Midas Gold Reports Results from High Grade Core of Yellow Pine Deposit, Golden Meadows Project, Idaho

15 Oct 2012 16:15 ET

Marketwire Canada

Midas Gold Corp. (TSX:MAX) today announced further results from its ongoing infill and step-out core drilling program on its Golden Meadows Project, Idaho, including results from definition drilling in the high grade core of the Yellow Pine deposit beneath the former open pit. Historic mining operations ceased in the Yellow Pine pit in 1952, but high grade gold-antimony mineralization was documented as continuing well below the pit bottom in past exploration and development drilling. Hole MGI-12-306 was drilled as part of Midas Gold's ongoing resource definition and metallurgical sample collection program, as recommended in the recently released Preliminary Economic Analysis ("PEA"). Hole MGI-12-306 was drilled in order to: (a) confirm and upgrade the resource estimates for this area that is conceptually scheduled for early production in the PEA, (b) to provide fresh samples to optimize recovery from higher grade mineralization scheduled for the early years of the conceptual mine plan outlined in the PEA, and (c) to provide additional antimony assay data to support antimony resource estimation for a larger portion of the Yellow Pine deposit. Only 17% of mill feed incorporated into the conceptual mine plan set out in the PEA currently has an antimony estimate associated with it, yet Midas drilling has outlined antimony mineralization well outside the antimony zone used in the PEA in the Yellow Pine deposit. Hole MGI-12-306 was successful in respect of all three objectives; this release also includes additional infill and step-out holes in the Yellow Pine deposit area.

Significant assay results from these most recent drill holes at Yellow Pine are summarized in Table 1, below, with more detailed results in Table 2 at the end of this release. Additional results from the ongoing program will be released when assays are received and validated.

Table 1: Highlights of Recent Drill Results from Yellow Pine---------------------------------------------------------------------------Hole          Target Hole       From     To Interval   Gold Silver AntimonyID            Area   Type         (m)    (m)      (m)  (g/t)  (g/t)      (%)---------------------------------------------------------------------------MGI-12-306(3) Yellow Core       37.2  275.2    238.0   2.61    3.0     0.29              Pine---------------------------------------------------------------------------including                      200.0  261.5     61.6   3.37    6.0     0.72---------------------------------------------------------------------------including                      208.2  221.0     12.8   2.71   12.7     1.58---------------------------------------------------------------------------

"We are pleased with the drill results from this year's drilling at Yellow Pine, where we have expanded the limits of known gold-silver-antimony mineralization, and are now focusing on infill and step-out drilling to better define the high grade mineralization (including the antimony zones) and to convert inferred resources to indicated resources," said Stephen Quin, President and CEO of Midas Gold Corp. "We also plan to continue testing the outer limits of the Yellow Pine system, since recent geophysical studies and 3-dimensional reconstruction of faults suggest there is potential for additional mineralization along the flanks of the Yellow Pine Deposit, where post-mineral faults may have offset mineralization, and we hope to further test these targets in the coming months," he said.

Metallurgical Program

As part of Midas Gold's ongoing work program to advance the project post-PEA, a large representative suite of more than 500 metallurgical sample composites was selected from core holes drilled by Midas Gold and will be utilized for flow sheet development and variability testing. On-going flotation testing will be performed by SGS in Vancouver, B.C., in order to further optimize metallurgical performance under the supervision of Blue Coast Metallurgy Ltd., B.C. The PEA incorporated quantitative evaluation of 70 variability composites for gold, antimony and host rock mineralogy by scanning electron microscope (QEMSCAN). Grindability testing and more than 130 flotation test runs have been completed to date, results of which were utilized in the PEA.

As recommended in the PEA, further metallurgical sampling and test work is continuing in order to further optimize and refine the conceptual process plant flow sheet and metallurgical parameters. This additional metallurgical testing is part of a comprehensive project optimization process being undertaken, as recommended in the PEA, to evaluate the potential for:

1.  Optimization of flow sheets and plant sizing, including potential for a    25-50% increase in throughput.2.  Extending the higher grade production profile for additional time,    through extensions to the higher grade known deposits, definition of    additional higher grade deposits and/or definition of significantly    higher grade/lower tonnage mineralization that could be blended with the    lower grade West End tonnage thereby giving an effective higher grade    feed to the mill;3.  Extension of antimony by-product credits to a broader proportion of the    mineral resources as the antimony resources are currently limited to    approximately 17% of the mill feed utilized in the PEA, primarily due to    lack of analytical antimony values in historic drill datasets;4.  Increasing resources and/or reducing strip ratios by drill testing    unclassified material within the conceptual pit limits that is currently    treated as waste in the PEA, but is essentially undrilled;5.  Exploration - both around deposits and throughout district with the    objective of defining higher grade mineralization that is economically    advantaged relative to the lower margin West End material utilized in    the PEA.

2012 Drill Program

Midas has completed over 41,000m of core and RC drilling as part of its 2012 drilling program, and currently has four core rigs operating on site after having as many as nine rigs operating over the summer months.