release, they should read the relevant Technical Reports in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Technical Reports are each intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in those reports is subject to the assumptions and qualifications contained in the Technical Reports.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permit to conduct its activities. However, Midas is not aware of any environmental, permitting, legal or other reasons that would prevent it from advancing the project at this time.
Forward-Looking Statements
This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and Midas Gold Corp. (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and plan to combine Vista’s Yellow Pine deposit under the terms of the letter of intent, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “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” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and the tax consequences of the proposed combination. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, 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 statements 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 statements.
Cautionary Note - This press release and the mineral resource estimates referenced in this press release use the terms “Measured Mineral Resources”, “Indicated Mineral Resources”, “Measured & Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company.
THIS PRESS RELEASE IS NOT FOR US DISTRIBUTION AND IS NOT A SOLICITATION OR A PROSPECTUS FOR STOCK
MIDAS GOLD & VISTA GOLD ENTER INTO FORMAL AGREEMENT IN RESPECT OF IDAHO GOLD PROPERTIES
Consolidates Major Gold District with 3 Significant Gold Deposits with District-wide Exploration Potential
VANCOUVER, BRITISH COLUMBIA - Midas Gold, Inc. (“Midas”, a private company) and Vista Gold Corp. (“Vista”, TSX & NYSE Amex Equities: VGZ) today announced that Midas and the US subsidiaries of Vista have executed a Combination Agreement (“the Combination Agreement”) whereby they will contribute their respective Idaho gold assets through a share exchange and contribution to Midas Gold Corp., a new Canadian private company (“Midas Gold”). If the plan of share exchange is approved by the shareholders of Midas, and all other conditions to the transaction are satisfied or waived, Midas Gold will be owned, on a fully diluted basis, 65% by Midas and 35% by Vista.
“The combination agreement with Vista will finally consolidate the Stibnite-Yellow Pine gold district under one company, which should allow for the first systematic evaluation of gold potential of the district, unconstrained by artificial property boundaries,” said Stephen Quin, President & CEO of Midas Gold. “Midas will be contributing the Hangar Flats and West End gold deposits, with its significant gold mineral resources, along with its extensive and highly prospective land holdings, to Midas Gold, while Vista is contributing Yellow Pine, the largest gold deposit in the district,” he said. “In addition, considerable exploration potential remains, with opportunities to expand all three known gold deposits along strike and to depth. Further, there is potential to discover entirely new deposits, based on information contained within an extensive exploration database covering Midas’ extensive land holdings in the district.”
“We believe the combination of the Vista and Midas gold assets is the first step towards fully valuing our holdings in the Stibnite-Yellow Pine gold district,” said Mike Richings, Executive Chairman & CEO of Vista. “The combined holdings will create a company with sizeable gold deposits and district exploration potential. Advancement of Yellow Pine and the Midas properties will be the sole focus of Midas Gold under the very capable leadership of Mr. Stephen Quin. Vista has been successful with similar asset rationalization strategies in the past and we believe our shareholders will benefit from Vista’s shareholding in Midas Gold and Midas Gold’s focused exploration of these assets.”
Combination Agreement
The reorganization of the ownership of the Stibnite-Yellow Pine district will be effected pursuant to the Combination Agreement among Midas, Midas Gold, Vista Gold U.S., Inc. (“Vista US”) and Idaho Gold Resources, LLC (“Idaho Gold”), assuming a plan of share exchange (the “Plan of Share Exchange”) is approved by the shareholders of Midas at a special meeting (the “Special Meeting”) and all of the other conditions to the closing of the reorganization are satisfied or waived. The purpose of the Special Meeting is to consider and approve a Plan of Share Exchange between Midas and Midas Gold pursuant to which Midas’ outstanding shares of common shares (the “Midas Shares”) and outstanding options (the “Midas Options”), other than Midas Shares held shareholders who validly exercise their dissenters’ appraisal rights, will be exchanged for common shares and options of Midas Gold (the “Midas Gold
Shares” and “Midas Gold Options”, respectively), with the result that Midas will become a wholly-owned subsidiary of Midas Gold.
The Plan of Share Exchange is part of a broader, integrated transaction undertaken pursuant to the terms of the Combination Agreement, pursuant to which, if the Plan of Share Exchange is approved at the Special Meeting and the other conditions to closing specified in the Combination Agreement have been satisfied or waived:
Vista US will: (a) organize Idaho Gold Holding Company as a wholly owned Idaho corporation (“Idaho Holdco”); (b) contribute its equity interests in Idaho Gold to Idaho Holdco; and (c) at closing, contribute all of the issued and outstanding shares of Idaho Holdco to Midas Gold as a capital contribution, in exchange for that number of Midas Gold Shares equal to, on a fully diluted basis, thirty-five percent (35%) of the Midas Gold Shares that are issued and outstanding at the time that the transactions specified in the Combination Agreement and the Plan of Exchange are completed;
The shareholders of Midas, other than any validly dissenting shareholders, will contribute their Midas Shares to Midas Gold in exchange for that number of Midas Gold Shares equal to, on a fully diluted basis, sixty-five percent (65%) of the Midas Gold Shares that are issued and outstanding at the time that the transactions specified in the Combination Agreement and the Plan of Share Exchange are completed; and
The holders of Midas Options will exchange their Midas Options for Midas Gold Options of like tenor.
About the Golden Meadows Project
The Stibnite-Yellow Pine gold district lies at the intersection of major regional fault systems and lies on the margin of the western ring fractured margin of the Tertiary Thunder Mountain caldera complex. Gold mineralization within the Golden Meadows Project appears to be related to an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic gold production from the district is estimated at approximately one million ounces, primarily from underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. The principal gold deposits identified to date within the Golden Meadows Project are Midas’ Hangar Flats and West End deposits, and Vista’s Yellow Pine deposit, all of which are associated with significant structural corridors. In addition, numerous other gold targets have been identified, with potential for both shallow oxide mineralization and deeper sulphide potential.
The independent resource estimate for the Yellow Pine deposit was initially announced by Vista Gold on November 19, 2003, and the “Yellow Pine Project, Idaho, USA, Technical Report” was filed on SEDAR on December 12, 2003. Vista Gold subsequently incorporated those mineral resources in the “Preliminary Assessment of the Yellow Pine Project, Yellow Pine, Idaho” filed on SEDAR on December 15, 2006. Both documents are filed under Vista Gold’s profile on SEDAR.
Since the filing of the 2006 preliminary assessment for Yellow Pine, there has been no drilling within the area of the mineral resource estimate for Yellow Pine. As part of the combination of the Midas and Vista properties, Midas has retained SRK Consulting (US) Inc. (“SRK”) to complete a new NI 43-101 compliant mineral resource estimate for the Yellow Pine deposit using similar technical parameters as those used for the Midas properties. Given that Midas has recovered additional historic data, the different approaches to the estimation of mineral resources and current economic conditions used by SRK, combined with the lack of recent drilling at Yellow Pine, the mineral resource estimate for Yellow Pine may change. Further, SRK is likely to require some additional confirmatory drilling at Yellow Pine before it can classify the deposit in the indicated or measured categories. Therefore, following the combination, some or all of the mineral resources at Yellow Pine are expected to be reclassified into the inferred category until Midas Gold can complete the confirmatory drilling during the summer of 2011. It is anticipated that SRK will complete its new mineral resource estimate for the Yellow Pine deposit by the end of March 2011.
When and if the consolidation of the Midas and Vista Gold properties is completed, the development options and economic assumptions contained in Vista Gold’s 2006 preliminary economic assessment should no longer be relied upon, given that the passage of time and the consolidation of the deposits in the district, will result in different assumptions and approaches to the economic considerations that will be used by Midas Gold.
As noted in the February 22, 2011 news release by Midas, all three deposits in the Stibnite-Yellow Pine gold district remain open to expansion, with opportunities to expand all three of the currently known gold deposits along strike and to depth. Further, there is potential to discover entirely new deposits based on information contained within an extensive exploration database.
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President and CEO of Midas Gold, Inc. The exploration activities at the West End deposit were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
For readers to fully understand the information in this news release, they should read the relevant Technical Reports in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Technical Reports are each intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in those reports is subject to the assumptions and qualifications contained in the Technical Reports.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permit to conduct its activities. However, Midas is not aware of any environmental, permitting, legal or other reasons that would prevent it from advancing the project at this time.
Forward-Looking Statements
This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and Midas Gold, Inc. (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and plan to combine Vista’s Yellow Pine deposit under the terms of the letter of intent, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “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” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and the tax consequences of the proposed combination. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, 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 statements 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 statements.
Cautionary Note - This press release and the mineral resource estimates referenced in this press release use the terms “Measured Mineral Resources”, “Indicated Mineral Resources”, “Measured & Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company.
This press release is NOT for U.S. distribution and is not a solicitation or a prospectus for stock
MIDAS REPORTS MINERAL RESOURCE ESTIMATES FOR 2 OF 3 DEPOSITS AT GOLDEN MEADOWS, IDAHO
1.7 million oz of Gold in Indicated and 1.6 million oz of Gold in Inferred Category
VANCOUVER, BRITISH COLUMBIA - Midas Gold, Inc. (a private company) today announced independent mineral resources estimates for Hangar Flats and West End, two of the three deposits comprising the Golden Meadows Project, Valley County, Idaho; an updated estimate for the third deposit and largest gold deposit at Golden Meadows, Yellow Pine, is currently in process. These mineral resource estimates were prepared by SRK Consulting (US) Inc. (“SRK”) in accordance with Canada’s National Instrument 43-101. A summary of the mineral resource estimates is tabulated below, while a Technical Report for each estimate is available on Midas Gold’s website at www.midasgoldinc.com. The substantial majority of these mineral resources are located on patented mineral claims.
Summary of Mineral Resource Estimates for Hangar Flats & West End Deposits*Here.
| Deposit/Category | Cut-off Grade (g/t gold) | Tonnes (millions) | Gold Grade (g/t) | Contained Gold (000s oz) |
|---|---|---|---|---|
| Hangar Flats Oxide | ||||
| Inferred | 0.300 | 1.5 | 0.789 | 38 |
| Hangar Flats Sulphide | ||||
| Indicated | 0.650 | 9.7 | 2.002 | 625 |
| Inferred | 0.650 | 15.6 | 2.437 | 1,223 |
| West End Oxide | ||||
| Indicated | 0.274 | 7.50 | 0.963 | 232 |
| Inferred | 0.274 | 1.16 | 0.826 | 31 |
| West End Sulphide | ||||
| Indicated | 0.549 | 18.30 | 1.512 | 889 |
| Inferred | 0.549 | 7.71 | 1.402 | 348 |
| Combined | ||||
| Indicated | 1,746 | |||
| Inferred | 1,640 | |||
*Note - all mineral resources are hosted within Whittle pit shells as described in the SRK technical reports
“The mineral resource estimates for Hangar Flats and West End give Midas Gold a substantial base from which to grow,” said Stephen Quin, President & CEO of Midas Gold. “Assuming closing of the Midas Gold-Vista Gold transaction, which will add the mineral resources at Yellow Pine to these totals, Midas Gold will be in an enviable position, holding rights to a very substantial gold mineral resource located within the United States,” he said. “In addition, considerable upside potential remains to these estimates, with opportunities to expand all three known gold deposits along strike and to depth. Further, there is excellent potential to discover entirely new deposits based on information contained within an extensive exploration database.”
Hangar Flats Mineral Resource Estimate
The Hangar Flats mineral resource estimate is effective January 31, 2011 and is based on a geologic model consisting of a single rock type, cut by the Meadow Creek Fault Zone. The model blocks are 6m x 6m x 6m in the x, y, & z directions, respectively. Each model block is assigned a unique specific gravity based on rock type. All block grade estimates were made using 3m down hole composites. An Inverse Distance Weighting to the second power (ID2) algorithm was employed to generate a categorical indicator grade shell based on a 0.25g/t Au threshold. ID2 was also used for the gold grade estimation. The results of the resource estimation provided a CIM classified Indicated and Inferred Mineral Resource. The mineral resources have been classified as Indicated and Inferred based primarily on sample support and sample spacing and, as a result of the former, all resources supported primarily by historic data are classified as inferred, whereas all mineral resources supported by the Midas drilling are classified as indicated.
The base case Hangar Flats Mineral Resources are reported herein at two different cut-off grades, depending on the material type. The oxide material is reported at a 0.3g/t gold cut-off based on a mining cost of US$1.50/t, a processing cost of US$5.00/t, recovery of 85%, G&A cost of $2.00/t, a 5% NSR and a US$1,200/oz gold value. The sulfide material is reported at a 0.65g/t gold cut-off based on a US$1.50/t mining cost, US$20/t processing cost, 95% recovery, G&A cost of $2.00/t, a 5% NSR and a US$1,200/oz gold value. However, Midas Gold has an option to purchase the 5% NSR and so it will not be applicable in future economic considerations.
The mineral resources are confined within a conceptual Whittle(r) pit design based on the same parameters used for the cut-off grade and a 45° pit slope. The strip ratio for the Whittle pit design is 7.3:1. However, the mineralized trends, as indicated by drilling, extend into areas currently classified as waste within the Whittle pit. As a result, there is potential for a reduction in the indicated strip ratio once infill drilling is completed in 2011, assuming that additional mineral resources are delineated within the Whittle pit.
The Hangar Flats trend is open to the north, where mineralization has been continuously traced by trenching, wide spaced drilling and underground exploration drifts for a distance approximately equivalent to that currently hosting the currently defined mineral resources at Hangar Flats. Further, work to delineate and expand additional mineral resources will be a priority exploration focus in 2011.
West End Mineral Resource Estimate
The West End mineral resource estimate is effective February 16, 2011 and is based on a geologic model consisting of five general rock types, which are cut by three high angle faults. The model blocks are 20ft x 20ft x 20ft in the x, y, & z directions, respectively. Each model block is assigned a unique specific gravity based on rock type. All block grade estimates were made using 10ft down hole composites. An Inverse Distance Weighting to the second power algorithm was employed to generate a categorical indicator grade shell based on a 0.01oz/t Au threshold. An inverse distance weighting squared (ID2) algorithm was also used for the gold grade estimation. The results of the resource estimation provided a CIM classified Indicated and Inferred Mineral Resource. The quality of the drilling and data is very good and the Mineral Resource was classified mainly according to the general drillhole spacing.
The base case West End Mineral Resources are reported at two different cut-off grades, depending on the material type. The oxide material is reported at a 0.274g/t gold cut-off based on a mining cost of US$1.50/t, a processing cost of US$5.00/t, recovery of 85%, G&A cost of $2.00/t and a US$1,200/oz Au value. The sulfide material is reported at a 0.549g/t gold cut-off based on a US$1.50/t mining cost, US$20/t processing cost, 95% recovery, G&A cost of $2.00/t and a US$1,200/oz gold value. The mineral resources are confined within a conceptual Whittle(r) pit design based on the same parameters used for the cut-off grade and a 50° pit slope based on historic mining practices. The strip ratio for the Whittle pit design is 2.6:1.
The West End mineral resource is open along strike to the NE and SW and down dip to the SE. These areas will be a priority exploration focus in 2011. In addition, Midas believes there is potential for stacked mineralized systems under- and over-lying the West End mineral resource, based on wide spaced drilling and surface sampling. This potential will be further evaluated in 2011.
Maps
For the location of these deposits, please view the attached illustrations.
Technical Reports
Technical reports prepared by SRK for each of the Hangar Flats and West End deposits are available on Midas Gold’s website at www.midasgoldinc.com.
Yellow Pine Deposit
The independent resource estimate for the Yellow Pine deposit was initially announced by Vista Gold on November 19, 2003, and the “Yellow Pine Project, Idaho, USA, Technical Report” was filed on SEDAR on December 12, 2003”. Vista Gold subsequently incorporated those mineral resources in the “Preliminary Assessment of the Yellow Pine Project, Yellow Pine, Idaho” filed on SEDAR on December 15, 2006.
Since the 2006 preliminary assessment for Yellow Pine, there has been no drilling within the area of the mineral resource estimate for Yellow Pine. As part of the consolidation of the Midas Gold and Vista properties, Midas Gold has retained SRK to complete a new mineral resource estimate for the Yellow Pine deposit using similar technical parameters as those used for the Midas properties. Given that Midas Gold has recovered additional historic data, the different approaches to the estimation of mineral resources and current economic conditions used by SRK, combined with the lack of recent drilling at Yellow Pine, the mineral resource estimate for Yellow Pine may change. Further, SRK is likely to require some additional confirmatory drilling at Yellow Pine before SRK can classify the deposit in the indicated or measured categories. Therefore, following the combination, the mineral resources at Yellow Pine are expected to be reclassified into the inferred category until Midas Gold can complete the confirmatory drilling during the summer of 2011. SRK is expected to complete its new mineral resource estimate for the Yellow Pine deposit by the end of March 2011.
When and if the consolidation of the Midas Gold and Vista Gold properties is complete, the development options and economic assumptions contained in 2006 preliminary economic assessment should no longer be relied upon, given that the passage of time and the consolidation of the deposits in the district, will result in different assumptions and approaches to the economic considerations..
The Yellow Pine mineral resource remains open to expansion in a number of directions, particularly along strike to the northeast towards the past producing Homestake area. Subject to completion of the Midas Gold - Vista Gold transaction, this potential will be evaluated by Midas Gold in 2011.
Update on Midas-Vista Transaction
Further to Vista Gold’s news release of December 7, 2010, Midas Gold and Vista Gold have advanced the formal documentation of the terms and conditions set out in the letter of intent between the parties and expect to execute the formal documentation shortly. Midas Gold anticipates that it will then be sending a proxy statement for a special meeting of the shareholders of Midas Gold, Inc. to seek shareholder approval of the transaction.
Compliance with National Instrument 43-101
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas to advance its interests at Golden Meadows, the project will be subject to a number of Federal, State and local laws and regulations and will require permit to conduct its activities. However, Midas is not aware of any environmental, permitting, legal or other reasons that would prevent it from advancing the project.
About the Golden Meadows Project
The Golden Meadows Project encompasses most of the historic Stibnite-Yellow Pine Mining District in South-central Idaho. Midas Gold, Inc. (a private company) owns or controls over 4,000 hectares in the district and has entered into a letter of intent with Vista Gold Corp. to combine Vista’s Yellow Pine deposit with Midas Gold’s interests to form a new company (“Newco”). As a result, Vista will become a 35% shareholder of Newco.
The Stibnite-Yellow Pine district lies at the intersection of major, regional fault systems and lies on the margin of the western ring fractured margin of the Tertiary Thunder Mountain caldera complex. Gold mineralization within the Golden Meadows Project appears to be related to an intrusion related, gold- rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic gold production from the district is approximately one million ounces primarily from; underground higher-grade gold-antimony production at Hangar Flats from 1925-38, open pit mining at Yellow Pine from 1938-52, and from heap leaching of oxide gold occurrences, including West End, Garnet Creek and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little modern exploration. The principal gold deposits identified to date within the Golden Meadows Project are Hangar Flats, West End, and Vista’s Yellow Pine deposits, all of which are associated with significant structural corridors. In addition, numerous other gold targets have been identified, with potential for both shallow oxide mineralization and deeper sulphide potential.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President and CEO of Midas Gold, Inc. The exploration activities at the West End deposit were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
Bart Stryhas, PhD, CPG, of SRK is the qualified person, as defined in National Instrument 43-101, responsible for the mineral resource estimates for Hangar Flats and West End deposits reported herein. He has read and approved the relevant technical portions of this news release related to the mineral resource estimates for which he is responsible.
For readers to fully understand the information in this news release, they should read the Technical Reports (available on www.midasgoldinc.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Technical Reports are each intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in those reports is subject to the assumptions and qualifications contained in the Technical Reports.
Forward-Looking Statements
This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and Midas Gold, Inc. (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and plan to combine Vista’s Yellow Pine deposit under the terms of the letter of intent, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “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” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward- looking statements, 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 statements 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 statements.
Cautionary Note - This press release and the mineral resource estimates referenced in this press release use the terms “Measured Mineral Resources”, “Indicated Mineral Resources”, “Measured & Indicated Mineral Resources” and “Inferred Mineral Resources.” We advise you that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Midas Gold is not an SEC registered company. This press release is NOT for U.S. distribution and is not a solicitation or a prospectus for stock.
MIDAS REPORTS SIGNIFICANT GOLD INTERCEPTS AT HANGAR FLATS, GOLDEN MEADOWS PROJECT, IDAHO
Hole MGI-10-12 intersected 4.1g/t gold over 36.6m, including 7.4g/t gold over 16.5m
Hole MGI-10-13 intersected 2.6g/t gold over 70.3m plus 2.1g/t gold over 42.7m
Hole MGI-10-26 intercepted 2.4g/t gold over 176.8m plus 1.8g/t gold over 68.6m
Hole MGI-10-27 intercepted 2.5g/t gold over 117.0m
VANCOUVER, BRITISH COLUMBIA - Midas Gold, Inc. (a private company) today announced assay results from its core drilling program on the Hangar Flats deposit at the Company’s Golden Meadows Project, Idaho. A total of twenty-six drill holes were completed at Hangar Flats during the summer and fall of 2010 as part of its resource definition and exploration drill program that was designed to develop a mineral resource estimate to a level suitable for reporting under Canadian National Instrument 43-101 Technical Reporting guidelines, the results of which will be announced during Q1/11. Hangar Flats is a high grade gold-silver-antimony-tungsten discovery made in 2009 by Midas Gold and these most recent drill intercepts are step outs and infill holes from the 2009 discovery holes. Highlights of assays from these recent drill holes are summarized in the table below and the full results for the twenty-six holes released today, as well as results from our eleven-hole 2009 drill program, are provided in the attached table.
Highlights of 2010 Drilling at Hangar Flats
| Hole ID | Target Area | From (m) | To (m) | Interval (m)* | Gold (g/t) |
|---|---|---|---|---|---|
| MGI-10-12 | Hangar Flats | 72.2 | 108.8 | 36.6 | 4.08 |
| Including | 74.1 | 90.5 | 16.5 | 7.36 | |
| MGI-10-13 | Hangar Flats | 73.2 | 143.4 | 70.3 | 2.60 |
| And | 162.5 | 205.1 | 42.7 | 2.06 | |
| And | 213.4 | 220.8 | 7.5 | 1.27 | |
| And | 227.1 | 228.0 | 0.9 | 8.66 | |
| MGI-10-26 | Hangar Flats | 10.7 | 187.5 | 176.8 | 2.43 |
| Including | 126.5 | 134.1 | 7.6 | 7.09 | |
| And | 195.1 | 263.7 | 68.6 | 1.82 | |
| MGI-10-27 | Hangar Flats | 26.2 | 143.3 | 117.0 | 2.50 |
| Including | 75.6 | 89.3 | 13.7 | 6.23 |
* Based upon the current 3D interpretation of the Hangar Flats deposit the intervals quoted here are at or near true thickness and are composited using a 0.5 g/t cutoff and may include short intervals of internal waste below the cutoff grade. Reported intervals may not correspond precisely to the ‘From’ and ‘To’ due to rounding.
“Hangar Flats has rapidly advanced from a small historical mineral occurrence, to a major drilled discovery, through an initial round of exploration drilling, and in-filled to standards suitable for formal resource estimation, all in less than two years,” said Stephen Quin, President and CEO of Midas Gold. “With drilling now complete, an updated mineral resource estimate is underway and will be released in the near future. Hangar Flats is one of three significant gold deposits in the Golden Meadows project area, in addition to numerous other gold occurrences similar in scale to Hangar Flats prior to the 2009- 10 drilling, suggesting significant additional gold potential at Golden Meadows.”
These drill results, along with those from previous drilling, indicate that the Hangar Flats deposit comprises a series of stacked ellipsoidal lenses, with best grades and thicknesses near the trace of the Meadow Creek Fault System, a major district-scale ore controlling structure. The thick, higher grade intercepts reported above and in the table attached are from the core of the deposit, while the narrower, lower grade intercepts in the table attached are from the margins of the deposit. A new resource model for Hangar Flats will be completed in Q1/11.
For current drill hole locations, please view the accompanying maps and section.
2010 Exploration Program at Golden Meadows
The drilling at Hangar Flats was undertaken as part of a forty-four hole, 12,893m drill program completed in 2010 by Midas Gold Inc., which program focused on the Hangar Flats and West End areas. All drilling was undertaken with HQ core drilling, with core logged and sawn in half on site, and samples sent offsite for assay.
About the Golden Meadows Project
The Golden Meadows Project encompasses most of the historic Stibnite-Yellow Pine Mining District in South-central Idaho where Midas Gold, Inc. (a private company), owns or controls over 4,000 hectares in the district and recently entered into a letter of intent with Vista Gold Corp. to combine Vista’s Yellow Pine deposit, which Vista has reported as containing significant gold mineral resources in the Golden Meadows project area, with Midas Gold’s interests, in a new company (“Newco”). As a result, Vista will become a 35% shareholder of Newco.
The Stibnite-Yellow Pine district lies at the intersection of major, regional fault systems and lies on the margins of the western ring fractured margin of the Tertiary Thunder Mountain caldera complex. Gold mineralization within the Golden Meadows Project appears to be an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic gold production of approximately one million ounces from the district came primarily from high grade underground gold-antimony production immediately north of Hangar Flats from 1928-38, open pit mining at Yellow Pine from 1938-52, or from heap leaching of oxide gold occurrences, including West End and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little attention in modern exploration. The principal gold deposits identified to date within the Golden Meadows Project are Hangar Flats and West End, along with Vista’s Yellow Pine deposits, all associated with significant structural corridors. In addition, numerous other smaller gold occurrences have been identified, some of which have historic gold resource estimates, and which remain to be explored for their deeper sulphide potential.
For further information about Midas Gold, Inc., please contact: Investor Relations at (509) 927-GOLD (4653) or e-mail Midas at info@midasgoldinc.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 and reviewed by Stephen P. Quin, P. Geo., President and CEO of Midas Gold, Inc. The exploration activities at the Hangar Flats deposit were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
Gold is analyzed by fire assay fusion with 30g charges with an atomic absorption spectroscopy or gravimetric finish for gold. Analyses are carried out by ALS CHEMEX in their Reno and Winnemucca, Nevada laboratories. Blank and standard samples are used for quality assurance and quality control. After the completion of the drilling programs, random check assays were analyzed at Inspectorate and American Assay Laboratories in Reno, Nevada.
Forward-Looking Statements
This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and Midas Gold, Inc. (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “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” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward- looking statements, 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 statements 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 statements.
Cautionary Note - The United States Securities and Exchange Commission (“SEC”) permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Midas Gold uses certain terms such as “measured”, “indicated”, “inferred”, and “mineral resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. However, Midas Gold is not an SEC registered company. This press release is NOT for U.S. distribution and is not a solicitation or a prospectus for stock.
MIDAS GOLD ANNOUNCES APPOINTMENT OF STEPHEN P. QUIN AS PRESIDENT & CEO
Spokane, Washington - Midas Gold Inc. (a private company) today announced the appointment of Stephen P. Quin, P.Geo., as President and Chief Executive Officer of Midas Gold, effective January 1, 2011.
“Stephen Quin brings a wealth of experience to Midas Gold,” said Frank Duval, retiring President of Midas Gold, Inc. “Mr. Quin’s experience in exploration, feasibility studies, permitting and project finance, as well as mine development and operations, positions Midas Gold to comprehensively and rapidly advance its Golden Meadows project located in the Yellow Pine - Stibnite gold district of Idaho.”
“I am excited to be joining Midas Gold at this critical juncture in its history,” said Stephen Quin, President & CEO of Midas Gold, Inc. “The consolidation of the Yellow Pine - Stibnite district as its Golden Meadows project represents a tremendous opportunity for value creation for the shareholders of Midas Gold, new and old. Not only are there significant gold mineral resources already defined, but there is exceptional exploration potential as a result of the historic fragmented ownership of the district that prevented its efficient and effective exploration. Now that the district is on the verge of being consolidated under one roof for the first time since gold was first discovered in the early 1900’s, exploration can proceed unconstrained by artificial property boundaries. Further, the significant sulphide potential below the traditional oxide gold targets represents a vast, largely untested, gold target. Continuing on the heels of two highly successful drilling programs in 2009 and 2010, we are currently planning our 2011 campaign, which will further evaluate the potential of the Golden Meadows project,” stated Mr. Quin. “At this transition point for the Company, I would like to also acknowledge the considerable effort put forward by Frank Duval and his team over the preceding years to effect the successful consolidation of the district, the compilation of many years of historic mining and exploration data, and two years of exploration that have considerably expanded the gold potential in the district.”
Biography for Stephen Quin
Prior to joining Midas Gold, Mr. Quin was President of Capstone Mining Corp., an intermediate copper producer with mines in Canada and Mexico.
In 2005, Mr. Quin co-founded Sherwood Copper Corporation and was appointed President & CEO. Under his leadership, Sherwood acquired the Minto exploration project and advanced it through feasibility and into production in 2007, on time and on budget, and subsequently doubled mill capacity and mineral resources. In early 2008, Mr. Quin led the acquisition of the high grade Kutcho copper-zinc deposit for Sherwood, currently the subject of an on-going prefeasibility study. In late 2008, Mr. Quin steered Sherwood through the combination with Capstone Mining, owner and operator of the Cozamin mine in Mexico. On completion of the merger, Mr. Quin assumed the role of President & COO of Capstone, which now has a market capitalization of approximately C$900 million.
From 1987 to 2005, Mr. Quin was a senior executive with Miramar Mining Corporation, where he co- led the acquisition and directed the exploration of the Con Mine and, subsequently, the Hope Bay project in Canada; Hope Bay became one of the largest high grade gold deposits in Canada. Miramar was acquired for approximately $1.3 billion by Newmont Canada in 2007. From 1994 to 2000, Mr. Quin was a senior executive with Northern Orion Exploration Ltd., an affiliate of Miramar, where he led the acquisition and subsequent exploration of the Agua Rica copper-gold-molybdenum porphyry in Argentina in a joint venture with BHP, as well as the San Jorge copper-gold project in Argentina.
Mr. Quin graduated with a B.Sc. (Honours) in Mining Geology from the Royal School of Mines, London, England in 1980. He is a Professional Geoscientist registered with the Association of Professional Engineers and Geoscientists of British Columbia, a Fellow with the Geologic Association of Canada and Society of Economic Geologists, a Member of the Canadian Institute of Mining & Metallurgy and the Institute of Materials, Minerals and Mining (UK). Mr. Quin also serves on the board of a number of publicly listed mining companies and industry associations.
About Midas Gold
Midas Gold is a private company that controls the majority of the Yellow Pine - Stibnite district in Idaho, a district that encompasses a number of historic past producing mines, as well as significant mineral resources. Additional details regarding Midas Gold’s mineral resources at Golden Meadows will be announced shortly. On December 7, 2010, Vista Gold Corp. (TSX & NYSE Amex Equities: VGZ) announced that it had entered into a letter of intent to combine Vista’s Yellow Pine deposit, which Vista has reported as containing significant gold mineral resources in the Golden Meadows project area, with Midas Gold’s interests, in a new company (“Newco”). As a result, Vista will become a 35% shareholder of Newco. Mr. Quin will continue as President & CEO of Newco when this combination is completed.
Additional information on Midas Gold, Newco and its Golden Meadows project will be released over the coming months.
Forward Looking Information
This new release contains forward-looking statements within the meaning thereof under the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning thereof under Canadian securities laws. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that Midas Gold expects or anticipates will or may occur in the future, including such things as, estimates of mineral resources, the conversion of inferred mineral resources to measured and indicated resources, the conversion of mineral resources to mineral reserves, the potential to expand the resource base at the Golden Meadows project, the timing for completion and expected results of NI43-101 resource estimates by Midas Gold relating to its properties within the Golden Meadows project, potential gold resources at Vista’s Yellow Pine gold project, the entering into a definitive agreement with Midas Gold, the timing for the completion of the definitive agreement and completion of the proposed transaction between Midas Gold and Vista, and other such matters are forward-looking statements and forward-looking information. When used in this press release, the words “optimistic”, “potential”, “indicate”, “expect”, “intend”, “hopes”, “believe”, “may”, “will”, “could”, “if”, “anticipate,” “when”, and similar expressions are intended to identify forward-looking statements and forward-looking information. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, negotiating a satisfactory definitive agreement and other related documentation, timing for completing the definitive agreement, the combination and transactions contemplated thereunder, obtaining board and regulatory approvals; tax consequences of the proposed combination; the ability to integrate the operations of Newco; uncertainty of mineral resource estimates; estimates of results based on such mineral resource estimates; risks relating to cost increases for capital and operating costs; risks relating to delays in the completion of future drilling programs; risks related to the adequacy of the design of such drilling programs, risks related to the ability to obtain the necessary permits; risks of shortages and fluctuating costs of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; potential effects on Midas Gold’ operations of environmental regulations in the areas in which it operates; and risks due to legal proceedings. Although Midas Gold has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, Midas Gold assumes no obligation to update any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.
Quality Assurance & Regulatory Compliance
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & CEO of Midas Gold Inc.
Some of the mineral resources at Golden Meadows are categorized as indicated and some as inferred mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
Cautionary Note - The United States Securities and Exchange Commission (“SEC”) permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Midas Gold uses certain terms such as “measured”, “indicated”, “inferred”, and “mineral resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. However, Midas Gold is not an SEC registered company.