Hole MGI-11-62 intersects 47.6m grading 2.97 g/t Au & 2.9 g/t Ag
Hole MGI-11-64 intersects 33.5m grading 2.29 g/t Au & 38.8 g/t Ag
Hole MGI-11-67 intersects 90.5m grading 1.79 g/t Au & 2.2 g/t Ag
Hole MGI-11-73 intersects 46.6m grading 2.20 g/t Au & 3.0 g/t Ag
Hole MGI-11-76 intersects 30.5m grading 2.67 g/t Au & 0.8 g/t Ag
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced additional assay results, including finalized antimony and silver results, from its ongoing core and reverse circulation (“RC”) drilling program on the Hangar Flats and Yellow Pine deposits at the Golden Meadows Project, Idaho. A total of 50 holes have been completed so far in 2011 and assays are available for the first nineteen holes. Highlights of gold assays from the first four drill holes were previously reported on August 18, 2011 (NR#2011-13) and gold and silver results for the next seven holes were reported on September 7, 2011 (NR#2011-14). Highlights of recently received results, including first time antimony and silver assays and some additional intercepts from previously partially reported holes, are summarized in Table 1 below. More detailed results, including antimony and silver for all holes reported to date, are attached in Table 2 at the end of this release. Additional results from the ongoing program will be released when assays are received and validated.
Table 1: Highlights of Recent Assay(1) Results from Golden Meadows Project
|Hole ID||Type||Target Area||From|
|MGI-11-64||Core||Yellow Pine - Clark Tunnel area||116.7||150.3||33.5||2.29||38.8||3.31|
|MGI-11-70||Core||Yellow Pine - Clark Tunnel area||105.2||114.3||9.1||5.14||207.7||5.76|
|MGI-11-76||RC||Yellow Pine - Homestake area||27.4||57.9||30.5||2.67||0.8||0.00|
(1) Results are deemed preliminary until final assay certificates are issued. Partial results for some holes have been previously released.
(2) Based upon the current 3D interpretation of the Hangar Flats and Yellow Pine deposits, the intervals quoted here are at or near true thickness (with the exception of hole 11-64 and 11-70, where the true thickness is currently undetermined) and are composited using a 0.5 g/t Au cut-off and may include short intervals of internal waste below the cut-off grade.
“We are encouraged by these latest assay results from our 2011 drilling program, which continues to demonstrate significant gold, silver and antimony mineralization on our Golden Meadows Project in Idaho,” said Stephen Quin, President and CEO of Midas Gold, Corp. “The newly reported silver and antimony results are highly encouraging, as they demonstrate the potential for added by-product value from this significant past producer of these commodities,” he said.
2011 Exploration Program
A total of 50 drill holes totalling approximately 12,250 metres of drilling have been completed at Golden Meadows so far in 2011. This drilling is being undertaken as part of an exploration program designed to confirm and expand known mineral resources and potentially discover new mineralized areas. Four core rigs and one reverse circulation rig are currently operating on site. Since acquiring the property in 2009, Midas Gold has completed over 100 core and reverse circulation drill holes totalling over 24,000 metres of drilling. Given the encouraging results received to date, Midas Gold has mobilized a second RC drill rig to the property, bringing the number of drills to six, and plans to extend the 2011 drill program into mid-December 2011.
Hangar Flats is a high-grade gold-silver-antimony (with localized zones of tungsten mineralization) discovery made by Midas Gold in 2009. These most recent drill intercepts are step-outs to the north from the areas discovered and drilled during the 2009 and 2010 field seasons. Yellow Pine is a significant past producer of gold, silver, antimony and tungsten from the 1930’s through the mid-1950’s. The Homestake pit, located at the northeast end of the Yellow Pine deposit, was operated by Hecla Mining Company from 1987 through 1989. The area between the Yellow Pine and Homestake pits, known as the Clark Tunnel prospect, was the site of early 1930’s and 1940’s era exploration, but no mining has occurred at this prospect and it has seen only minimal modern exploration drilling. Historical geologic, geophysical and drilling data obtained by Midas suggested the possibility that significant mineralization might be present in this area and recent drill results confirm this potential.
Recent Drill Results
As previously reported, drill holes MGI-11-56, -57, -59, -60, -61 and -62 were drilled within and adjacent to the known mineral resource at Yellow Pine in order to upgrade the confidence level of those mineral resources and to provide metallurgical samples. Results from these drill holes, reported herein, are consistent with historic drill program results, providing confidence in Midas Gold’s prior mineral resource models and, in some cases, suggest that additional mineralization may be present within or beneath the modeled pit that limited those mineral resource estimates. Several of these 2011 holes have been re-entered to test deeper in the system and analytical results from these deeper drill tests are pending. Details of prior mineral resource estimates can be found in the NI43-101 Technical Report filed under Midas Gold’s profile on SEDAR (www.sedar.com).
Hole MGI-11-58, -67, and -73, drilled into the Hangar Flats deposit, were designed to expand and further upgrade the existing mineral resource. Partial drill results for portions of these holes were previously reported and final and complete results are now available and are reported herein. These results continue to outline high grade intervals within larger lower grade zones, such as the interval in MGI-11-58, which intersected 15.8m grading 6.08 g/t gold (Au), 30.42 g/t silver (Ag) and 2.0% antimony (Sb) within a broader interval grading 2.66 g/t Au, 11.64 g/t Ag and 0.76% Sb over 56.6m. Hole 11-67, collared approximately 75 metres north of 11-58, also cut significant Au-Ag-Sb mineralization, reporting multiple intercepts including an interval grading 1.90 g/t Au, 16.7 g/t Ag and 1.24% Sb over 19.2m, along with broader lower grade zones including a 95m intercept grading 1.79 g/t Au, 2.2 g/t Ag and 0.13% Sb.
Holes MGI-11-64, -65, -66, -68, -69, -70 and -71, -75 were drilled in the Clark Tunnel – Homestake area of the Yellow Pine deposit, northeast of the past producing Yellow Pine pit and beneath and southwest of the past producing Homestake pit. Final drill results reported herein indicate the presence of a much larger mineralized system than previously recognized, including large intervals with thick antimony and silver intercepts which could provide potentially economically significant by-product credits. The holes in the Clark Tunnel area outline a tabular, northeast-trending, northwest-dipping, mineralized body approximately 35-50 metres of true thickness that appears to be traceable along strike for several hundred meters and down dip for at least 250 metres, and which remains open along strike and down dip. A second mineralized zone, slightly lower and thus far less well defined, was cut in the lower portion of hole MGI-11-70, intersecting 106.7 metres averaging 0.62 g/t Au, 21.5 g/t Ag and 0.67% Sb. The significant thickness of this zone and potential for higher grades along strike or up and down dip warrants additional drilling, which is planned for later this season.
Antimony & Tungsten
U.S. Geological Survey (“USGS”), U.S. Bureau of Mines and Idaho Mine Inspector records report that the Stibnite-Yellow Pine district was the largest producer of antimony and tungsten in the U.S. during the 1940s and early 1950s. On June 7, 1939, in anticipation of United States’ involvement in World War II, President Roosevelt signed the Strategic Materials Act. Antimony and tungsten were both designated as strategic commodities at that time. During World War II, the district is reported to have produced over 90% of the antimony and 60% of the tungsten for the Allied war effort. Geologically, the gold, tungsten and antimony mineralization represent different mineralizing events and, in some cases, occur in overlapping zones while in others as discrete zones. As a result, the relationship between gold, antimony and tungsten values will be highly variable, depending which mineralizing events have affected an area. The main tungsten zone at Yellow Pine, which appears to be more geographically limited in extent, was mined out in 1945 but antimony mining continued through to the end of the Korean War. Additional tungsten intercepts in other areas suggest potential for other localized zones of tungsten mineralization.
Antimony, in various forms, is primarily used as a fire retardant, in heavy duty lead-acid batteries, in metallurgical alloys and a variety of other uses. The United States is reported by the USGS to consume approximately 16% of the world production of antimony, over 90% of which is imported with the balance made up from recycling as the U.S. has no domestic production. Production is dominated by China, which is estimated to produce almost 90% of the world supply. The price of antimony has risen significantly over the past two years, as have many other commodities, partly due to the Chinese government delaying approval of new projects and shutting down smaller, polluting ones in an effort to reduce pollution, according to the USGS. In September 2011, the British Geologic Survey published (see www.mineralsuk.com) its analysis of the supply risk for over 50 metals, ranking antimony and tungsten as two of the four having the highest supply risk of all metals surveyed.
Antimony in igneous rocks within the Golden Meadows project area is typically found in the mineral stibnite. Stibnite mineralization occurs as high grade structurally controlled veins and stockwork zones as typified in hole MGI-11-70 which reported 9.1 metres grading 5.14 g/t Au, 207.7g/t Ag, 5.76% Sb and hole MGI-11-67 which reported 3.1 metres grading 1.41 g/t Au, 90.0 g/t Ag, 7.38% Sb and 0.36% tungsten (W) or as thicker, more disseminated mineralization, such as that cut in MGI-11-67, which reported 88.9m grading 2.25g/t Au, 8.72g/t Ag, 0.73% Sb and hole MGI-11-64 which reported 33.5 metres grading 2.29 g/t Au, 38.8 g/t Ag and 3.31% Sb.
While more restricted in its distribution at Golden Meadows, tungsten is similarly dominated by Chinese production and there is minimal United States domestic production. Uses of tungsten are dominated by the production of very hard metal alloys, such as tungsten carbide, but also include a wide variety of other specialty applications. The USGS estimates that the United States consumes approximately 23% of the world production, and is dependent on imports for approximately two thirds of that demand. Midas Gold believes that there is potential for the discovery of additional zones of tungsten mineralization on the Golden Meadows Project, similar to those mined in the past, and has identified scheelite (a tungsten-rich mineral) in a number of the drill holes completed to date with large low grade intercepts and narrower higher grade intercepts such as MGI-10-21, which intersected 4.3m grading 0.41% tungsten, and MGI-11-67, which intersected 3.1m grading 0.36% tungsten, each with additional values of gold, silver and antimony. Scheelite in the district occurs as discrete sheeted vein swarms, as individual veins and in breccias bodies. As with antimony, tungsten prices have risen significantly over the past several years.
To view current drill hole locations and sections, please click here.
For further information about Midas Gold Corp., please contact:
Liz Caridi - Manager, Investor Relations
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 (“NI43-101”) and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., and a Qualified Person. The exploration activities at Golden Meadows were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
All gold assays are by a 30g Fire Assay charge followed by an atomic absorption finish (with a 0.002g/t lower reporting limit). Samples reporting values > 6g/t are re-analyzed using a 30g Fire Assay charge followed by a gravimetric finish. All composites utilize a 0.5g/t cut off and may include up to 1.52 meters of internal waste. Internal waste has been assigned a nominal grade of 0.0g/t. Composites above cut-off grade, but less than 6.1 meters in length, are not reported. Silver is analyzed via a 4-acid digestion followed by an ICP finish (with a 1.0g/t lower reporting limit). Samples reporting values > 10g/t Ag are reanalyzed using a 50g Fire Assay charge followed by a gravimetric finish. Antimony is analyzed via a 4-acid digestion followed by an ICP finish (with a 5.0g/t lower reporting limit). Samples reporting values > 2,000g/t Sb are reanalyzed using XRF (with a 0.01% lower reporting limit). 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. Blank and standard samples are used for quality assurance and quality control and a review of the results of analyses of the blanks, standards and duplicates by the Company’s Qualified Person indicates values are within normal and acceptable ranges.
About Midas Gold and the Golden Meadows Project
Midas Gold Corp., through its wholly owned subsidiaries Midas Gold Inc., and Idaho Gold Resources, LLC, is focused on the exploration and, if warranted, development of the Golden Meadows Project in the Stibnite-Yellow Pine district of central Idaho. The principal gold deposits identified to date within the Golden Meadows Project are the Hangar Flats, West End and Yellow Pine deposits, all of which are associated with important structural corridors. Independent mineral resource estimates were reported for all three deposits in a news release dated April 20, 2011 and are detailed in a consolidated technical report entitled “NI 43-101 Technical Report on Mineral Resources, Golden Meadows Project, Valley County, Idaho” dated June 6, 2011 (the “Technical Report”) is available on Midas Gold’s website at www.midasgoldcorp.com or under Midas Gold’s profile on SEDAR at www.sedar.com.
The Hangar Flats, West End and Yellow Pine deposits remain open to expansion along strike and to depth. In addition, Midas Gold continues to review and assess information contained within an extensive exploration database developed by Midas Gold from almost 100 years of exploration activity by multiple owners and operators, combined with its own regional exploration data, with the objective of identifying opportunities for the potential discovery of additional gold mineralization. Since Midas Gold’s acquisition of the project in the spring of 2009, Midas Gold has completed over 100 core and RC holes totalling over 24,000 metres of drilling.
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 Midas Gold Corp.’s (the “Corporation’s”) properties; success of exploration activities; permitting time lines and requirements, requirements for additional capital, requirements for additional water rights and the potential effect of proposed notices of environmental conditions relating to mineral claims; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Statements concerning mineral resource estimates may also be deemed to constitute Forward-Looking Information to the extent that they involve estimates of the mineralization that may be encountered if the Golden Meadows Project is developed. In providing the Forward-Looking Information in this news release, the Corporation has applied several material assumptions, including, but not limited to, that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in 2011 will be consistent with the Corporation’s expectations; that the current exploration and other objectives concerning the Golden Meadows Project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold, silver, antimony and tungsten will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration on the Golden Meadows Project will be obtained in a timely manner and on acceptable terms; the continuity of the price of gold and other metals, economic and political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in exploration programs based upon results of exploration; changes in estimated mineral reserves or mineral resources; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks, including environmental matters under U.S. federal and Idaho rules and regulations; impact of environmental remediation requirements and the terms of existing and potential consent decrees on the Corporation’s planned exploration on the Golden Meadows Project; certainty of mineral title; community relations; delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Corporation’s dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Corporation’s lack of operating revenues; governmental regulations and the ability to obtain necessary licences and permits; risks related to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict operations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the Corporation’s public disclosure record. Although the Corporation has attempted to identify important factors that could affect the Corporation and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information.
Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Table 2: Preliminary(1) Assay Results - Midas Gold News Release 2011-17
|Hole ID||Type||Target Area||From |
|MGI-11-56 (3)||CORE||Yellow Pine||16.6||138.8||122.2||2.28||1.43||0.10|
|MGI-11-57 (3)||CORE||Yellow Pine||30.2||121.0||90.8||2.92||2.71||0.06|
|MGI-11-58 (3)||CORE||Hangar Flats||75.7||121.3||45.6||2.86||3.98||0.28|
|MGI-11-64 (3)||CORE||Yellow Pine - Clark Tunnel area||50.4||55.0||4.6||0.71||2.23||0.00|
|MG-11-65||CORE||Yellow Pine - Clark Tunnel area||171.0||186.5||15.5||0.74||4.70||0.00|
|MGI-11-66 (3)||RC||Yellow Pine - Clark Tunnel area||96.0||149.4||53.3||4.15||8.47||0.08|
|MGI-11-68||RC||Yellow Pine - Clark Tunnel area||70.1||103.6||33.5||1.91||3.31||0.11|
|MGI-11-69||RC||Yellow Pine - Clark Tunnel area||59.4||94.5||35.1||1.17||2.02||0.02|
|MGI-11-70||RC||Yellow Pine - Clark Tunnel area||71.6||79.3||7.6||0.89||2.00||0.18|
|MGI-11-72||CORE||Yellow Pine - Clark Tunnel area||11.6||21.3||9.8||2.63||5.76||0.05|
|MGI-11-74||RC||Yellow Pine - Homestake area||44.2||62.5||18.3||0.89||2.66||0.12|
|MGI-11-75||CORE||Yellow Pine - Clark Tunnel area||13.6||22.9||9.3||2.30||3.50||0.23|
|MGI-11-76||RC||Yellow Pine - Homestake area||6.1||10.7||4.6||1.06||2.13||0.01|
|MGI-11-79||RC||Yellow Pine - Homestake area||7.6||32.0||24.4||1.59||0.23||0.01|
(1) Results are deemed preliminary until final assay certificates are issued. Partial results for some holes have been previously reported.
(2) Based upon the current 3D interpretation of the Hangar Flats and Yellow Pine deposits the intervals quoted here are at or near true thickness and are composited using a 0.5 g/t Au cut-off and may include short intervals of internal waste below the cut-off grade.
(3) Gold assays previously release on August 18, 2011 and September 07, 2011