Press Releases
MIDAS GOLD TO ANNOUNCE RESULTS OF PREFEASIBILITY STUDY ON DECEMBER 15, 2014
Will Host Conference Call and Webcast
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today reported that it will announce the results of the preliminary feasibility study (“PFS”) on its Stibnite Gold Project (the “Project”) located in Valley County, Idaho before markets open on Monday December 15, 2014.
Midas Gold will also be hosting a conference call and webcast at 11:00 AM PST (2:00 PM EST) on Monday, December 15, 2014 to discuss highlights of the Stibnite Gold Project PFS and to provide analysts and investors the opportunity to ask questions; call in details are as follows:
Canada & USA Toll Free Dial In: 1-800-319-4610
Outside of Canada & USA call: +1-604-638-5340
Callers should dial in 5 - 10 min prior to the scheduled start time and simply ask to join the Midas Gold call.
Midas Gold will also webcast the presentation to accompany the discussion:
Click: http://ipresent.choruscall.com/FlexPresenter/
Enter your name
Enter Passcode: 77779
About Midas Gold
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 deposits in the Stibnite-Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors, as well as a mineral resource contained in historic tailings.
MIDAS GOLD APPOINTS IDAHO-BASED DIRECTORS
Returning to its Historic Roots, Project to be called the “Stibnite Gold Project” Going Forward
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) and its wholly-owned Idaho-based subsidiary Midas Gold Idaho, Inc. (“Midas Gold, Inc.”) (collectively, “Midas Gold”) today appointed prominent local community members to Midas Gold Corp.’s and Midas Gold, Inc.’s boards of directors, adding a significant level of local representation and accountability at all levels of the organization. In addition, local community input has resulted in a decision to use the name “Stibnite Gold Project” (the “Project”) going forward in order to reflect the Project’s historic and local name, and maintain continuity with the storied past of this important mining district located in Valley County, Idaho.
Midas Gold Board Appointments
As part of its objective of increasing local accountability and representation in all its activities, Midas Gold today announced the appointment of several US-based directors at both the parent and subsidiary levels, significantly increasing the representation from Valley County and Idaho. Boise residents Laurel Sayer and Keith Allred have been appointed to the Board of Directors of Midas Gold Corp., while Valley County residents Don Bailey, Frank Eld, Scott Davenport and Ronn Julian, as well as Denver resident Kenneth Brunk have been appointed to the Board of Directors of Midas Gold, Inc., Midas Gold Corp.’s wholly-owned Idaho subsidiary that will manage activities at the Stibnite Gold Project going forward.
“The best way for our project to reflect the needs and values of Valley County and Idaho is to have genuine representation from these areas at all levels of our decision-making process,” said Stephen Quin, President & CEO of Midas Gold Corp. “We are excited that these Idahoans have agreed to help guide us in shaping the future of Midas Gold and the Stibnite Gold Project.”
Midas Gold Corp. Board of Directors
The appointment of Mr. Allred and Ms. Sayer brings an Idaho-based environmental and sustainable development perspective directly to the Midas Gold Corp. Board of Directors. Both have distinguished themselves as seasoned political professionals and conservationists who will work to ensure that economic development is also protective of the natural environment, which is of great importance not only to Midas Gold and its employees, but to Idaho and the Nation. The appointment of Mr. Allred and Ms. Sayer increases the Board of Midas Gold Corp. to nine directors, with a broad representation from the US, Canada and the UK, and considerable depth of experience in capital markets, corporate governance, exploration, operations, mine development, environmental protection, sustainable development and financial reporting.
“We are extremely pleased that Keith Allred and Laurel Sayer have agreed to join the Midas Gold Corp. Board of Directors,” said Mr. Quin. “While our Board and management team have always been focused on ensuring that Midas Gold conducts itself in a sustainable, environmentally conscious manner, these new directors will bring a valuable Idaho perspective that can only come from people who live in Idaho.”
Keith Allred is a partner at the Cicero Group, a 200-person leading strategy consulting and market research firm based in Salt Lake City and is also the founder and a director of The Common Interest, a citizens’ group of more than 1,700 Republicans, Democrats, and independents. In 2014, he founded Common Sense PAC with top Idaho business leaders and retired Republican lawmakers. Within Idaho, Mr. Allred is notable for being the 2010 Democratic candidate for Governor of Idaho. Mr. Allred has also served as a professor at Harvard’s Kennedy School of Government, Oxford’s Said School of Business, and at Columbia University, he holds a PhD in Organizational Behavior from the Anderson School of Management at UCLA and BA in American History from Stanford University.
Laurel Sayer currently serves as Executive Director of the Idaho Coalition of Land Trusts and also serves on the Idaho Non-profit Center Board of Directors. Previously, Ms. Sayer spent more than two decades working with the Idaho congressional delegation, most recently in Idaho as the director of natural resource issues and policy for Congressman Mike Simpson. Ms. Sayer served on the Greater Idaho Falls Chamber of Commerce from 2003 to 2009, including serving as chair from 2007 to 2008. She was appointed by Governor C.L. “Butch” Otter to the Idaho Commission on the Arts, and served as vice-chair from 1999 to 2014, and also served as chair and vice-chair of the Idaho Falls Arts Council from 1999 to 2012. Ms. Sayer has developed substantial expertise in building consensus amidst diverse opinions and political ideologies of key stakeholders in a variety of situations, successfully creating meaningful relationships with local, state, regional and federal government agencies.
Midas Gold, Inc. Board of Directors
Midas Gold, Inc. is an Idaho-registered company with a board of six directors and a dedicated workforce of US-based personnel working on the Stibnite Gold Project. Midas Gold has centralized its operations in Idaho, with its main office located in the Valley County town of Donnelly and a satellite office located in Boise, Idaho. A camp with a seasonal exploration office is maintained near the historic Stibnite town site. Investor Relations and corporate activities for Midas Gold Corp. will remain in the Vancouver, BC, office, in order to be closer to the capital markets.
“Midas Gold, Inc. has been established to serve as the Idaho-based entity to manage all of the Company’s affairs in Idaho going forward, including the Stibnite Gold Project; this will ensure the centralization of decision-making, accountability and representation in one organization,” said Mr. Quin. With Valley County residents forming a majority on the Midas Gold, Inc. Board of Directors, Midas Gold will continue to be an integral part of that community. “We believe that, with five years of good practice, we have established ourselves as good neighbors who have demonstrated our focus on protecting the environment, promoting safe working practices, hiring and contracting locally where possible, and participating in and contributing to community life,” said Mr. Quin. “The Board composition is one more demonstration of our commitment to ensuring accountability through community oversight, input, and representation.”
Don Bailey was first elected as a member of McCall City Council in 2005, where he served four terms over the following eight years, including two terms as Mayor from 2010 until his retirement in 2014. Mr. Bailey also served as Chairman of the McCall Planning and Zoning Commission from 2000 to 2005. Mr. Bailey was raised in the small mining community of Stibnite, where his father, Harold D. Bailey, was the company manager that designed the still-existing East Fork diversion tunnel known as the “Bailey Tunnel” at the Stibnite Mine in the 1930s. Mr. Bailey completed primary grades at the Stibnite elementary school before the family moved to Southern California in 1951. After retiring from an aerospace company in Burbank, California, where he served as Chief Engineer and Manager of Advanced Development, Mr. Bailey and his family returned to Idaho in 1996, where they designed and built the home in McCall that they still live in today. Mr. Bailey continues to be very active in the community of McCall and throughout Valley County, and is a founding member of the Valley County Economic Development Council, which is dedicated to creating an environment conducive to starting and attracting new businesses to the County and to strengthening existing businesses in order to enhance economic development in the County.
Frank Eld served two terms as a Valley County Commissioner and currently, he represents Valley County on the Central District Health Board and serves on the McCall-Donnelly School Board, a position he also held in the past, prior to becoming County Commissioner. As County Commissioner, Mr. Eld chaired the Valley-Adams Planning Partnership that encouraged economic development in the area, spearheaded Valley County’s efforts in building affordable housing for citizens, and was instrumental in the establishment of the bus service that now provides affordable transportation for Valley and Adams counties. Mr. Eld also helped establish the Long Valley Preservation Society and Museum and is a published expert on Finnish log construction; he lives in the historic town of Roseberry, Idaho.
Scott Davenport is a McCall resident; he is a founding member of the Valley County Economic Development Council, and serves on the Cascade and McCall Chambers of Commerce as well as many community committees throughout Valley County. He has a vision to see the Valley County area become self-sufficient in producing electricity, food, housing, employment and an environment of healthy living. A graduate of the College of Idaho, and a former manager at J.R. Simplot Company, Mr. Davenport now owns three retail stores and operates several businesses in Valley County.
Ronn Julian was educated at the University of Wyoming, earning both a Bachelor of Science degree in 1969 and Master of Science degree in 1971 in Range Science. After spending the first few years of his career working at the Kemmerer Coal Mine near his hometown and family ranch in southwestern Wyoming, Mr. Julian spent more than three decades with the US Forest Service. From the mid-1970s to the early 1980s, he worked as a range conservationist and wildlife staff in the Shoshone National Forest, before attaining the rank of District Ranger in the Nebraska National Forest in 1982. In 1987, Mr. Julian moved to Cascade, Idaho to take on the role of District Ranger in the Boise National Forest, a position he held for the next 18 years until his retirement in 2005. Mr. Julian is very active in the community of Cascade and throughout Valley County, most recently serving as Cascade Community Ambassador for Midas Gold.
Kenneth Brunk holds a degree in Metallurgical Engineering from Michigan Technological University and throughout his career has conducted numerous feasibility studies and has been responsible for designing, constructing, staffing and operating multiple mining operations and improving process efficiencies around the world. Most recently, Mr. Brunk served as Chief Executive Officer of Midway Gold Corp. where he led Midway through the feasibility and construction of its Pan gold mine in Nevada. Prior to that, Mr. Brunk was Chief Operating Officer of Romarco Minerals, where he led Romarco through the feasibility study on its recently permitted Haile gold project. Mr. Brunk’s efforts aided in elevating Haile from a prospective exploration effort to a successful world-class mine development project. Previously, as Senior Vice President and Senior Technical Officer at Newmont Mining Corporation, a global mining enterprise, Mr. Brunk was responsible for all of the technical functions of the operating, mine planning, metallurgical development, projects, and engineering groups within Newmont on projects around the world.
Stibnite Gold Project
Midas Gold strongly believes in the importance of community involvement in all we do in Valley County and in Idaho. We have heard from the local community that the name ‘Stibnite’ is historically and locally important, reflecting the long and storied past of the area. The Stibnite area has been actively mined off and on since the 1920s; during the 1940s and early 1950s it was a major centre for mining of antimony and tungsten, minerals that were essential to the US efforts in World War II and the Korean War, with significant by-product gold. This production was so important that miners were exempt from service in the military during the war years and then Allied Commander-in-Chief Dwight Eisenhower personally thanked the miners for their critical contribution to the war effort. Many local families currently residing in Valley County have had parents and grandparents who lived and worked in the pioneering community of Stibnite that contributed so much to the development of Valley County; to this day, they proudly call themselves ‘Stibniters’. We have therefore agreed to prominently build ‘Stibnite’ into the name of our flagship project, adding ‘Gold’ to reflect the economic significance of this metal to the Project today; ‘Stibnite’ is also the mineral that contains all the antimony on the site.
“For the past several years, we have heard repeatedly from the local community that everyone knows the project location as ‘Stibnite’ and that calling a heavily disturbed brownfields mining site ‘Golden Meadows’ just doesn’t fit and does not at all reflect the history or situation of the site,” said Mr. Quin. “We listened and decided that the project name should incorporate ‘Stibnite’, to reflect both the well-known historic location and the main antimony mineral, and also ‘Gold’ to reflect the principal economic driver of the Stibnite Gold Project,” he said. “The Stibnite Gold Project name reflects the proud tradition of the project area and the promising future it holds.”
About Midas Gold
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 deposits in the Stibnite-Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors, as well as a mineral resource contained in historic tailings.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future conditions and courses of action; and the timing of future activities on the Corporation’s properties. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “future”, “advance”, “commitment”, “vision”, “scheduled”, “estimates”, “anticipates”, “potential” or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, or “might” “occur” or “be achieved”. 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; 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; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the Corporation’s public disclosure record. Although the Corporation has attempted to identify important factors that could affect the Corporation and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MIDAS GOLD UPDATES MINERAL RESOURCES FOR THE GOLDEN MEADOWS PROJECT, IDAHO
Indicated Mineral Resources increase 29% to more than 5.4 million oz of Gold
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today updated its mineral resource estimates for the Golden Meadows Project (the “Project”), located in the historic Stibnite-Yellow Pine mining district in Idaho. These updated estimates incorporate more than 45,000m of additional drilling completed since 2012 that was focused on converting mineral resources from the inferred to the indicated category within the limits of mining contemplated in the 2012 Preliminary Economic Analysis (“2012 PEA”). The 5.46 million oz of gold contained in the indicated mineral resources category represents an increase of 29% over previous estimates published in the 2012 PEA. The Project also contains approximately 1.07 million oz of gold in the inferred mineral resource category.
“Midas Gold is in the process of designing a sustainable mining project, based on identified mineral resources, that takes a holistic approach to the potential redevelopment, remediation and restoration of this extensively mined brownfields site,” said Stephen Quin, President and CEO of Midas Gold Corp. “This approach recognises the importance of the potential economic benefits from such a project to Idaho and its local communities and the importance of the natural environment, especially in respect of water quality and fisheries, to all stakeholders.” The 5.46 million oz indicated mineral resources provides the basis for a Pre-Feasibility Study (“PFS”) scheduled to be published later in the year. “The PFS will also detail a number of preferred options for the Project, based on environmental, technical and economic considerations,” he said. “In addition to the preferred project design options, alternative options will be identified in order that stakeholders may have informed discussions regarding the Project. Depending on the outcome of the PFS and such discussions, Midas Gold may choose to submit a permit application for development of the Project.”
Table 1: Consolidated Mineral Resource Statement (1,2,3,4) for the Golden Meadows Project
Total(5) Open Pit Oxide + Sulfide Mineral Resources - Base Case Estimate
| Classification | Tonnage (000s) | Gold Grade (g/t) | Contained Gold (000s oz) | Silver Grade (g/t) | Contained Silver (000s oz) | Antimony Grade (%)(5) | Contained Antimony (000s lbs) |
|---|---|---|---|---|---|---|---|
| Indicated | 104,506 | 1.63 | 5,464 | 2.65 | 8,904 | 0.07 | 155,169 |
| Inferred | 25,168 | 1.32 | 1,066 | 2.15 | 1,743 | 0.05 | 25,908 |
All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under National Instrument 43-101 (“NI43-101”).
Mineral resources are reported in relation to a conceptual pit shell in order to demonstrate potential for economic viability, as required under NI43-101; mineralization lying outside of these pit shells is not reported as a mineral resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability - see “Compliance with NI43-101” below. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.
Open pit sulfide mineral resources are reported at a cut-off grade of 0.75 g/t Au. Cut-off grades are based on a price of US$1,400 per ounce of gold and a number of operating cost and recovery assumptions, plus a contingency (see details below).
Open pit oxide mineral resources are reported at a cut-off grade of 0.45 g/t Au. Cut-off grades are based on a price of US$1,400 per ounce of gold and a number of operating cost and recovery assumptions, plus a contingency (see details below).
“Total” project mineral resources include those resources from the Yellow Pine, Hangar Flats, West End and Historic Tailings deposits.
“The updated mineral resource estimate for the Project incorporates the results of an extensive resource definition drilling program and resulting improved understanding of geologic controls on mineralization within our three primary deposits,” said Mr. Quin. “The significant increase in indicated mineral resources, especially within the flagship Yellow Pine deposit provides the foundation for completion of a preliminary feasibility study for this existing brownfields site,” he noted. “Some inferred mineral resources were not converted, or were eliminated, especially around the margins of the deposits, much of which did not fall within the mining plan laid out in the 2012 PEA anyway. We also believe that the improved geologic knowledge provides for greater confidence in our mineral resource estimate and greatly reduces risk as we advance the Project.”
The mineral resource estimates incorporate the results of more than 45,000m of new drilling completed since the cut-off date for the 2012 PEA. As discussed in prior news releases, this new drilling focused on the highest financial margin material, within the mining limits indicated in the 2012 PEA that was based on the results of the preliminary economic analysis in the 2012 PEA. This analysis supported a focus within the Yellow Pine deposit and within a smaller conceptual pit shell at Hangar Flats. Accordingly, indicated mineral resources for gold increased by 52% in Yellow Pine, 18% at Hangar Flats and remained approximately the same at the West End deposit, where only minimal drilling was completed. In addition, the indicated mineral resources for antimony increased by 32% at Yellow Pine and by 22% at Hangar Flats. The West End mineral resource was expanded by drilling, but this increase was largely offset by resource reductions associated with tighter search ellipses and more conservative modeling parameters regarding the use of historical data with incomplete gold fire-assays. Reductions in the mineral resources occurred primarily where the 2012 PEA estimates allowed extrapolation of grade at depth and around the periphery of the deposits based on the sparse drill data available at the time. Better structural constraints and additional drill hole information incorporated into the updated models now provide for a more conservative estimate, with better controls on gold mineralization.
Antimony Sub-Domains
The Yellow Pine and Hangar Flats deposits contain zones with substantially elevated antimony-silver mineralization, defined as containing greater than 0.1% antimony, relative to the overall mineral resource. The existing historic tailings resource also contains elevated concentrations of antimony. As discussed in a news release dated August 20, 2014, metallurgical testing completed in 2013-14 was successful in producing a marketable antimony concentrate. These higher grade antimony zones are reported separately in the table below to illustrate the potential for antimony production from the Project, and are contained within the overall mineral resource estimates reported herein. Antimony zones are reported only if they lie within gold mineral resource estimates.
Table 2: Antimony Sub-Domains Consolidated Mineral Resource Statement(1,2)
| Classification | Tonnage (000s) | Gold Grade (g/t) | Contained Gold (000s oz) | Silver Grade (g/t) | Contained Silver (000’s oz) | Antimony Grade (%) | Contained Antimony (000s lbs) |
|---|---|---|---|---|---|---|---|
| Indicated | |||||||
| Hangar Flats | 3,901 | 2.06 | 258 | 7.23 | 907 | 0.59 | 50,729 |
| Yellow Pine | 6,080 | 2.27 | 443 | 6.99 | 1,367 | 0.58 | 77,841 |
| Historic Tailings | 2,583 | 1.19 | 99 | 2.95 | 245 | 0.17 | 9,648 |
| Total Indicated | 12,564 | 1.98 | 800 | 6.23 | 2,518 | 0.50 | 138,218 |
| Inferred | |||||||
| Hangar Flats | 1,186 | 1.94 | 74 | 8.05 | 307 | 0.68 | 17,844 |
| Yellow Pine | 409 | 1.36 | 18 | 4.86 | 64 | 0.50 | 4,552 |
| Historic Tailings | 140 | 1.23 | 6 | 2.88 | 13 | 0.18 | 563 |
| Total Inferred | 1,735 | 1.74 | 97 | 6.88 | 384 | 0.60 | 22,959 |
Antimony mineral resources are reported as a subset of the total mineral resource within the conceptual pit shells used to constrain the total gold mineral resource in order to demonstrate potential for economic viability, as required under NI43-101; mineralization outside of these pit shells is not reported as a mineral resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability - see “Compliance with NI43-101” below. All figures are rounded to reflect the relative accuracy of the estimate.
Open pit antimony sulfide mineral resources are reported at a cut-off grade 0.1% antimony within the overall 0.75 g/t Au gold cut-off. Cut-off grades are based on a price of US$1,400 per ounce of gold, $4.50/lb antimony and a number of operating cost and recovery assumptions, plus a contingency (see details below). The antimony subdomain is further limited to discrete zones of mineralization with grades that exceed 0.1% antimony.
Mineral Resource Estimates by Deposit
The mineral resource estimate for the Project encompasses four separate deposits: Yellow Pine, Hangar Flats, West End and historic tailings. Each deposit was modelled based on a combination of Midas Gold and pre-Midas Gold drilling, with the latter information being used only where sufficient confidence was obtained to support its use. Details of each of the mineral resource estimates are summarized below.
Yellow Pine Mineral Resource Estimate
The mineral resource estimate for the Yellow Pine deposit is summarized in the table below and is based on 74,926m of drilling in 633 holes, including 46,080m of drilling in 226 holes by Midas Gold and the balance drilled by others. Additional drilling, including extensive use of oriented core by Midas Gold since the 2012 PEA, has made possible significantly improved and more detailed geologic modeling, resulting in improved understanding of controls on mineralization. The principal changes to the current mineral resource estimate for Yellow Pine versus that in the 2012 PEA are (1) the recognition of fault control on mineralization in some areas, particularly on the eastern side of the main portion of the Yellow Pine deposit, which resulted in the elimination of some previously interpreted mineralization, and (2) the recognition of the Hidden Fault on the west side of the deposit, which also plays an important role in controlling mineralization. In addition, after extensive analysis of the various generations of drilling, it was decided to limit the influence of the underground Bradley-era drilling (1939 - 1953) as compared to other data sets, which constrains the higher grade gold-antimony intercepts in the upper portion of the Yellow Pine deposit. The net result of the mineral resource estimate for Yellow Pine is a 52% increase in gold contained in indicated mineral resources, and an 80% reduction in gold contained in inferred mineral resources, the latter a result of the conversion of ounces to the indicated category and a combination of additional drilling, improved geologic controls and limits placed on the influence of the Bradley-era data.
Table 3: Yellow Pine Mineral Resource Statement
Open Pit Sulfide at a 0.75 g/t Au Cut-off (1,2)
| Classification | Tonnage (000s) | Gold Grade (g/t) | Contained Gold (000s oz) | Silver Grade (g/t) | Contained Silver (000s oz) | Antimony Grade (%) | Contained Antimony (000s lbs) |
|---|---|---|---|---|---|---|---|
| Indicated | 44,559 | 1.93 | 2,762 | 2.89 | 4,133 | 0.09 | 84,777 |
| Inferred | 9,031 | 1.31 | 380 | 1.50 | 437 | 0.03 | 5,535 |
Mineral resources are reported in relation to a conceptual pit shell in order to demonstrate potential for economic viability, as required under NI43-101; mineralization lying outside of these pit shells is not reported as a mineral resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability - see “Compliance with NI43-101” below. All figures are rounded to reflect the relative accuracy of the estimate.
Open pit sulfide mineral resources are reported at a cut-off grade of 0.75 g/t Au. Cut-off grades are based on a price of US$1,400 per ounce of gold and a number of operating cost and recovery assumptions, plus a contingency (see details below).
West End Mineral Resource Estimate
The updated West End mineral resource estimate tabulated below is based on 67,762m of drilling in 674 holes, including 11,856m of drilling in 53 holes by Midas Gold and the balance drilled by others. As a result of limited additional drilling, including some oriented core by Midas Gold since the 2012 PEA, a more detailed geologic model has been completed, resulting in improved understanding of controls on mineralization. The updated geologic model includes solid modeling of the entire metasedimentary sequence, an improved representation of the West End Fault Zone (“WEFZ”), addition of splay structures which control mineralization in the hanging wall of the WEFZ, and an improved representation of granitic intrusive bodies. The updated mineral resource estimate for the West End deposit also used 3,312 new cyanide gold assays obtained for Midas Gold drill holes, unique variogram models for cyanide soluble gold mineralization, an assessment of changes in mineralization across litho-stratigraphic contacts, and more conservative search ellipses for the second pass grade interpolation. In addition, after extensive analysis of the various generations of drilling, it was decided to use available assays for specific drill campaigns, whether cyanide-assays or fire-assays, as opposed to interpolating grades from partial fire-assay data, which was deemed subject to selective sampling. This approach likely underestimates the overall in situ gold content of the West End deposit, but is a more conservative approach and appropriate for use in a PFS. The net result of the mineral resource estimate for West End is a 1.2% increase in gold contained in indicated mineral resources, and a 48% reduction in gold contained in inferred mineral resources. While additional indicated mineral resources were realized from new Midas Gold drilling within the WEFZ and along subsidiary splay structures, these additions were largely offset by decreases associated with more conservative modeling methodologies, improved geologic controls and more conservative treatment of selective gold fire-assay sample data.
Table 5: West End Mineral Resource Statement
Open Pit Oxide + Sulfide (1,2,3)
| Classification | Material Type | Cut-off Grade (g/t Au) | Tonnage (000s) | Gold Grade (g/t) | Contained Gold (000s oz) | Silver Grade (g/t) | Contained Silver (000s oz) | Antimony Grade (%) | Contained Antimony (000s lbs) |
|---|---|---|---|---|---|---|---|---|---|
| Indicated | Oxide | 0.45 | 8,448 | 0.80 | 216 | 1.22 | 332 | 0.010 | 1,769 |
| Indicated | Sulfide | 0.75 | 27,526 | 1.45 | 1,285 | 1.40 | 1,235 | 0.008 | 4,794 |
| Total Indicated | 35,974 | 1.30 | 1,501 | 1.35 | 1,567 | 0.008 | 6,563 | ||
| Inferred | Oxide | 0.45 | 2,057 | 0.76 | 50 | 0.40 | 27 | 0.004 | 168 |
| Inferred | Sulfide | 0.75 | 6,489 | 1.28 | 267 | 0.77 | 161 | 0.006 | 916 |
| Total Inferred | 8,546 | 1.15 | 317 | 0.68 | 187 | 0.006 | 1,083 |
Mineral resources are reported in relation to a conceptual pit shell in order to demonstrate potential for economic viability, as required under NI43-101; mineralization lying outside of these pit shells is not reported as a mineral resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability - see “Compliance with NI43-101” below. All figures are rounded to reflect the relative accuracy of the estimate.
(2) Open pit sulfide mineral resources are reported at a cut-off grade of 0.75 g/t Au. Cut-off grades are based on a price of US$1,400 per ounce of gold and a number of operating cost and recovery assumptions, plus a contingency (see details below).
(3) Open pit oxide mineral resources are reported at a cut-off grade of 0.45 g/t Au. Cut-off grades are based on a price of US$1,400 per ounce of gold and a number of operating cost and recovery assumptions, plus a contingency (see details below).
Cut-Off Grade and Prospects for Economic Extraction
In order to establish prospects for economic extraction, as required by NI43-101, conceptual pit shells were developed in MineSight(r) software by Garth Kirkham, P.Geo. and QP, using a Lerchs-Grossman algorithm and input parameters derived from preliminary cost estimates associated with pre-feasibility level engineering studies, as shown in the table below.
Table 8: Pit Optimization Parameters by Deposit
| Input Parameters | Units | Yellow Pine | Hangar Flats | West End | Historic Tailings | Notes |
|---|---|---|---|---|---|---|
| Mining Cost - Resource | $/tonne mined | 1.75 | 1.75 | 1.75 | 1.75 | Includes mining G&A |
| Mining Cost - Waste | $/tonne mined | 1.90 | 1.50 | 1.75 | 0.50 | Includes mining G&A |
| Oxide Processing Cost | $/tonne mined | N/A | N/A | 9.00 | N/A | Excludes G&A costs |
| Oxide Au Recovery | % | N/A | N/A | 84 * AuCN/ AuFA+8.52(1) | N/A | Formula based on PFS level metallurgical test results |
| Oxide / Sulfide Boundary | CN Au : FA Au | N/A | N/A | 0.70 | N/A | |
| Sulfide Processing Cost | $/tonne milled | 16.50 | 16.50 | 16.50 | 16.50 | Excludes G&A costs |
| Sulfide Au Recovery | % | 93.0 | 92.0 | 88.0 | 80.0 | |
| Dore Transport Cost | $/oz Au | 1.15 | 1.15 | 1.15 | 1.15 | |
| Dore Refining Cost | $/oz Au | 1.00 | 1.00 | 1.00 | 1.00 | |
| G&A + Rehabilitation Cost | $/tonne milled | 3.50 | 3.50 | 3.50 | 3.50 | |
| Pit Slopes | degrees | 48 | 48 | 48 | N/A | |
| Au Payability | % | 99.5 | 99.5 | 99.5 | 99.5 | |
| Au Selling Price - Base Case | $/oz | 1,400 | 1,400 | 1,400 | 1,400 | |
| Mining dilution | % | 0 | 0 | 0 | 0 | |
| Mining recovery | % | 100 | 100 | 100 | 100 |
AuCN is cyanide leachable gold, AuFA is total gold.
This led to a calculated cut-off grade of approximately 0.5g/t Au for sulfides, and lower for oxides. However, in order to provide a level of conservatism and to provide consistency with prior reporting of mineral resource estimates, Midas Gold increased the base case cut-off grades to 0.45g/t gold for oxides and 0.75g/t for sulfides. Only mineral resources above these cut-offs and within the resource-limiting pits are reported; mineralization falling below this cut-off grade or outside the resource-limiting pit is not reported, no matter what the grade. Sensitivity to cut-off grade is reported in Table 7 above.
Assumptions used to derive the cut-off grades and define the resource-limiting pits are estimated in order to meet the NI43-101 requirement for mineral resource estimates to demonstrate “reasonable prospects for eventual economic extraction”. The cut-off grades to be used in the upcoming PFS may vary from those used to limit the mineral resources reported herein, as the inputs to that study are determined. No inference is implied in the changes to the cut-off grade assumptions from the prior mineral resource estimates as to what will be used in the upcoming PFS, as those assumptions remain to be determined.
Updated Technical Report and Upcoming PFS
The details of four mineral resource estimates for Yellow Pine, Hangar Flats, West End and historic tailings will be provided in a NI43-101 Technical Report to be filed in conjunction with the completion of the PFS scheduled for later in 2014.
With the completion of the mineral resource estimates contained herein, the recent announcement of the results of the metallurgical test program and the other engineering, design and baseline work completed, Midas Gold and its consultants are currently completing mine planning, estimates of capital and operating costs, and other components of the planned PFS. The PFS is anticipated to be completed in Q4/2014 and results will be announced when appropriate, and will be detailed in the required Technical Report.
2014 Mineral Resource Estimate Methodology
The mineral resource estimates for Yellow Pine, Hangar Flats and West End were prepared to industry standards and best practices and verified by Garth Kirkham, P.Geo. and a Qualified Person for the purposes of NI43-101. The mineral resources were estimated using commercial mine-modeling and geostatistical software by third party consultants. Each deposit was segregated into multiple estimation domains based on geologic models completed under supervision of Midas Gold’s Field Operations Manager Richard Moses, CPG, and Exploration Manager Chris Dail, CPG. Gold block grades were estimated from capped composited samples in multiple passes within 0.25g/t grade shells. The majority of mineral resources were estimated using ordinary kriging interpolation with octant or sector sample requirements, but gold in peripheral domains at Hangar Flats, intrusive hosted gold at the West End, and antimony mineralization occurring outside of grade shells at Hangar Flats and Yellow Pine were estimated using inverse distance weighting interpolation methods, where this approach was deemed more appropriate. Search ellipse anisotropy and orientation were based on variogram and/or correlogram models with first pass major axis search distances generally 40-60m, and second pass distances generally 100-150m. Some mineral resources at Hangar Flats were estimated in three passes. Midas Gold and its consultants conducted extensive statistical analyses to assess the quality of the pre-1953 drill hole data. Although analyses and subsequent confirmatory drilling have generally shown the data to be of good quality, use of this historical data presents certain risks in mineral resource estimation due to historical drilling, sampling and assaying methodologies. At Hangar Flats and Yellow Pine, range-restricted searches and sample selection filters were employed to limit the influence of certain pre-1953 historical small-diameter core holes. Model sensitivities indicate a reduction in contained gold of approximately 4% for Yellow Pine if pre-1953 data is excluded from the current estimates. At Hangar flats, the influence of pre-1953 data was tracked for each block and was only 3% for indicated resources, with 97% influence from modern-era data, primarily MGI drilling. Antimony, silver and cyanide-soluble gold were estimated using methodologies similar to the gold estimates. Bradley Mining Company data was excluded from use in the antimony estimate at Yellow Pine and was used only in the second pass for antimony estimation at Hangar Flats. Mineral resource classification for gold was based on various parameters, including number of samples, number of drill holes, average and nearest distance to composites, influence of pre-1953 data, kriging variance and single block kriged results. Antimony and silver are not classified separately and are reported based on gold classification. A full description of the modeling methodologies for each deposit will be included in a technical report scheduled for release in late 2014, to be filed in conjunction with completion of PFS for the Project. Modeling methodologies for the historic tailings mineral resource estimates are discussed in a news release dated October 28th, 2013.
Illustrations
Diagrams illustrating the locations of each of the mineral deposits for which mineral resource estimates are reported herein, including plans and sections showing changes from the 2012 mineral resource estimates. Click images to enlarge.
Compliance with National Instrument 43-101
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 (“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 and drilling activities at Golden Meadows were carried out under the supervision of Richard Moses, C.P.G., Field Operations Manager for the Golden Meadows Project and Chris Dail, C.P.G., Exploration Manager for the Golden Meadows Project, both Qualified Persons.
Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd. is the Qualified Person, as defined in National Instrument 43-101, responsible for the mineral resource estimates as reported herein. He has read and approved the relevant technical portions of this news release related to the mineral resource estimates for which he is responsible.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The Project mineral resources are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas Gold to advance its interests, the Project will be subject to a number of Federal, State and local laws and regulations and will require permits to conduct its activities. However, Midas Gold is not aware of any environmental, permitting, legal or other reasons that would prevent it from advancing the Project.
About Midas Gold
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 deposits in the Stibnite-Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors, as well as a mineral resource contained in historic tailings.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “budget”, “scheduled”, “estimates”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “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 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 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 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43 101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Accordingly, information contained in this News Release contain descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
MIDAS GOLD PROVIDES METALLURGICAL UPDATE ON ITS GOLDEN MEADOWS AU-AG-SB PROJECT, IDAHO
Results Confirm Robust Gold and Antimony Recoveries
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today provided an update on its extensive independent metallurgical test program completed for the Golden Meadows Project, which is located in the historic Stibnite mining district of Idaho. Since the completion of the Preliminary Economic Assessment published in September 2012 (the “PEA”), Midas Gold’s process and metallurgical consultants have focused on defining the metallurgical parameters for the Project for incorporation into a Preliminary Feasibility Study (“PFS”) scheduled for completion later in 2014.
“During the past 24 months, Midas Gold and its independent metallurgical consultants have completed an extensive and rigorous metallurgical program designed to support completion of a Preliminary Feasibility Study,” said Stephen Quin, President & CEO of Midas Gold Corp. “Successful completion of this program marks a major milestone on the road towards completion of the Preliminary Feasibility Study,” he said. “Overall results of the metallurgical test program support excellent overall gold and antimony recoveries from all three deposits.”
Metallurgical Highlights
Following the successful completion of an extensive independent metallurgical test program, Midas Gold is able to demonstrate, to a level of confidence required to support its planned PFS, metallurgical parameters that are generally comparable with those set out in the Preliminary Economic Assessment published in September 2012. Taking into consideration the different deposits, types of mineralization and processing methods contemplated, it is anticipated that recovery parameters to be utilized in the PFS will range between 80-90% for antimony, while overall gold recovery to doré after POX and/or leach are forecast to average 88-91% for Hangar Flats, 81-84% for West End and 90-92% for Yellow Pine. Additional details on the metallurgical program are set out below, while more detailed information will be included in the Technical Report summarizing the results of the PFS later, which will be filed later in 2014.
Metallurgical Testing Details
Independent metallurgical consultant, Blue Coast Metallurgy Ltd. (“Blue Coast”), supervised an extensive metallurgical test program on behalf of Midas Gold and in support of the upcoming PFS. The test work was carried out at a variety of independent labs under Blue Coast’s direction, including SGS, JK Tech, Process Mineralogy Consultants, Surface Science Western, ACTLabs, Kingston Process Metallurgy and Pocock Industrial, Inc. In total, approximately 800 samples were utilized to generate over 100 variability composites and six global master composites covering mineralization from each of the deposits with reported mineral resources, as well as additional composites for historic tailings and the Scout prospect, and representing the variable styles of mineralization within deposits, including sulfide, oxide and transition materials, as well as high and low antimony grades.
Mineralogy
Mineralogical studies, including QEMSCAN, confirmed that antimony occurs as stibnite and that, when present in economic quantities, is coarse enough for good flotation recoveries at the chosen grind, while gold primarily occurs in solid solution in pyrite and, to a much lesser extent, arsenopyrite. Except where the mineralization is oxidized, free gold is relatively rare. Overall, the sulfide content of the deposits is relative low, with West End having relatively less sulfides than Hangar Flats and Yellow Pine.
Comminution (crushing and grinding)
A wide spectrum of comminution testing was completed on the different composites to determine appropriate crushing parameters, as well as SAG and ball milling conditions. Overall results confirmed a conventional crushing-SAG-ball mill combination as the optimal comminution circuit. The Yellow Pine and Hangar Flats mineralization are broadly similar and have similar grindability characteristics, whereas the West End mineralization is somewhat more resistant to SAG milling and may require additional crushing. The PFS design parameters (excluding any additional crushing that may be required for West End) to be used in the PFS are anticipated to be single stage crushing with a 2m x 1.5m opening 373kW (79”x59”, 500HP) jaw crusher, primary grinding in one 9.1m x 4.9m 7,500kW (30’ x 16’, 10,000HP) SAG mill, followed by a single 7.3m x 12.2m 13,500kW (24’ x 40’, 18,100HP) ball mill for secondary grinding to 80% minus 75 microns prior to flotation.
Flotation
Per the currently conceptualized mine plan, the substantial majority of the mineralization is sulfide and transitional material (~86%), with the balance of the mineralization being oxide ores from the West End deposit. Extensive flotation test work, including multiple locked cycle tests, was undertaken on a variety of global composites from each deposit representing the PEA established average deposit grades of gold, sulfur and antimony. Test work confirmed that the optimal recovery circuit for sulfides involves a conventional sequential flotation circuit of stibnite (antimony) flotation (where antimony grades warrant, in approximately 14% of the sulfide feed at grades generally >0.1% Sb) followed by flotation of other sulfide minerals into a gold-bearing sulfide concentrate. Where warranted, tailings from flotation will undergo agitated leaching to recover additional gold, while oxide material will bypass flotation and go straight to agitated leaching. Due to the high carbonate content of West End materials, a cleaning flotation stage will be undertaken to reject carbonates from the concentrates. While further value to the project may be attainable through the use of additional metallurgical processing, the flow sheet selected is designed to constitute the minimum technical risk and, as such, uses only technologies that are in wide use industry-wide.
Stibnite flotation was successful in producing a marketable, high quality antimony concentrate and, due to the good concentration ratio achieved in the gold-bearing sulfide flotation, it is anticipated that rougher concentrates produced from Yellow Pine and most of the Hangar Flats ores can be sent straight to sulfide oxidation treatment without a cleaning stage of flotation. The West End mineralization and some from Hangar Flats would require cleaning of those concentrates to increase sulfur grades to achieve target levels and reject carbonates to keep levels low. Leaching of gold in transitional and oxide materials has shown fast leaching kinetics and low reagent consumption. Historic tailings were also shown to be successfully co-processed with Yellow Pine ores and, when mixed, behaved somewhat similar to transitional material.
Antimony recoveries are forecasted to be in the 83-89% range from Yellow Pine, and approximately 70 84% at Hangar Flats, while 1-3% of the gold is expected to report to the antimony concentrate. Gold flotation recoveries are expected, on an annual basis, to range from close to 90% for Yellow Pine and the Historic Tailings-Yellow Pine blend, to 81-88% for Hangar Flats and West End sulfides, and down to 64 69% in West End transitional material. Subsequent leaching of the flotation tailings are expected to increase recoveries by ~1% in Yellow Pine, 1-7% in Hangar Flats and up to 17-23% from the West End transitional mineralization. West End oxide leach recoveries are forecast to range from 78-84%.
Pressure Oxidation and Gold Recovery
As identified in the 2012 PEA, pressure oxidation is required to prepare the sulfide gold concentrates for leach recovery of gold. One 4.6m ID x 32.3m (T/T)(15.1’ ID x 106’) autoclave would operate at 220°C and 2,930 kPag pressure (428°F, 425 psig) for 60 minutes to oxidize the refractory gold-bearing concentrates. To date, two concentrates from each deposit have been tested at these conditions, the results of which confirmed fast oxidation kinetics and high gold liberation, with 95-99% oxidation of sulfides achieved in the studies. Subsequent neutralization and leaching of the oxidized material demonstrated high gold recoveries of 97-99% and low to modest reagent consumption.
Diagrams
Simplified Illustration of the Flow Sheet.
Click Image to Enlarge.
2014 Mineral Resource Update
As previously reported, the primary focus for Midas Gold has been the updating of mineral resource estimates and on preparing a PFS. The updated mineral resource model is essentially complete, and is currently undergoing a review by an independent Qualified Person prior to running mineral resource limiting pits at variable gold prices and cut-off grades. These estimates incorporate the results of all drilling completed since the PEA and will provide the basis for updated mine plans and schedules for each of the deposits to be included in the PFS. The updated mine plans, results of the metallurgical testing summarized herein and the results of extensive geotechnical, environmental and engineering work completed since the PEA will be incorporated in the PFS with the objective of defining a more fully optimized project. The results of the PFS are now anticipated to be available in Q4 2014, but the schedule is dependent on the timing for the completion of various trade-off studies, capital and operating cost estimation and value engineering (some of which efforts were summarized in a news release dated April 7, 2014).
Quality Assurance
The technical information in this news release has been prepared by Chris Martin, P.Eng. principal metallurgical consultant with Blue Coast Metallurgy Ltd., with engineering input from Allen Anderson, P.E., Consultant with M3 Engineering & Technology Corporation, 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.
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 deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors, as well as a recently announced mineral resource contained in historic tailings. Independent mineral resource estimates were reported for all three lode 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 August 15, 2012 (the “Technical Report”), which is available on Midas Gold’s website at www.midasgoldcorp.com or under Midas Gold’s profile on SEDAR at www.sedar.com. The Preliminary Economic Assessment outlines one 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. The planned PFS aims to optimize outcomes from an environmental, sustainability, social, technical and financial perspective.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” or variations of such words and phrases or statements that certain actions, events or results “may”, “may not”, “could”, “would”, “should”, “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 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 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 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43 101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Accordingly, information contained in this News Release contain descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.
MIDAS GOLD REPORTS RESULTS OF ANNUAL GENERAL MEETING
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”) today announced the results of its annual general meeting, which was held in Vancouver on May 14, 2014. Following the meeting, Stephen Quin, President and CEO, provided those present with a brief overview of the Company’s progress over the past year and its plans going forward.
Annual General Meeting Voting Result
A total of 56.6 million common shares were represented at the meeting, or 39.95% of the votes attached to all outstanding shares. On a vote by show of hands, the Company’s shareholders voted in favour of the election of all director nominees listed in the Company’s management information proxy circular. Detailed results of the vote for the election of directors were as follows:
| Nominee | Votes For | Votes Withheld | Total Votes Cast * | Percentage of Votes For | Percentage of Votes Withheld |
|---|---|---|---|---|---|
| Stephen Quin | 48,074,569 | 98,100 | 48,172,669 | 99.80% | 0.20% |
| Wayne Hubert | 48,074,569 | 98,100 | 48,172,669 | 99.80% | 0.20% |
| Jerry Korpan | 48,043,169 | 129,500 | 48,172,669 | 99.73% | 0.27% |
| Peter Nixon | 48,044,369 | 128,300 | 48,172,669 | 99.73% | 0.27% |
| Michael Richings | 48,013,969 | 158,700 | 48,172,669 | 99.67% | 0.33% |
| John Wakeford | 48,011,969 | 160,700 | 48,172,669 | 99.67% | 0.33% |
| Donald Young | 47,905,369 | 267,300 | 48,172,669 | 99.45% | 0.55% |
* Not all shares were voted in respect of all motions therefore the combined number of shares voted for or withheld may not add up to the total votes represented at the meeting.
The directors were elected to hold offices until the next annual meeting of shareholders or until their successors are elected or appointed.
The Company’s shareholders also approved the appointment of Deloitte LLP, Chartered Accountants, as the auditors of the Company for the fiscal year ending December 31, 2014 (99.36% voted in favour) and approved the renewal of the Company’s Stock Option Plan and unallocated entitlements under the Company’s Stock Option Plan as required by the policies of the Toronto Stock Exchange (85.58% voted in favour).
Detailed voting results for the meeting are available on SEDAR at www.sedar.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 deposits in the Stibnite-Yellow Pine district of central Idaho.
MIDAS GOLD UPDATES PROGRESS ON ITS GOLDEN MEADOWS AU-AG-SB PROJECT, IDAHO
Optimization of Planned Preliminary Feasibility Study Advances on Many Fronts
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today provided a progress report on its Golden Meadows Project in the historic Stibnite mining district of Idaho. Since the completion of the Preliminary Economic Assessment published in September 2012 (the “PEA”), the Midas Gold team and its consultants have focused on efforts to optimize the project from an environmental, social, sustainability, technical and economic perspective, with the objective of improving the project concepts over those set out in the PEA, including key objectives of designing for project closure, management of water quality and habitat restoration. Over the past 18 months, Midas Gold has also used the concepts from the PEA as a basis for discussions with local communities, Native American Tribes, State, Federal and local governments, regulators, NGOs and other interested parties in respect of project options in order to solicit suggestions and feedback for consideration in its technical studies. The results of these efforts will be incorporated into a Preliminary Feasibility Study (a “PFS”) once the review and optimization process is complete.
“During the past 18 months, Midas Gold and its team of consultants have been evaluating numerous aspects of the Golden Meadows Project in order to optimize outcomes from an environmental, sustainability, social, technical and financial perspective,” said Stephen Quin, President & CEO of Midas Gold Corp. “With almost 70 individual trade-off and optimization studies completed or in progress, this has been an intensive effort focused on designing the best possible project,” he said. “While significant work remains to be completed over the next few months, we have completed much of the physical work required to support the preliminary feasibility study and are now focused on the analysis and interpretation of the results, the finalization of key assumptions for the planned study and optimization of project outcomes. With the later than planned receipt of some of the studies’ results and some variability of results from initial assumptions used in the PEA, this process is taking somewhat longer than anticipated but, regardless, the objective is to design the best project while taking into account these different perspectives.”
With these perspectives in mind, the following is a summary of key areas of activity, with further detail on each provided later in the release:
Expanded mineral resource estimation process - In order to provide data necessary for the optimization of metallurgical processing, balance the throughput of different types of mineralization and to ensure the applicability of the various historic data sets, the time frame for the completion of the expanded mineral resource estimates is around mid-year.
Mine plan optimization - In order to reduce its environmental footprint, Midas Gold has elected to forgo incorporation of certain of the high strip, lower margin mineral resources, as well as phasing mining within individual pits to balance different feed types and to support in-pit placement of waste rock.
Employment - Midas Gold has identified a number of functions that can be located within local communities, allowing employees to work from home and reducing camp size.
Fish habitat protection and enhancement - A major focus has been to mitigate potential impacts on water quality, to design concepts to enhance water quality and fish habitat, and to deliver same earlier in the project schedule.
Recycling historic tailings and spent ore - In order to address legacy disturbance from historic mining early in the project life, Midas Gold plans to utilize the spent heap leach ore for construction purposes and reprocess the historic tailings early in the project schedule.
Relocated project infrastructure - With the objective of reducing potential impacts on or risks to the environment and local communities, Midas Gold has identified a new preferred access route, a new preferred process plant location, and has elected to utilize grid power for the project.
Materials handling - Based on testing and option analysis, Midas Gold has elected to utilize a jaw crusher as its preferred first stage comminution, and to use trucks to haul materials.
Processing enhancements - Extensive metallurgical testing has allowed Midas Gold to identify options for enhanced overall recoveries, to eliminate the capital and operating cost associated with acidulation and to provide for extended operating hours on an annual basis.
Concentrate oxidation - Supported by extensive testing and trade-off studies, Midas Gold has determined to retain pressure oxidation as the preferred method of concentrate oxidation due to its better environmental and financial performance, and has identified opportunities to reduce neutralization costs.
Secondary antimony processing - Recently completed test work has demonstrated the potential for production of antimony end products within the US, as opposed to shipping concentrates overseas.
Details of Project Optimization Efforts
In the PEA completed in September 2012, Midas Gold outlined one possible option for the potential future development of the Golden Meadows Project, identified additional information required in order to further advance the project, and outlined some possible alternatives for the potential project.
In the 18 months since completion of the PEA, different project concepts have been and continue to be reviewed with a focus on environmental, sustainability, social, technical and financial outcomes. Project optimization studies have been completed or are in progress on approximately 70 aspects of the project, including the following ten key areas:
Mineral Resource Estimation - Midas Gold has completed 45,790m of drilling in 272 holes since the date of the PEA, has recovered considerable historic (i.e. pre-Midas Gold) data generated by prior operators of the project, and is working with its consultants to ensure the appropriateness of, and the basis for, incorporating each of these various data sets into the updated mineral resource estimate. This Midas Gold and historic data, combined with structural data collected by Midas Gold from oriented core, analysis of samples for trace and rock-forming elements (such as sulphur, silica and carbonate), and alteration (including the degree of oxidation), have assisted in the interpretation of structures, stratigraphy and various mineralizing events. Midas Gold has used this information to improve its geologic modeling of the mineral deposits within the Golden Meadows Project area. Geologic models are substantially complete for the Hangar Flats, West End and Yellow Pine deposits, and a model is well advanced for the Scout deposit. A number of parameters and elements (both directly and through the use of proxies) that are essential for mine planning (in order to balance gold production with pressure oxidation and mill capacity) are also being incorporated into the models. Mineral resource estimation is substantially advanced and is taking longer than planned due to the number and complexity of the models, but robust models, able to accurately predict the parameters likely to affect or influence the various stages of processing and neutralization, are key to optimizing the PFS. Completion of the mineral resource models is dependent on assumptions in respect of a number of parameters that are required under NI43-101 to demonstrate potential economic viability in order to define a mineral resource that will form the basis of a mineral reserve estimate for use in the PFS. Finalization of these assumptions is dependent on outcomes of certain trade-off and optimization studies discussed below and, as a result, the schedule for completion is around the end of Q2/14.
Mine Plan Optimization - An environmental, technical and financial review of each of the deposits, based on the 2012 PEA mineral resource estimates, indicated that the extraction of the higher strip ratio mineral resources in the final phase of the conceptual Hangar Flats pit generated a large environmental footprint (in respect of the resulting open pit and waste rock dumps) for a marginal increase in net present value (“NPV”), with the NPV of the increased cash flow being largely offset by increased sustaining capital. This sustaining capital included additional mining equipment and considerable waste stripping in order to access these incremental mineral resources. Midas Gold has determined to forgo these relatively marginal ounces in order to reduce the size of any pit designed for Hangar Flats, with the resulting reduction in waste generated from this area aligned with Midas Gold’s objective of aiming to reduce its overall environmental footprint. Midas Gold has also worked with its consultants to optimize the scheduling of the various deposits, including potentially phasing development within individual pits in order to balance and optimize mill feed while potentially allowing concurrent backfilling portions of these open pits as mining progresses (reducing the overall quantity of waste rock placed in waste rock storage facilities).
Community and Camp-based Employment - Following an evaluation of its needs and those of its future employees, Midas Gold has determined that certain support and technical functions (including accounting, human resources, some logistics, warehousing and laboratory) could be located in the local communities in the Cascade - Donnelly - McCall corridor, rather than at the project site. This will allow a significant number of employees to live at home, with their families, and work at well-paid, quality jobs in the communities in this corridor, resulting in a smaller camp and reduced vehicular traffic to site. Midas Gold has also identified a potential alternate location for the on-site man camp that would improve the safety of, and quality of life for, its employees as compared to the site selected in the PEA.
Fish Habitat Protection & Enhancement - A major focus for the conceptual project design has been the improvement of the local fishery, both through habitat enhancement and improvement of water quality. After evaluating opportunities to mitigate potential impacts and enhance eventual outcomes related to fish habitat (versus options considered in the PEA), Midas Gold has, among other things, identified opportunities to eliminate potential future impact on Sugar Creek, to allow fish passage through the site and beyond (for the first time since the 1930s) earlier in the project life, to enhance fish spawning/rearing potential in the Meadow Creek Valley, and to largely eliminate ongoing erosion and sediment generation from Blowout Creek. Blowout Creek is likely the largest contributor of sediments to Meadow Creek in the project area, impacting fish habitat and water quality.
Re-mining of Historic Tailings & Re-use of Historic Leached Ore - Extensive prior mining at Stibnite resulted in deposition of (i) a significant quantity of tailings generated by milling operations conducted from the 1920s through the 1950s, and (ii) a significant volume of spent ore generated by seasonal heap leach operations conducted in the 1980s and 1990s. Midas Gold has determined that it is conceptually feasible to reprocess the tailings and to re-use the leached ore for a net environmental benefit. Following a successful auger drilling program completed during the summer of 2013, Midas Gold announced a NI 43-101 compliant mineral resource estimate for the existing tailings on October 28, 2013 and is currently focused on options for recovering and re-treating these tailings. Midas Gold anticipates that these tailings would be reprocessed and placed in a lined tailings storage facility early in the project life, most likely within the first three to five years, thereby ensuring that this remediation opportunity is delivered early in the conceptual project schedule. These historic tailings are overlain by approximately six million tonnes of spent heap leach ore that has been crushed to minus ¾ inch size. Geotechnical and geochemical analysis of the spent ore indicates that it could be reused for construction of certain infrastructure related to the conceptual project, thereby eliminating the need to mine and crush several million tonnes of new rock to create suitable aggregate for the construction of this infrastructure. Through these approaches, Midas Gold could effectively recycle previously generated waste material, reducing its environmental footprint and saving money related to mining and crushing if such material were not available.
Project Infrastructure - Midas Gold and its consultants have re-evaluated concepts for a preferred access route, a preferred power supply and siting of a potential process facility through the lens of environmental impact, community considerations, technical risk and financial outcomes.
Access Route - After considering a number of options, Midas Gold has an alternate preferred access route that was identified by members of the local community. Since this already existing access route essentially eliminates travel adjacent to significant drainages and has only one crossing of such a drainage, it significantly reduces potential sediment impacts on water and fish habitat related to sediment run-off and dust generation from roads and vehicular traffic, while also largely eliminating the risk of spills into these drainages. Midas Gold and its consultants are continuing to optimize the design of this access route in order to minimize potential impacts and costs.
Power Supply - Midas Gold and its consultants have evaluated options for supplying power to the site, including on-site power generation, and have concluded that connecting to the existing power grid represents the best outcome from a sustainability, community, risk and financial perspective. The power line option has the advantage of eliminating potentially significant greenhouse gas emissions related to on-site power generation, significantly reducing the volumes of fuel to be transported to site and related road traffic, reducing noise, providing a long term benefit to communities along the route through improved and more reliable infrastructure, while providing Midas Gold with access to a reliable, long term, low cost source of energy.
Process Facilities - Midas Gold is looking to locate the potential process facilities near the Scout deposit and former town site of Stibnite as opposed to at the site considered in the PEA. This new location is set back significantly further from existing creeks, places the infrastructure on exposed competent bedrock (where there is lower geotechnical risk for foundations), moves it off forested wetlands and moves it closer to the centre of gravity for the project. While this location may impact the potential future development options for the Scout mineralization discovered in 2012, it may not preclude the underground extraction of relatively shallow, high grade antimony-gold-silver mineralization defined in the Scout area, should a mineral resource be defined and further evaluation demonstrate potential for an attractive economic return.
Comminution & Materials Handling - The PEA assumed that the project would utilize a gyratory crusher to feed the SAG-Ball mill combination to achieve the desired particle size at 20,000 tonnes per day; however, subsequent engineering analysis and metallurgical testing support the choice of a single jaw crusher, resulting in reduced capital costs for the crusher as compared to a gyratory crusher. This jaw crusher would feed into the same SAG-Ball mill combination selected in the PEA. Recently completed confirmatory test work has also identified unanticipated higher variability in hardness within portions of the deposits that needs to be modeled in order to ensure a balanced mill feed. As noted in its September 9, 2013 news release, Midas Gold had also been evaluating the potential to utilize conveyors to move material from the pits to the mill and/or waste dumps. A recently completed trade-off study compared the life-cycle cost of crushing and conveying ore and waste rock to the plant and waste rock storage facility, respectively, versus trucking. While the discounted costs between the two options was within the error of the estimates (for both waste rock and ore), trucking yielded an appreciably lower capital cost with much greater operational flexibility, as well as less exposure to potential avalanche and landslide hazards, and will form the basis of the PFS.
Flotation Recoveries & Leach Tests - Appreciable laboratory testing has been dedicated to achieving the right economic balance between grind size, gold/antimony rougher flotation, gold/antimony cleaner flotation, gold scavenger flotation, and leaching of the oxidized gold concentrate and flotation tailings. The outcome of these tests has been to:
Justify marginally finer grind sizes resulting in overall marginally improved gold recoveries in flotation, and the potential to directly feed rougher flotation concentrates from the Hangar Flats and Yellow Pine deposits to the pressure oxidation circuit for a significant portion of the contemplated project life, thereby reducing the risk of gold losses during subsequent cleaner flotation steps, while still having sufficient sulphur to sustain autothermic reactions in the pressure oxidation circuit.
A flotation cleaner circuit for West End concentrates would still be required, but would have the added benefit of allowing the rejection of excess carbonate from West End concentrates, the presence of which could reduce the effectiveness of the pressure oxidation circuit. However, this cleaning step has demonstrated sufficient carbonate rejection to eliminate the need for the capital and operating costs related to the acidulation circuit that were included in the PEA.
Midas Gold and its consultants have also concluded that providing for leaching the tailings after flotation early in the mine life would give additional operational flexibility, potential for enhanced gold recoveries and reduce the risk of leachable gold bypassing the flotation recovery circuit. This approach would also allow oxides to be processed when the pressure oxidation circuit is down for maintenance (usually about 10-15% of the year), facilitating gold production during these periods.
Concentrate Oxidation - While flotation to produce gold-pyrite concentrates remains at the centre of the contemplated processing facility for the potential project, options for the onsite oxidation of the concentrates produced had previously indicated that bio-oxidation (“BiOx”) may have been a preferred alternative to pressure oxidation (“POx”) of those concentrates. However, subsequent test work, combined with evaluation from an environmental, technical and financial perspective, has resulted in POx being selected as the preferred methodology as it generates more environmentally stable tailings products, has demonstrated more reliable and higher metallurgical recoveries, is less vulnerable to process upset and, overall, generates better economics. Results of recent analysis test work have also provided considerable additional data in respect of sulphur, carbonate, silica and other minor metals that need to be modeled in order to balance mill feed to match the capacity and capabilities of the planned process facilities. A significant cost in the PEA related to the POx of concentrates was related to the neutralization of the POx solutions before leaching, however, subsequent work has determined that the flotation tailings can accomplish most of the neutralization and this neutralization could be supplemented by a local source of on-site, high quality limestone defined and tested during 2013.
Secondary Antimony Processing - The PEA assumed production of an antimony concentrate that would be shipped offshore for processing. Given the relatively low payability and high transportation costs associated with such an option, Midas Gold and its consultants have conducted an extensive program to evaluate the potential for offsite but still US-based processing of such concentrates through the leaching of the concentrates and electrowinning of metallic antimony from the solutions. Optimization of the process continues, but test results have demonstrated ~99% solubilisation of the antimony in the leach circuit and have successfully produced high quality electrowon antimony. Optimization and locked cycle tests in support of this option continue. Midas Gold anticipates that the base case for PFS will, for simplicity, assume production and shipment of concentrates overseas, as in the PEA, but will set out an option case for the production of metallic antimony or other saleable antimony compounds (antimony trioxide or sodium antimonite) that can be evaluated and advanced, potentially in cooperation with partners.
The above ten areas represent just a portion of the project optimization activities undertaken during the 18 months since completion of the PEA, and work continues in a number of areas in order to fully optimize the project from a variety of perspectives.
2014 Outlook
As previously reported, the primary focus for Midas Gold has been the updating of mineral resource estimates and on preparing a preliminary feasibility study. The updated mineral resource estimates will incorporate the results of all drilling completed since the PEA and are now anticipated to be completed around the end of Q2/14 in order to incorporate a number of additional parameters needed to support the mineral processing aspects of the project. The PFS will take these updated mineral resource estimates and incorporate the results of the extensive, post-PEA metallurgical testing, geotechnical, environmental and engineering work (the results of some of which are discussed above) with the objective of defining a more fully optimized project. The results of the PFS are anticipated to be available in the summer of 2014, but the schedule is dependent on the timing for the completion of the mineral resource estimates and various other aspects of the trade-off studies (some of which are discussed above), and may be extended into the fall.
As previously reported with the closing of a financing in Q1/14, Midas Gold believes it has sufficient cash resources to fund the Company’s activities, including the on-going exploration and evaluation of the Golden Meadows Project and general working capital, into 2016.
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.
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 deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors, as well as a recently announced mineral resource contained in historic tailings. Independent mineral resource estimates were reported for all three lode 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 August 15, 2012 (the “Technical Report”), which is available on Midas Gold’s website atwww.midasgoldcorp.com or under Midas Gold’s profile on SEDAR at www.sedar.com. The Preliminary Economic Assessment outlines one 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” or variations of such words and phrases or statements that certain actions, events or results “may”, “may not”, “could”, “would”, “should”, “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 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 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 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43 101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Accordingly, information contained in this News Release contain descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.
MIDAS GOLD COMPLETES BALANCE OF C$12.8 MILLION PRIVATE PLACEMENT
Funds Support Continued Exploration and Evaluation of the Golden Meadows Project, Idaho
Not for distribution to United States newswire services or for dissemination in the United States
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today announced that it has closed the second and final tranche (the “Second Tranche”) of its previously announced non-brokered private placement financing (the “Financing”) of units (the “Units”) at a price of C$0.90 per Unit.
Midas Gold issued a total of 990,000 additional Units under the Second Tranche, generating additional gross proceeds of approximately C$0.9 million. Each Unit is comprised of one common share in the capital of the Company (a “Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant (a “Warrant”) of the Company. Each Warrant entitles the holder to acquire one additional common share of Midas Gold (a “Warrant Share”) at a price per Warrant Share of C$1.20 until March 7, 2016.
Midas Gold issued an aggregate of 14,167,621 Units, generating gross proceeds of approximately C$12.8 million under both tranches of the Financing (please refer to Midas Gold’s press release dated March 4, 2014 for details of the first tranche of the Financing).
In connection with the closing of the Second Tranche and in consideration for arranging a portion of the Financing, the Company paid finder’s fees to certain arm’s length parties consisting of: (i) a cash commission in the aggregate amount of $35,550; and (ii) a total of 39,500 finder’s options (“Finder’s Options”). Each Finder’s Option entitles the holder to acquire one Unit at a price per Unit of C$0.99 until March 7, 2016.
The Shares, Warrants and any Warrant Shares exercised upon exercise of the Warrants, and Finder’s Options and any securities issued upon exercise thereof pursuant to the Second Tranche, are subject to a hold period and may not be traded until July 8, 2014 except as permitted by applicable securities legislation and the rules and policies of the Toronto Stock Exchange.
The Company intends to use the net proceeds of the Financing for the exploration and development of its Golden Meadows Project in central Idaho, and for general working capital purposes. The aggregate net proceeds of the Financing are estimated to bring the Company’s current cash balance to approximately C$25.0 million, which is currently anticipated to be sufficient to fund the Company’s activities, including the on-going exploration and evaluation of the Golden Meadows Project and general working capital, into 2016.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons,” as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
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 evaluation of their gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Golden Meadows Project.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; and expected use of proceeds and business objectives. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. Certain disclosure in this news release, including statements regarding the intended use of proceeds from the Financing and the sufficiency of such proceeds to fund the Company’s activities, including the on-going exploration and evaluation of the Golden Meadows Project and general working capital, may constitute “forward-looking information”. 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, including, without limitation, unforeseen circumstances that may cause the costs associated with the ongoing exploration and evaluation of the Golden Meadows Project to be higher than management’s expectations; fluctuations in metal prices; and permitting requirements and restraints. 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 INCREASES PRIVATE PLACEMENT TO C$12.8 MILLION; CLOSES FIRST TRANCHE OF C$11.9 MILLION, WITH BALANCE EXPECTED TO CLOSE SHORTLY
Not for distribution to United States newswire services or for dissemination in the United States
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today announced that it has closed the first tranche (the “First Tranche”) of its previously announced non-brokered private placement financing (the “Financing”) of units (the “Units”) at a price of C$0.90 per Unit. The aggregate amount of the Financing was increased to C$12.8 million from the initially announced amount of C$10.0 million, partially as a result of Teck Resources Limited (“Teck”) electing to exercise its right to participate in the Financing.
The Company issued a total of 13.2 million Units under the First Tranche, generating gross proceeds of C$11.9 million. Each Unit is comprised of one common share in the capital of the Company (a “Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each Warrant entitles the holder to acquire one additional common share of Midas Gold (a “Warrant Share”) at a price per Warrant Share of C$1.20 until March 4, 2016.
As noted above, Teck exercised its right to participate in the Financing and acquired 1,277,621 Units under the Financing. As a result, Teck now holds an aggregate of 14,017,621 common shares and 638,810 Warrants of Midas Gold. Upon completion of the full amount of the remainder of the Financing (involving, among other things, the issuance of an additional 990,000 Units), it is anticipated that Teck’s holdings will represent approximately 9.9% of the outstanding Midas Gold common shares on a non-diluted basis and approximately 10.3% on a partially diluted basis (assuming the exercise of all Warrants held by Teck and no other convertible securities of Midas Gold.)
In connection with the closing of the First Tranche and in consideration for arranging a portion of the Financing, the Company paid finder’s fees to certain arm’s length parties consisting of: (i) a cash commission in the aggregate amount of $334,125; and (ii) a total of 371,250 finder’s options (“Finder’s Options”). Each Finder’s Option entitles the holder to acquire one Unit at a price per Unit of C$0.99 until March 4, 2016.
The Shares, Warrants and any Warrant Shares exercised upon exercise of the Warrants, and Finder’s Options and any securities issued upon exercise thereof pursuant to the First Tranche, are subject to a hold period and may not be traded until July 5, 2014 except as permitted by applicable securities legislation and the rules and policies of the Toronto Stock Exchange.
The Company intends to use the net proceeds of the Financing for the exploration and development of its Golden Meadows Project in central Idaho, and for general working capital purposes.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons,” as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
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 evaluation of their gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Golden Meadows Project.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; and expected use of proceeds and business objectives. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. Certain disclosure in this news release, including statements regarding the terms of the Financing, the possible completion of any subsequent tranche(s) the Financing and the intended use of proceeds from the Financing, may constitute “forward-looking information”. 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, including that Midas Gold is able to obtain any required government or other regulatory approvals to complete any subsequent tranches(s) of the Financing and exploration activities and that Midas Gold is able to complete any subsequent tranche(s) of the Financing, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended, including, without limitation, the risks and uncertainties related to the Financing not being completed in the event that the conditions precedent thereto are not satisfied; uncertainties related to raising sufficient financing in a timely manner and on acceptable terms. 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 ARRANGES C$10 MILLION PRIVATE PLACEMENT FINANCING
Not for distribution to United States newswire services or for dissemination in the United States
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today announced that it has arranged a private placement financing (the “Financing”) with a limited group of strategic investors for gross proceeds of approximately C$10 million. The Financing will consist of the sale of approximately 11.1 million units (the “Units”) of Midas Gold at a price of C$0.90 per unit. Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each Warrant will entitle the holder to acquire one Common Share (a “Warrant Share”) at a price per Warrant Share of C$1.20 for a period of two years from the date of issuance of the Warrant.
The Company intends to use the net proceeds of the Financing for the exploration and development of its Golden Meadows Project in central Idaho, and for general working capital purposes.
Finder’s fees are expected to be payable on a portion of the Financing.
The Financing is scheduled to close in early March of 2014 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX, and other securities regulatory authorities as applicable.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons,” as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
About Midas Gold and the Golden Meadows Project
Midas Gold Corp., through its wholly owned subsidiaries Midas Gold, Inc. and Idaho Gold Resources, LLC, controls a number of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Golden Meadows Project.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; and the plans for completion of the Financing, expected use of proceeds and business objectives. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. 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, including, without limitation, the risks and uncertainties related to the Financing not being completed in the event that the conditions precedent thereto are not satisfied; uncertainties related to raising sufficient financing in a timely manner and on acceptable terms. In making the forward-looking statements in this news release, Midas has applied several material assumptions, including the assumptions that (1) the conditions precedent to completion of the Financing will be fulfilled so as to permit the Financing to be completed in or about early March of 2014; (2) all necessary approvals and consents in respect of the Financing will be obtained in a timely manner and on acceptable terms; and (3) general business and economic conditions will not change in a materially adverse manner. 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 SUPPORTS IDAHO ALPINE SKIER ERIK FISHER FOR SOCHI 2014 OLYMPIC WINTER GAMES
McCALL, IDAHO - With the commencement of the Sochi 2014 Olympic Winter Games, Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) is pleased to announce its sponsorship of downhill skier and Idaho native, Erik Fisher.
“We are proud supporters of Erik and the US Olympic team in their quest for gold at Sochi,” said Anne Labelle, a vice president of Midas Gold. “At Midas we believe it is important to support our local community, and we hope that our contribution to Erik’s journey will help him realize his Olympic dream.”
Fisher, known to many as “Fish”, is a World Cup alpine ski racer with the United States Ski Team. He is originally from Middleton, Idaho, graduated from Eagle High School and began his ski racing career at the age of seven on the slopes at Bogus Basin, near Boise.
Fisher will be hitting the slopes in the next few days, competing in the men’s Downhill Slalom and Super G, as competition in Sochi gets underway.
The Company would like to wish Erik the best of luck as he goes “Fishin’ for Gold” in Sochi.
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 gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Golden Meadows Project. Midas Gold recognizes that “mining done right”, by taking care of the environment, providing sustainable economic opportunities and partnering with our communities, is the key to our successes at all stages of development, including the current exploration and possible future mining of the project.
MIDAS GOLD REPORTS THAT VISTA GOLD HAS AGREED TO REDUCE ITS SHAREHOLDINGS TO 12.4%
Vista enters into a Lock-up Agreement for its remaining Midas Gold Shares
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) reports that it has been notified by Vista Gold Corp. (“Vista”) that Vista has entered into an agreement to sell 16.0 million shares of Midas Gold Corp. (“Midas Gold”) held by Vista and/or its subsidiaries to certain arm’s-length parties at a fixed price of C$0.80 per share. Once completed, this transaction will reduce Vista’s shareholdings in Midas Gold from 31,802,615 shares (representing 24.94% of Midas Gold’s currently issued shares) to 15,802,615 shares (representing 12.39% of Midas Gold’s issued shares). Midas Gold understands that the entire 16.0 million shares have subsequently been placed. As a condition of the sale of 16.0 million shares, Vista Gold has agreed not to sell any of its remaining shares in Midas Gold for a period of 12 months from the closing of the share sale transaction.
“We are pleased to see 16 million shares previously owned by Vista Gold placed more broadly,” said Stephen Quin, President & CEO of Midas Gold. “The share sale by Vista Gold, combined with a 12-month lock-up of their remaining shares, provides improved certainty in respect of this significant block of shares.”
As Vista is a greater than 20% shareholder of Midas Gold, closing of the transaction is subject to an advance notice requirement and, as a result, closing is expected to occur on or about February 14, 2014. While the advance notice period extends the closing, the terms of sale for the shares have been predetermined with the purchasers of the shares. Midas Gold currently has 127,534,136 shares issued and outstanding; the completion of this transaction will not affect the number of shares issued and outstanding.
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 gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Golden Meadows Project.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. 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. In making the forward-looking statements in this news release, Midas has applied several material assumptions, including the assumptions that (1) the conditions precedent to completion of the transaction will be fulfilled and the sale of Midas Gold shares by Vista will be completed by the anticipated closing date of February 14, 2014; and (2) if required, the receipt by Vista of all necessary approvals and consents in respect of the transaction in a timely manner. 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 REPORTS RESULTS OF FINAL 24 HOLES FROM 2013 DRILLING AT GOLDEN MEADOWS
MGI-13-386 intersects 82.8m at 3.35g/t Au and 17.1g/t Ag, or 3.65g/t AuEq(1)
MGI-13-392 intersects 92.2m at 2.56g/t Au, 5.2g/t Ag and 0.30% Sb, or 3.36g/t AuEq(1)
MGI-13-399 intersects 94.0m at 2.33g/t Au, 8.3g/t Ag and 0.70% Sb, or 4.13g/t AuEq(1)
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today reported results from the final 24 holes completed during its 2013 in-fill and mineral resource definition core drilling program at its Golden Meadows Project, in the Stibnite-Yellow Pine Mining District, Idaho. A total of 11,655m of drilling, in 123 holes of various types, was completed during the 2013 program.
Table 1: Highlights from Recent Drilling at Golden Meadows
| Hole ID | Deposit | From (m) | To (m) | Intercept (m)(2) | Gold (g/t) | Silver (g/t) | Antimony (%) | Gold Equivalent (g/t)(1) |
|---|---|---|---|---|---|---|---|---|
| MGI-13-386 | Yellow Pine | 69.7 | 152.4 | 82.8 | 3.35 | 17.1 | 0.02 | 3.65 |
| MGI-13-391 | Yellow Pine | 30.8 | 68.1 | 37.3 | 4.06 | 27.6 | 1.65 | 8.46 |
| MGI-13-392 | Yellow Pine | 2.3 | 94.5 | 92.2 | 2.56 | 5.2 | 0.30 | 3.36 |
| MGI-13-394 | Hangar Flats | 60.4 | 127.3 | 66.9 | 2.11 | 3.0 | 0.21 | 2.65 |
| MGI-13-399 | Yellow Pine | 0.0 | 94.0 | 94.0 | 2.33 | 8.3 | 0.70 | 4.13 |
| MGI-13-401 | Yellow Pine | 30.9 | 70.6 | 39.6 | 2.03 | 14.2 | 1.06 | 4.80 |
| MGI-13-402 | Yellow Pine | 0.0 | 98.3 | 98.3 | 2.22 | 6.3 | 0.58 | 3.71 |
(1) In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony, as used in prior reporting. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
(2) Drill hole composites are reported at a 0.5g/t Au cut-off, with a minimum 10 meter composite length. Higher grade composites are reported at 3g/t Au cut-off. Composites may contain up to 6m of internal waste below cut-off. Intercept width is estimated to be close to true width
“The drill results reported today again demonstrate the significant thicknesses of excellent grade mineralization within all three of the deposits that comprise the Golden Meadows Project,” said Stephen Quin, President & CEO of Midas Gold Corp. “These results are now being incorporated into updated geologic models and mineral resource estimates that will form the basis of a pre-feasibility study to be completed in mid-2014, which will also incorporate the results of extensive environmental, metallurgical, geotechnical and other engineering work completed since the preliminary economic assessment in 2012,” he said. “Our objective is to design an environmentally acceptable, economic project that will balance development with the ultimate restoration of this extensively disturbed brownfields mining district.”
Summary of 2013 Drill Program
During the 2013 season, Midas Gold completed approximately 9,400m of mineral resource definition drilling that was designed to in-fill and further define mineralization with the objective of improving the confidence level of the majority of the mineral resources to the measured and indicated categories, suitable for inclusion in a pre-feasibility study (“PFS”). Core drilling was primarily focused on the Yellow Pine deposit, with limited additional drilling completed at the West End and Hangar Flats deposits, and was carried out with two drill rigs from T&J Enterprises of Montana. The core drilling program was also designed to collect large-diameter (PQ core) samples for future pilot plant test work. In addition to the core drilling program, Midas Gold completed approximately 1,000m of hollow stem auger drilling, which led to a mineral resource estimate for the historic tailings material (the results of which were reported in a news release dated October 28, 2013), as well as additional geotechnical and water monitor well drilling. An updated summary of drilling completed by Midas Gold in 2013 is shown in Table 2, below.
Yellow Pine
This latest drilling was completed on the southern, western and eastern sides of the Yellow Pine deposit in order to better define and delimit the mineralization in these areas. Drilling on the southern portion (holes MGI-13-390 and MGI-13-391) is generally consistent with the mineral resource model, but will likely limit the depth potential in this area. Holes completed on the western side (including holes MGI-13-397, -398, -400, -401, and -410, reported herein), were generally consistent with the mineral resource estimate, and outline a southwest-northeast trending zone of mineralization associated with a newly identified shear zone, with local significant antimony grades. Holes on the eastern side of the Yellow Pine deposit (including MGI-13-386, -403 and -405) targeted inferred mineralization that was sparsely drilled; results indicate that higher grade gold mineralization lies to the west of a fault structure running sub-parallel to the Meadow Creek Fault Zone (and mapped historically), which may represent an eastern limit for high-grade gold mineralization in this area due to post-mineral displacement along this structure. In-fill drilling in the main deposit area returned high grade gold-antimony mineralization (as reported from holes MGI-13-392, -399 and -402), with intercepts and widths that are generally consistent with the previous model. Finally, two additional core holes drilled in the eastern side of the north-central portion of the Yellow Pine deposit, where the resource model is supported by minimal modern era drilling, cut only weakly anomalous mineralization (as have other holes completed in this area).
West End
The results from the two holes completed at West End in 2013 have been received. MGI-13-396, reported in a news release dated December 03, 2013, and MGI-13-404 both intercepted broad intervals of disseminated gold mineralization in a carbonate-clastic sequence. Both holes were step-out holes from nearby historic drill holes testing the intersection of favorable stratigraphic horizons with ENE to NE striking splay faults extending east of the main West End Fault Zone.
Hangar Flats
Results from the final five of the nine core holes drilled during 2013 at Hangar Flats are reported herein. Drilling was primarily directed at providing additional information to improve confidence in the resource model and provide evidence of continuity of grade and thicknesses in areas of broader drill spacing within the deposit. This includes infill drilling to establish tighter controls on higher grade mineralized zones, such as that intersected in MGI-13-394, which cut 66m of 2.1g/t Au and 0.2% Sb following up on a high grade intercept cut in hole MGI-13-361 that was previously reported in NR 2013-12 (October 1, 2013). Several holes completed along the fringes of the deposit, such as hole MGI-13-407 and MGI-13-409, only intercepted weakly anomalous mineralization, or mineralization at expected widths but with lower grades.
2013 Drilling Meterage Summary
Table 2 summarizes drilling completed in 2013 by type and by area.
Table 2: Summary of 2013 Drilling on the Golden Meadows Property
| Drill Program | Number of Holes | Total Meters |
|---|---|---|
| 2013 Winter/Fall Resource Definition | 60 | 9,420 |
| Yellow Pine | 49 | 7,386 |
| West End | 2 | 450 |
| Hangar Flats | 9 | 1,584 |
| Infrastructure Condemnation Core | 1 | 384 |
| Geotechnical Auger Drilling | 10 | 106 |
| Tailings Resource Auger Drilling | 42 | 977 |
| Monitoring Well Installations(1) | 10 | 768 |
| Grand Total | 123 | 11,655 |
(1) Includes both bedrock and alluvial well installations
2013 Drill Results
Overall, the drill intercepts reported herein, and those reported in previous news releases, are generally in line with expectations and Midas Gold anticipates a significant conversion of mineral resources from the inferred to the measured and indicated categories as compared to the 2012 preliminary economic assessment (“PEA”), based on the post-PEA drilling completed in late 2012 and during 2013. While new drilling results may result in localized gains and losses in different areas, the impact on mineral resources falling within the PFS pits and potentially becoming mineral reserves cannot be determined until the updated mineral resource estimates are completed. With the adoption of new geologic models and more conservative modeling parameters, as discussed in a news release dated September 9, 2013, some areas may show gains or losses dependent upon the amount and quality of modern drilling supporting the blocks making up the resource model.
2014 Outlook
As has been previously reported, the primary focus for Midas Gold in the first half of 2014 is the updating of mineral resource estimates to incorporate the results of all drilling completed since the 2012 PEA, which estimates are anticipated to be complete later in Q1/14, and on preparing a PFS based on these updated mineral resource estimates and incorporating the results of extensive, post-PEA metallurgical testing, geotechnical, environmental and engineering work. The results of the PFS are anticipated to be available in mid-2014.
Illustrations
For maps associated with this news release, please click here.
Sampling Procedures 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 Golden Meadows were carried out under the supervision of Richard Moses, C.P.G., Qualified Person and Field 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 0.005g/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 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 and Independent 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 deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors, as well as a recently announced mineral resource contained in historic tailings. Independent mineral resource estimates were reported for all three lode deposits in a news release dated June 27, 2012 and are detailed in a technical report entitled “Preliminary Economic Assessment Technical Report for the Golden Meadows Project, Idaho” dated August 15, 2012 (the “Technical Report”), which is available on Midas Gold’s website at www.midasgoldcorp.com or under Midas Gold’s profile on SEDAR at www.sedar.com. The Preliminary Economic Assessment outlines one 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will likely”, “potentially”, “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 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 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 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43 101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Accordingly, information contained in this News Release contain descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.
Table 3: Details of Yellow Pine, Hangar Flats and West End Core Drilling Results, Golden Meadows Project
(To accompany Midas Gold news release #2014-01)
| Hole ID | Deposit | Collar Azimuth | Collar Dip | Hole Length (m) | From (m) | To (m) | Intercept (m)(1,3) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) | Gold Equiv. (g/t)(2) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MGI-13-379 | Yellow Pine | 260 | -45 | 157.0 | 14.5 | 40.4 | 25.9 | 0.55 | 2.0 | 0.01 | 0.003 | 0.64 |
| and | 49.5 | 102.1 | 52.6 | 0.87 | 3.1 | 0.02 | 0.001 | 0.96 | ||||
| and | 114.8 | 142.2 | 27.4 | 1.67 | 4.9 | 0.33 | 0.001 | 2.54 | ||||
| MGI-13-381 | Yellow Pine | 260 | -30 | 15.5 | NSI (4) - hole abandoned and re-collared as -382 | |||||||
| MGI-13-386 | Yellow Pine | 309 | -38 | 152.4 | 69.7 | 152.4 | 82.8 | 3.35 | 17.1 | 0.02 | 0.002 | 3.65 |
| including | 106.2 | 131.4 | 25.2 | 5.41 | 8.6 | 0.01 | 0.002 | 5.56 | ||||
| including | 138.2 | 152.4 | 14.2 | 3.75 | 4.5 | 0.06 | 0.003 | 3.95 | ||||
| MGI-13-387 | Yellow Pine | 318 | -53 | 121.1 | NSI (4) | |||||||
| MGI-13-390 | Yellow Pine | 321 | -47 | 111.4 | 34.3 | 45.7 | 11.4 | 0.93 | 1.4 | 0.01 | 0.003 | 0.98 |
| and | 54.9 | 68.6 | 13.7 | 1.18 | 23.9 | 0.98 | 0.002 | 3.90 | ||||
| MGI-13-391 | Yellow Pine | 321 | -30 | 91.4 | 30.8 | 68.1 | 37.3 | 4.06 | 27.6 | 1.65 | 0.002 | 8.46 |
| including | 33.5 | 63.6 | 30.1 | 4.60 | 26.2 | 1.66 | 0.002 | 9.00 | ||||
| MGI-13-392 | Yellow Pine | 175 | -62 | 119.8 | 2.3 | 94.5 | 92.2 | 2.56 | 5.2 | 0.30 | 0.001 | 3.36 |
| MGI-13-393 | Yellow Pine | 225 | -64 | 220.1 | 89.3 | 105.3 | 16.0 | 0.95 | 0.4 | 0.00 | 0.002 | 0.96 |
| and | 196.8 | 215.0 | 18.3 | 1.25 | 1.0 | 0.00 | 0.005 | 1.28 | ||||
| MGI-13-394 | Hangar Flats | 90 | -80 | 183.8 | 60.4 | 127.3 | 66.9 | 2.11 | 3.0 | 0.21 | 0.004 | 2.65 |
| including | 77.0 | 93.0 | 16.0 | 4.83 | 6.1 | 0.49 | 0.010 | 6.11 | ||||
| and | 154.7 | 175.3 | 20.6 | 1.75 | 2.0 | 0.02 | 0.003 | 1.83 | ||||
| MGI-13-395 | Yellow Pine | 225 | -45 | 151.5 | 48.6 | 74.4 | 25.8 | 0.72 | 1.0 | 0.00 | 0.001 | 0.74 |
| and | 103.3 | 151.5 | 48.2 | 1.77 | 0.4 | 0.00 | 0.001 | 1.79 | ||||
| MGI-13-397 | Yellow Pine | 220 | -60 | 149.1 | 104.6 | 136.9 | 32.3 | 1.01 | 6.9 | 0.36 | 0.006 | 2.03 |
| MGI-13-398 | Yellow Pine | 155 | -45 | 164.9 | 72.9 | 104.9 | 32.0 | 1.71 | 1.9 | 0.01 | 0.002 | 1.77 |
| MGI-13-399 | Yellow Pine | 161 | -31 | 114.6 | 0.0 | 94.0 | 94.0 | 2.33 | 8.3 | 0.70 | 0.001 | 4.13 |
| including | 2.3 | 13.7 | 11.4 | 4.05 | 2.2 | 0.22 | 0.001 | 4.62 | ||||
| including | 48.3 | 64.3 | 16.0 | 2.82 | 5.4 | 0.31 | 0.002 | 3.65 | ||||
| MGI-13-400 | Yellow Pine | 120 | -62 | 175.3 | 104.7 | 120.6 | 15.9 | 1.64 | 1.1 | 0.03 | 0.001 | 1.74 |
| MGI-13-401 | Yellow Pine | 191 | -60 | 76.3 | 30.9 | 70.6 | 39.6 | 2.03 | 14.2 | 1.06 | 0.006 | 4.80 |
| MGI-13-402 | Yellow Pine | 145 | -60 | 137.3 | 0.0 | 98.3 | 98.3 | 2.22 | 6.3 | 0.58 | 0.001 | 3.71 |
| including | 2.3 | 16.0 | 13.7 | 3.81 | 3.6 | 0.26 | 0.002 | 4.49 | ||||
| including | 34.3 | 45.7 | 11.4 | 2.89 | 26.2 | 2.27 | 0.002 | 8.76 | ||||
| MGI-13-403 | Yellow Pine | 278 | -60 | 217.0 | 104.6 | 157.1 | 52.6 | 1.27 | 2.2 | 0.00 | 0.001 | 1.32 |
| and | 196.0 | 217.0 | 21.0 | 1.78 | 4.2 | 0.05 | 0.001 | 1.98 | ||||
| MGI-13-404(3) | West End | 230 | -75 | 197.4 | 2.4 | 22.4 | 20.0 | 0.50 | 0.2 | 0.00 | 0.000 | 0.52 |
| and | 74.2 | 195.7 | 121.5 | 1.82 | 1.7 | 0.00 | 0.002 | 1.85 | ||||
| including | 158.8 | 175.6 | 16.8 | 4.02 | 5.0 | 0.01 | 0.002 | 4.11 | ||||
| MGI-13-405 | Yellow Pine | 246 | -33 | 220.4 | 81.5 | 99.8 | 18.3 | 0.64 | 0.9 | 0.01 | 0.003 | 0.67 |
| and | 106.7 | 154.7 | 48.0 | 1.02 | 4.7 | 0.01 | 0.001 | 1.11 | ||||
| and | 182.1 | 205.0 | 22.9 | 2.37 | 3.6 | 0.16 | 0.001 | 2.81 | ||||
| MGI-13-406 | Hangar Flats | 293 | -33 | 118.6 | 83.7 | 118.6 | 34.9 | 1.37 | 2.7 | 0.10 | 0.004 | 1.66 |
| MGI-13-407 | Hangar Flats | 130 | -32 | 170.7 | 98.8 | 139.5 | 40.7 | 0.85 | 1.3 | 0.02 | 0.005 | 0.92 |
| and | 150.9 | 166.9 | 16.0 | 0.92 | 0.8 | 0.02 | 0.003 | 0.99 | ||||
| MGI-13-408 | Hangar Flats | 335 | -65 | 149.1 | 64.8 | 92.2 | 27.4 | 1.28 | 0.8 | 0.00 | 0.001 | 1.30 |
| and | 99.1 | 126.5 | 27.4 | 1.45 | 0.7 | 0.00 | 0.001 | 1.47 | ||||
| MHI-13-409 | Hangar Flats | 322 | -65 | 118 | NSI (4) | |||||||
| MGI-13-410 | Yellow Pine | 212 | -30 | 113.1 | 52.1 | 79.6 | 27.4 | 2.05 | 3.9 | 0.31 | 0.004 | 2.85 |
(1) Reported drill hole composites are reported at a 0.5 g/t Au cut-off, with a minimum 10 meter composite length. Higher grade composites are reported at 3 g/t Au cut-off. Composites may contain up to 6m of internal waste below cut-off.
(2) In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
(3) Intercept width is estimated to be close to true width, except hole MGI-13-404 where the true width is estimated to be approximately 70% of the intercept width.
(4) NSI - No significant intercept
MIDAS GOLD COMPLETES ~7,000M DRILL PROGRAM AT ITS GOLDEN MEADOWS PROJECT, IDAHO
Results include intercepts of 3.1 g/t Gold over 101m and 2.9 g/t Gold over 82m at Yellow Pine
Plus 2.8 g/t Gold over 42m at West End
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today reported that it has recently completed approximately 7,000m of in-fill and resource definition core drilling at its Golden Meadows Project in the Stibnite-Yellow Pine Mining District, Idaho. Completion of this program brings the total metres completed in 2013 to 11,655m, including two campaigns of core, auger and geotechnical drilling. A summary of the most recent, previously unreported, results from the recent core drilling program in the Yellow Pine deposit and from a step-out hole in the West End deposit are tabulated in Table 1 below, and complete results are provided in Table 3 at the end of this news release.
Table 1: Highlights from Recent Drilling on the Yellow Pine and West End Deposits, Golden Meadows
| Hole ID | Deposit | From (m) | To (m) | Intercept (m)(1,2) | Gold (g/t) | Silver (g/t) | Antimony (%) | Gold Equiv. (g/t)(3) |
|---|---|---|---|---|---|---|---|---|
| MGI-13-380(4) | Yellow Pine | 0.9 | 101.8 | 100.9 | 3.12 | 2.8 | 0.01 | 3.18 |
| Including | 45.1 | 81.4 | 36.3 | 4.29 | 2.9 | 0.00 | 4.34 | |
| MGI-13-382(2) | Yellow Pine | 20.9 | 79.3 | 58.4 | 1.21 | 19.1 | 0.85 | 3.55 |
| and | 94.8 | 158.8 | 64.0 | 2.52 | 3.8 | 0.27 | 3.22 | |
| Including | 102.4 | 129.1 | 26.7 | 3.48 | 5.7 | 0.56 | 4.92 | |
| MGI-13-383(4) | Yellow Pine | 2.4 | 84.4 | 82.0 | 2.91 | 2.3 | 0.01 | 2.95 |
| Including | 43.6 | 57.3 | 13.7 | 4.90 | 3.2 | 0.00 | 4.96 | |
| MGI-13-396(2,5) | West End | 87.2 | 128.9 | 41.8 | 2.81 | 2.0 | 0.00 | 2.86 |
(1) Reported drill hole composites are reported at a 0.5 g/t Au cut-off, with a minimum 10 meter composite length. Higher grade composites are reported at 3 g/t Au cut-off. Composites may contain up to 6m of internal waste below cut-off.
(2) Intercept width is estimated to be close to true width, except hole MGI-13-382 where the true width is estimated to be approximately 80% of the intercept width, and hole MGI-13-396, where the true width is estimated to be approximately 85% of the intercept width.
(3) In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
(4) Hole bottomed in mineralization.
(5) Logged and sampled out of order to expedite resource modeling.
“Midas is pleased to have completed its 2013 resource definition drill program safely, on budget and in an environmentally responsible manner,” said Stephen P. Quin, President and CEO of Midas Gold Corp. “We completed our ten month field season in 2013 with no reportable safety or environmental incidents, which is a tribute to the hard work and diligence of our employees and contractors,” he said. “In addition, our recent drill results from the Yellow Pine deposit continue to confirm the high-grade gold mineralization delineated by historic operators, and will ultimately increase the confidence in our mineral resource estimates as we prepare a pre-feasibility study in the coming months.” Results for approximately 25 further holes remain outstanding.
2013 Drill Program
During the summer and fall of 2013, Midas Gold completed a 7,076m mineral resource definition drill program that was designed to in-fill and further define mineralization with the objective of improving the confidence level of the majority of the mineral resources to the measured and indicated categories, suitable for inclusion in a pre-feasibility study (“PFS”). Core drilling was primarily focused on the Yellow Pine deposit, with limited additional drilling completed at the West End and Hangar Flats deposits, and was carried out with two drill rigs from T&J Enterprises of Montana. The core drilling program was also designed to collect large-diameter core samples from key areas of the Yellow Pine Deposit for future pilot plant test work, planned for post-completion of the PFS should the results of the PFS prove positive. In addition to the core drilling program, Midas completed approximately 1,000m of hollow stem auger drilling, which led to a mineral resource estimate for the historic tailings material, the results of which were reported in a news release dated October 28, 2013. Earlier in 2013, Midas had completed an additional approximate 2,700m of resource definition drilling and over 700m of monitoring well installations. A summary of drilling completed by Midas in 2013 is shown in Table 2, below.
Table 2: Summary of 2013 Drilling on the Golden Meadows Property
| Drill Program | Number of Holes | Total Meters |
|---|---|---|
| 2013 Winter/Spring Resource Definition | 11 | 2,727.4 |
| 2013 Summer/Fall Resource Definition | 50 | 7,076.1 |
| (Yellow Pine) | (40) | (5,443.4) |
| (West End) | (2) | (450.4) |
| (Hangar Flats) | (8) | (1,182.3) |
| Geotechnical Auger Drilling | 10 | 105.6 |
| Tailings Resource Auger Drilling | 42 | 977.2 |
| Monitoring Well Installations(1) | 10 | 768.4 |
| Grand Total | 123 | 11,654.7 |
(1) Includes both bedrock and alluvial well installations
Results
With the adoption of new, more conservative modeling parameters, as discussed in a news release dated September 9, 2013, Midas Gold’s recently completed mineral resource definition drill program focused on the east and south sides of the Yellow Pine deposit, an area where historic drilling delineated significant mineral resources, but no significant modern exploration drilling had occurred. Overall, the high grade intercepts reported herein and those reported in previous news releases are generally in line with expectations and Midas Gold anticipates a significant conversion of mineral resources from the inferred to measured and indicated categories as compared to the 2012 PEA. While new drilling results may result in local gains and losses in different area, the impact on mineral resources falling within the PFS pits and potentially becoming mineral reserves cannot be determined until the updated mineral resource estimates are completed.
Results for approximately 25 holes, which are in the process of being logged, sampled and assayed, remain to be reported. Final results are anticipated early in the New Year.
Safety & Environmental Performance
Midas Gold’s employees and contractors delivered an exemplary environmental and safety performance in 2013, with the notable achievement of more than ten months without recording a single lost time incident or reportable environmental incident. “This performance is a credit to all those that have taken these priorities to heart - that everyone goes home safe at the end of a work day, and that the environment is protected from harm,” said Mr. Quin. In addition to remediating its own disturbance from drilling activities, Midas Gold planted 9,600 two and three year old Lodgepole Pine seedlings in 2013 and re-contoured and seeded more than 13 acres of recently and historically disturbed land, bringing the total trees planted since 2011 to 22,400 seedlings. These trees were planted in areas disturbed during Midas Gold’s exploration activities and in areas of historic/legacy disturbance voluntarily reclaimed by Midas as part of its site restoration activities. “We aim to leave the local environment better than we found it,” said Mr. Quin, “so each year we aim to reclaim and restore more land than we disturb.”
Looking Forward
With the completion of the 2013 field program, staffing and contracted seasonal employment levels in Idaho have been reduced by approximately 45%. Technical personnel are now focused on preparing updated mineral resource estimates, engineering studies and regulatory activities. Midas Gold is working with its resource modeling consultant to finalize an estimation strategy for each of its three deposits and anticipates that all data, including pending assay results, will be made available to its consultant during December 2013 and January 2014. Updated mineral resource estimates are targeted for completion in Q1 2014 and will be utilized in preparation of the PFS, currently scheduled for completion at the end of Q2 2014.
Illustrations
For a map locating the drill holes referred to in this news release please click here.
Sampling Procedures 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 Golden Meadows were carried out under the supervision of Richard Moses, C.P.G., Qualified Person and Field 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 0.005g/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 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 and Independent Qualified Person indicates values are within normal and acceptable ranges.
About Midas Gold and the Stibnite-Yellow Pine 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 deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors as well as a recently announced mineral resource contained in historic tailings. 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 August 15, 2012, (the “Technical Report”) is available on Midas Gold’s website at www.midasgoldcorp.comor under Midas Gold’s profile on SEDAR at www.sedar.com. This 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” 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 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 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 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43 101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Accordingly, information contained in this News Release contain descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.
Table 3: Details of Yellow Pine and West End Drill Results, Golden Meadows Project
(To accompany Midas Gold news release #2013-17)
| Hole ID | Hole Type | Deposit | Collar Azimuth | Collar Dip | Hole Total Length (m) | From (m) | To (m) | Intercept (m)(1) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) | Gold Equiv.(3) (g/t) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MGI-13-378(4) | Core | Yellow Pine | 208 | -31 | 100.0 | 48.5 | 75.9 | 27.4 | 3.64 | 1.9 | 0.00 | 0.002 | 3.67 |
| Including | 50.8 | 69.0 | 18.3 | 5.08 | 2.3 | 0.00 | 0.002 | 5.13 | |||||
| and | 87.3 | 100.0 | 12.6 | 2.28 | 0.7 | 0.00 | 0.000 | 2.30 | |||||
| MGI-13-380(4) | Core | Yellow Pine | 175 | -35 | 101.8 | 0.9 | 101.8 | 100.9 | 3.12 | 2.8 | 0.01 | 0.003 | 3.18 |
| Including | 24.5 | 36.0 | 11.4 | 3.26 | 3.4 | 0.01 | 0.003 | 3.32 | |||||
| Including | 45.1 | 81.4 | 36.3 | 4.29 | 2.9 | 0.00 | 0.005 | 4.34 | |||||
| MGI-13-382(2) | Core | Yellow Pine | 260 | -33 | 169.5 | 20.9 | 79.3 | 58.4 | 1.21 | 19.1 | 0.85 | 0.002 | 3.55 |
| and | 94.8 | 158.8 | 64.0 | 2.52 | 3.8 | 0.27 | 0.002 | 3.22 | |||||
| Including | 102.4 | 129.1 | 26.7 | 3.48 | 5.7 | 0.56 | 0.003 | 4.92 | |||||
| MGI-13-383 | Core | Yellow Pine | 152 | -30 | 100.6 | 2.4 | 84.4 | 82.0 | 2.91 | 2.3 | 0.01 | 0.002 | 2.95 |
| Including | 23.0 | 34.4 | 11.4 | 3.20 | 3.5 | 0.01 | 0.004 | 3.27 | |||||
| Including | 43.6 | 57.3 | 13.7 | 4.90 | 3.2 | 0.00 | 0.003 | 4.96 | |||||
| MGI-13-384 | Core | Yellow Pine | 342 | -49 | 186.0 | 81.7 | 97.7 | 16.0 | 0.86 | 0.6 | 0.01 | 0.002 | 0.89 |
| and | 127.4 | 138.4 | 11.0 | 2.20 | 5.7 | 0.21 | 0.002 | 2.79 | |||||
| MGI-13-385(4,5) | Core | Yellow Pine | 245 | -35 | 61.6 | 15.5 | 61.6 | 46.0 | 0.71 | 2.7 | 0.01 | 0.002 | 0.77 |
| MGI-13-388 | Core | Yellow Pine | 281 | -38 | 109.4 | 67.1 | 94.5 | 27.4 | 1.99 | 11.5 | 0.76 | 0.002 | 4.00 |
| MGI-13-389 | Core | Yellow Pine | 183 | -63 | 171.3 | 39.0 | 59.6 | 20.6 | 0.82 | 1.5 | 0.00 | 0.003 | 0.85 |
| MGI-13-396(2,6) | Core | West End | 270 | -76 | 253.0 | 7.9 | 26.2 | 18.3 | 0.52 | 0.3 | 0.00 | 0.000 | 0.54 |
| and | 87.2 | 128.9 | 41.8 | 2.81 | 2.0 | 0.00 | 0.002 | 2.86 | |||||
| Including | 91.4 | 110.6 | 19.2 | 4.78 | 3.3 | 0.01 | 0.002 | 4.84 | |||||
| and | 154.1 | 169.9 | 15.9 | 1.59 | 1.7 | 0.00 | 0.001 | 1.63 | |||||
| and | 192.5 | 215.0 | 22.6 | 1.79 | 1.2 | 0.00 | 0.002 | 1.82 |
(1) Reported drill hole composites are reported at a 0.5 g/t Au cut-off, with a minimum 10 meter composite length. Higher grade composites are reported at 3 g/t Au cut-off. Composites may contain up to 6m of internal waste below cut-off.
(2) Intercept width is estimated to be close to true width, except hole MGI-13-382 where the true width is estimated to be approximately 80% of the intercept width, and hole MGI-13-396, where the true width is estimated to be approximately 85% of the intercept width.
(3) In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
(4) Hole bottomed in mineralized.
(5) Hole did not reach target depth
(6) Logged and sampled out of order to expedite resource modeling.
MIDAS GOLD REPORTS RESULTS FROM YELLOW PINE DRILLING GOLDEN MEADOWS PROJECT, IDAHO
Results include intercepts of 3.6g/t Au over 96m, 6.4g/t Au over 78m & 3.3g/t over 109m
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today reported results from its in-fill and resource conversion drilling program ongoing at its Golden Meadows Project in the Stibnite-Yellow Pine Mining District, Valley County, Idaho. Two drill rigs are currently drilling on site conducting resource in-fill and definition drilling as part of a ~5,000m drill program. A summary of the most recent drill results are tabulated in Table 1, below, and complete results are provided in Table 2 at the end of this news release.
Table 1: Highlights from Recent Drilling on the Yellow Pine Deposit, Golden Meadows
| HOLE ID | From (m) | To (m) | Intercept (m)(1) | True Width (m)(2) | Gold (g/t) | Silver (g/t) | Antimony (%) | Gold Equiv. (g/t)(3) |
|---|---|---|---|---|---|---|---|---|
| MGI-13-359 | 248.7 | 322.0 | 73.3 | 50.0 | 2.50 | 0.6 | 0.002 | 2.51 |
| Including | 294.6 | 319.7 | 25.2 | 17.0 | 4.24 | 1.0 | 0.002 | 4.26 |
| MGI-13-365 | 31.9 | 143.9 | 112.0 | 112.0 | 2.45 | 2.8 | 0.004 | 2.50 |
| Including | 73.0 | 93.6 | 20.6 | 20.6 | 4.14 | 4.2 | 0.004 | 4.22 |
| MGI-13-366 | 30.8 | 126.8 | 96.0 | 96.0 | 3.63 | 4.1 | 0.004 | 3.70 |
| Including | 58.2 | 94.8 | 36.6 | 36.6 | 4.16 | 4.8 | 0.004 | 4.24 |
| And | 108.5 | 124.5 | 16.0 | 16.0 | 4.98 | 3.9 | 0.004 | 5.05 |
| MGI-13-369 | 42.4 | 154.4 | 112.0 | 112.0 | 2.08 | 2.0 | 0.004 | 2.12 |
| Including | 65.2 | 81.2 | 16.0 | 16.0 | 6.14 | 4.1 | 0.004 | 6.21 |
| MGI-13-372 (4) | 56.7 | 134.7 | 78.0 | 50.0 | 6.42 | 4.3 | 0.004 | 6.49 |
| Including | 71.9 | 129.8 | 57.9 | 37.0 | 8.19 | 5.4 | 0.004 | 8.28 |
| MGI-13-375(4) | 64.8 | 174.0 | 109.3 | 109.3 | 3.28 | 18.7 | 0.067 | 3.71 |
| Including | 73.9 | 99.1 | 25.2 | 25.2 | 4.52 | 57.7 | 0.171 | 5.79 |
| And | 105.9 | 137.9 | 32.0 | 32.0 | 4.27 | 14.2 | 0.006 | 4.50 |
(1)Reported drill hole composites are reported at a 0.5 g/t Au cut-off, with a minimum 10 meter composite length. Higher grade composites are reported at 3 g/t Au cut-off. Composites may contain up to 6m of internal waste below cut-off.
(2)Estimated true widths.
(3)In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
(4)Hole bottomed in mineralization
“The resource definition drilling program at our Golden Meadows Project continues to provide good quality technical information to assist in refining our mineral resource estimates for the Yellow Pine deposit,” said Stephen P. Quin, President and CEO of Midas Gold Corp. “The excellent grades over substantial widths reported in this and prior news releases from the Yellow Pine Deposit illustrates why Yellow Pine is such a key component of our Golden Meadows Project.”
Summer 2013 Drill Program
Midas Gold currently has two core rigs drilling at site, completing an approximately 5,000m mineral resource definition drill program that has the objective of continuing to infill and define mineral resources to the measured and indicated categories suitable for inclusion in a pre-feasibility study (a “PFS”). With the results from the Yellow Pine and recently announced Hangar Flats drilling (see news release dated October 1, 2013), the program has been extended with a planned completion sometime in November. The primary focus for this drilling continues to be Yellow Pine deposit, which had the highest grades, lowest strip ratio and best metallurgical performance of the three deposits comprising the Golden Meadows project as set out in the Preliminary Economic Assessment (the “PEA”), highlights of which were released on September 4, 2012. This drilling, in addition to better defining the mineral resource estimates, will also provide additional samples for ongoing metallurgical testing via collection of large volume samples using PQ diameter drill core in some of the holes.
Results
Drilling results are generally in line with expectations, with some gains and losses in different areas, the impact of which will be evaluated once all results are available and the mineralization remodelled and mineral resources re-estimated. As previously noted in a news release dated September 9, 2013, on an overall basis, the new data collected since the 2012 PEA and the more conservative parameters being used to constrain the mineral resource estimates may result in a modest percentage reduction in the aggregate total of the mineral resource estimates (as compared to the 2012 PEA) as a result of eliminating peripheral and/or less certain mineral resources that may or may not have been contained within the 2012 PEA defined pit limits. Since different parameters will be used to define the PFS pit limits, the impact on mineral resources falling within the PFS pits and potentially becoming mineral reserves cannot be determined at this time. However, Midas Gold anticipates a significant conversion of mineral resources from the inferred to measured and indicated categories as compared to the 2012 PEA, once all this new data and new parameters are applied.
Illustrations
To view a plan map and cross-section illustrating the location of the drill holes referred to in this news release please click here.
Sampling Procedures 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 Golden Meadows were carried out under the supervision of Richard Moses, C.P.G., Qualified Person and Field 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 0.005g/t lower reporting limit). Samples reporting values > 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 0.5g/t lower reporting limit). Samples reporting values > 10g/t Ag are reanalyzed using a 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 Sb 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 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 and Independent Qualified Person indicates values are within normal and acceptable ranges.
About Midas Gold and the Stibnite-Yellow Pine 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 deposits in the Stibnite-Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors as well as a recently announced mineral resource contained in historic tailings. 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 August 15, 2012, (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. This 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” 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 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 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 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43 101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Accordingly, information contained in this News Release contain descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.
Table 2: Details of Yellow Pine Drill Results, Golden Meadows Project
(To accompany Midas Gold news release #2013-16)
| HOLE ID | Hole Type | Collar Azimuth | Collar Dip | Hole Total Length (m) | From (m) | To (m) | Length (m)(1) | True Width (m)(2) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) | Gold Equivalent (3) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MGI-13-359 | Core | 120 | -60 | 359.7 | 248.7 | 322.0 | 73.3 | 50.0 | 2.50 | 0.6 | 0.002 | 0.001 | 2.51 |
| including | 294.6 | 319.7 | 25.2 | 17.0 | 4.24 | 1.0 | 0.002 | 0.001 | 4.26 | ||||
| MGI-13-364 | Core | 175 | -47 | 143.6 | 76.8 | 111.1 | 34.3 | 34.3 | 1.30 | 2.1 | 0.055 | 0.001 | 1.46 |
| MGI-13-365 | Core | 192 | -64 | 179.8 | 31.9 | 143.9 | 112.0 | 112.0 | 2.45 | 2.8 | 0.004 | 0.004 | 2.50 |
| including | 45.6 | 59.3 | 13.7 | 13.7 | 2.63 | 2.4 | 0.005 | 0.004 | 2.67 | ||||
| including | 73.0 | 93.6 | 20.6 | 20.6 | 4.14 | 4.2 | 0.004 | 0.004 | 4.22 | ||||
| and | 157.6 | 173.6 | 16.0 | 16.0 | 1.78 | 1.5 | 0.002 | 0.001 | 1.80 | ||||
| MGI-13-366 | Core | 192 | -45 | 191.9 | 30.8 | 126.8 | 96.0 | 96.0 | 3.63 | 4.1 | 0.004 | 0.003 | 3.70 |
| including | 58.2 | 94.8 | 36.6 | 36.6 | 4.16 | 4.8 | 0.004 | 0.003 | 4.24 | ||||
| including | 108.5 | 124.5 | 16.0 | 16.0 | 4.98 | 3.9 | 0.004 | 0.004 | 5.05 | ||||
| MGI-13-367 | Core | 279 | -55 | 155.5 | 7.9 | 28.5 | 20.6 | 20.6 | 0.65 | 0.4 | 0.007 | 0.003 | 0.67 |
| and | 49.1 | 76.5 | 27.4 | 20.0 | 0.94 | 3.7 | 0.005 | 0.001 | 1.00 | ||||
| and(4) | 111.0 | 155.5 | 44.5 | 44.5 | 1.64 | 6.9 | 0.630 | 0.001 | 3.26 | ||||
| MGI-13-368 | Core | 279 | -38 | 158.8 | 7.2 | 43.0 | 35.8 | 35.8 | 1.48 | 19.9 | 1.090 | 0.002 | 4.41 |
| including | 25.5 | 36.9 | 11.4 | 11.4 | 3.08 | 27.2 | 2.309 | 0.002 | 9.05 | ||||
| and(4) | 84.1 | 157.3 | 73.2 | 73.2 | 2.18 | 8.0 | 0.550 | 0.001 | 3.63 | ||||
| MGI-13-369 | Core | 235 | -60 | 164.6 | 42.4 | 154.4 | 112.0 | 112.0 | 2.08 | 2.0 | 0.004 | 0.003 | 2.12 |
| including | 65.2 | 81.2 | 16.0 | 16.0 | 6.14 | 4.1 | 0.004 | 0.002 | 6.21 | ||||
| MGI-13-370 | Core | 315 | -55 | 169.8 | 89.9 | 101.4 | 11.4 | 10.0 | 0.81 | 2.0 | 0.003 | 0.003 | 0.85 |
| and | 110.5 | 133.4 | 22.9 | 15.0 | 2.40 | 0.8 | 0.003 | 0.004 | 2.42 | ||||
| MGI-13-371 | Core | 333 | -38 | 150.0 | 132.1 | 148.1 | 16.0 | 16.0 | 0.71 | 1.0 | 0.004 | 0.004 | 0.73 |
| MGI-13-372(4) | Core | 315 | -45 | 134.7 | 56.7 | 134.7 | 78.0 | 50.0 | 6.42 | 4.3 | 0.004 | 0.003 | 6.49 |
| including | 71.9 | 129.8 | 57.9 | 37 | 8.19 | 5.4 | 0.004 | 0.003 | 8.28 | ||||
| MGI-13-373(5) | Core | 309 | -42 | 93.4 | 75.6 | 93.4 | 17.8 | 17.8 | 1.08 | 4.0 | 0.005 | 0.003 | 1.15 |
| MGI-13-374 | Core | 278 | -50 | 126.8 | 97.1 | 122.2 | 25.1 | 20.0 | 0.67 | 2.3 | 0.004 | 0.002 | 0.71 |
| MGI-13-375(4) | Core | 290 | -38 | 173.7 | 64.8 | 174.0 | 109.3 | 109.3 | 3.28 | 18.7 | 0.067 | 0.003 | 3.71 |
| including | 73.9 | 99.1 | 25.2 | 25.2 | 4.52 | 57.7 | 0.171 | 0.003 | 5.79 | ||||
| including | 105.9 | 137.9 | 32.0 | 32.0 | 4.27 | 14.2 | 0.006 | 0.004 | 4.50 | ||||
| including | 144.8 | 158.5 | 13.7 | 13.7 | 3.40 | 4.5 | 0.005 | 0.004 | 3.48 | ||||
| MGI-13-376(4) | Core | 350 | -35 | 45.1 | 20.7 | 45.1 | 24.4 | 24.4 | 3.96 | 1.8 | 0.004 | 0.003 | 4.00 |
| including | 23.0 | 43.6 | 20.6 | 20.6 | 4.37 | 2.0 | 0.004 | 0.003 | 4.41 | ||||
| MGI-13-377(5) | Core | 65 | -35 | 47.4 | 8.8 | 29.4 | 20.6 | 20.6 | 2.99 | 2.9 | 0.004 | 0.004 | 3.05 |
(1)Reported drill hole composites are reported at a 0.5 g/t Au cut-off, with a minimum 10 meter composite length. Higher grade composites are reported at 3 g/t Au cut-off. Composites may contain up to 6m of internal waste below cut-off.
(2)Estimated true widths.
(3)In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
(4)Hole bottomed in mineralized.
(5)Hole did not reach planned depth.
MIDAS GOLD REPORTS MINERAL RESOURCE ESTIMATE FOR GOLDEN MEADOWS TAILINGS
Reprocessing of Tailings May Provide Opportunity for Environmental Remediation and Economic Benefits
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today reported results of an independent mineral resource estimate for a significant portion of the historic tailings located on its Golden Meadows Project in the Stibnite-Yellow Pine Mining District, Valley County, Idaho. These historic tailings were produced by prior operators during the 1920s through 1950s and currently occupy an impoundment located in the Meadow Creek Valley near the Hangar Flats deposit. These historic tailings present a potential opportunity for Midas Gold to remediate pre-existing disturbance by reprocessing these tailings, while contemporaneously providing potential value to shareholders. A summary of the mineral resource estimate, based on the drill data previously reported on October 7, 2013, is tabulated below:
Table 1: Mineral Resource Estimate for Historic Tailings (2)
| Cut-Off Grade (1) | Classification | Tonnes (000s) | Gold Equiv. (g/t) (3) | Gold (g/t) | Gold (000s oz) | Antimony (%) | Antimony (000s lbs) | Silver (g/t) | Silver (000s oz) |
|---|---|---|---|---|---|---|---|---|---|
| 0.75 | Indicated | 2,526 | 1.64 | 1.19 | 96 | 0.17 | 9,476 | 2.94 | 239 |
| 0.75 | Inferred (2) | 176 | 1.59 | 1.16 | 7 | 0.16 | 631 | 2.71 | 15 |
(1) Cut-off grade in grams gold per metric tonne.
(2)Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no assurance that mineral resources will be converted into mineral reserves. Mineral resources are subject to further dilution, recovery, lower metal price assumptions and inclusion in a mine plan to demonstrate economics and feasibility of extraction. The mineral resource estimate includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The available project information is currently not sufficient to convert the estimated mineral resources to mineral reserves.
(3) In situ gold equivalent values based on $1,350/oz gold, $20/oz silver, $4.75/lb antimony, but do not include tungsten. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
“The mineral resource estimate for the historic tailings at Golden Meadows creates an opportunity to both clean up a pre-existing issue, while also offering potential to recover significant precious metal and antimony values, should environmental, engineering, metallurgical and economic factors prove to be positive,” said Stephen P. Quin, President and CEO of Midas Gold Corp. “Given the location of the tailings, they would likely be reprocessed early in any future mine plan, providing for the remediation to occur early in the project life.”
The mineral resource estimate is effective October 22, 2013 and was prepared for Midas Gold by Cameron Consulting, Liberty Lake, WA. A substantial majority of mineral resources are located on private land owned by Midas Gold.
Drill Program
Drilling in and around the historic tailings consists of 73 holes, including 27 historic direct-push and reverse circulation holes (mostly monitoring wells), 42 auger holes completed in 2013 (totaling 978m), two PQ-diameter core holes, and four PQ-diameter Sonic holes completed in 2012.
The details of the 2013 drilling and sampling program, along with illustrations, used to support the mineral resource estimate are described in more detail in the news release dated October 7, 2013, and are summarized herein. The 2013 drilling program was completed with a conventional hollow-stem auger system with a 7.6cm inner tube driven in advance of the auger flights for continuous recovery of materials and to eliminate cross-contamination. These drill holes range between 8m and 52m in depth and are all vertical. Drill holes were completed on an approximately 75m x 75m grid across the main tailings area.
Excluding holes outside of the tailings area and those that intersected no tailings, the database used in the mineral resource estimate comprises 38 Midas Gold augered drill holes and three sonic drill holes totaling 1,055m of which, 339m have assay results for tailings (four of the 42 Midas Gold holes failed to intersect tailings and were not utilized in the mineral resource estimate). Historic drill holes were only used to aid in construction of the tailings solid. Samples of the tailings from Midas Gold’s auger drill program were collected from the auger inner tube on 0.61m (2ft) intervals, split by the on-site geologist and assayed by ALS Chemex. A total of 35 Shelby tube samples were collected to determine wet and dry densities for the tailings material. The bulk density samples have a simple average of 1.495 g/cm3 as determined by Strata, geotechnical engineering consultants.
Block Model and Resource Estimation Procedures
For resource estimation purposes, gold, antimony and silver were composited over 0.61m lengths. A review of capping by graphic probability plots and decile methods results in no cap for gold, a cap of 0.6% for antimony and 10g/t for silver in order to minimize the influence of population outliers. Two low outliers and one high outlier were removed from the density dataset.
The block sizes used in the mineral resource model are 15.24m x 15.24m x 1.524m (50ft x 50ft x 5ft) in the x, y, and z directions, respectively. Each block was assigned a unique dry bulk density estimate based on interpolation of density samples by inverse distance weighting to the second power (ID2) method.
All gold, antimony, and silver grade estimates were made using 0.61m down-hole composites and ordinary kriging methods. Composites were weighted by correlogram models and the correlogram anisotropy guided the shape of the search ellipsoids. The gold search ellipsoid was weighted 1.5:1 along an azimuth of 325o, the antimony search ellipsoid was weighted 2:1 along an azimuth of 330o, and the silver search ellipsoid was weighted 2:1 along an azimuth of 310o, all with a plunge of 0o, reflecting the layer cake nature of the tailings. The vertical search was limited to 1/10th the principal axis searches, which were 175m, 220m, and 200m for Au, Sb, and Ag, respectively. All blocks in the model were estimated in a single pass with a minimum of one and maximum of twelve composites per block. No more than three composites from the same drill hole, representing slightly more than a block height, were included in a block estimate, forcing the search neighborhood to include more weight from data in neighboring holes than otherwise.
The historic tailings material is covered by spent-ore material stockpiled from prior heap leach operations conducted in the 1980s and 1990s. The spent-ore material averages 12m thickness and ranges from 2m to 20m thick. Because Midas Gold is evaluating potential use of this material for construction purposes and because conceptual site lay-outs described in the 2012 Preliminary Economic Assessment (the “2012 PEA”) would require relocation of this material prior to any pending construction activities, mineral resources were not constrained within an optimized pit and are reported as in-situ resources only since it is assumed the spent-ore material will be utilized for other purposes.
Classification
The resource estimate is classified as Indicated and Inferred resources according to Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards. Resource classification considered confidence criteria such as: (1) the drill hole spacing; (2) bench plots of kriging variance, a measure of estimation uncertainty; (3) and anisotropic distance to the nearest composite. Areas of inferred mineral resources primarily occur around the margins of the tailings material where drilling was restricted due to logistical and environmental considerations.
Sensitivity
Table 2 below shows potential mineral resources in all classes at a range of cut-off grades. The mineral resource estimate for the tailings shows only moderate sensitivity to grade cut-off grade. No material <0.60 g/t Au is estimated in the block model.
Table 2: Sensitivity of Mineral Resource to Cut-off Grade(2)
| Cut-Off Grade(3) | Tonnes (000s) | Gold (g/t) | Gold (000s oz) | Antimony (%) | Antimony (000s lbs) | Silver (g/t) | Silver (000s oz) |
|---|---|---|---|---|---|---|---|
| 0.60 | 2,878 | 1.16 | 107 | 0.16 | 10,479 | 2.85 | 264 |
| 0.65 | 2,868 | 1.16 | 107 | 0.16 | 10,453 | 2.85 | 263 |
| 0.70 | 2,827 | 1.17 | 106 | 0.17 | 10,363 | 2.87 | 261 |
| 0.75(1) | 2,703 | 1.18 | 103 | 0.17 | 10,107 | 2.92 | 254 |
| 0.80 | 2,537 | 1.21 | 99 | 0.17 | 9,706 | 2.99 | 244 |
| 0.85 | 2,367 | 1.24 | 94 | 0.18 | 9,217 | 3.04 | 232 |
| 0.90 | 2,232 | 1.26 | 91 | 0.18 | 8,776 | 3.08 | 221 |
| 0.95 | 2,103 | 1.28 | 87 | 0.18 | 8,347 | 3.11 | 210 |
| =>1.00 | 1,972 | 1.30 | 83 | 0.18 | 7,906 | 3.14 | 199 |
(1) Base Case
(2)Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no assurance that mineral resources will be converted into mineral reserves. Mineral resources are subject to further dilution, recovery, lower metal price assumptions and inclusion in a mine plan to demonstrate economics and feasibility of extraction. The mineral resource estimate includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The available project information is currently not sufficient to convert the estimated mineral resources to mineral reserves.
(3) Cut-off grade in grams gold per metric tonne.
Validation
The block model was verified to ensure that no estimated variables had negative values or were un-estimated and that maximum values for gold, antimony, and silver were consistent with the respective element’s cap, or maximum composite values. Block factors and spatial limits of the model were visually compared to the tailings and topographic wireframes representing the model limiting surfaces. Model sections and benches displaying the raw down-hole assay data were visually cross checked against composite values and estimated block values.
The block model total tailings volume exactly matched the tailings solid volume. The tonnage weighted average density estimated, 1.494 g/cm3, compares closely to the simple average of the measurements at 1.495 g/cm3.
A nearest-neighbor estimate provided a check for global bias on the Kriged gold estimate, and compared well to the Kriged estimate. The Kriged estimate also compared well to the length-weighted average grade of the gold composites and the estimated value derived from back-calculating expected tailings grades from past mining, milling and production records.
Metallurgical Testing
Composite samples from the 2012 Sonic holes were sent to SGS Labs for preliminary metallurgical testing and results indicate that recoveries similar to those achieved for hard rock mineralization utilized in the 2012 PEA are achievable (see news release dated September 4, 2012). Additional testing is planned to further evaluate possible processing and recovery methods that might be suitable for these materials.
Potential for Economic Viability and Compliance with National Instrument 43-101
The mineral resources meet the test of potential economic viability, as required under NI43-101, since the cut-off grade used in the base case is the same as that used in the 2012 PEA for in situ hard rock mineralization, preliminary metallurgical testing has been completed that suggests similar recoveries to those used in the PEA, the coarser waste above the tailings are potential construction materials for future operations, and the remediation of these tailings offers potential environmental benefits.
The mineral resource estimates presented herein follow the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 and conform to the required CIM Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines. Mineral resources have been classified in accordance with the “CIM Standards - For Mineral Resources and Reserves: Definitions” (November 27, 2010), and Companion Policy 43-101CP, as amended by the Canadian Securities Administrators (CSA) and enacted on June 30, 2011. The mineral resource estimate was prepared by consulting geologist Donald Cameron, SME Registered Member and MMSA QP Member, and an Independent Qualified Person as defined in the instrument. Mr. Cameron is the Qualified Person responsible for the mineral resources reported herein. He has read and approved the relevant technical portions of this news release related to the mineral resource estimate for which he is responsible.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set forth in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp. The exploration activities at the deposit were carried out under the supervision of Richard Moses, CPG, Qualified Person and Field Operations Manager for the Golden Meadows Project.
The mineral resources at the Golden Meadows Project exist within areas of historic disturbance resulting from mining and mineral processing activities by prior operators. In order for Midas Gold to advance the Golden Meadows Project, the Project will be subject to a number of Federal, State and local laws and regulations and will require permits to conduct its activities. However, Midas Gold is not aware of any environmental, permitting, legal, title, taxation, socioeconomic, market or political factors that would materially affect the mineral resources stated herein or prevent it from advancing the project.
Sampling Procedures 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 Golden Meadows were carried out under the supervision of Richard Moses, C.P.G., 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 0.005g/t lower reporting limit). Samples reporting values > 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 0.5g/t lower reporting limit). Samples reporting values > 10g/t Ag are reanalyzed using a 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 Sb are reanalyzed using XRF fusion. Some intervals may not add or subtract correctly due to rounding, but the differences are deemed insignificant. Analyses are carried out by ALS CHEMEX in their Reno and Winnemucca, Nevada and Vancouver, British Columbia laboratories. Blank and standard samples are used for quality assurance and quality control and a review of the results of analyses of the blanks, standards and duplicates by the Company’s Qualified Person and Independent Qualified Person indicates values are within normal and acceptable ranges.
About Midas Gold and the Stibnite-Yellow Pine 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 deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the 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 August 15, 2012, (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. This 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” 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 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 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 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.
Note to US Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43 101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Accordingly, information contained in this News Release contain descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations there under.
MIDAS GOLD ACHIEVES QUOTATION ON OTCQX INTERNATIONAL
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX / OTCQX:MDRPF) today announced that its shares are now quoted on OTCQX International, a segment of the OTCQX marketplace in the U.S., which should provide for greater access to the U.S. capital markets and an additional trading platform for shareholders.
Midas Gold initiated its quotation today on OTCQX International under the ticker MDRPF. Investors can find real-time quotes, disclosure and financial information for Midas Gold at www.otcqx.com and www.otcmarkets.com.
“Midas Gold is pleased to be providing our current and future shareholders with access to this additional trading platform,” commented Stephen Quin, President & CEO of Midas Gold Corp. “A quotation on the OTCQX marketplace is a natural progression for Midas Gold since its Golden Meadows gold-silver-antimony-tungsten project is located in Idaho, USA and we already have a significant number of U.S. shareholders.”
The U.S. investment bank, Cowen and Company, serves as Midas Gold’s Principal American Liaison (“PAL”) on the OTCQX International and is responsible for providing guidance on OTCQX requirements and arranging a comprehensive suite of U.S. capital markets services.
“We are very pleased to be working with Midas Gold to make the best of its OTCQX trading. We look forward to supporting Midas Gold’s experience in the United States,” said Chris Weekes, Managing Director, Cowen and Company, International Markets Group.
About Midas Gold and the Golden Meadows Project
Midas Gold Corp., through its wholly owned subsidiaries, is focused on the exploration and, if warranted, development of gold, silver, antimony and tungsten deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal deposits identified to date within the project area 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 and reported in a news release dated June 27, 2012; these estimates are detailed in a technical report entitled “Preliminary Economic Assessment Technical Report for the Golden Meadows Project, Idaho” dated August 15, 2012, (the “Technical Report”), which is available on Midas Gold’s website at www.midasgoldcorp.com or under Midas Gold’s profile on SEDAR at www.sedar.com. This Preliminary Economic Assessment outlines one concept for the development of a large scale, long life, low cost open pit gold mining operation producing gold and by-product silver and antimony based on the estimated mineral resources, as well as outlining a number of opportunities for potential environmental, financial and technical enhancements of the conceptual project that are currently being evaluated.
About Cowen Group, Inc.
Cowen and Company, the broker-dealer business of Cowen Group, Inc. (NASDAQ: COWN), provides industry focused investment banking for growth-oriented companies, domain knowledge-driven research services and a robust sales and trading platform to companies and institutional investor clients. Sectors of focus for the business include healthcare, technology, telecommunications, aerospace and defense/industrials, consumer, energy, metals and mining and transportation. Founded in 1918, Cowen Group is headquartered in New York and has offices located in major financial centers around the world. For more information, visit www.cowen.com.
About OTCQX
The OTCQX marketplace offers the best informed and most efficient trading for U.S. and global companies. To qualify for the OTCQX marketplace, companies must meet high financial standards, be current in their disclosure, and be sponsored by a professional third-party advisor. Designed for the largest, most liquid, and investor-friendly companies, OTCQX ensures that investors have the information necessary to intelligently analyze, value and trade their securities. For more information, please visit www.otcqx.com and www.otcmarkets.com.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” 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 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 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 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.
MIDAS GOLD REPORTS RESULTS FROM HISTORIC TAILINGS AT GOLDEN MEADOWS PROJECT, IDAHO
Reprocessing of Tailings could result in Potential Environmental and Financial Benefits
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX) today reported assay results from a 45-hole, 1,106m hollow stem auger and sonic drilling program designed to explore the potential for the reprocessing of historic tailings located on its Golden Meadows Project at Stibnite in Valley County, Idaho. Reprocessing of the historic tailings could provide Midas Gold with an opportunity to remediate legacy disturbance on the Golden Meadows site, while contemporaneously providing economic value to shareholders since the drill results indicate potential for the definition of a mineral resource in the tailings with significant gold, silver and antimony values. Reprocessing of these tailings were not previously considered in any prior evaluations completed by Midas Gold.
The weighted average grade of all the tailings intercepts in the 41 holes that intercepted tailings is 1.63g/t gold equivalent (1), comprised of 1.17g/t gold, 3.0g/t silver and 0.17% antimony, plus 0.02% tungsten (not part of the gold equivalent grade) over an average 8.4m thickness. The tailings were tested over an area extending approximately 800m by 400m, although the outer edges of the drill pattern had minimal to no tailings as illustrated in the attached map. Results from individual holes are summarized in Table 1 attached and are illustrated in the map and section that can be found by clicking here.
Background
Midas Gold’s review of historical data indicated that sub-optimal recoveries (common with older flotation methods) resulted in some gold, silver, antimony and tungsten remaining in the historic tailings, with metal grades which may warrant reprocessing of this material if environmental, technical and economic factors prove supportive. Flotation methods for antimony-bearing stibnite and gold-bearing pyritic sulphide ores were developed in the Stibnite Mining District from the 1920s to the mid-1950s, with lower recoveries in the early years and improving in later years, after reagents and flotation methods were optimized through experimentation and practical experience. The historic tailings represent a significant legacy disturbance at the site, and reprocessing of this material could result in significantly lower metal content exposed to the environment. The historic tailings could be removed from their current unlined facility in the Meadow Creek valley, reprocessed to recover sulphide minerals that host the metals of economic interest, and the resultant “cleaned” tailings placed within a modern lined tailings facility, designed with strict environmental protections, that may be constructed to contain tailings generated by hard rock mining and milling operations that may be proposed by Midas Gold in the future, subject to confirmation of economic viability and the appropriate regulatory approvals.
In the 1980s and 1990s, the historic tailings were capped with several million tonnes of spent ore remaining from seasonal “on-off” heap leach operations conducted by prior operators of the site. This spent ore may represent suitable construction material for potential future facilities constructed on site, should such a project be supported by environmental, technical and economic factors currently being evaluated, in addition to providing further remediation opportunities.
Drill Program
The drill program was designed to: (1) quantify the characteristics, metal content, volumes, thicknesses and relative spatial distribution of spent ore above the tailings; (2) determine the characteristics, metal content, volumes, thicknesses and relative spatial distribution of the tailings; (3) collect samples for metallurgical and environmental baseline characterization; and (4) determine the nature and position of the natural materials underlying the tailings - such as overburden and gravels.
The drilling program was primarily completed with a conventional hollow-stem auger system with a 7.6cm inner tube driven in advance of the auger flights for continuous recovery of materials and to eliminate cross contamination. A total of 42 auger holes, totalling approximately 978m were completed in 2013 in addition to three sonic holes completed in 2011. Drill holes were completed on an approximately 75m x 75m grid across the main tailings area, excluding areas known to be underlain by waste repository materials from past reclamation actions, areas known be underlain by wet conditions or near suspected subsurface springs or near the adjacent stream diversion constructed in 1998-2000. A rigorous set of protocols were used to ensure drilling did not produce cross-contamination between various subsurface layers, including the underlying native materials, the tailings or the overlying spent ore pile. Hole conditions, as well as the composition and character of subsurface materials intersected in the auger holes, were carefully logged and monitored by the drillers, an on-site geologist and environmental staff. Holes were plugged with appropriate hole-plugging material as recommended by state and federal agencies and were abandoned per applicable requirements upon completion of drilling and the drill sites reclaimed. Drill collars were surveyed with a survey-grade instrument to provide accurate information for later volumetric calculations.
Sampling
Sample lengths were variable and dependent upon the ability of the drive stem to penetrate the material. Sample lengths through the tailings were, on average, approximately 0.6m. Samples were photographed and logged on site and then split in half, with one half sent to the laboratory and the other half of the split placed in plastic bags and archived for future reference. Typical sample weights for sample splits shipped to the laboratory were 1.4kg/sample, providing a reasonable and appropriate sample weight (given the fine-grained nature of the tailings materials), approximately midway between that that would be provided by split HQ and PQ core samples. Sample densities were determined by Strata Labs and averaged 1.50 t/m3.
Results
Results from the program indicate that the historic tailings beneath the spent heap leach material have an average overall thickness of approximately 8.4m, with the thickest tailings situated near the northern (lower) end of the former tailings impoundment, and tapering out to a feather-edge at the limits of the spent heap leach material. Figure 1 is an isopach (contoured thickness) map of the tailings in the areas sampled. Additional tailings are known to underlie several other areas in the immediate vicinity, but were not sampled or evaluated as part of this program. The length weighted average grade of all intervals of tailings drilled, with no cut-off grade applied, was 1.17 g/t Au, which is very close to the estimated value of 1.12 g/t Au derived from back-calculating expected tailings grades from past mining, milling and production records.
Metallurgical Testing
Midas Gold sent composite samples from the 2011 sonic holes to SGS Labs for metallurgical testing and results indicate that recoveries similar to those achieved for hard rock mineralization utilized in the 2012 Preliminary Economic Assessment (see news release dated September 4, 2012) are achievable. Additional metallurgical testing is planned.
Mineral Resource Estimation
The drilling data gathered during the 2011 sonic drilling program and the 2013 auger drilling program will be used, along with historic information, to complete a mineral resource estimate within the next month.
Sampling Procedures 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 Golden Meadows were carried out under the supervision of Richard Moses, C.P.G., 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. Samples reporting values >0.05% Sb are reanalyzed using XRF. All composites utilize a 0.5g/t cut off and may include internal waste. Silver and antimony are 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 Stibnite-Yellow Pine 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 deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the 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 August 15, 2012, (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. This 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” 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 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 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 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.
MIDAS GOLD INTERCEPTS HIGH GRADE AT HANGAR FLATS DEPOSIT, GOLDEN MEADOWS PROJECT, IDAHO
MGI-13-361 intercepts 100.6m grading 3.1 g/t Au, 7.2 g/t Ag and 0.55% Sb
Including 36.4m at 4.2 g/t Au, 13 g/t Ag and 1.24% Sb and 16.3m at 5.2 g/t Au, 2 g/t Ag and 0.20% Sb
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX) announced results today from three holes, completed within the Hangar Flats Deposit, from its ongoing resource definition drill program at its Golden Meadows project in the Stibnite Mining District of Idaho. Hole MGI-13-361 contained appreciably higher gold grades than projected in the 2012 mineral resource block model, while the high grade antimony intercept lies completely outside of the 2012 antimony mineral resource. The other two holes, MGI-13-362 and -363, generally confirmed estimated grades and are expected to improve confidence with no appreciable change to the mineral resources in those areas. Highlights from these holes are summarized in Table 1 below, while detailed results are attached at the end of the release in Table 2.
Table 1: Highlights of Drill Results from Hangar Flats, Golden Meadows Project
| Hole ID | From (m) | To (m) | Interval (m) | Gold (g/t) | Silver (g/t) | Antimony (%) | In situ Gold Equivalent (g/t) (1) |
|---|---|---|---|---|---|---|---|
| MGI-13-361 | 128.3 | 228.9 | 100.6 | 3.09 | 7.20 | 0.55 | 4.52 |
| Including | 162.5 | 198.9 | 36.4 | 4.20 | 13.23 | 1.24 | 7.40 |
| and | 212.6 | 228.9 | 16.3 | 5.18 | 2.09 | 0.20 | 5.69 |
| MGI-13-363 | 74.7 | 110.5 | 35.8 | 2.57 | 2.06 | 0.04 | 2.70 |
(1)In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
“The results of our most recent drilling continue to confirm the higher grade nature of portions of the Hangar Flats deposit,” said Stephen P. Quin, President and CEO of Midas. “Additional drilling is continuing at the Yellow Pine deposit to more fully define the core area to measured and indicated standards, while results from the recent drilling of the historic tailings are due shortly.”
Summer 2013 Drill Program
Midas Gold currently has two core rigs drilling at site conducting an approximately 5,000m mineral resource definition drill program with the objective of continuing to infill and define mineral resources to the measured and indicated categories suitable for inclusion in a pre-feasibility study (a “PFS”). The primary focus for this drilling continues to be Yellow Pine deposit, which had the highest grades, lowest strip ratio and best metallurgical recoveries of the three deposits comprising the Golden Meadows project as set out in the Preliminary Economic Assessment (the “PEA”), highlights of which were released on September 4, 2012. However, the three holes reported herein were completed at the Hangar Flats deposit to provide additional information in areas where the block models were thought to have under reported grades, and to improve confidence in the inferred mineral resources.
Details of Drill Results
Midas Gold’s review of historic underground drilling, as well as Midas Gold’s surface drilling and historic underground sampling data, indicated that the 2012 block models did not effectively capture interpreted trends or spatial distributions of mineralization. Hole MGI-13-361 was drilled to evaluate an area between the 200 and 400 levels of the old Meadow Creek Mine, which operated from the early 1920s through the late 1930s. The hole was designed to provide additional information where the 2012 mineral resource block model appeared to be under reporting grades based on reconstructions of the workings and underground channel sampling data from the early production era operations. This hole intercepted strong alteration with associated gold and antimony mineralization, indicating that the block model may well be under reporting the actual grades in this area. In addition, the higher grade antimony intercept (36m at 1.2% Sb) occurs entirely outside the antimony shell used in the 2012 mineral resource estimate and results suggest potential for additional high grade antimony down plunge of this intercept.
Holes MGI-13-362 and 363 were drilled uphill of hole MGI-13-361 in order to confirm and provide additional information in two other areas, and were targeting a small volume of inferred mineralization. The intercept in hole MGI-13-362 was 15m narrower and somewhat lower grade than projected, while the intercept in hole MGI-13-363 generally confirmed the 2012 estimate. Overall, these two holes are expected to generally increase resource confidence in this area with no appreciable effect on contained metal.
Sampling Procedures 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, and Chris Dail, C.P.G., Exploration Manager of Midas Gold, Inc., and a Qualified Person. The exploration activities at Golden Meadows were carried out under the supervision of Richard Moses, C.P.G., 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 internal waste. 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 including Midas Gold Inc. and Idaho Gold Resources, LLC, is focused on the exploration and, if warranted, the potential for future development of mineral deposits in the Stibnite-Yellow Pine district of central Idaho. The principal gold deposits identified to date within the 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 August 15, 2012 (the “Technical Report”), which is available on Midas Gold’s website at www.midasgoldcorp.com or under Midas Gold’s profile on SEDAR atwww.sedar.com. This 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “suggest”, “optimize”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous” 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 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 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 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.
Table 2: Detailed Drill Results from Hangar Flats(1)
(To accompany Midas Gold news release #2013-12)
| HOLE ID | Hole Type | Collar Azimuth | Collar Dip | Hole Total Length (m) | From (m) | To (m) | Interval (m) | Gold (g/t) | Silver (g/t) | Antimony (%) | Tungsten (%) | In situ Gold Equivalent (g/t) (2) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MGI-13-361 | Core | 150 | -50 | 228.9 | 78.3 | 100.9 | 22.6 | 0.97 | 1.95 | 0.04 | 0.006 | 1.09 |
| and | 128.3 | 228.9 | 100.6 | 3.09 | 7.20 | 0.55 | 0.004 | 4.52 | ||||
| Including | 162.5 | 198.9 | 36.4 | 4.20 | 13.23 | 1.24 | 0.004 | 7.40 | ||||
| and | 212.6 | 228.9 | 16.3 | 5.18 | 2.09 | 0.20 | 0.004 | 5.69 | ||||
| MGI-13-362 | Core | 300 | -50 | 101.5 | 85.0 | 101.5 | 16.5 | 2.27 | 3.58 | 0.03 | 0.006 | 2.38 |
| MGI-13-363 | Core | 255 | -55 | 111.9 | 29.0 | 45.0 | 16.0 | 2.55 | 1.45 | 0.01 | 0.006 | 2.59 |
| and | 74.7 | 110.5 | 35.8 | 2.57 | 2.06 | 0.04 | 0.005 | 2.70 |
(1)Reported drill hole composites are reported at a 0.5 g/t Au cut-off, with a minimum 10 meter composite length. Higher grade composites are reported at 3 g/t Au cut-off. Composites may contain up to 6m of internal waste below cut-off. Widths reported are approximately true widths.
(2)In situ gold equivalent values based on $1,350/oz gold, $20/oz Ag and $4.75/lb antimony. These equivalent grades are provided for illustrative purposes only and do not account for recoveries or payabilities of the various metals, which may vary significantly, depending on the metallurgical process selected.
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MIDAS GOLD PROVIDES UPDATE ON PROGRESS AT GOLDEN MEADOWS PROJECT, IDAHO
Project Optimization Continues, 5,000+m Core Drill Program Underway
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX) today provided an update on its Golden Meadows project in the Stibnite mining district of Idaho, including project optimization activities and on-going core drilling. Significant progress has been made in a number of areas, all with a view to improving the financial, technical and environmental outcomes from any future project. Areas with notable progress include mineral resource definition, optimizing potential mine plans, defining a potential opportunity for reprocessing historic tailings, improved siting for facilities and closure planning, as well as processing options.
“Midas Gold continues to advance its Golden Meadows Project, located in the historic Stibnite mining district in Idaho, on a number of fronts,” said Stephen Quin, President & CEO of Midas Gold. “Our aim has been to re-evaluate the project from end to end with a view to optimizing the project scale, economics and technical certainty, while looking to reduce the potential environmental footprint and improve the potential site restoration scenarios so that we can leave the site considerably better than we find it now,” he said. “We are also striving to achieve these objectives in the most cost effective and timely manner and, following the completion of the recent financing, have re-evaluated the work program to reduce costs and improve timing by eliminating a number of intermediate reporting steps ahead of completion of a pre-feasibility study planned for 2014.”
Focus on Cost Efficiencies and Optimizing Potential Economic Returns
Midas Gold continues to focus on ensuring its funds are most effectively deployed in order to achieve its objectives in a cost effective and timely manner. Previously, Midas Gold had planned to complete an updated preliminary economic assessment (“PEA”) later in 2013, followed by a pre-feasibility study (“PFS”), however this entailed completion of two technical studies, each including comprehensive updates to the mineral resource estimates and entailing two technical reports. As reported on May 15, 2013, Midas Gold has elected to advance directly to completion of a PFS and plans to achieve this with a single mineral resource update post-completion of the 2013 drilling season, reducing costs and overall timelines to completion of a PFS (through the elimination of costs and work related to the preparation of an updated PEA). Considerable progress has been made in respect of achieving these objectives, as discussed below.
In addition, Midas Gold is focusing its efforts on the most robust project options, including the best grade, best metallurgical performance, lowest strip ratio mineral resources that provide the optimal potential economic returns in a variety of gold price environments. Midas Gold believes that demonstrating potential to be a large, low cost, low risk gold producer, located in the United States, is what will make the Golden Meadows project stand out. Midas Gold also continues to evaluate the technical risks associated with all aspects of any potential project and is focused on outcomes that minimize and mitigate potential risks. Thirdly, Midas Gold is evaluating a variety of project options in light of their potential environmental footprint, opportunities for the remediation and reclamation of legacy disturbance from historic mining activity, and the long term closure scenarios that would result in the site being left in a significantly better environmental condition than the current situation. These financial, technical and environmental considerations are driving Midas Gold’s approach to the PFS. The net outcome of this approach should be an overall more robust, sustainable and supportable project than that contemplated in the PEA.
Project Optimization
In 2012, Midas Gold completed a preliminary economic assessment (the “2012 PEA”), which defined one possible option for the potential future development of the Golden Meadows project in the historic Stibnite mining district of Idaho. The 2012 PEA also identified additional information required in order to further advance the project, identified possible alternatives for the potential project, and provided a basis for discussions with local communities, Native American Tribes, State, Federal and local governments, regulators, NGOs and other potential stakeholders in respect of potential project options. As noted above, all aspects of the project are being reviewed with a focus on financial, technical and environmental outcomes, including designing for project closure and management of water quality. No project can be proposed until this additional work is completed, analyzed, incorporated into further studies and a determination made that there is a reasonably permittable project with sufficient economic returns to justify proceeding to the next stages.
Key areas of attention include the following:
Mineral Resource Estimation - In addition to more than 35km of new drilling completed by Midas Gold since the date of the last mineral resource estimates, Midas Gold recovered a significant amount of additional data generated by prior operators of the project, including additional drilling, assay, survey and geological information. Evaluation of all of this new data is allowing Midas Gold to prepare more detailed geological models and more constrained mineral resource estimates for the entire project. After evaluation of this new data in light of the objective of completing a PFS (which includes mineral reserves), Midas Gold has introduced new mineral resource parameters such as requiring a certain influence of either (a) Midas Gold drill data or (b) other modern era (1970s-1990s) drill data in order to define a measured or indicated mineral resource, respectively. Incorporation of these and other new parameters has resulted in the need for some additional drilling to add the required component of Midas Gold data in areas dominated by older information. The current 5,000+m drilling program is designed to provide additional drillhole information in these areas and to meet the standards appropriate for the definition of mineral reserves in a PFS. Overall, the new data collected since the 2012 PEA and the parameters being used to constrain the mineral resource estimates may result in a modest percentage reduction in the aggregate total of the mineral resource estimates (as compared to the 2012 PEA) as a result of eliminating peripheral and/or less certain mineral resources that may or may not have been contained within the 2012 PEA defined pit limits. Since different parameters will be used to define the PFS pit limits, the impact on mineral resources falling within the PFS pits and becoming mineral reserves cannot be determined at this time. However, Midas Gold anticipates a significant conversion of mineral resources from the inferred to measured and indicated categories as compared to the 2012 PEA once all this new data and new parameters are applied.
Mine Plan Optimization - A financial, technical and environmental review of each of the deposits, based on the 2012 PEA mineral resource estimates, indicated that the extraction of the higher strip ratio mineral resources in the final phase of the contemplated Hangar Flats pit generated little in the way of incremental net present value (“NPV”) but added significant sustaining capital (including a replacement mining fleet and considerable waste stripping to access these tonnes) and generated a larger environmental footprint in respect of the resulting open pit and waste rock dumps. In addition, areas of the West End deposit defined primarily by cyanide-soluble gold assays with minimal fire assay data, may be removed from the PFS mine plan. These areas are relatively lower margin and were to be mined late in the mine plan set out in the 2012 PEA. Based on the 2012 PEA parameters and mine plan, removal of these areas may have a minimal impact on the project NPV as compared to the 2012 PEA, but could significantly reduce the environmental footprint of the overall project, while enhancing the options for post-closure reclamation and site restoration. Once updated mineral resource estimates are available, incorporating the post-2012 PEA drilling, Midas Gold’s pit optimization will continue to focus on the three core aspects of financial, technical and environmental impacts to design the most viable, supportable and permittable project option, including continued mine plan optimization and potential elimination of mineral resources such as the higher strip ratio Hangar Flats tonnes and portions of the West End deposit which may result in somewhat lower life-of mine potential production as compared to the 2012 PEA, but would be focused on the nearer surface, better grade, lower strip ratio mineralization. The potential of mineralization not included in the PFS can be further evaluated in future studies.
Tailings Reprocessing - Historic milling operations (based on portions of the Hangar Flats and Yellow Pine deposits mined and milled in the 1920s through 1950s) generated significant volumes of tailings, some of which are contained in a defined area west of the Hangar Flats deposit. There are significant potential environmental benefits to reprocessing such material since a potential source of metals leaching would be eliminated once the majority of contained sulphides are recovered for their contained metals and the reprocessed tailings placed in the contemplated lined tailings storage facility described in the 2012 PEA. Based on assay results for three geotechnical holes completed in 2012, indications were that these tailings may contain sufficient value to warrant reprocessing to recover the gold, silver and antimony contained therein. In order to evaluate the potential for such an option, Midas Gold recently completed a 42-hole auger drill program to systematically assess the volume, grade and nature of the tailings, assays from which are pending. This information will be used, if warranted once assay results are received, to support a mineral resource estimate and metallurgical and environmental testing to support the reprocessing of the tailings in a PFS.
Project Infrastructure Siting - While the layout proposed in the 2012 PEA represented one conceptual option for siting facilities and infrastructure, a reassessment of the possibilities from a financial, technical and environmental perspective suggests that placing the plant facilities near Scout Ridge would be an improvement in all three respects. This location has a number of benefits, including shallow bedrock for mill foundations, greater distance from waterways, avoidance of forested wetlands, proximity to the centre of mining, etc. As a result, Scout Ridge is now considered the preferred location for the potential mill and related facilities, and is the focus of current technical and environmental assessments. This potential plant location also presents the opportunity for the use of conveyors to move mill feed from the Yellow Pine and West End deposits from a crusher sited near the exits to those pits, reducing potential capital and operating costs, and reducing the environmental impact (through the elimination of major haul roads, bridges, vehicle traffic, dust generation from roads, etc.). Such a location for the process facilities may impact options for the Scout mineralization discovered in 2012, but may not preclude the underground extraction of relatively shallow, high grade antimony-gold-silver mineralization defined in the Scout area, should a mineral resource be defined and further evaluation demonstrate potential for an attractive economic return.
Closure Planning - As part of the overall project review, Midas Gold is evaluating the potential for improved reclamation and restoration opportunities, given the considerable disturbance related to past mining activities, and incorporating these into an enhanced closure plan. Opportunities such as tailings reprocessing, reduced waste generation from a smaller Hangar Flats pit, sequential mining to maximize opportunities for backfilling pits and locating infrastructure and facilities in areas already disturbed by prior operations should all result in an improved environmental outcome versus the current situation. A key aspect of the project conceptualization is to enhance water quality, improve fish habitat and support permanent fish passage upstream from the Yellow Pine pit for the first time since the 1930s, reopening significant areas for fish habitat.
Concentrate Oxidation - While flotation to produce gold-pyrite concentrates remains at the centre of the contemplated processing facility for the potential project, options for the onsite oxidation of the concentrates produced has indicated that bio-oxidation (“BiOx”) may be a preferred alternative due to its potential for lower capital and operating costs, short lead times, scalability, ease of construction and mobilization, greater flexibility in handling variable feeds from the different deposits and potential for a reduced environmental footprint as compared to pressure oxidation (“POx”). Initial testing indicates that the concentrates from all three deposits are amenable to the BiOx process, oxidizing rapidly and providing very high liberation of gold from pyrite (greater than 95%). BiOx also offers the potential for significantly higher recovery of silver from the sulphides that contain the gold, whereas silver recovery following POx was poor. Additional test work continues to further evaluate the potential for BiOx; in the interim, additional testing of pressure oxidation (the base case in the 2012 PEA) has been completed and reporting of results is pending. Additional information on the BiOx and POx test programs will be released once full results of the test programs are available. A final recommendation for the preferred concentrate processing option will be part of the planned PFS.
Secondary Antimony Processing - Given the potential importance of antimony as a by-product, antimony and gold losses in antimony flotation (a result of efforts to achieve higher antimony concentrate grades for sale to third parties and to minimize gold losses into the antimony concentrates), and the payability on antimony concentrates thus generated, upside exists if Midas Gold is able to generate an antimony product that is directly saleable in the North American market. Midas Gold is making progress in developing options for on-site or off-site processing of antimony concentrates through a comprehensive laboratory testing program, while also evaluating options for recovering the contained silver values in the antimony concentrate. Additional information will be released once the test program is completed.
Access Routes - In the 2012 PEA, Midas Gold presented three possible alternative routes to site that it believed were preferable (from an environmental and community perspective) to the existing access route. Following publication of the 2012 PEA, Midas Gold contacted various interested parties for their input into these options and additional access route options were suggested by community members and evaluated by Midas Gold. One of the options suggested by community members has a number of financial, technical and environmental benefits relative to the originally contemplated routes and is now being evaluated as the potential preferred route for inclusion in the planned PFS.
Drilling
Midas Gold has had two core rigs drilling on site since mid-August, replacing an auger rig that recently completed characterization work in and around the former mill tailings area and foundation testing for potential future infrastructure. The objective of the current 5,000+m core drilling program is to continue to convert mineral resources to the measured and indicated categories suitable for inclusion in the planned PFS, particularly in light of the new more conservative resource modeling parameters introduced, as noted above. The primary focus for this drilling continues to be Yellow Pine deposit, which had the highest grades, lowest strip ratio and best metallurgical recoveries of the three deposits that comprise the Golden Meadows project, as described in the 2012 PEA. In the 2012 PEA, the Yellow Pine deposit also had the highest proportion of inferred mineral resources that required upgrading to measured and indicated categories before inclusion in the PFS. In addition to drilling at Yellow Pine, three holes have already been completed at the Hangar Flats deposit that were designed to support definition of indicated mineral resources, and several holes are planned for the West End deposit as part of this infill drill campaign.
As discussed above, more conservative refinements to Midas Gold’s resource estimation process now require that there be a contribution from modern-era data in order to define a measured or indicated mineral resource, thereby reducing reliance on older data. The current drill program focuses on “high value ounces” in areas with insufficient modern-era data to support the new classification parameters for the definition of measured and/or indicated mineral resources. “High value ounces” are those that have higher grades, lower strip ratios, higher metallurgical recoveries and occur relatively early in the production profile contemplated in the 2012 PEA. Many of the planned holes are relatively short and are located in the core of the Yellow Pine mineral resource, and are therefore critical to defining the potential economic returns of any future project since these areas provided the highest NPV in the 2012 PEA. Given the location of the planned holes, in the core of the Yellow Pine deposit, several will be completed with large diameter (PQ) core in order to collect sufficient metallurgical sample material to support potential future pilot plant testing. Lower priority areas (that do not meet the threshold to be defined as “high value ounces”) can be re-evaluated in future studies, once additional drilling is completed.
Project Milestones
As discussed above, Golden Meadows Project optimization and design continues to progress beyond the PEA phase, with a focus on trade-off studies to evaluate optimal mine design and closure planning, alternate process flow-sheets, optimal project scale, facilities locations, access and power options, related capital and operating cost estimates, and staging of the project development to optimize the overall potential project economics and permitability. In addition, extensive post-2012 PEA metallurgical testing is well advanced, and is focused on refining and optimizing the excellent results outlined in the 2012 PEA, including enhancing gold, silver and antimony recoveries, the possibility for tungsten recovery and other opportunities for enhanced outcomes.
No additional drilling, beyond the inclusion of the three Hangar Flats holes and 42 tailings auger holes noted above, are contemplated for Hangar Flats, Scout or the historic tailings before completion of the PFS and mineral resource estimates incorporating this information should be completed later in 2013. The mineral resource estimates for West End and Yellow Pine should be updated in early 2014 to incorporate the results of the 5,000+m of core drilling program currently underway. The various trade-off studies, siting studies, pit optimizations, metallurgical test results, reclamation and closure planning, and other financial, technical and environmental considerations will be evaluated in the PFS that is scheduled for completion in the first half of 2014. In parallel with these activities, environmental baseline data collection and monitoring continues across the project area. The PFS, along with the additional information being collected, will provide the basis for a decision as to what subsequent steps should be taken to further advance the project.
Compliance with NI43-101
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, C.P.G., Qualified Person and Site Operations Manager for the Golden Meadows Project.
About Midas Gold and the Golden Meadows Project
Midas Gold Corp., through its wholly owned subsidiaries including Midas Gold Inc. and Idaho Gold Resources, LLC, is focused on the exploration and, if warranted, development of deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the 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 August 15, 2012, (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. This 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on the Corporation’s properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “suggest”, “optimize”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous”, “conceptual”, “indicates” 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 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 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 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.
MIDAS GOLD COMPLETES C$9.8 MILLION PRIVATE PLACEMENT
Funds to be used for continuing evaluation of, and a PFS on, the Golden Meadows Project, Idaho
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (TSX:MAX) (“Midas Gold” or the “Company”) today announced that it has completed the non-brokered private placement (the “Placement”) with Teck Resources Limited (TSX: TCK.A and TCK.B; NYSE: TCK) (“Teck”) announced on July 2, 2013. Teck subscribed for 12,740,000 common shares of Midas Gold (“Shares”) at a price of $0.77 per Share for gross proceeds of C$9,809,800. Adding in the proceeds from the Placement, Midas Gold currently has approximately US$28 million in cash and US$26 million in working capital. Proceeds of the Placement will be used to continue the evaluation of Midas Gold’s Golden Meadows Gold Project located in Idaho, USA, and for general working capital purposes.
Following the Placement, Teck owns approximately 9.9% of the issued and outstanding shares in Midas Gold.
The Shares issued to Teck are subject to a hold period and may not be traded until November 5, 2013 except as permitted by applicable securities legislation and the rules and policies of the Toronto Stock Exchange.
About Midas Gold and the Golden Meadows Project in the Stibnite-Yellow District
Midas Gold , through its wholly owned subsidiaries including Midas Gold Inc., MGI Acquisition Corporation and Idaho Gold Resources, LLC, is focused on the exploration and, if warranted, development of deposits in the Stibnite‐Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors. Independent mineral resource estimates are detailed in a technical report entitled “Preliminary Economic Assessment Technical Report for the Golden Meadows Project, Idaho” dated effective August 15, 2012 (the “Technical Report”) and filed on SEDAR on September 21, 2012, which is available on Midas Gold’s website at www.midasgoldcorp.com or under Midas Gold’s profile on SEDAR at www.sedar.com. This 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.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, the Company’s planned use of the proceeds of the Placement. 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”, “suggest”, “optimize”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, “anomalous”, “around”, “objective” or variations of such words and phrases or statements that certain actions, events or results “should”, “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Statements concerning mineral resource estimates may also be deemed to constitute Forward-Looking Information to the extent that they involve estimates of the mineralization that may be encountered if the Golden Meadows Project is developed. In disclosing Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to: that certain of the Company’s key objectives can be completed at the cost expected; 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 Company 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 further 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 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 Company’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 Company’s dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Company’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 Company’s public disclosure record. Although the Company has attempted to identify important factors that could affect the Company 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 Company 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.