MIDAS GOLD INFILLS & EXTENDS YELLOW PINE & WEST END DEPOSITS, GOLDEN MEADOWS PROJECT, IDAHO
Hole MGI-11-057 intersects 100.3m of 2.95g/t Au & 117.7m of 2.29g/t Au, infilling Yellow Pine Holes MGI-11-135 intersects 35.1m of 1.85g/t Au, 10.2g/t Ag and 0.45% Sb, extending Yellow Pine Holes MGI-11-139 & -149 intersect 70.1m of 2.19g/t Au and 71.6m of 4.21 g/t Au at West End, respectively
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced additional assay results from its 2011 core and reverse circulation (“RC”) drilling program on its Golden Meadows Project in the Stibnite-Yellow Pine District, Idaho. Results include infill and extensions to the Yellow Pine deposit and extensions to the West End deposit below the previously modeled mineral resource.
Highlights of assay results from the most recent holes are summarized in the Table 1, below, with more detailed results in Table 2, at the end of the release. Additional results from the ongoing program will be released when assays are received and validated.
Table 1: Highlights of Recent Drill Results from Golden Meadows
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(1) | Gold (g/t) | Silver (g/t) | Antimony (%) |
|---|---|---|---|---|---|---|---|---|
| MGI-11-057(2) | Core | Yellow Pine | 30.2 | 130.5 | 100.3 | 2.95 | 2.6 | 0.07 |
| And | 136.3 | 253.9 | 117.7 | 2.29 | 1.6 | 0.17 | ||
| MGI-11-061(2) | Core | Yellow Pine | 235.9 | 342.6 | 106.7 | 2.70 | 2.0 | 0.01 |
| Including | 306.0 | 329.2 | 23.2 | 3.81 | 2.3 | 0.00 | ||
| MGI-11-116 | RC | Yellow Pine - Homestake Area | 96.0 | 134.1 | 38.1 | 3.03 | 10.2 | 0.43 |
| Including | 103.6 | 129.5 | 25.9 | 3.97 | 13.4 | 0.58 | ||
| MGI-11-135 | RC | Yellow Pine - Monday Tunnel | 51.8 | 86.9 | 35.1 | 1.85 | 10.2 | 0.45 |
| MGI-11-137 | RC | West End | 83.8 | 117.4 | 33.5 | 2.74 | 0.8 | 0.01 |
| And | 125.0 | 155.5 | 30.5 | 2.02 | 0.7 | 0.00 | ||
| And | 175.3 | 184.4 | 9.1 | 0.90 | 2.7 | 0.01 | ||
| MGI-11-139 | RC | West End | 254.5 | 259.1 | 4.6 | 1.50 | 0.2 | 0.00 |
| And | 263.7 | 333.8 | 70.1 | 2.19 | 1.1 | 0.00 | ||
| Including | 269.8 | 324.6 | 54.9 | 2.63 | 1.3 | 0.00 | ||
| And | 341.4 | 349.0 | 7.6 | 0.60 | 0.9 | 0.00 | ||
| MGI-11-140 | RC | Yellow Pine - Monday Tunnel | 61.0 | 120.4 | 59.4 | 2.80 | 4.5 | 0.10 |
| MGI-11-149 | RC | West End | 0.0 | 71.6 | 71.6 | 4.21 | 3.0 | 0.01 |
| Including | 13.7 | 65.5 | 51.8 | 5.37 | 3.6 | 0.01 |
(1) Based upon the current 3D interpretation of the Hangar Flats, West End 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.
“The results of our recent drilling, outside of the previously defined mineral resource limits, has once again demonstrated the outstanding exploration potential of our Golden Meadows Project in Idaho,” said Stephen Quin, President and CEO of Midas Gold Corp. “Drilling at the south end of the Yellow Pine deposit, combined with the historic underground drilling and sampling data from the Monday Tunnel, our 2010 ground geophysical surveys and our 2011 Airborne EM survey, clearly demonstrates that the large Yellow Pine mineralized system is open to the south, towards the Hangar Flats deposit, along the trace of the highly productive Meadow Creek Fault System,” he said. “In addition, drilling at West Endcut thick intervals of strong gold mineralization up to 100 metres below the modeled mineral resource limiting pit bottom and indicates potential for future resource expansions on this large gold system.”
Previous 2011 assay results were reported in other news releases that can be found on Midas Gold’s web site at www.midasgoldcorp.com.
2011 Exploration Program
A total of 109 holes (42 core, 57 RC and 11 pre-collar RC) totaling 25,360 metres were completed during the 2011 field season. This includes 10,897 metres of RC and 12,230 metres of core drilling. 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, two reverse circulation rigs and a single sonic rig are currently on site and drilling will recommence once crews return from holiday break.
Yellow Pine - Monday Tunnel Extension
Four fanned RC holes (MGI-11-135, -138, -140, and -141), totaling 1,066.8 metres, were completed off a single pad several hundred metres southwest of the limits of the past producing Yellow Pine pit and northeast of a zone of mineralization reportedly cut in the historic Monday Tunnel during 1920’s and 1930’s era exploration and development work. The holes tested below and on strike of the mineralization intersected in the historic Monday Tunnel and underground drill intercepts completed from the tunnel. Results were highly encouraging and are consistent with Midas Gold’s interpretations of the mineralization in this area, with the three of four holes for which results are available hitting significant mineralization along a faulted contact between quartz monzonite to the northwest and altered metasedimentary rocks, mostly sericitized quartz biotite schists, to the southeast. The strongest mineralization occurs in a steeply west to vertical dipping lens within the intrusive rocks, with a broad, low grade zone of more diffuse mineralization in the metasedimentary rocks to the southeast.
Yellow Pine - Infill Drilling
Infill drilling within the Yellow Pine mineral resource estimate continues to demonstrate significant thicknesses of good grade gold mineralization, such as holes MGI-11-057 and -061 (partial results for which were previously announced) and holes MGI-11-105 and -115, while holes completed in the Homestake area on the northeastern end of the Yellow Pine deposit (including holes MGI-11-098, -116, -117 and -128) continue to intercept one or more stacked zones of gold mineralization in an area with limited mineral resources based on prior estimates, supporting the potential to define additional mineral resources in this area.
West End
In the West end area, nine RC holes were pre-collared and five of these holes were completed in 2011 totaling 1,345.4 metres, less than originally planned due to the late start to drilling in mid-2011. Holes MGI-11-120, -121, -122 and -148 were pre-collars only and drilling will be completed at a later date. Holes MGI-11-137, -139, -142, -149, and -151 were all fill-in or step out holes within the main West End deposit area. Several of these holes were drilled well below the modeled pit to explore the system at depth and all cut significant gold mineralization.
MGI-11-137 was a vertical hole drilled approximately 140m southwest of 2010 hole MGI-10-33 (44.8m grading 1.61g/t Au) and 125m south-southwest of MGI-10-40 (20.1m grading 1.51g/t Au and 48.8m grading 1.51g/t Au). The hole successfully intersected mineralization approximately 60m below the bottom of the modeled resource limiting pit, with increasing grades at depth.
MGI-11-139 was drilled approximately 200m east of and down dip of 2010 hole MGI-10-48 (which cut three strong intercepts, 47m grading 2.64g/t Au, 36m grading 1.64g/t Au and 38m grading 1.44g/t Au). Hole MGI-11-139 cut through a repeated section of weaker mineralization over a 125m interval and, below 264 metres downhole, intersected a thick interval (greater than 79m) of more strongly altered and mineralized intrusive approximately 100 metres below the bottom of the modeled resource limiting pit.
MGI-11-142, drilled vertically, was a step-out hole situated northeast of MGI-10-48 (47m grading 2.64g/t Au, 36m grading 1.64g/t Au and 38m grading 1.44g/t Au) and intersected four thick zones of gold mineralization, including three zones below the modeled resource pit and down dip from the 2010 drill hole intercepts. MGI-11-149, drilled vertically, was a confirmation drill hole designed to fill-in a sparsely drilled portion of the main West End deposit and cut mineralization where expected. Hole MGI-11-151, also drilled vertically, was an exploration hole drilled west of the main West End fault to evaluate an area near where rock samples in 2010 encountered good grades, and successfully intercepted 2.08g/t Au over 18.3m, consistent with the rock samples.
With all West End assays now available, geologic modeling in support of completing an updated mineral resource estimate has commenced and will incorporate the results of 2010 and 2011 drilling not previously utilized in the mineral resource estimate for West End that was announced on February 22, 2011.
Hangar Flats
Results from three holes, MGI-11-103, -119 and -91 (reported previously), collared west of the Meadow Creek Fault and drilled in an easterly direction across the trace of the fault were encouraging and cut significant mineralization, but intersected the Meadow Creek Fault at an orientation slightly different than that predicted, indicating the fault likely cuts off some mineralization predicted by the current mineral resource model. Results from additional holes drilled in this area (MGI-11-134 and -161) and portions of MGI-11-119 are pending.
Flying Dutchman Exploration
Three RC holes (MGI-11-129, -130 and -131) totaling 829.1 metres were drilled to test 1975-era IP anomalies in the project camp and shop area. The main, north-south trending, Scout prospect is several hundred metres north and east of the area evaluated by these drill holes. The holes were, in part, condemnation holes to ensure any additional infrastructure in the camp and shop area was not constructed without evaluating these geophysical features. All the holes hit scattered, highly anomalous gold mineralization, but below cutoff grades utilized for reporting purposes. Locally, weakly anomalous copper, zinc, antimony and tungsten also were present.
Illustrations
Click here to view the locations of current drill holes and other associated maps.
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 Exploration 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. 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. Umpire samples are routinely submitted to third party labs and 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.
Hangar Flats is a high-grade gold-silver-antimony-tungsten discovery made in 2009 and these most recent drill intercepts are infill and 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 1930s through the mid-1950s. The Homestake area, 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, ground 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. The West End deposit was the site of open pit mining with heap leach recovery of gold from the 1970s to the late 1990s.
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.
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: Assay Results to Accompany Midas Gold Corp. News Release dated January 9, 2012
| Hole ID | Type | Target Area | From (m) | To (m) | Interval (m)(1) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) |
|---|---|---|---|---|---|---|---|---|---|
| MGI-11-057(2) | Core | Yellow Pine | 30.2 | 130.5 | 100.3 | 2.95 | 2.6 | 0.07 | 0.002 |
| And | 136.3 | 253.9 | 117.7 | 2.29 | 1.6 | 0.17 | 0.003 | ||
| MGI-11-061(2) | Core | Yellow Pine | 235.9 | 342.6 | 106.7 | 2.70 | 2.0 | 0.01 | 0.001 |
| Including | 306.0 | 329.2 | 23.2 | 3.81 | 2.3 | 0.00 | 0.001 | ||
| MGI-11-098 | Core | Yellow Pine - Homestake Area | 65.5 | 100.0 | 34.4 | 2.43 | 2.3 | 0.00 | 0.001 |
| MGI-11-103 | Core | Hangar Flats | 143.3 | 151.8 | 8.5 | 1.49 | 3.4 | 0.09 | 0.003 |
| And | 157.9 | 165.1 | 7.2 | 1.82 | 1.1 | 0.16 | 0.003 | ||
| And | 184.3 | 196.1 | 11.9 | 4.84 | 3.8 | 0.02 | 0.002 | ||
| And | 211.8 | 258.2 | 46.3 | 3.17 | 1.9 | 0.09 | 0.018 | ||
| MGI-11-105 | Core | Yellow Pine | 221.4 | 240.8 | 19.4 | 1.06 | 0.6 | 0.00 | 0.001 |
| And | 281.9 | 286.5 | 4.6 | 0.56 | 0.2 | 0.00 | 0.000 | ||
| And | 313.9 | 321.6 | 7.6 | 0.58 | 0.8 | 0.00 | 0.001 | ||
| MGI-11-115 | Core | Yellow Pine | 100.0 | 126.8 | 26.8 | 1.51 | 2.2 | 0.00 | 0.003 |
| MGI-11-116 | RC | Yellow Pine - Homestake Area | 96.0 | 134.1 | 38.1 | 3.03 | 10.2 | 0.43 | 0.001 |
| Including | 103.6 | 129.5 | 25.9 | 3.97 | 13.4 | 0.58 | 0.001 | ||
| MGI-11-117 | RC | Yellow Pine - Homestake Area | 7.6 | 39.6 | 32.0 | 3.15 | 3.4 | 0.11 | 0.003 |
| MGI-11-119 | Core | Hangar Flats | 124.1 | 157.9 | 33.8 | 2.60 | 3.1 | 0.05 | 0.004 |
| MGI-11-128 | Core | Yellow Pine - Homestake Area | 39.6 | 54.9 | 15.2 | 2.81 | 1.6 | 0.00 | 0.002 |
| And | 64.0 | 96.0 | 32.0 | 2.32 | 1.8 | 0.00 | 0.001 | ||
| MGI-11-130 | RC | Flying Dutchman | 80.8 | 85.3 | 4.6 | 1.01 | 2.1 | 0.01 | 0.003 |
| MGI-11-132 | Yellow Pine - Homestake Area | 31.7 | 36.3 | 4.6 | 0.67 | 1.6 | 0.00 | 0.004 | |
| And | 42.1 | 51.2 | 9.1 | 0.73 | 0.9 | 0.00 | 0.000 | ||
| And | 55.8 | 61.9 | 6.1 | 2.16 | 1.2 | 0.00 | 0.002 | ||
| MGI-11-135 | RC | Yellow Pine - Monday Tunnel | 51.8 | 86.9 | 35.1 | 1.85 | 10.2 | 0.45 | 0.003 |
| MGI-11-136 | Core | Yellow Pine - Homestake Area | 40.5 | 56.4 | 15.8 | 0.84 | 0.4 | 0.00 | 0.002 |
| MGI-11-137 | RC | West End | 83.8 | 117.4 | 33.5 | 2.74 | 0.8 | 0.01 | 0.001 |
| And | 125.0 | 155.5 | 30.5 | 2.02 | 0.7 | 0.00 | 0.002 | ||
| And | 175.3 | 184.4 | 9.1 | 0.90 | 2.7 | 0.01 | 0.002 | ||
| MGI-11-139 | RC | West End | 254.5 | 259.1 | 4.6 | 1.50 | 0.2 | 0.00 | 0.002 |
| And | 263.7 | 333.8 | 70.1 | 2.19 | 1.1 | 0.00 | 0.002 | ||
| Including | 269.8 | 324.6 | 54.9 | 2.63 | 1.3 | 0.00 | 0.002 | ||
| And | 341.4 | 349.0 | 7.6 | 0.60 | 0.9 | 0.00 | 0.002 | ||
| MGI-11-140 | RC | Yellow Pine - Monday Tunnel | 61.0 | 120.4 | 59.4 | 2.80 | 4.5 | 0.10 | 0.003 |
| And | 164.6 | 185.9 | 21.3 | 0.69 | 0.5 | 0.01 | 0.002 | ||
| MGI-11-141 | RC | Yellow Pine - Monday Tunnel | 132.6 | 147.8 | 15.2 | 1.02 | 1.2 | 0.01 | 0.005 |
| MGI-11-142 | RC | West End | 50.3 | 56.4 | 6.1 | 1.34 | 1.6 | 0.00 | 0.003 |
| And | 65.5 | 71.6 | 6.1 | 2.77 | 1.1 | 0.00 | 0.003 | ||
| And | 103.6 | 140.2 | 36.6 | 0.93 | 4.4 | 0.01 | 0.005 | ||
| And | 153.9 | 195.1 | 41.1 | 1.68 | 2.8 | 0.01 | 0.002 | ||
| And | 210.3 | 245.4 | 35.1 | 0.67 | 1.4 | 0.00 | 0.001 | ||
| And | 254.5 | 301.8 | 47.2 | 0.60 | 0.6 | 0.00 | 0.002 | ||
| MGI-11-149 | RC | West End | 0.0 | 71.6 | 71.6 | 4.21 | 3.0 | 0.01 | 0.002 |
| Including | 13.7 | 65.5 | 51.8 | 5.37 | 3.6 | 0.01 | 0.003 | ||
| MGI-11-151-RC | RC | West End | 16.8 | 35.1 | 18.3 | 2.08 | 2.4 | 0.00 | 0.006 |
| And | 56.4 | 65.5 | 9.1 | 0.77 | 0.5 | 0.00 | 0.002 |
(1) Based upon the current 3D interpretation of the Hangar Flats, West End 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.