Midas Gold Reports High Grade Results from Yellow Pine & West End Deposits, Golden Meadows Project

21 Nov 2012 16:15 ET

Marketwire Canada

Midas Gold Corp. (TSX:MAX) today announced assay results from its ongoing infill and step-out core drilling program from the Yellow Pine and West End deposits on its Golden Meadows Project, Idaho. These most recent results both confirm the presence of inferred gold mineralization within the resource-limiting pit shells and document additional high grade gold mineralization outside of previous mineral resource boundaries.

Significant assay results from these most recent drill holes 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 & West EndDeposits---------------------------------------------------------------------------               Hole                  From      To  Interval    Gold  SilverHole-ID        Type   Area             (m)     (m)       (m)   (g/t)   (g/t)---------------------------------------------------------------------------MGI-12-307(1)  Core   Yellow Pine   201.0   250.6      49.5    5.42     2.5---------------------------------------------------------------------------Including                           230.7   246.6      15.9   12.29     5.4---------------------------------------------------------------------------MGI-12-309     Core   West End      139.0   200.7      61.7    1.97     3.7---------------------------------------------------------------------------Including                           174.7   198.4      23.8    3.19     7.6---------------------------------------------------------------------------MGI-12-310     Core   Yellow Pine   123.9   161.4      37.5    2.94     2.1---------------------------------------------------------------------------Including                           141.6   159.4      17.8    5.43     2.9---------------------------------------------------------------------------1. Based upon the current 3D interpretation of the West End and Yellow   Pine deposits, the intervals quoted here are at or near true thickness   and are composited using a 0.5 g/t Au cut-off and may include short   intervals of internal waste below the cut-off grade. Intervals   denoted (1) are likely to have true widths less than the interval   reported herein.

"This fall's in-fill and step-out drilling programs at the Yellow Pine and West End deposits continue to improve confidence in our inferred mineral resources and to expand the overall limits to mineralization," said Stephen Quin, President and CEO of Midas Gold Corp. "We are especially pleased with the results of drill hole MGI-12-307 as it demonstrates lateral continuity of a new high-grade zone at the Yellow Pine deposit."

2012 Drill Program

Midas has completed over 46,000m of core and RC drilling as part of its 2012 drilling program, and currently has three core rigs operating on site after having as many as nine rigs operating over the summer months.

Yellow Pine

Recent drilling activities in the Yellow Pine deposit are part of Midas Gold's ongoing resource development drilling program which consists of: (1) in-fill drill holes designed to convert inferred mineral resources to the indicated category, (2) step-out drill holes targeting new areas of gold mineralization adjacent to existing mineral resources and, (3) drill holes for geotechnical and metallurgy purposes. Generally, the in-fill drilling program has been successful in confirming the presence of inferred mineral resources at Yellow Pine. Some infill drill holes have cut mineralization assaying higher grade than predicted but over shorter widths while others are intersecting longer intervals of slightly lower grade material than predicted in the models. In addition, a number of step-out holes have intersected significant mineralization outside the resource limits, especially west of the old Yellow Pine pit and in the northeast of Yellow Pine. "Overall, we are pleased with the results of the in-fill and step-out drilling program. Our inferred resources are generally holding together under tighter drill spacing and we anticipate successful conversion of a substantial majority of the mineral resources to the indicated category in preparation for our updated technical study," said Stephen Quin.

Drill hole MGI-12-307, located at the northern end of the Homestake area of the Yellow Pine deposit, was drilled through the margin of the resource-limiting conceptual pit shell for geotechnical purposes and intersected high-grade gold mineralization over significant widths. The hole was completed north of other new, significant intercepts in this area, including those in holes MGI-12-263 and MGI-12-267, reported previously. Gold mineralization in this area occurs within and adjacent to a structural corridor along the contact between the metasedimentary roof-pendant and igneous rocks of the Idaho batholith. The mineralized zone is characterized by strong silicification and sulphide mineralization and contains short intervals assaying significantly higher grade than the broadly disseminated gold mineralization characteristic of the main body of the Yellow Pine deposit. The zone occurs below the historic property boundary separating land parcels previously controlled by different operators prior to Midas Gold's consolidation of district mineral rights in 2011. Because of this, the area received minimal historic drill testing. With additional drilling, this new zone may constitute a significant addition to Yellow Pine mineral resources.