Midland Exploration and Breakwater Resources Sign an Important Agreement for the Weedon Cu-Zn-Pb-Au-Ag Property in Quebec
Market Wire, September, 2007
Midland Exploration Inc. ("Midland") (TSX VENTURE: MD) is pleased to announce the signing of a letter of agreement with Breakwater Resources Ltd. ("Breakwater") for the Weedon property, which is currently held 100% by Midland. The property is located in the Eastern Townships, about 120 kilometres south of Quebec City.
Breakwater can acquire 50% of Midland's interest during a three-year period under the following conditions:
- Cash payment of $40,000 upon signing the agreement with additional payments of $160,000 for a total of $200,000 over three years.
- Exploration expenditures of $500,000 in the first year (firm commitment) with additional expenditures of $2,500,000 for a total of $3,000,000 over three years.
Midland will be the operator until the completion of a positive pre-feasibility study. Upon acquiring a 50% interest, Breakwater will have the option to acquire an additional 15% interest by delivering a bankable feasibility study under the following conditions:
- Cash payment of $40,000 per year and a minimum of $200,000 of exploration work each year until the delivery of a bankable feasibility study within a four-year period.
The property consists of 242 claims totalling 132 km2 and covers more than 30 kilometres of the Ascot-Weedon volcano-sedimentary belt. This Ascot-Weedon belt hosts several mined out volcanogenic massive sulphide (VMS) deposits and shows many similarities with other prolific VMS mining camps, namely Bathurst in New Brunswick and Buchans in Newfoundland. Many Cu-Zn-Pb-Au-Ag showings are also known in the belt and a new surface showing was discovered in the fall 2006. This new un-drilled semi-massive sulphide lens was stripped and sampled that yielding grades reaching 2.23% Cu, 23.7% Zn, 5.95% Pb, 263 g/t Ag, and 9.22 g/t Au. No previous work is reported directly on this showing.
Historically, exploration work on the Weedon property largely dates back to the 1970s. Midland believes the area has great potential for the discovery of economic VMS deposits given its favourable geological setting spanning over more than 30 kilometres and tested at very shallow depths over most of this extent. Moreover, the Weedon property provides an excellent opportunity to apply new exploration techniques specific to VMS deposits in an area with proven potential.
About Breakwater
Breakwater is a mineral resource company engaged in the acquisition, exploration, development and mining of base metal and precious metal deposits in the Americas. Breakwater has four producing zinc mines: the Myra Falls mine in British Columbia, Canada; the Langlois mine in north-western Quebec, Canada; the El Mochito mine in Honduras; and the El Toqui mine in Chile. Breakwater is listed on the TSX under the ticker BWR
About Midland
Midland's strategy to discover new gold and base metal deposits is based on Quebec's excellent mineral potential and favourable investment climate. Midland further intends to be pro-active in 2007 in the acquisition of new mineral exploration properties in Quebec. The Company recently acquired 100% interest in 8 new gold properties with Eleonore-type targets and 6 new properties over strong unexplained Molybdenum anomalies in the James Bay region. Management is currently considering other opportunities and other projects in order to expand the Company's portfolio. Midland prefers to work in partnership and intends to quickly secure new agreements to this effect for its properties acquired in 2007.
Gino Roger, P.Eng., is the qualified person who has reviewed the content of this news release.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland's periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities. Midland undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Midland Exploration Inc. Gino Roger President and Chief Executive Officer 450-420-5977 450-420-5978 (FAX) gino.roger@explorationmidland.com www.explorationmidland.com
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