Midas Gold Expands Mineralization at the Scout Prospect, Golden Meadows Project, Idaho

11 Oct 2012 08:00 ET

Marketwire Canada

Midas Gold Corp. (TSX:MAX) today announced additional assay results from its ongoing core drilling program at its Scout Prospect, on the Golden Meadows Project in Idaho. Step-out drilling continues to intersect significant gold-silver-antimony mineralization and is expanding the area of mineralization beyond previously defined boundaries and suggests potential for a good grade, bulk tonnage mineralizing system with significant antimony credits.

"Our recent drill results from Scout have not only confirmed the presence of high-grade gold-silver-antimony mineralization delineated in widely spaced historic drill holes, but have expanded this mineralization down-dip, up-dip and along-strike, and have shown the mineralization to be much thicker than prior, short drill holes had indicated," said Stephen Quin, President and CEO of Midas Gold Corp. "In addition, ground and airborne geophysical surveys suggest that the mineralized system may extend farther along strike, indicating potential for a bulk tonnage mineralizing system with good gold grades and significant antimony credits," he said. Additional drilling is in progress and is designed to further define the nature and extent of gold-silver-antimony mineralization at the Scout prospect.

Significant assay results from the most recent holes are summarized in Table 1, below, and full results are listed in Table 2 at the end of this news release. Previous 2011 and 2012 assay results from Scout, as reported in other news releases, can be found on Midas Gold's web site at www.midasgoldcorp.com. Additional results from the ongoing program will be released when assays are received and validated.

Table 1: Significant Results from Recent Scout Drill Holes

----------------------------------------------------------------------------            Hole        From       To    Interval     Gold   Silver AntimonyHole ID     Type         (m)      (m)         (m)    (g/t)    (g/t)      (%)----------------------------------------------------------------------------MGI-12-302  Core        85.3    206.5       121.2     1.20      2.0    0.490----------------------------------------------------------------------------including               85.3    100.6        15.2     3.33      1.6    0.173----------------------------------------------------------------------------including              150.9    162.9        12.0     4.55      4.7    1.708----------------------------------------------------------------------------MGI-12-308  Core       171.6    229.7        58.1     1.21      1.4    0.043----------------------------------------------------------------------------

The average aggregate true thickness of mineralization at Scout, based on drilling completed to date, is 75m and the mineralized area can be trace along strike at least 450m and down dip at least 200m. Mineralization is open to the north, south, down-dip and (to a limited extent) up-dip, with geophysical surveys and shallow historic drilling suggesting a strike length in excess of 650m. Several of the holes drill by Midas, including the two reported here, ended in mineralization. Overall, drill results received to date, combined with the results of geophysical surveys and historic drilling, suggest potential for a large scale, bulk tonnage gold system with significant antimony and silver credits. Antimony is primarily used as a flame retardant in the manufacture of plastics and other materials, as well as an alloy with lead in batteries. Recent antimony prices have averaged approximately US$5.70 per pound.

2012 Drill Program

Midas has completed over 41,000m of core and reverse circulation drilling as part of its 2012 drilling program, and currently has four core rigs operating on site.

Scout Prospect Description & History

The Scout Ridge prospect is situated approximately 1.25 km northeast of the Hangar Flats deposit, and has been traced approximately 650m along strike in widely spaced drill holes along a north-south fault system that hosts widespread gold-silver-antimony mineralization. This fault system, all of which may not be mineralized, can be inferred to extend for several km to the north-northwest, based on Midas Gold's 2011 airborne magnetics and EM surveys. Scattered soil anomalies and geologic mapping along this fault shows that it lies approximately 1km to the east of, and parallel to, the Meadow Creek fault system (which controls the Hangar Flats and Yellow Pine gold-silver-antimony-tungsten deposits).

The Scout prospect was first discovered in the 1940s, after U.S. Geological Survey and U.S. Bureau of Mines workers conducted experimental biogeochemical sampling in the district, which outlined a large gold and antimony biogeochemical anomaly. The area that hosts the biogeochemical anomaly occurs in a distinct, linear, north-south trending topographic depression interpreted to be a less resistant structural zone that is marked by strong geophysical anomalies. A series of weak but pronounced soil anomalies occur parallel to this trend, slightly uphill to the east, where the drilled zones would project to the surface (but are covered by talus and slope debris). Several small pits and trenches (that were likely excavated during 1940s during government-sponsored antimony-tungsten exploration) exposed massive, blocky, slightly schistose quartzite containing narrow, gold-bearing, high-grade stibnite veins and altered, sulphide-bearing, igneous dikes. Stratigraphic relationships, derived from outcrop mapping and drill data, indicate the valley itself is underlain by calc-silicates and silicified and dolomitized carbonates, similar to those that hosts the nearby Garnet Prospect. The Garnet prospect lies approximately 0.8km to the east of Scout and was the site of a 1995 open pit mining operation that produced approximately 35,000 ounces of gold from oxidized ores in skarn and calc-silicates grading approximately 6g/t gold. Between 1948 and 1990 three companies explored the Scout area with 20 short drill holes, totaling approximately 2,435m. Six east-west IP geophysical lines (by past operators and Midas Gold) have been run across the Scout Prospect area and delineate a large resistivity low and IP chargeability anomaly that could be indicative of a larger sulphide mineralized system.

Midas has now completed seven holes totalling 1,767.5m at Scout and, combined with results from the historic drilling, indicates the Scout Prospect is underlain by a series of stacked, tabular lenses of north-striking, moderately west-dipping shears, sheeted fracture zones and stockwork veins that host gold-silver-antimony mineralization that can be traced along strike for at least 450m.