New Zinc Sedex Opportunity

Transcription

1 MIDLAND EXPLORATION INC. July 2012 New Zinc Sedex Opportunity Lafontaine Zn showing old working

2 PROJECT LOCATION Midland Gatineau Zn

3 SIGNIFICANT ZINC INDICATIONS 266 NEW CLAIMS, 160 Km² Area of Works Québec Lemieux 11% Zn, 1.78% Zn/0.67m Aumond 20% Zn, 5.1% Zn/2.45m Chute Rouge 18% Zn Bouchette 23.9% Zn Calumet (Historical Production) % Zn, 1.9% Pb 8% Zn Walsh 9.55% Zn Leitch (Estimate Non ) % Zn Kilmar 16.7% Zn, 4.1% Zn/1.15m Ontario Cadieux (Resource Estimate Non ) % Zn, 0.7% Pb Salerno Lake (Resource Estimate Non ) % Zn 2010 Lafontaine Trench 21.0% Zinc over 2.0 metres 2010 Leitch Trench 24.1% Zinc over 3.0 metres including 32.5% zinc over 2.0 metres BALMAT MINE (Historical Production) 43.5 Mt at 9.5 % Zn, 0.5 % Pb USA Favorable Marble Unit Zinc Occurrences Midland Properties Warning : The historical productions indicated on this figure represents only estimates and are not compliant.

4 REASONS TO BE HERE A 400 km long Mid-Proterozoic marbles of the Grenville Supergroup. Limited exploration activities. Sound for modern exploration technologies. Excellent infrastructures and road access. Valleyfield Zinc affinery (CEZ) is located 150 km east of the center area. Balmat Camp remains the most important zinc producer in the project area with 43.5 MT at 9.5% Zn, 0.5% Pb. Several undrilled VTEM anomalies in vicinity of significant zinc occurrences. New unexplained Zn-Pb-Ag soil anomalies. Existing Zinc resources at Leitch with 118,500 10% Zn (Warning: Resource Estimation Only and Non NI compliant).

5 Gatineau Zn project, Quebec Regional transport infrastructures Gatineau Zn project area (Midland) The project area is close to transport infrastructures and to Xstrata s Zn refinery Balmat mine

6 Gatineau Zn project, Quebec Regional geology - Southwestern Grenville Province Leitch (Resource Estimate Non ) 127, %Zn LAFONTAINE mine (Historical Production) 27, %Zn Warning : The historical productions indicated on this figure represents only estimates and are not compliant. NEW CALUMET mine (Historical production) %Zn, 1.6%Pb Cadieux (Resource Estimate Non ) %Zn, 0.7%Pb Salerno Lake (Resource Estimate Non ) %Zn LONG LAKE mine (Historical production) 94,630 BALMAT mining camp (Historical Production) %Zn Mesoproterozoic marbles of the Central Sedimentary Belt host several SEDEX Zn deposits

7 Gatineau Zn project, Quebec Geological setting The project area lies within the Central Metasedimentary Belt of the Grenville geological province. This is a major Mesoproterozoic accumulation of marbles, clastic sedimentary rocks and volcanic rocks. This sedimentary belt extends to the South into south-eastern Ontario and northern New York State (USA). The sedimentary and volcanic rocks were later cut by intrusive rocks of different compositions. Then, all these rocks were highly affected by regional metamorphism (amphibolite to granulite grade) and deformation (at least 2 stages). Marble-hosted SEDEX Zn-Pb mineralization (Irish type) is the most important deposit type in the project area. Zn-Pb mineralized occurrences in this area and in south-eastern Ontario have similar characteristics to deposits of the Balmat mining camp in New York State (total ore resource of % Zn). The project area is also rich of other metallic mineralized occurences (Fe, Mo, Li, U-Th and Cu-Ni) and industrial mineral resources such as mica, apatite, graphite, feldspath, quartz, brucite, magnesite, etc.

8 Gatineau Zn project, Quebec Zn-Pb Exploration and production history Mineral prospecting and exploration activities in the project area started in the 19 th century and the New Calumet and Bouchette deposits were discovered in 1893 and After 2 nd World War, exploration works led the discovery of the Lafontaine and Leitch deposits and several mineralized showings. These deposits respectively contain historic resources of 27,000 tonnes at 12% Zn and 57,000 tonnes at 8% Zn. The New Calumet deposit produced 3.39 Mt of 5.8% Zn, 1.6% Pb and 74 g/t Ag from 1948 to 1968, while the Lafontaine deposit produced 20,000 tonnes of 14% Zn in mineralized showings were found by government geologists during their geological mapping from 1979 to The project area is covered by stream sediment (silt) geochemical surveys curried out during 1960 s to 1990 s. The Géologie du Québec completed in 1982 a airborne MAG and EM survey over 4 separated sectors. Exploration works done by Noranda-Soquem and other companies led to the discovery of 16 new mineralized showings from 1993 to 2000.

9 Gatineau Zn project, Quebec Zn value grid Pb value grid Zinc value is four times higher than lead value in stream sediments Two-thirds Midland s claim blocks have Zn and/or Pb anomalies

10 Gatineau Zn project, Quebec Zn-Pb mineralization summary Zn-Pb mineralization is hosted in dolomitic marble beds and consists of stratiform massive sulfide lenses (sphalerite, pyrrhotite and pyrite) High grade (up to 32% Zn) and coarse grained Massive sulphide lenses are located within a low grade but more extensive disseminated sulphide horizon (Sp, Po, Py and trace Gn) Mineralized marbles may contains more or less diopside and are near contacts of quartzite or quartz paragneiss High metamorphism and complex deformation of host-rocks - folding, boudinage, shearing and fracturing Local cross-cutting sulphide layers due to plastic remobilization during the Grenville Orogeny (1.0 Ga) Presence of amphibolite unite closed to some deposits (e.g. the New Calumet)

11 Gatineau Zn project, Quebec Typical Zn-Pb mineralized section in the Gatineau area Biotite paragneiss Impure quartzite Diopsidite ±Dolomitic marble with diopside Dolomitic marble Calcareous marble Amphibolite Barren massive sulphide lens (Po, Py) Massive sulphide lens (Sp, Po, Py) Disseminated sphalerite Disseminated galena Disseminated pyrrhotite and pyrite

12 Gatineau Zn project, Quebec Balmat district, New York State, USA Four SEDEX deposits occur within the metamorphosed and deformed Upper Marble sequence of Mesoproterozoic age, from SW to NE (45 km length): - Balmat deposit, discovered in 1927, Production of Mt of ore at 8.78% Zn, - Hyatt deposit, discovered in 1915, Production of 1.58 Mt of ore at 8.18% Zn, - Edwards deposit, discovered in 1908, Production of 5.96 Mt of ore at 10.75% Zn, - Pierrepont deposit, discovered in 1979, Production of 2.18 Mt of ore at 16.7% Zn. Warning: These figures represent historical production from various sources and have not been verified by the QP. Zinc mineralization consists of stratiform massive sphalerite lenses and layers with minor galena and pyrite, mainly hosted by 3 dolomitc marble beds (units 6, 11 and 14). Locally, some cross-cutting ore bodies in faults or shear zones (as daughter) are results of a remobilization as plastic solids from pre-existed stratiform massive sulphide lenses (as parent) into other stratigraphic units. The largest Balmat deposit has 14 ore bodies and is mined by 3 mines. Three of these ore bodies have been found since 1996, based on the parent-daughter model. These discoveries providing an additional 11 million tonnes of mineral resources.

13 Balmat New Successful Model Massive, stratiforms lenses and layers of sulfides in horizon 6, 11 and 14 can locally be remobilized as plastic solid into the noses of folds to create elongated stratabound zones parallel to the axes of the fold structure. During later stages of Grenville deformation, where evolving macrofractures or tectonic slides breached the pre-existing sulfide parent or source bed massive sulfide a second phase of remobilized was extensive enough to create discrete daughter orebodies hosted by other stratigraphic units on the fault surfaces with linear extents upwards of 2000 m parallel to fold hinges. "Balmat Mine Resources and reserve Audit, Jamuary 2003" by Johm E. Steers, P. Eng Pre-existing, Parent Daugther

14 Parent-Daughter Model Massive, stratiforms lenses and layers of sulfides in horizon 6, 11 and 14 can locally be remobilized as plastic solid into the noses of folds to create elongated stratabound zones parallel to the axes of the fold structure. During later stages of Grenville deformation, where evolving macrofractures or tectonic slides breached the pre-existing sulfide parent or source bed massive sulfide a second phase of remobilized was extensive enough to create discrete daughter orebodies hosted by other stratigraphic units on the fault surfaces with linear extents upwards of 2000 m parallel to fold hinges. "Balmat Mine Resources and reserve Audit, Jamuary 2003" by Johm E. Steers, P. Since 1996, Approximately 11 Mtonnes added

15 Gatineau Zn project, Quebec Bouchette-Leitch sector Des Nègre 9.6%Zn Lac Richer 10%Zn Teacher 23.9%Zn Bouchette 32.1%Zn Presq Ile 1.0%Zn (BIF) Petite Baie 0.8%Zn (BIF) Village A 0.8%Zn Blue Sea 3.04%Zn Du Trèfle 1.0%Zn (BIF) LEITCH (Resource Estimate Non ) 127, %Zn Zone A 7.0%Zn LAFONTAINE mine (Historical production) 27, %Zn Parker 31%Zn Detailed geological mapping Warning : The historical productions indicated on this figure represents only estimates and are not compliant.

16 Gatineau Zn project, Quebec Bouchette-Leitch sector 13 of 29 Zn mineralized occurrences of the project area are located in the Bouchette-Leitch sector, where Zn mineralization occurs within different stratigraphic horizons, mostly as massive sulphide lenses and less as disseminated sulphide associated with iron formation beds (BIF). In the Bouchette-Leitch sector, the Lafontaine deposit was mined by Norzinc Mines in 1953, producing 20,000 tonnes of ore at 14% Zn (open pit, 12 m of depth). The Leitch deposit has historic resource of 75,000 tonnes of ore at 8% Zn (St-Joseph Explorations, 1980). The Bouchette deposit was traced by holes and trenches over 1.3 km of length. Detailed geological mapping (1 : 20,000) and metallogenic study of zinc mineralization were curried out in the end of 1970 s in the Bouchette-Leitch sector best knowledges for stratigraphy, structural geology and Zn mineralization styles. Many historic exploration works were also focused this sector. In 2007 and 2008, geochemical and geophysical surveys done by Midland identified new targets for drilling.

17 Gatineau Zn project, Quebec Zn in stream sediment Geochemical surveys - Soil surveys: Midland (2007), Louvicourt Gold (1998), Noranda (1993, 1995) and Cominco (1977, 1979). - Stream sediment surveys: Midland (2007), government (1981, 1987). - Rock samples are from SIGEOM compilation. - There is no Zn and Pb anomaly in the stream sediment around the Bouchette deposit, because the silt samples spacing is too large in the northern part of this sector.

18 Gatineau Zn project, Quebec Airborne MAG value contours Geophysical surveys - Governmental airborne EM survey covers the northeastern part. - Many ground MAG and/or EM surveys. - Very local ground IP (Dan Patrie explorations, 1995) survey and ground gravity survey (Noranda, 1998). - New heliborne VTEM and MAG surveys (Midland, ).

19 Gatineau Zn project, Quebec DDH location and constrained zones Diamond drilling - Most drill holes are concentrated around the Lafontaine, Leitch and Bouchette deposits. - Most drill holes in this sector are shallow depth (90% <100 m). - The known Zn deposits are still open at depth. - No following up along favourable dolomitic marble units. Au and Ag only Widelife Habitat

20 Leitch-Lafontaine-Parker 1980 Geology Legend Granite and Pegmatites Quartzites and Biotite Gneiss Marbles Quartzites and Rusty Gneiss Amphibolites Leitch DDH GZ % Zn/4.5m Lafontaine 0.5 to 3.0 m/365m 19% Zn TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1

21 Re-interpreted Geology Leitch-Lafontaine-Parker Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Leitch Lafontaine Parker Bitobi TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1

22 Selected VTEM Picks Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Leitch Lafontaine Parker Bitobi TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1

23 VTEM Leitch-Lafontaine-Parker Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Leitch Trench 24.1% Zinc over 3.0 metres including 32.5% zinc over 2.0 metres Not Explained 8430 ppm Zn Lafontaine Trench 21.0% Zinc over 2.0 metres New Showings 0.8 and 0.3% Zn TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1 Not Explained 1470 ppm Zn VTEM Pick

24 Potential valid drill targets Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Leitch Trench 24.1% Zinc over 3.0 metres including 32.5% zinc over 2.0 metres Leitch Lafontaine Trench 21.0% Zinc over 2.0 metres Lafontaine Bitobi TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1

25 Potential valid drill targets Leitch Trench 24.1% Zinc over 3.0 metres including 32.5% zinc over 2.0 metres Leitch Lafontaine Trench 21.0% Zinc over 2.0 metres Lafontaine TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1 Bitobi

26 LEITCH NEW TRENCHING 24.1% Zinc over 3.0 metres including 32.5% zinc over 2.0 metres Total of 35 samples collected at 50 cm intervals (total of 17.5 m) A value up to 43.13% zinc

27 LAFONTAINE NEW TRENCHING Description Approx. Size : ~15m x 5m 21.0% Zinc over 2.0 metres

28 New VTEM Leitch Extension and in-fill TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1

29 Legend Bouchette Area 1980 Geology Granite and Pegmatites Quartzites and Biotite Gneiss Marbles Quartzites and Rusty Gneiss Amphibolites Teacher Salamandre Des Negres Bouchette

30 VTEM MAG Bouchette Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Teacher Salamandre Des Negres Bouchette

31 Re-interpreted Geology Bouchette Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Teacher Salamandre Bouchette Des Negres Legend Granite and Pegmatites Quartzites and Biotite Gneiss Marbles Quartzites and Rusty Gneiss Amphibolites

32 Selected VTEM Picks Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Teacher Salamandre Bouchette Des Negres

33 VTEM- Zn Soil Geochem Bouchette Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Teacher Soil Coverage Salamandre Des Negres Bouchette Legend Granite and Pegmatites Quartzites and Biotite Gneiss Marbles Quartzites and Rusty Gneiss Amphibolites

34 VTEM- Pb Soil Geochem Bouchette Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Teacher Salamandre Des Negres Bouchette Legend Granite and Pegmatites Quartzites and Biotite Gneiss Marbles Quartzites and Rusty Gneiss Amphibolites

35 VTEM- Cu Soil Geochem Bouchette Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles Teacher Salamandre Legend Granite and Pegmatites Quartzites and Biotite Gneiss Marbles Quartzites and Rusty Gneiss Amphibolites Bouchette Des Negres

36 Bouchette Potential Drill Targets Modelized Drilling Modelized Drilling Stripping Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles

37 Other Potential valid drill targets Teacher Salamandre Bouchette Des Negres Symbols Synclinal Anticlinal Zinc Min. Dol. Marbles

38 Wallace Lake

39 Wallace Lake VTEM Outline 61,707 76,619 Racine Showing 5.5% Zn, 0.1% Pb, 34 g/t Ag 0.47% Zn / 6.7m incl. 1.6% Zn / 1m in silica gneiss wt 10% Po above dolomitic marble. Maybe an exhalite! Multi-elements soil anomalous zones

40 VTEM MAG Wallace Lake Coincident Mag High EM Zn-Pb soil anomaly Racine Showing Coincident Mag High EM Zn-Pb soil anomaly TAU Range 6 TAU Range 5 TAU Range 4 TAU Range 3 TAU Range 2 TAU Range 1

41 Gatineau Zn Project Summary Good land position - 10 claim blocks contain most known Zn mineralized occurrences in the Gatineau area Close to transport infrastructures (roads, railways) and to Xstrata s Zn refinery (CEZ) in Valleyfield Similar geological setting (within Central Metasedimentary Belt, Grenville province) and same Zn mineralization style (McArthur type - SEDEX) as the world-class Balmat deposit in New York State, USA ( Production of % Zn) High Zn grade and coarse grained massive sulphide lenses, easy for metallurgical process (e.g. 94.4% of metal recovery and $10.88 of operating cost at Balmat mine in 2007) Limited exploration works since 1980 s and very shallow drill holes even around known deposits New high quality drill targets identified by recent geophysical (VTEM-MAG) and geochemical (soil and stream sediment) surveys done in by Midland-Breakwater ($0.5 M of expenditure)