Hole MGI-12-223 intersects 44.8m at 2.26g/t Au, 0.59% Sb at Yellow Pine
Hole MGI-12-281 intersects 95.3m at 2.80g/t Au at Yellow Pine
Hole MGI-12-286 intersects 110.3m at 2.23g/t Au, including 26.7m at 3.97g/t Au, at West End
Hole MGI-12-293 intersects 132.6m at 3.56g/t Au & 0.43% Sb, including 36.9m at 4.92g/t Au & 1.51% Sb, at Yellow Pine
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 from Yellow Pine drilling include confirmation holes delineating high-grade gold-antimony mineralization and step-out holes expanding the limits of gold mineralization beyond previously defined mineral resource boundaries. Results from West End drilling continue to expand the known limits of gold mineralization, both at depth and laterally from boundaries reported in mineral resource estimates released May 2012, and demonstrate the presence of higher grades within the overall mineral resource.
Some of the more significant assay results from the most recent holes are highlighted 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 Drill Results from Golden Meadows
|MGI-12-223 (1)||Core||Yellow Pine||44.5||89.3||44.8||2.26||9.3||0.59|
|MGI-12-281 (2)||Core||Yellow Pine||186.4||281.6||95.3||2.80||1.8||0.00|
|MGI-12-284 (1)||RC||West End||51.8||74.7||22.9||2.12||1.6||0.01|
|MGI-12-286 (1)||Core||West End||265.0||375.4||110.3||2.23||1.7||0.00|
|MGI-12-293 (1)(2)||Core||Yellow Pine||124.4||257.0||132.6||3.56||9.7||0.43|
(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. Intervals denoted(1) may be oriented oblique to the trend of the mineralization and true thicknesses may be less than the interval reported. Actual true thicknesses will be determined through 3D modeling as part of the resource estimation process.
(2) These holes bottomed in mineralization.
“We are pleased with the recent results from our ongoing drilling program at our Golden Meadows Project, particularly at Yellow Pine, where recent metallurgical holes have confirmed the presence of high-grade gold-silver-antimony mineralization delineated in historic drill holes,” said Stephen Quin, President and CEO of Midas Gold Corp. “Additional drill results from step-out holes continue to expand the known limits of gold mineralization beyond the boundaries utilized in the mineral resource estimates, both at the Yellow Pine and the West End deposits, demonstrating that we have yet to define the limits of these large mineralized systems,” he said. “Also encouraging is the presence of intercepts at West End with grades well above the average of the mineral resource estimate.” Drilling planned for the fall and winter program is aimed at continuing efforts to convert inferred Yellow Pine mineral resources utilized in Midas Gold’s recent Preliminary Economic Assessment (“PEA”), highlights of which were reported in a news release dated September 4, 2012, to the indicated category and defining the limits of mineralization around the deposit. Additional drilling is also planned to further define the nature and extent of gold-antimony mineralization within the recently reported Scout prospect, to further evaluate the Hangar Flats deposit and to complete geotechnical holes for pit wall stability evaluations.
2012 Drill Program
Midas has completed over 38,000m of core and RC drilling as part of its 2012 drilling program, and currently has four core rigs operating on site after having as many as nine rigs operating over the summer months. Drill results will be utilized to update independent mineral resource estimates for all three know mineral deposits (Hangar Flats, West End and Yellow Pine) by Q2/13 which will support a more detailed PEA or Pre-feasibility Study targeted for completion in the second half of 2013.
Results from thirty holes, drilled to in-fill and step-out from the Yellow Pine pit area and Homestake portions of the Yellow Pine deposit, are reported herein and are located on a map accompanying this release. A number of these holes were drilled around the periphery of the deposit, testing for the limits of the mineralization, where results were expected to not be as strong as in the main part of the mineralized system.
Drill hole MGI-12-293, which was completed to collect material for metallurgical testing and to verify historic assay data, intercepted a thick interval grading 3.56g/t Au, 9.7g/t Ag and 0.43% Sb over 132.6m. This intercept includes a zone within the central portion of the high-grade antimony zone assaying 4.92g/t Au, 14.2g/t Ag and 1.51% Sb over 36.9m. Other significant gold-silver-antimony intercepts include hole MGI-12-223, which cut 2.26g/t Au, 9.3g/t Ag and 0.59% Sb over 44.8m. Since these hole was drilled oblique to the trend of the mineralization due to constraints on collar locations, true thicknesses may be less than the interval reported. Antimony mineralization in the Yellow Pine deposit constitutes a significant potential by-product revenue source in the early years of the preliminary mine plan outlined in Midas Gold’s PEA.
In-fill holes completed to date have generally confirmed inferred mineral resources in the Yellow Pine deposit, with some zones assaying higher grade than predicted and others reporting slightly narrower zones of mineralization than modeled. Drill holes completed from the east side of the historic 1940s – 1950s open-pit in the central portion of the Yellow Pine deposit cut a thicker zone of unmineralized fault material than was modeled in the mineral resource estimate but overall continue to validate inferred mineral resources within the high-grade core of the deposit, including 2.80g/t Au over 95.3m intercepted in hole MGI-12-281.
Five hundred metres to the northeast, in the Homestake portion of the Yellow Pine deposit, recently completed drill holes continue to extend known gold mineralization on the east side of a fault previously thought to limit mineral resources. Previously reported RC drill holes intercepted high grade gold within and across this structure. Step-out diamond drill holes completed this summer have identified extensions of this zone to the northeast, along strike and within metasedimentary units on the southeast side of the structure. Recent intercepts include 2.54g/t Au over 41.0m (MGI-12-263), 1.31g/t Au over 33.7m (MGI-12-276), and 1.45g/t Au over 19.8m (MGI-12-267) and 1.26g/t Au over 23.5m (MGI-12-267). This near-surface zone remains open along strike and at depth.
Results for fifteen drill holes completed this summer in the West End deposit are reported herein and are located on a map accompanying this release.
Recent drilling within the deposit has successfully confirmed the presence of inferred gold mineralization at depth, within the main structural corridor, including some higher grade intercepts within the overall mineral resource such as 3.22g/t Au over 50.3m (including 4.60g/t Au over 32.0m) in hole MGI-12-284 and 3.97g/t Au over 26.7m (MGI-12-286). Recent intercepts occurring within or just below the conceptual resource-limiting pit include 2.23g/t Au over 110.3m (MGI-12-286), 2.81g/t Au over 45.6m (MGI-12-258) and 1.88g/t Au over 52.6m (MGI-12-254). Other drill holes have intercepted significant gold mineralization in the footwall of the main structural corridor, including hole MGI-12-273, cutting 1.52g/t Au over 76.8m. This deposit remains open at depth and to the east beyond the limits of the resource-limiting gold shells and conceptual pits utilized in the mineral resource estimate reported in May of 2012.
Results for five drill holes completed this summer are reported herein and are located on a map accompanying this release.
The majority of drill holes reported herein were completed to verify the lateral continuity of shallowly dipping mineralized zones extending northeast from the main structural corridor of the Hangar Flats deposit. Recent moderate-grade and moderate-width drill intercepts in this area are generally consistent with the inferred mineral resources modeled in this domain, as reported in the mineral resource estimate released June 2012. These include 1.33 g/t Au over 35.7m (MGI-12-189) and 0.78 g/t Au over 21.2m (MGI-12-216). This drilling has further verified the conceptual model for the deposit of high-grade gold-antimony mineralization occurring within the structural corridor of the Meadow Creek Fault Zone and horse-tailing into thinner, lower grade zones to the east.
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 Richard Moses, CPG, Qualified Person and Site Operations 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 6 metres of internal waste. Internal waste has been assigned a nominal grade of 0.0g/t. Composites above cut-off grade, but less than 10 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.
Previous 2011 and 2012 assay results were reported in other news releases that can be found on Midas Gold’s web site at www.midasgoldcorp.com.
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 June 27, 2012 and are detailed in a consolidated technical report entitled “Preliminary Economic Assessment Technical Report for the Golden Meadows Project, Idaho” dated September 21, 2012 (the “Technical Report”) is available under Midas Gold’s profile on SEDAR at www.sedar.com. The Preliminary Economic Assessment outlines a concept for the development of a large scale, long life, low cost open pit gold mining operation producing gold and by-product antimony based on the estimated mineral resource, as well as outlining a number of opportunities for potential enhancement of the conceptual project.
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 is 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 September 24, 2012
|Hole ID||Target Area||Hole Type||Bearing||Inclination||Total Depth|
|Interval (m)||Gold (g/t)||Silver (g/t)||Antimony|
|MGI-12-223 (2)||Yellow Pine||Core||292||-89.5||203.6||44.5||89.3||44.8||2.26||9.3||0.592||0.002|
|MGI-12-254 (2)||West End||Core||333||-76||315.6||220.1||272.6||52.6||1.88||2.8||0.009||0.002|
|MGI-12-255 (2)||West End||Core||278||-77||343.5||225.3||265.0||39.8||1.80||2.2||0.016||0.003|
|MGI-12-273 (2)||West End||Core||104||-76||381.6||121.2||135.2||14.0||1.06||0.5||0.047||0.001|
|MGI-12-281 (3)||Yellow Pine||Core||300||-55||281.6||87.6||107.8||20.1||0.55||2.3||0.005||0.002|
|MGI-12-284 (2)||West End||RC||0||-90||192.0||7.6||19.8||12.2||0.70||2.4||0.007||0.001|
|MGI-12-286 (2)||West End||Core||0||-90||417.0||265.0||375.4||110.3||2.23||1.7||0.004||0.002|
|MGI-12-290 (2)||West End||Core||298||-71||322.2||106.4||117.0||10.7||1.55||0.9||0.019||0.003|
|MGI-12-293 (2) (3)||Yellow Pine||Core||310||-40||257.0||86.9||117.0||30.2||0.77||3.2||0.108||0.003|
|MGI-12-295 (1)||West End||Core||0||-90||378.5||8.5||27.3||18.8||1.32||4.4||0.007||0.003|
(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 generally 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. Intervals denoted (2) may be oriented oblique to the trend of the mineralization and true thicknesses may be less than the interval reported. Actual true thicknesses will be determined through 3D modeling as part of the resource estimation process.
(3) These holes bottomed in mineralization.