Press Releases
MIDAS GOLD'S PLAN OF RESTORATION & OPERATIONS FOR ITS STIBNITE GOLD PROJECT DEEMED COMPLETE
US Forest Service Completeness Determination Allows Project to Proceed into the NEPA Process
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) today announced that the United States Forest Service (“US Forest Service”) has determined that the Plan of Restoration and Operations (“PRO”) filed by Midas Gold Idaho, Inc. on September 21, 2016 for the restoration, re-development and operation of the Stibnite Gold Project (“Project”) in Valley County, Idaho has met the requirements for a plan of operations under US Forest Service regulations. With this determination, the US Forest Service has confirmed that Midas Gold provided sufficient information in the PRO to commence the formal review of the Stibnite Gold Project under the National Environmental Policy Act (“NEPA”).
“Midas Gold is pleased that the US Forest Service has deemed our Plan of Restoration and Operations complete,” said Stephen Quin, President & CEO of Midas Gold Corp. “The US Forest Service determination allows us to formally enter the NEPA process. Federal and State agencies can now begin consideration of Midas Gold’s plan for the repair and restoration of legacy impacts of over 100 years of past mining activity while re-developing the site as a modern mining operation. Our plan was designed from the outset with closure in mind, to be protective of the environment, and to provide significant employment and economic benefits to the local and regional economy.”
The US Forest Service will now commence the review process as required by NEPA. It is expected that the State of Idaho will request that such a review be conducted in a joint review process that allows coordination of Federal, State and other agencies and regulatory bodies for a more efficient, timely and effective review.
“We look forward to working with the Federal and State regulators, Tribal governments, Valley County, and our local communities to ensure that there is a thorough and comprehensive review process for the Stibnite Gold Project,” said Laurel Sayer, President & CEO of Midas Gold Idaho, Inc. “We believe that the Midas Gold team has presented an outstanding plan for the future of the Stibnite Gold Project site that has been developed with input from many interested parties. Our plan is different because we started with the idea that mining and the environment can work hand in hand. We know we can take an area mined for 100 years and use the mineral resources there today to fund the restoration that the local environment desperately needs, while providing jobs and economic benefits. We can and will restore the site to a productive and self-sustaining ecosystem through the implementation of our plan. A key part of this restoration plan is to bring back salmon to the headwaters of the East Fork of the South Fork of the Salmon River for the first time since the 1930s,” she said. “We look forward to working closely and collaboratively with the various governments, communities and interested parties to ensure the Project design is robust, economically beneficial, and protective of the natural environment.”
Next Steps
With the completeness determination, the US Forest Service will now work with Midas Gold to prepare a strong, clear and responsible “proposed action”, based on the PRO, for consideration under NEPA. On finalizing the proposed action, the US Forest Service will seek input in a public comment period to determine the scope of the Project. Once the scoping process is complete, the US Forest Service will work towards preparing an Environmental Impact Statement (“EIS”) for review and filed with the Council on Environmental Quality.
“The team at Midas Gold is committed to continue being open and transparent as we move through the public review of our plan for restoration of the Stibnite Gold Project Site,” said Ms. Sayer. “We will continue to seek and welcome public input. Please visit our website www.midasgoldidaho.com where you can give us your feedback and sign up for a tour of the site in the coming summer. You can review the PRO, and a presentation summarizing key PRO aspects, which will be available on our website in January 2017.”
Midas Gold anticipates that Federal agencies, led by the US Forest Service, and Idaho state agencies (led by the Idaho Department of Lands), will soon enter into a Memorandum of Understanding that will provide clarity on timelines and agency responsibilities with respect to conducting a review of the PRO under NEPA. The process contemplated has been termed the “Idaho Joint Review Process” and is expected to provide for an efficient and timely review by the Federal and State agencies.
Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
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, next steps and courses of action including actions to be taken by the US Forest Service, the State of Idaho and other government agencies and regulatory bodies. 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”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential”, “confirm” or “does not anticipate”, “believes”, “contemplates”, “recommends” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” “be achieved”. In preparing the Forward-Looking Information in this news release, Midas Gold has applied several material assumptions, including, but not limited to, assumptions that the current objectives concerning the Stibnite Gold Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; that the formal review process under the NEPA (including a joint review process involving the US Forest Services, the State of Idaho and other agencies and regulatory bodies) as well as the public comment period, scoping process and EIS will proceed in a timely manner and as expected; that all requisite information will be available in a timely manner such that the PRO and highlights presentation summarizing key PRO aspects may be posted to Midas Gold’s website by January 2017; and that a Memorandum of Understanding will be entered into among US Forest Service and Idaho state agencies and that the timing and content of such Memorandum of Understanding is consistent with Midas Gold’s expectations. Forward-Looking Information involves 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 the Forward-Looking Information. Such risks and other factors include, among others, changes in laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may result in unforeseen results in the review process under the NEPA; uncertainty surrounding input to be received pursuant to the scoping process including but not limited to the public comment period; risks related to dependence on key personnel; risks related to unforeseen delays in the review process including availability of personnel from the US Forest Services, State of Idaho and other agencies and regulatory bodies; as well as those factors discussed in Midas Gold’s public disclosure record. Although Midas Gold has attempted to identify important factors that could affect Midas Gold 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, Midas Gold 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 DRILLING CONFIRMS SCALE OF MINERALIZING SYSTEM AT ITS STIBNITE GOLD PROJECT, IDAHO
MGI-16-414 intersects 200.3m @ 2.2g/t Au, 3.2g/t Ag & 0.13% Sb
(including 6.1m @ 3.6 g/t Au & 1.75% Sb)
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) today announced the additional assay results from its ongoing resource enhancement drill program on the Stibnite Gold Project, Idaho. As reported on August 23, 2016, Midas Gold initiated this drill program with a goal of improving, expanding and de-risking the mineral resources defined in the December 2014 preliminary feasibility study (“PFS”) before commencing a feasibility study (“FS”). A single oriented HQ diameter drill hole was completed in the central portion of the Yellow Pine deposit in order to replace historical drill data and provide improved controls on gold and, particularly, antimony mineralization in this area. Drill hole MGI-16-414 intersected a 200m long continuous interval of significant gold mineralization and, in addition, cut a series of distinct higher grade antimony vein sets, starting at surface. Highlights of the intercept are tabulated below, while complete results are attached at the end of the press release.
Highlights of Recent Assay Results - Yellow Pine Deposit, Stibnite Gold Project
| Hole ID | Type | From (m) | To (m) | Interval (m) | Gold (g/t) | Silver (g/t) | Antimony (%) |
|---|---|---|---|---|---|---|---|
| MGI-16-414 | Core | 0.0 | 200.3 | 200.3 | 2.25 | 3.2 | 0.13 |
| Including | 188.1 | 194.2 | 6.1 | 3.58 | 5.3 | 1.75 |
(1) The reported drill hole intercept widths are close to true widths, but true widths may be slightly less once modelling is completed.
“This 200m intercept of continuous gold mineralization, starting from surface, demonstrates the impressive scale and continuity of the mineralizing system in the Yellow Pine deposit, one of three deposits that comprise our Stibnite Gold Project,” said Stephen Quin, President & CEO of Midas Gold Corp. “The narrower, higher grade antimony intercepts within the much broader gold mineralizing system are consistent with prior drilling and historical mining records. These results improve our confidence in the controls on mineralization at Yellow Pine, and will enhance our resource estimates in this critical, early mine life area,” said Mr. Quin. Drilling is continuing, including additional holes planned for this area. Further drill results from the central and southern portions of the Yellow Pine deposit are pending. “Based on the results of the holes received to date, Midas Gold will be extending its drill program into the first quarter of 2017,” said Mr. Quin.
Hole MGI-16-414
As identified in the 2014 PFS, several areas within the Yellow Pine deposit were identified as potential sites for additional drilling that could result in potential improved confidence, enhanced economic returns through resource conversion and/or extending higher grade areas. Hole MGI-16-414 was drilled at a shallow inclination targeting an area directly beneath the former open pit that had extensive historical, but limited Midas Gold, drilling data due to challenges with drill hole management in this area. Recent structural analysis from pit mapping, reconstruction of historic underground stopes and oriented drill core suggested the majority of previous operators’ drilling was oriented to cut gold mineralized structures at optimum angles but not later faults and associated stibnite vein arrays. Hole MGI-16-414 was oriented to target the east-northeast gold-mineralized breccia zones as well as a series of east-west to west-northwest trending, north dipping antimony vein sets that are exposed in the current high wall of the former open pit. The results for hole MGI-16-14 are slightly lower grade than the legacy drill data for gold in this area (at 2.25g/t Au vs. the block model indicating 2.55g/t Au), which is consistent with the PFS modelling that indicates slightly lower gold grades if historical drill data is excluded from the grade estimate. However, the hole intersected significant stibnite veining outside the limits of the known antimony resource envelope. The antimony vein arrays were the subject of historical underground development and stoping, and subsequent open pit mining, and accounted for much of the past antimony production at Stibnite. Hole MGI-16-414 intersected six discrete zones of antimony veining ranging from 1.5-meters to over 10-meters true thickness and cut the veins at high angles. The drillhole and associated oriented core structural information will facilitate improved modeling of these features in future mineral resource and reserve estimates.
Details of the previous news releases, the Project and the Prefeasibility Study can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
To view the locations of current drill holes, please see the figures at the end of this release.
Sampling Procedures, Quality Control and 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 the Stibnite Gold Project were carried out under the supervision of Richard Moses, C.P.G., Qualified Person and Field Operations Manager for the Stibnite Gold 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 gold 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 silver are reanalyzed using a 50g Fire Assay charge followed by a gravimetric finish. Antimony is analyzed via a 4-Acid digestion with ICP finish with a 5g/t lower reporting limit. Samples reporting values >500g/t antimony are reanalyzed using XRF fusion. Some intervals may not add or subtract correctly due to rounding, but differences are deemed insignificant. Analyses are carried out by ALS Chemex in their Reno and Elko, Nevada and Vancouver, British Columbia laboratories. Umpire samples are routinely submitted to third party labs and blank and standard samples are inserted at appropriate intervals and 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 Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
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 including actions taken with the goal of improving, expanding and de-risking previously defined mineral resources; the timing and availability of further drill results; potential sites for additional drilling that could result in potential improved confidence, enhanced economic returns and/or extending higher grade areas. 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”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential”, “confirm” or “does not anticipate”, “believes”, “contemplates”, “recommends” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” “be achieved”. In preparing the Forward-Looking Information in this news release, the Corporation has applied several material assumptions, including, but not limited to, that pending drill results will be available in a timely manner without undue delay; that areas identified as potential sites for additional drilling will yield results consistent with management’s expectations based on the PFS; any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies will be consistent with the Corporation’s expectations; that the current objectives concerning the Stibnite Gold 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 activities on the Stibnite Gold 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, the industry-wide risks and project-specific risks identified in the PFS and summarized above; risks related to the availability of financing on commercially reasonable terms; operations and contractual obligations; changes in exploration programs based upon results of exploration, including drill results; 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 US 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 and development activities on the Stibnite Gold 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 licenses 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.
Summary Drill Assay Results - Yellow Pine Deposit, Stibnite Gold Project
| HOLE-ID | Hole Type | Collar Azimuth | Collar Dip | TD (m) | From (m) | To (m) | Width (m)(1) | Au (g/t)(2) | Ag (g/t) | Sb (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| MGI-16-414 | Core | 215 | -28 | 227.7 | 0.0 | 200.3 | 200.3 | 2.25 | 3.2 | 0.128 |
| Including | 14.3 | 20.4 | 6.1 | 3.59 | 5.1 | 0.011 | ||||
| And | 26.5 | 34.1 | 7.6 | 4.34 | 2.7 | 0.005 | ||||
| And | 55.5 | 66.1 | 10.7 | 4.49 | 2.9 | 0.005 | ||||
| And | 125.6 | 136.3 | 10.7 | 1.84 | 3.6 | 0.409 | ||||
| And | 163.7 | 175.9 | 12.2 | 3.22 | 3.8 | 0.495 | ||||
| And | 188.1 | 194.2 | 6.1 | 3.58 | 5.3 | 1.747 |
(1) The reported drill hole intercept widths are close to true widths, but true widths may be slightly less once modelling is completed. Not all numbers will sum due to rounding.
(2) Gold composites are generated using a 0.5 g/t Au cutoff grade. Higher-grade composites are generated using a 3.0 g/t Au cutoff grade over a minimum 6-meter downhole length and may include internal waste below cutoff grade. Antimony composites are generated using a 0.05% Sb cutoff grade and may contain internal waste.
Yellow Pine Deposit - Drill Hole Plan Map
Click Image to Enlarge
Click Image to Enlarge
MIDAS GOLD REPORTS HIGH GRADES AT ITS STIBNITE GOLD PROJECT, IDAHO
MGI-16-411 intersects 35.2m @ 3.1g/t Au (including 18.3m @ 5.0g/t Au)
MGI-16-412 intersects 22.9m @ 4.7g/t Au & 0.15% Sb
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) today announced the first assay results from its ongoing resource enhancement drill program on the Stibnite Gold Project, Idaho. As reported on August 23, 2016, Midas Gold initiated this drill program with a goal of improving, expanding and de-risking the mineral resources defined in the December 2014 preliminary feasibility study (“PFS”) before commencing a feasibility study (“FS”).
Two holes completed at the north end of the Yellow Pine deposit intersected significantly higher than anticipated grades, as compared to the PFS mineral resource block model. The additional data from these holes extends a higher-grade trend approximately 100m northeast and is anticipated to support conversion of the mineral resource in this area from the inferred mineral resource category to the indicated mineral resource category. A third exploration hole intersected anomalous gold in a prospect outside of the mineral resource area. Highlights are tabulated below while complete results are attached at the end of the press release.
“The 2014 preliminary feasibility study identified several areas where further drilling could potentially enhance the economic returns for the Stibnite Gold Project through resource conversion and/or extending higher grade areas,” said Stephen Quin, President & CEO of Midas Gold Corp. “Our first two drill holes, completed in a sparsely drilled portion of the Homestake area of the Yellow Pine deposit, achieved both objectives - resource conversion and higher grade.” These two holes targeted an area of inferred mineralization, and returned similar widths as reported in the PFS block model, but returned gold grades 2-3 times higher than predicted. “These inferred mineral resources are located within the PFS mineral reserve pit and were treated as waste rock in the PFS financial model. Conversion of these inferred mineral resources into indicated mineral resources and, subsequently, mineral reserves, would reduce strip ratios, increase payable gold and Project NPV,” said Mr. Quin. “Additional drill results from the central and southern portions of the Yellow Pine deposit are pending.”
Highlights of Recent Assay Results - Yellow Pine Deposit, Stibnite Gold Project
| Hole ID | Type | From (m) | To (m) | Interval (m) | Gold (g/t) | Silver (g/t) | Antimony (%) |
|---|---|---|---|---|---|---|---|
| MGI-16-411 | Core | 118.7 | 153.9 | 35.2 | 3.10 | 0.7 | 0.00 |
| including | 123.4 | 141.7 | 18.3 | 4.96 | 0.8 | 0.00 | |
| MGI-16-412 | Core | 86.8 | 109.7 | 22.9 | 4.70 | 2.1 | 0.15 |
* The reported drill hole intercept widths are close to true widths, but true widths may be slightly less once modelling is completed.
Holes MGI-16-411 and MGI-16-412
The area targeted by drill holes MGI-16-411 and -412 is situated along a stretch of a linear, northeast trending, 25-50m wide, steeply dipping structure discovered during 2012 Midas drilling, which was named the Hidden Fault Zone (“HFZ”) due to its lack of exposure. The drill holes targeted a gap in drilling along the projected trace of the structure. This area was modeled as inferred mineral resources in the 2014 PFS and was estimated to have a grade of 1.3g/t gold, but fell within the boundaries of the reserve pit. As a result, the inferred mineral resources were treated as waste rock in the PFS mine plan and financial model, having a negative impact on strip ratio and Project economics.
The HFZ structure, which has been systematically drilled over an approximately 1km length, is open to the northeast of the drilled area and southwest of the current limits of the Yellow Pine Deposit. It is located along a distinctive topographic linear that extends for several km in both directions beyond the deposit area. The zone is marked by extensive multi-stage brecciation, silicification, and gouge development. The granodiorite and granite intrusive host rocks show pervasive illite alteration of feldspars and micas and potassium feldspar flooding along with sulphide replacement of biotite.
DDH MGI-16-413
Extensive drilling by prior operators and Midas Gold indicates the presence of mineralization to the northeast of the Yellow Pine deposit, but on the east side of the Meadow Creek Fault Zone (“MCFZ”). Unlike the Yellow Pine deposit, which lies to the west of the MCFZ, the mineralization in this area is hosted in sediments, not intrusive rocks. Both narrow structurally controlled high grade and broadly disseminated lower grade gold mineralization occur locally in the metasedimentary package southeast of, adjacent to, and within, the MCFZ and other structural corridors. Mineralization in the metasediments in this area occurs in a package of altered carbonate rocks lying between two quartzite packages and is associated with vuggy silica veining, silica flooding and silica cemented breccia material. Breccia and silica flooding fabrics in the mineralized zones have variable orientations and the lack of good geological control due to negligible outcrop exposure creates uncertainty in determining mineralized trends in the subsurface.
Midas Gold hole MGI-12-307, drilled in 2012, intercepted 49.4m grading 5.4g/t Au, including multiple consecutive samples assaying over 10 g/t Au, but falls below the PFS mineral reserve pit. Historic hole B-043 intercepted 14m grading 5.9g/t Au approximately 100m to the south of this intercept.
Recently completed hole MGI-16-413 was situated northeast of the intercept in hole B-043 and above hole MGI-12-307 and targeted shallower mineralization cut in scattered nearby Midas Gold and prior operator’s drill holes. Alteration and sulphide mineralization in the hole occurs throughout the carbonate package and is localized in bedding parallel lenses and laminations, disseminated in small cross cutting breccia zones and/or localized quartz-carbonate microveinlets. Anomalous gold grades were intercepted in four zones that averaged between 0.17g/t and 0.70g/ over widths of 4-12m. While the mineralization and alteration intercepted were encouraging, additional work is required to better understand the controls on mineralization in this area of complex interaction between favourable stratigraphy, major and minor structures.
Details of the previous news releases, the Project and the Prefeasibility Study can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
To view the locations of current drill holes, please see the figures at the end of this release.
Sampling Procedures, Quality Control and 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 the Stibnite Gold Project were carried out under the supervision of Richard Moses, C.P.G., Qualified Person and Field Operations Manager for the Stibnite Gold 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 gold 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 silver are reanalyzed using a 50g Fire Assay charge followed by a gravimetric finish. Antimony is analyzed via a 4-Acid digestion with ICP finish with a 5g/t lower reporting limit. Samples reporting values >500g/t antimony are reanalyzed using XRF fusion. 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 Elko, Nevada and Vancouver, British Columbia laboratories. Umpire samples are routinely submitted to third party labs and blank and standard samples are inserted at appropriate intervals and 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 Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
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 activities on the Corporation’s properties, including but not limited to development and operating costs in the event that a production decision is made; success of exploration, development and environmental protection and remediation 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”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential”, “confirm” or “does not anticipate”, “believes”, “contemplates”, “recommends” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” “be achieved”. Statements concerning mineral resource and mineral reserve 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 Stibnite Gold Project is developed. In preparing 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 will be consistent with the Corporation’s expectations; that the current exploration, development, environmental and other objectives concerning the Stibnite Gold 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, development and environmental protection activities on the Stibnite Gold 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, the industry-wide risks and project-specific risks identified in the PFS and summarized above; 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 US 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 and development activities on the Stibnite Gold 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 licenses 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.
Summary Drill Assay Results - Yellow Pine Deposit, Stibnite Gold Project
| HOLE-ID | Hole Type | Collar Azimuth | Collar Dip | TD (m) | From (m) | To (m) | Width (m)(1) | Au (g/t)(2) | Ag (g/t) | Sb (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| MGI-16-411 | Core | -45 | 186 | 182.9 | 40.5 | 57.9 | 17.4 | 0.82 | 1.1 | 0.00 |
| 74.7 | 82.3 | 7.6 | 0.42 | 0.7 | 0.00 | |||||
| 118.7 | 153.9 | 35.2 | 3.10 | 0.7 | 0.00 | |||||
| Incl 123.4 | 141.7 | 18.3 | 4.96 | 0.8 | 0.00 | |||||
| MGI-16-412 | Core | -45 | 158 | 135.6 | 54.9 | 64.0 | 9.1 | 0.36 | 0.6 | 0.00 |
| 86.8 | 109.7 | 22.9 | 4.70 | 2.1 | 0.15 | |||||
| MGI-16-413 | Core | -35 | 180 | 106.2 | No Significant Intercepts | |||||
(1) The reported drill hole intercept widths are close to true widths, but true widths may be slightly less once modelling is completed.
(2) Composites are generated using a 0.5 g/t Au cutoff grade over a minimum 6-meter downhole length and may include internal waste below cutoff grade.
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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.