Midland Exploration Inc. is pleased to announce the start of an important exploration program in partnership with Aurizon Mines Ltd (“Aurizon”) on the Patris gold project, currently held 100% by Midland. The property, which comprises 50 claims covering a surface area of 22 square kilometres, is located in La Pause and Clericy townships, just 30 kilometres northeast of Rouyn-Noranda, in the Abitibi region of Quebec.
For 2011, an exploration budget totalling $600,000 has been allocated on this property, which covers a 4-kilometre segment of the La Pause Fault, a major structure known for its excellent potential for gold discoveries similar to major ore deposits located in the gold mining camps of the Abitibi Greenstone Belt.
Over the coming weeks, an important drilling program totalling at least 4,000 metres will begin on the Patris property, to test several new geological and geophysical (induced polarization) targets identified in close proximity to the La Pause Fault.
Terms of the Option Agreement with Aurizon
Aurizon can acquire 50% of Midland’s interest during a four-year period under the following conditions:
A total of $230,000 in cash payments including a payment of $40,000 upon signing the agreement;
A total of $3,000,000 in exploration expenditures including a firm commitment of $600,000 in the first year.
Midland will be the initial operator. Upon acquiring a 50% interest, Aurizon will have the option to acquire an additional 10% interest by delivering a positive pre-feasibility study on the property within a four-year period under the following terms and conditions:
Make cash payments of $80,000 per year to Midland, until the delivery of the pre-feasibility study; and
Incur exploration work, including 40,000 metres of drilling, until the delivery of the pre-feasibility study.