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Midland Exploration's Partner Agnico-Eagle Intersects a New Gold Zone at Shallow Depth on Maritime-Cadillac


Published on 2010-05-27 06:21:00 - Market Wire
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MONTREAL, QUEBEC--(Marketwire - May 27, 2010) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to report that Agnico-Eagle Mines Limited ("Agnico-Eagle") intersected a new significant gold-bearing zone at shallow depth in the first hole of a new drilling program currently underway on the Maritime-Cadillac Property. The Maritime-Cadillac Property is contiguous to the Lapa gold mine property (800,000 ounces of gold in proven and probable reserves; 3.2 million tonnes at 8.2 g/t Au), in commercial production since May 2009 (source: Agnico-Eagle Financial Statements released February 17, 2010). Agnico-Eagle is currently working to increase its interest in the Maritime-Cadillac project. The company can earn a 1% additional interest for every $1,000,000 invested in the project (up to 15% by investing 15 million dollars over 3 years).

From 311.25 to 349.10 metres, drill hole 141-10-23 intersected a new zone of altered and mineralized felsic intrusions with 3-5% disseminated pyrite and arsenopyrite, which graded 1.7 g/t Au over 37.85 metres (true thickness estimated at 28.40 metres) including an interval grading 2.3 g/t Au over 24.0 metres from 320.0 to 344.0 metres (true thickness estimated at 18.0 metres). This wide gold-bearing zone includes a higher-grade section that assayed 4.8 g/t Au over 6.0 metres, from 324.50 to 330.50 metres (true thickness estimated at 4.50 metres), which includes, from 329.0 to 330.50 metres, an interval grading 12.6 g/t Au over 1.5 metres (true thickness estimated at 1.15 metres).

A second gold-bearing felsic intrusive was intersected from 415.8 to 417.8 metres and yielded a grade of 3.2 g/t Au over 2.0 metres (true thickness estimated at 1.5 metres). This zone is also hosted in altered ultramafic schists. True thicknesses for these zones were estimated based on observed core angles.

The new gold-bearing felsic intrusive zones were intersected in the north part of the Maritime-Cadillac Property, at a vertical depth of 300 metres and are located near an east-west-trending fault zone. The gold-bearing intrusions are hosted in ultramafic talc-chlorite schists of the Piché Group within the deformation zone associated with the Cadillac-Larder Lake Break. The felsic intrusive rocks are typically altered to silica and sericite, whereas the ultramafic schists exhibit talc-chlorite alteration with local iron carbonate and biotite alteration. The Maritime Cadillac Property is well located in the eastern part of the Cadillac mining camp, south of the Lapa gold mine.

These new gold zones remain completely open at depth and a new drill hole is underway to test the wide gold-bearing intrusive zone about 100 metres below drill hole 141-10-23.

Quality Control

The exploration program on the Maritime-Cadillac project is conducted by Agnico-Eagle Mines Limited and the data are reviewed by Mario Masson, VP Midland Exploration and Qualified Person as defined by National Instrument 43-101. Assay samples are taken from BQ-size drill core sawn in half; one half is shipped to a commercial laboratory and the other half is kept for future reference. Assays were conducted by Lab Expert in Rouyn-Noranda. Significant assay results are duplicated at the original laboratory as well as in a second independent laboratory, ALS Chemex-Chimitec in Val-d'Or. Quality control samples, standards and blanks, were inserted in the sample stream for mineralized zones.

Terms of the Exploration Agreement

On June 1, 2009, Agnico-Eagle Mines fulfilled all its obligations under the June 1, 2006 agreement and has acquired a 50% undivided interest in the Maritime-Cadillac property. Agnico-Eagle paid $100,000 and completed $1,000,000 of exploration work from fiscal 2006 to fiscal 2009. The company will also 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 a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).

About Midland

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 Agnico-Eagle Mines Limited, JOGMEC, Osisko Mining Corporation, North American Palladium Limited, Zincore Metals Inc. 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 Mario Masson, VP Midland Exploration and Qualified Person as defined by NI 43-101. For further information, please consult Midland's website.

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.


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