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Midland Exploration Inc.: Midland Exploration Inc.: Update on the Maritime Cadillac Property

^{Published on 2009-08-06 07:12:05, Last Modified on 2009-08-06 07:12:17 - Market Wire}
 

MONTREAL, QUEBEC--(Marketwire - Aug. 6, 2009) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to report that following completion of the latest drilling program, Agnico-Eagle Mines Limited ("Agnico-Eagle") has fulfilled its commitments and thus acquired 50% interest in the Maritime Cadillac Property. Following the execution of an option agreement on June 1, 2006, Agnico-Eagle conducted exploration work, incurring $1,000,000 in exploration expenditures, and made payments totalling $100,000 over a period of 3 years. The Maritime Cadillac Property is contiguous to the Lapa gold mine property (1.061 million ounces of gold in proven and probable reserves, 3.75 million tonnes grading 8.8 g/t Au), where production is slated to begin in 2009 (Source: Agnico-Eagle Mines Limited; updated and published February 18, 2009).

Recent drilling

In the latest drilling program launched earlier this year, four (4) drill holes totalling 2,691 metres have been completed to date, testing the Maritime Contact East, Dyke East and Dyke West zones. The most recent drill hole, 141-09-22A, intersected the Dyke East structure, with an interval grading 1.0 g/t Au over 7.0 metres (about 4.9 metres true thickness) from 931.4 to 938.4 metres, including a grade of 2.1 g/t Au over 2.0 metres (about 1.4 metres true thickness) from 932.4 to 934.4 metres. About 30 metres further east, the Maritime Contact East zone was intersected, from 960.3 to 961.3 metres, grading 1.35 g/t Au over 1.0 metre (about 0.7 metre true thickness). These new drill intercepts are located about 175 metres below and 125 metres south of drill hole 141-09-21, which yielded a grade of 18.45 g/t Au over 1.0 metre earlier in the drill program.

2006-2009 Highlights

Since the onset of drilling on the Maritime Cadillac Property with Midland's partner Agnico-Eagle, several new gold-bearing structures have been identified, where an excellent discovery potential remains at depth and southward. To date, twenty-two (22) drill holes totalling more than 10,700 metres have been completed on the Maritime Cadillac Property. Known gold-bearing structures, from east to west, are as follows:

Maritime Contact East

This structure marks the eastern contact between Fe-carbonate and biotite-altered ultramafic schists of the Piche Group and Cadillac Group sedimentary rocks. This contact represents the stratigraphic equivalent of the Lapa Mine deposit, located about 1.5 km to the northwest. Mineralization typically encountered near this contact consists of 3-5% disseminated arsenopyrite associated with injections of quartz-carbonate veinlets.

Table 1: Significant Results - Maritime Contact East Zone (reported in core length)

- 3.3 g/t Au over 14.65 metres including 6.1 g/t Au over 5.65 metres (141-08-14B)

- 3.5 g/t Au over 4.9 metres including 8.4 g/t Au over 1.5 metres (141-06-02)

- 9.45 g/t Au over 1.5 metres (141-07-05)

- 0.74 g/t Au over 7.2 metres including 1.2 g/t Au over 3.2 metres (141-08-18A)

New discoveries in 2008: Dyke East and Dyke West zones

These new discoveries correspond to felsic to intermediate porphyry dyke swarms with 3-5% pyrite and 2-3% arsenopyrite locally. The Dyke East zone is hosted in ultramafic schists about 30 to 50 metres to the west of the Maritime Contact East zone, whereas the Dyke West zone was discovered in a new ultramafic schist unit further west. The two structures remain open southward at depth.

Table 2: Significant Results - Dyke East Zone (reported in core length)

- 18.5 g/t Au over 1.0 metre (141-09-21)

- 1.1 g/t Au over 25.9 metres including 4.73 g/t Au over 1.5 metres (141-09-21)

- 3.46 g/t Au over 5.50 metres (141-08-15)

- 1.0 g/t Au over 7.0 metres including 2.1 g/t Au over 2.0 metres (141-09-22A)

Table 3: Significant Results - Dyke West Zone (reported in core length)

- 1.85 g/t Au over 8.05 metres including 4.29 g/t Au over 1.5 metres (141-08-18)

A surface map and a longitudinal section showing these new intercepts are available on Midland's website. Midland considers that these results are very promising and warrant further drilling shortly along the strike and depth extensions of the new gold-bearing structures defined on the property.

Terms of the Exploration Agreement

Agnico-Eagle signed an option agreement on June 1, 2006, to acquire a 50% interest in the Maritime Cadillac Property by investing $1,000,000 in exploration and by making payments totalling $100,000 over a 3-year period. Agnico-Eagle recently made the final $25,000 payment and fulfilled all of its obligations, thus earning its 50% interest in the property. Agnico-Eagle will have the option to increase its undivided interest in the property from 50% to 65% over a period of 3 years, by solely financing a bankable feasibility study or by solely assuming all mining operations on the Maritime Cadillac Property, earning 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).

Quality Control

The Maritime Cadillac exploration program is conducted by Agnico-Eagle and the data is reviewed by Mario Masson, senior geologist for Midland Exploration and a Qualified Person as defined by NI 43-101. Assay samples are taken from BQ size drill core sawed in half with one half sent to a commercial laboratory and the other half retained for future reference. Assays are performed by Lab Expert of Rouyn-Noranda. Significant assay results are duplicated at the original laboratory and also at a second independent laboratory, which is ALS Chemex Chimitec of Val-d'Or.

About Midland Exploration

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 uranium. Midland is proud to count on reputable partners such as Agnico-Eagle Mines Limited, Soquem Inc. and Quest Uranium Corporation. Midland prefers to work in partnership and intends to quickly 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, 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.