Study Demonstrates Potential for Robust, Long-life, Low Cost Gold Production with Antimony Credits
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX) today announced that it has filed an independent Technical Report (“Technical Report”) on SEDAR detailing the results of the recent Preliminary Economic Assessment (“PEA” or “Study”) on its Golden Meadows Project (the “Project”) in Idaho. As summarized in a news release dated September 4, 2012, the Study demonstrates the potential for a robust return from a long life, low cost gold operation with important antimony by-product credits. In addition, the Study outlines a number of opportunities for further optimization of the Project including, but not limited to:
- Potential for increased throughput while maintaining a single process line, keeping capital cost increases modest;
- Potential additions to the higher grade resources (either in and around the currently known mineral resources or from new discoveries) that would extend the period of higher grade production beyond Year 8, deferring lower grade, lower margin production to later years;
- Conversion of some portions of the currently unclassified material within the Study pit limits that are currently treated as waste, potentially increasing mineral resources and reducing strip ratios;
- Potential for expanded delineation of antimony by-product credits within the gold mineral resource, since only 17% of the gold mineral resources currently have antimony values estimated, increasing and/or extending the potential by-product credit revenue stream; and,
- Exploration upside through the potential discovery of significant new gold deposits, with or without by-product antimony credits.
Midas Gold is currently working to realize on all of the opportunities listed above, including a significant amount of infill, step-out and exploration drilling completed subsequent to the PEA cut-off date, but the outcomes of such activities cannot yet be determined.
“The full technical report provides readers with the opportunity to understand the level of detail and analysis that went into completing this Preliminary Economic Assessment,” said Stephen Quin, President & CEO of Midas Gold Corp. “The Study also outlines the risks and opportunities that will be addressed as Midas Gold advances its Golden Meadows Project and provides a clear outline of its plans to manage and mitigate the impacts of its current and future activities, as well as leaving this extensively disturbed brownfields site in significantly better condition than it currently is.”
Readers should note that the PEA mine plan and economic model include the use of inferred mineral resources. Inferred mineral resources are considered to be too speculative to be used in an economic analysis except as allowed for by Canadian Securities Administrators’ National Instrument 43-101 (“NI43-101”) in PEA studies. There is no guarantee that inferred mineral resources can be converted to indicated or measured mineral resources and, as such, there is no guarantee the Project economics described in the PEA will be achieved.
As previously reported, the purpose of the Study was to (a) provide a preliminary concept for the scale and type of mining project that the Golden Meadows Project could support, (b) identify options and alternatives for consideration by Midas in consultation with regulators, governments, communities and other interested parties, (c) identify areas where additional work is required before a preliminary feasibility study (“PFS”) can be completed, and (d) demonstrate potential for positive economic returns that would support continued investment in the Golden Meadows Project. With this Study in hand, Midas Gold intends to actively engage with interested parties to evaluate potential options and considerations for the possible development of this large scale, long life mining operation in order to manage and mitigate impacts and ensure the sustainability of Midas Gold’s activities.
The Golden Meadows property has been the site of extensive open pit and underground mining for almost 100 years and, as such, has seen considerable disturbance and environmental impact. Midas Gold’s approach to the conceptual design of this project has been to select economic approaches and alternatives that mitigate and minimize the results of its proposed activities, to remediate considerable amounts of legacy disturbance and to develop a closure and reclamation concept that leaves the site with enhanced fisheries, wetlands and other productive environmental attributes. Midas Gold plans to engage with regulators, governments, communities, tribes, non-governmental agencies and other interested parties to consider the options identified in the PEA, to evaluate reasonable alternatives and to develop preferred options that can be incorporated into a future PFS and, if warranted, the permitting process for a full-scale mining operation.
“Our objective is to balance the potential for economic returns to our shareholders, to generate significant fiscal and employment benefits to the local communities and the State of Idaho, while protecting and enhancing the local environment and eco-system,” said Mr. Quin. “We believe that an appropriate balance can be reached and we look forward to working with regulators, governments, communities and other interested parties to realize that end.”
For further information about Midas Gold Corp., please contact:
Liz Caridi - Manager, Investor Relations
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 and reviewed and approved by Stephen P. Quin, P. Geo., President and CEO of Midas Gold Corp., and a Qualified Person.
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 mineral resources at Golden Meadows are contained within areas that have seen historic disturbance resulting from prior mining activities. In order for Midas Gold to advance its interests at Golden Meadows, the Project will be subject to a number of Federal, State and local laws and regulations and will require permit 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.
For readers to fully understand the information in this news release and the PEA, they should read the Technical Report (available on SEDAR) in its entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this news release which qualifies the Technical Information. The Technical Report intended to be read as a whole, and summaries or sections should not be read or relied upon out of context. The technical information in that report is subject to the assumptions and qualifications contained in the Technical Report.
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.
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” “confirm” or “does not anticipate”, “believes”, “contemplates”, “recommends” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” 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, certain assumptions as to production rate, operating cost, recovery and metal costs as set out in this news release, that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in 2012 will be consistent with the Corporation’s expectations; that the current exploration and other objectives concerning the Golden Meadows Project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration on the Golden Meadows Project will be obtained in a timely manner and on acceptable terms; the continuity of the price of gold and other metals, economic and political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in exploration programs based upon results of exploration; changes in estimated mineral reserves or mineral resources; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks, including environmental matters under U.S. federal and Idaho rules and regulations; impact of environmental remediation requirements and the terms of existing and potential consent decrees on the Corporation’s planned exploration on the Golden Meadows Project; certainty of mineral title; community relations; delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Corporation’s dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Corporation’s lack of operating revenues; governmental regulations and the ability to obtain necessary licences and permits; risks related to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict operations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the Corporation’s public disclosure record. Although the Corporation has attempted to identify important factors that could affect the Corporation and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information.
Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.