NEWS: Midland Exploration Starts First Exploration Program With Zincore Metals on the Gatineau Zinc Project
July 13, 2010 — MONTREAL, QUEBEC (Source: Marketwire) — MIDLAND EXPLORATION INC. ("Midland") (TSX VENTURE:MD), in partnership with Zincore Metals Inc.
("Zincore"), is pleased to announce the start of its first exploration program on the Gatineau Zinc Project, located about 200 kilometres northwest of the city of Montreal. This first exploration program, with a total budget of $500,000, will initially involve a ground magnetic and electromagnetic geophysical survey, followed by drilling. Zincore also made the initial payment of $30,000 in favour of Midland, pursuant to the agreement executed recently by the parties.
A previous VTEM survey completed by Midland in 2008 and designed to characterize known massive sulfide deposits in the Gatineau area, detected several untested conductors directly associated with the Bouchette, Lafontaine, and the Leitch massive sulfide zinc deposits. Several new conductors were also identified in lateral or adjacent extensions of these deposits. A low cost new type of electromagnetic survey, measuring three components, (PROMIS) will be used to refine the already identified VTEM anomalies. The PROMIS is an electromagnetic system comprising a loop producing a primary magnetic field which is tied to a receptor, by a cable, measuring the 3 components of a secondary magnetic field produced by a buried conductor.
Midland is confident that this new geophysical system will more precisely define the VTEM targets when compared to a conventional EM system. This system will not only precisely locate the conductor at depth, but it will also enable to define its orientation. This will better define the first drilling targets.
The Gatineau project, currently held 100% by Midland, comprises 266 claims covering a surface area of 160 square kilometres Midland controls several significant zinc occurrences and prospects in the metamorphosed Middle-Proterozoic marbles of the Grenville Supergroup, in the Gatineau area. The interest for this area is that those zinc occurrences share many similarities with significant zinc deposits, also hosted in Grenville metamorphosed limestones. The most prolific zinc deposits of this type are those of the Balmat-Edwards district in the United States located only 60 kilometres south of the Gatineau project area. This mining district is known to have produced more than 43 million tonnes at near 10% zinc including other commodities.
Terms of the Exploration Agreement
Zincore may earn 50% of Midland's interest in the Gatineau Zinc project, by spending a total of $3,500,000 in exploration work and making payments totalling $180,000 over four years. During the first year of the Option Period and at Zincore's election during the remainder of the Option Period, Midland will be the Operator of the project. Upon acquiring 50% interest, the Zincore will have the option to increase its undivided interest in the project from 50% to 65% by solely financing a bankable feasibility study on the project.
Zincore is a Vancouver-based mineral exploration company focused mainly on zinc and related base metal opportunities in the Americas, namely Peru, Mexico and Canada. The Company's common shares trade on the TSX and the Lima Stock Exchange under the symbol ZNC.
Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and REE. Midland is proud to count on reputable partners such as Zincore Metals Inc., Agnico-Eagle Mines Limited, Osisko Mining Corporation, North American Palladium Limited, Japan Oil, Gas and Metals National Corporation and Soquem Inc. Midland prefers to work in partnership and intends to conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.
This press release was prepared by Gino Roger, registered engineer and Qualified Person as defined by NI 43-101.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland's periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities.