Midas Gold's 2012 Exploration Program Outlines Multiple Targets on its Golden Meadows Property

14 Nov 2012 08:00 ET

Marketwire Canada

Midas Gold Corp. (TSX:MAX) today announced that its 2012 geological, geochemical and geophysical programs completed across its Golden Meadows property in Idaho successfully confirmed and extended areas of known or suspected mineralization and outlined several new gold-silver-antimony targets. A number of these target areas exhibit coincident highly anomalous stream, soil and rock multi-element geochemical signatures and are associated with strong airborne electromagnetic ("EM") and ground geophysical anomalies that show characteristics similar to those associated with the three known deposits. These results suggest potential for the discovery of further significant new gold-silver-antimony deposits at Golden Meadows, as well as extensions to known deposits. Highlights of the 2012 program include:

--  The 2km long trend between the already defined Hangar Flats and Yellow    Pine deposits, which area encompasses three consistently highly    anomalous areas in gold, silver and antimony in both stream and soil    samples, each with associated Controlled Source Audio-frequency    Magnetotelluric ("CSAMT") and airborne EM anomalies consistent with the    adjacent deposits. Limited drilling in this area, such as in the Monday    tunnel area, has already intersected high grade sulphide mineralization;    these results suggest there could be significant mineral potential in    these areas.--  The 1km long area extending from the north end of the West End mineral    resource to the Sugar prospect, also with coincident multi-element soil,    rock and silt anomalies, and associated CSAMT and airborne EM anomalies.    This trend is coincident with the fault offset continuation of    favourable host rocks that are associated with the majority of the West    End mineral resource and suggests this significant mineralized system    extends considerably further than has currently been tested by drilling.--  The Rabbit prospect, a Midas Gold discovery in 2010 that has developed    into an approximately 1km wide zone of coincident soil and silt multi-    element anomalies with associated CSAMT and airborne EM anomalies. The    results suggest potential for a significant scale but blind mineralized    system in the Rabbit area.--  The Mule prospect, also a Midas Gold discovery, with significant gold-    silver values in soils, coincident multi-gram gold values in rock    samples in altered intrusives and a strong airborne EM anomaly.--  Expanded previously known trends, such as the Scout-Upper Garnet-Upper    Midnight trend and the Garnet-Doris K trend, where soils, CSAMT and    airborne EM outline two highly anomalous approximate 1km long trends    with known multi-gram assays in rock samples and wide-spaced drill    holes.

"Our 2012 geochemical and ground geophysical surveys were designed to identify and delineate potential extensions to known mineral trends and identify completely new mineralized areas," said Stephen Quin, President and CEO of Midas Gold Corp. "The results of our 2012 regional exploration has exceeded our expectations and has generated a target-rich environment, with multiple, large scale, multi-element, multi-survey anomalies that suggest potential for substantial extensions to known mineralized systems as well as outlining some large scale new targets," he said. "In 2013, we intend to evaluate the potential of the highest priority of these new opportunities through drilling." Despite the long history of exploration in the district that extends back to the earliest 1900s, most mineralization is blind and the property has not been subject to systematic modern exploration that can detect such mineralization. By way of comparison, the Hangar Flats deposit was discovered based on a single outcrop a few metres across, the Yellow Pine deposit was completely blind and the West End-style sediment-hosted mineralization was unrecognized until the 1970s; each turned into a substantial gold deposit. The recently defined Scout prospect was discovered as a result of geochemical and geophysical surveys detecting a potential blind mineralized system where drilling has subsequently demonstrated significant gold-silver-antimony grades over considerable strike length and thicknesses.

2012 Stream Sediment Sampling Program

Midas Gold staff completed a high density stream silt sampling program to assist in evaluation of anomalies generated from its 2011 airborne geophysical program. The 2012 survey involved collection of 351 silts roughly every 300-500m along all the major drainages within the project area, testing extensive areas previously not sampled and/or newly staked by Midas Gold in 2011 as a result of the airborne geophysical survey. The average catchment area of sampled drainages is roughly 1.0-1.5km2, providing a high degree of localization for the source of the anomalies. The stream sediment survey covers a total area of approximately 110km2 and encompasses most of Midas Gold's land holdings.

Over 80% of the silt samples reported anomalous gold and pathfinder elements, with a maximum value of 1.78 ppm (1.78 g/t) gold, 1.91 ppm (1.91g/t) silver, 458 ppm antimony, 340 ppm tungsten reported from the silts collected during the 2012 sampling program. The strongest gold and multi-element pathfinder anomalies outside of the known deposits occur in silt samples collected from streams draining from the northern extension of the Hangar Flats trend (toward Yellow Pine), as well as the Garnet, Rabbit, Cinnamid-Ridgetop, Upper Midnight, Doris K and Sugar prospects.

2012 Soil Sediment Sampling Program

Midas Gold staff and contractors established several large soil grids and completed a fill-in soil sampling program designed to assist in the evaluation of airborne geophysical anomalies generated from its 2011 airborne geophysical program. This was done to confirm and further expand on anomalies outlined in various historic datasets from past operators and to expand those anomalies defined during Midas Gold's soil surveys completed between 2009 and 2011. The soil surveys involved collection of 3,429 B-horizon soil samples covering approximately 25km2 of the Company's 110 square kilometer property position. These new grids complement data from historic grids that cover another 13 km2 of the project area.

Multi-element pathfinder and gold-in-soil anomalies were outlined in several areas including: (1) anomalies at the Mule prospect, coincident with strong gold-in-rock and airborne geophysical anomalies; (2) at the Sugar Prospect, coincident with airborne EM, aeromagnetics and CSAMT anomalies; and, (3) at various other prospects. Over 80% of the soil samples reported anomalous gold and pathfinder elements with a maximum value of 1.9 ppm (1.9g/t) gold, 6.8 ppm (6.8g/t) silver, 2,580 ppm (0.26%) antimony and 510 ppm tungsten reported from the soils collected during the 2012 sampling program, illustrating the pervasive nature of the mineralization in the areas sampled.

2012 CSAMT Ground Geophysical Survey Program

Geophysical survey crews from Zonge Engineering, a Tucson-based contractor, completed a total of 51.5 line-km of ground geophysical surveys using CSAMT along twelve, east-west oriented, 4.3km long lines. The surveys covered approximately 21km2, with lines spaced 400m apart and stations every 25m along the lines. The survey coverage extends from north of the Yellow Pine deposit south to the DMEA area of the Hangar Flats Deposit. Preliminary results received from the contractor indicate all three of the known deposits covered by the CSAMT surveys show a response and a significant number of new anomalies were generated this year that appear to be of an appropriate size and character to warrant additional follow-up. Additional details of results from the CSAMT survey will be released when the final data is received and integrated with the other exploration datasets.

CSAMT is a low-impact, non-intrusive, commonly-used, surface-based geophysical method which provides resistivity information in the subsurface. The CSAMT method involves transmitting a controlled signal over a range of frequencies into the ground from one location (transmitter site) and measuring the received electric and magnetic fields in the area of interest (receiver site). The measured field magnitudes are used to calculate the apparent resistivity of the area underlying the receiver site. Calculated resistivity values from CSAMT data relate to geology and can be attributed to effects of rock type, porosity, pore fluids, faults and the presence of certain mineral assemblages, and in this case minerals associated with gold mineralization within the district. Areas of low resistivity may be caused by a number of factors, but can often be attributed to areas of mineralization and combined with other data can yield valuable 3-dimensional information on subsurface structures, geology and mineralization prior to drill testing.