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Analyst Note
By Éric Lemieux, MSc, P.Geo
Mining & Exploration Analytics
eric.lemieux@peartreesecurities.com
March 27, 2015
Midland Exploration Inc. (MD-V)
Midland Expands the Éléonore Project
Event: Midland expands its position in the Éléonore sector; setting stage for an active summer 2015 exploration
program.
Impact: Slightly Positive. Midland has commenced an exploration program and increased its 100% owned James
Bay Éléonore Gold project. Strategic land positioning highlights Midland’s great capacity to generate projects.
Analysis
• On March 26, 2015, Midland disclosed that it had commenced an exploration program on its wholly
owned Éléonore project Recall Midland has assembled strategic positions in the James Bay area, the Abitibi, the
Appalachians, the Grenville as well as in Northern Québec (Labrador Trough) based on solid geological analysis
and astute claims staking. Midland has a portfolio of 20 projects (~5,500 claims) in the Province of Québec
targeting gold, base metals (Cu, Zn), rare-earths (HREE's), and platinum group elements (PGE's). Midland applies
superbly the prospector generator/partnership model and has a $4.M exploration budget in 2015 with ~10,000m of
diamond drilling planned.
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analysis herein reflect the views of the Analyst as at the date appearing above, and are subject to change without notice. The information contained in this document is
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• James Bay Area - Trying to find another Roberto. The Éléonore Gold project is located approximately
30km southwest from Goldcorp Inc.’s Roberto zone of the Éléonore deposit and encompasses the Midland
Éléonore Centre and West properties. It is now composed of 327 claims covering 172 km2 in a geological
environment similar to the World-class Éléonore deposit (see Exhibit 3 in the February 26, 2015 Analyst Note).
Midland has commenced an exploration program that includes ground geophysics (40km IP and magnetic
surveys) and has added 61 new map designated claims (covering 30,7km2) to its 100% owned James Bay
Éléonore Gold project (see Exhibit 1 and 2). Prospecting work has been conducted by Midland from 2009 to
2014 on the Éléonore Centre property and has identified several gold showings associated with
quartz-tourmaline pyrite bearing veinlets occurring in sheared metasediments, felsic and mafic metavolcanics
which returned up to 18.8 g/t Au from selected grab sampling.
• We believe a N-S gold-bearing disseminated to semi-massive mineralized system is being defined.
Initial results suggest that a potential N-S auriferous hydrothermal system is present on the Éléonore Centre
property with quartz-tourmaline veins over a plurimetric area. Indeed a 2010 airborne geophysical survey
(AeroTEM II) defined a series of parallel NE conductors associated with sulfide bearing Éléonore-type
sediments, a 2011 soil geochemistry survey permitted to delineate a series of As-Cu-Sb anomalies clustered
along a N-S-trending axis, a 2013 ground induced polarisation (“IP”) survey identified many N-S trending IP
anomalies, a 2014 airborne high definition magnetic survey also identified the presence of an important N-S
oriented structure associated with several gold showings and soil anomalies. We expect Midland to conduct
considerable trenching in summer 2015.
• New strategic land position. The recent addition of 61 new map designated claims in the Causabiscau
sector is to the NW of the Anataca-Wabamisk project of Osisko Royalties (OR-T) (Virginia Mines) and highlights
Midland’s capacity to generate projects. We highlight that Virginia Mines Inc. (previously VGQ-T and a Top Pick)
has been active in this area with its Anatacau-Wabamisk project where high gold values in metric to plurimetric
thicknesses have been delineated by mechanical stripping, channel sampling, geological mapping and
prospecting and diamond drilling (Mustang Vein, and the Interceptor, Challenger, Trailblazer and Powerline
veins) (see Febraury 18, 2015 and October 31, 2014 Analyst Notes). We believe the area could attract potential
quality partners.
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