Hole MGI-11-127 intersects 130.8m at 2.25g/t Au and 27.4m at 1.83 g/t Au at Yellow Pine
Hole MGI-11-145 intersects 36.7m at 2.08g/t Au, 9.1g/t Ag, 0.56% Sb and 0.10% W at Yellow Pine
Hole MGI-12-168 intersects 54.9m at 1.14g/t Au, 24.6 g/t Ag and 1.56% Sb below Hangar Flats
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced additional assay results from its ongoing 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 Hangar Flats and Yellow Pine deposits, with continued progress in both confirming and expanding previously defined mineralization.
Highlights of assay results from the most recent holes are summarized in Table 1 below, with more detailed results in Table 2 at the end of the release. Previous 2011 assay results were reported in other news releases that can be found on Midas Gold’s web site at www.midasgoldcorp.com. 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
(1) The bottom portions of these holes are incomplete and are not reported.
(2) 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.
(3) These holes bottomed in mineralization.
“These most recent assay results from our ongoing drilling program at our Golden Meadows Project continue to demonstrate the large scale and pervasive mineralization in and around the Yellow Pine and Hangar Flats deposits,” said Stephen Quin, President and CEO of Midas Gold Corp. “Our drilling at Hangar Flats, as has been seen in prior and the current announcements for the Yellow Pine deposit, shows strong mineralization over significant intervals, beneath pits used to limit our prior mineral resource estimates. We are also pleased that the US Forest Service has issued permits for our winter drilling campaign in a timely manner and in accordance with applicable rules,” he said.
2012 Drill Program
As reported on January 11, 2012, Midas has commenced a 16,000m to 17,000m initial drilling program that is anticipated to be completed in the first five months of 2012. The US Forest Service recently issued permits for the component of this work program being conducted on Federal lands and permits are already in place for private lands controlled by Midas Gold. Significant additional drilling to be conducted over the balance of the year, subject to applicable permitting, will be focused on continued in-fill and step out drilling on the three known mineral deposits (Hangar Flats, West End and Yellow Pine) as well as exploring for completely new deposits within the Golden Meadows property.
The results reported herein are for some holes completed in late 2011 as well as some of the first holes completed in 2012. Drill results from 2011 and early 2012 will be used to complete updated mineral resource estimates for all three deposits, anticipated for completion in Q2/12, and will be incorporated an independent Preliminary Economic Assessment, scheduled for completion in Q3/12. Drilling completed for the balance of 2012 will be used to support updated mineral resource estimates and a Pre-feasibility Study scheduled for completion in 2013.
Results from two core holes and one RC hole, drilled to in-fill areas within the main Yellow Pine deposit area and the Homestake portions of the Yellow Pine deposit are reported herein.
Drill hole MGI-11-127 was collared on the northwest flank of the historic Yellow Pine pit and was drilled to a total depth of 409.4m. This drill hole cut a thick interval of strong mineralization that is consistent with our mineral resource block models. Antimony and silver assays are pending below 155.1m for this hole. Results from a second core hole, MGI-11-145, which was collared approximately 150m southwest of drill hole MGI-11-127, was drilled to a total depth of 409.5m and also cut a thick zone of alteration and mineralization that was consistent with our mineral resource block models.
A single vertical RC drill hole, MGI-11-156, was drilled to test the down-dip extension of the shear vein in the Clark Tunnel-Homestake area. This drill hole cut two lenses of mineralization, one outside of the 2011 resource, but within the pit used to constrain that resource, and the other approximately 50m beneath the bottom of the pit shell used to limit our mineral resource estimates. These intercepts demonstrate significant thicknesses of good grade gold mineralization in this portion of the Yellow Pine deposit.
Results for twelve additional holes completed in late 2011 and early 2012 in the Hangar Flats deposit area are reported herein. Late fall and winter drilling have been concentrated in two areas at Hangar Flats: (1) near the base of the hill, near the former Hecla heap leach pad and, (2) upslope, approximately 300-600m along strike, near the surface projections of deeper gold-antimony mineralization intersected in 1950’s era US Department of Defense’s Defense Minerals Exploration Administration (“DMEA”) underground exploration and drilling activities.
Drilling adjacent to the former Hecla heap leach facility cut significant mineralization in a series of six RC holes testing down-dip and along strike from previously drilled areas. Hole MGI-12-165, an inclined hole directed to the northwest, cut strong mineralization, including significant antimony at depth and down dip of previous drill intercepts.
Drill holes MGI-12-168, 12-169 and 12-171 fanned to the northwest and northeast from a drill pad approximately 75m to the northeast of drill hole MGI-12-165 and all cut significant stacked mineralized lenses. Strong, pervasive alteration and mineralization occurred in the bottoms of drill holes MGI-12-168 (which ended in mineralization approximately 70m below the pit used to limit prior mineral resource estimates) and drill hole MGI-12-169, which also ended in strong mineralization, approximately 40m beneath the resource-limiting pit.
Approximately 150m farther to the east-northeast, two RC holes (MGI-12-173 and 12-175) tested the along strike extensions of the zones intersected in MGI-12-168 and 12-169. Drill hole MGI-12-173, drilled to the southeast, cut several broad zones of lower grade mineralization with narrower higher grade intercepts. Results are pending for drill hole MGI-12-175.
Results from six holes drilled east of the Meadow Creek Fault to test the up-dip projection of the deep DMEA zone, indicate the up-dip projection of this zone horsetails out from a single (20-40m thick) higher grade (2-7 g/t gold) lens at depth to four or five, thinner, lower grade (0.1-1.0 g/t gold) lenses up-dip and farther away from the Meadow Creek Fault Zone. Drill hole MGI-11-162, a vertical core hole drilled closest to the Meadow Creek Fault Zone, cut five 5-16m thick lenses with an aggregate thickness of approximately 42m up-dip, including a 15.5m intercept with a length weighted average grade of 3.25 g/t gold. Drill hole MGI-12-166, a vertical core hole, which collared approximately 60m east of MGI-11-162 to a depth of 309.1m, cut only thin intercepts with the best intercept averaging 4.57 g/t gold over 4.6m, indicating the mineralization is fading to the east in this area, which is consistent with what is seen further south.
Drill holes MGI-12-167, 12-170, 12-174 were vertical RC holes and MGI-12-178 was an inclined RC hole; all were collared 100-150m east of the Meadow Creek Fault to test a series of historic trench intercepts and Hecla Mining Company RC holes drilled in the late 1980’s. These holes all cut thin, but persistent lower grade zones ranging in true width from 4-9m in thickness, up-dip of the deeper DMEA lens. Holes currently in progress are testing the more favorable areas, closer to the Meadow Creek Fault.
To view the locations of current drill holes, please click here.
For further information about Midas Gold Corp., please contact:
Liz Caridi - Manager, Investor Relations
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 3 metres of internal waste. Internal waste has been assigned a nominal grade of 0.0g/t. Composites above cut-off grade, but less than 4.6 metres 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 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 deposit located at the northeast end of the Yellow Pine deposit and 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.
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.
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 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. 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 February 27, 2012
(1) Assays for portions of this hole were previously reported
(2) The bottom portions of these holes are incomplete and are not reported.
(3) 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.
(4) These holes bottomed in mineralization.