Midland Exploration Inc. announce the resumption of drilling on its 100%-owned Maritime Cadillac Property which is currently under an option agreement with Agnico-Eagle Mines Limited. This new drilling campaign managed by Agnico-Eagle will consists in a minimum of six holes totalizing 3550 metres. The Maritime Cadillac Property is contiguous to the Lapa gold mine property (3.8 million tonnes of probable reserves grading 8.9 g/t Au and containing 1.1 million ounces of gold), which is expected to go into production by the end of 2009.
The objective of this new drilling program aims to test the lateral and depth extension of the new significant gold structures (Maritime Contact East, East and West Dyke) intersected in 2008. Hole 141-08-14B, on the Maritime Contact East structure, had returned values up to 3.30 g/t Au over 14.65 metres between 364.00 to 378.65 metres depth (approximately 6.60 metres true thickness), which included 6.11 g/t Au over 5.65 metres (approximately 2.50 metres true thickness). In the latest drilling program, two new gold-bearing structures which are associated with mineralized (pyrite-arsenopyrite) felsic to intermediate porphyry dykes were intersected to the west of the Maritime Contact East structure. These two new structures, named East Dyke and West Dyke, remain essentially untested. The West Dyke structure returned gold values of 1.85 g/t Au over 8.05 metres (6.45 metres true thickness) which included an interval grading 4.29 g/t Au over 1.50 metres at a vertical depth of approximately 58 metres. At the East Dyke structure, values up to 3.46 g/t Au over 5.50 metres (approximately 4.40 metres true thickness) had been intersected in hole 141-08-15 (see press release dated November 5, 2008).
Terms of the Exploration Agreement
Agnico-Eagle signed an option agreement on June 1, 2006, to acquire a 50% interest in the Maritime Cadillac Property by investing $1,000,000 in exploration and by making payments totalling $100,000 over a 3-year period. Agnico-Eagle will 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 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).
The Maritime Cadillac exploration program is conducted by Agnico-Eagle and the data is reviewed by Mario Masson, senior geologist for Midland Exploration and a Qualified Person as defined by NI 43-101. Assay samples are taken from BQ size drill core sawed in half with one half sent to a commercial laboratory and the other half retained for future reference. Assays are performed by Lab Expert of Rouyn-Noranda. Significant assay results are duplicated at the original laboratory and also at a second independent laboratory, which is ALS Chemex Chimitec of Val-d’Or.