Midland Announces the Acquisition of the Kan Gold Project in the Labrador Trough

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The strike and depth extensions of several of these showings remain open. Historical data from the project is currently under review to identify the best drilling targets. Historical values from drilling and channels mentionned previously, and from soil samples below, are sourced from: Hébert et al., (2018); report GM-71136 (Ministère des Ressources Naturelles et de la Faune du Québec (“MRNF“); Hébert et al., (2018); report GM-70728 (MRNF); Hébert et al., (2017); report GM-70234 (MRNF).

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The Pump Pad Ridge and Ferricrete areas show exceptional gold grades in B-horizon soil samples (Figure 5). Historical soil surveys conducted in the two areas reveal 155 soil samples with grades above 0.25 g/t Au, and 68 soil samples grading more than 1 g/t Au. Anomalous areas can be traced over hundreds of metres along the iron formation. Gold grades are caused by free gold in the soil that developed in situ, directly on the iron formation. Free gold grains can be easily observed and extracted by panning (Figure 8).

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The geology and gold occurrences on the project exhibit strong similarities to the world-class Homestake gold deposit in South Dakota, which historically produced nearly 40 million ounces of gold. Kan and Homestake are both located in the Trans-Hudson Orogen, more specifically in sedimentary sequences of the same age (1.9 Ga). Locally, the geological sequence and structural style are also very similar (Figure 9). Gold at the Homestake mine occurs in a silicate-carbonate-facies iron formation that is very similar to the iron formation observed on the Kan project.

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Gold potential in gabbro-diorite sills and black shales on the Kan project

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The Kan project is adjacent to Midland’s existing Willbob project. Several gold-bearing zones hosted in gabbro-diorite sills are present on the Willbob project, for example the Didgeridoo showing, where channel samples yielded grades up to 2.30 g/t Au over 8.95 metres in 2017 (Figure 2; see press release by Midland dated September 18, 2018). This showing is located 6 kilometres southeast of the Kan project. The same gabbro-diorite sills are present on the Kan project but have been the object of very little previous work, most of the attention being focused on the gold-bearing iron formation. Midland believes that a similar potential exists on the Kan project.

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Some of the world’s largest gold deposits are found in black shale sequences. One such example is the Sukhoi Log deposit, which contains more than 61 million ounces of gold. Extensive black shale sequences are present on the Kan project. The black shales are identified over a strike length of more than 30 kilometres, over an apparent width of up to 2 kilometres. These black shales are underexplored.

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Details of the acquisition

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Midland will acquire 100% interest in the mining claims held by Ressources Tectonic in consideration of three payments totalling $125,000, including a $40,000 payment at signing, a $40,000 payment on the first anniversary, and a final payment of $45,000 on the second anniversary. As additional consideration, Midland agrees to pay a 2% Net Smelter Return (“NSR”) royalty to Ressources Tectonic if the project goes into commercial production. The royalty may be repurchased by Midland, in whole or in two 1% increments, upon payment of $1,500,000 per 1% increment payable to Ressources Tectonic, for a total amount of $3,000,000.

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Cautionary statements

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Mineralization occurring at the former Homestake mine and at Sukhoi Log mentioned in this press release is not necessarily indicative of mineralization that may be observed on the Kan project.

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About Midland

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Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold and critical metals. Midland is proud to count on reputable partners such as SOQUEM Inc., BHP Canada Inc., Rio Tinto Exploration Canada Inc., Barrick Gold Corporation, Wallbridge Mining Company Ltd, Probe Gold Inc., Agnico Eagle Mines Limited, Electric Elements Mining Corp., Nunavik Mineral Exploration Fund, and Abcourt Mines Inc. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Management is currently reviewing other opportunities and projects to build up the Company portfolio and generate shareholder value.