The Valmond property consists of 62 claims covering a surface area of about 35 square kilometres. This property is located about 50 kilometres west of the town of Matagami, in Abitibi, Quebec.
Under the terms of this new agreement, Donner may earn 50% of Midland’s interest over a period of four (4) years, by fulfilling the following conditions:
Cash payments totalling $250,000, including a $20,000 payment upon signing the agreement;
Exploration expenditures totalling $2,500,000, including a firm commitment of $300,000 during the first year.
Midland will be project operator during the option period. The Valmond property covers, over more than 10 kilometres, an important gold-bearing structure trending NW-SE, which hosts several historical gold occurrences with drill intercepts grading 2.3 g/t Au over 4.57 metres and 5.22 g/t Au over 1.55 metres.
This structure has seen very little exploration in the past and the main showing known to date has been traced over more than 300 metres along strike. This gold showing is characterized by an extensive hydrothermal alteration zone more than 70 metres wide, and remains open beyond 200 metres vertical depth, where the deepest drill hole yielded a grade of 3.77 g/t Au over 1.50 metres.
In addition, a recent helicopter-borne magnetic survey covering the entire property was used to generate a new detailed structural interpretation and identify several new promising exploration targets.
Over the coming weeks, geophysical work including a ground-based induced polarization survey (50 km) and a helicopter-borne electromagnetic survey (900 km) will be completed to define new drilling targets along the extensions of the main gold occurrences. The property is expected to be drill ready in early 2014.
