DEVELOPING THE PAST-PRODUCING SIAN GOLD DEPOSIT IN GHANA
The Indicated Gold Resource at Sian/Praso Now Stands at 192,000 oz (NI 43-101 Compliant); Up 92% Since Last Report
Message: Midlands Minerals to Generate Cash Flow From Sian-Ghana
| May 26, 2009 |
| Midlands Minerals to Generate Cash Flow From Sian-Ghana |
| TORONTO, ONTARIO--(Marketwire - May 26, 2009) - Midlands Minerals Corporation ("Midlands" or the "Company")(TSX VENTURE:MEX) is pleased to announce that in an overall strategy to generate cash flow, the Company has entered into a contract with Gold Recovery (Ghana) Limited ("Gold Recovery") to begin recovering gold from loaded carbon fines on the Sian property in Ghana. Gold Recovery is a subsidiary of Goldplat Plc which is listed on the London AIM Exchange. Sian is a fully permitted past open pit gold producer with an existing CIL (Carbon in Leach) plant, a 30 year mining lease, a 400,000 ounce resource, and all the infrastructure in place. "For a junior explorer to have the ability to generate cash flow, at this time, is timely, given the current difficult market conditions", said Kim Harris, President and Chief Executive Officer. As a strategy to generate immediate cash flow, Midlands assayed loaded carbon from the existing ten CIL tanks and conducted a survey of the tailings dumps on the Sian property in April 2009. Approximately 400,000 tonnes of tailings were surveyed. The assay results from the tailings confirmed the 93% gold recovery rate reported by Sian Goldfields Limited, and provided Midlands with the good news that the existing CIL plant was operating properly during Sian Goldfields mining operations. The tailings assays also confirmed that there is an insignificant amount of refractory gold in the ore that was processed between 2000 and 2003, and opens the possibility of adding a gravity circuit to the existing plant. Following initial encouraging assay results from the loaded carbon, Midlands entered into discussions with Gold Recovery, who subsequently conducted a site visit to Sian and took their own samples, the results of which led to Midlands entering into contractual discussions with Gold Recovery. A contract between the two parties has now been signed, and the re-bagging and preparation for shipping of the loaded carbon has commenced. Midlands estimates approximately 100 tonnes of carbon at this time, with the exact tonnage to be determined when all CIL tanks are emptied, and the final weighing takes place. Under the agreement with Gold Recovery, a charge of US$130 per wet tonne of carbon received will apply and payments to Midlands will be computed as follows: - For carbon assaying between 30 and 200 g/t gold, Midlands will receive 70% of the agreed gold content; - For carbon assaying more than 200g/t gold, Midlands will receive 80% of the agreed gold content. The agreed upon content means the final assay results, upon which, payments will be based. These final samples are taken simultaneously by Midlands, Gold Recovery, and by an 2 independent referee prior to processing. One sample is kept in secure custody for purposes of due diligence. The scientific and technical information contained in this press release has been reviewed by Pierre Lalande, P.Geo., Midlands' Senior Geologist, who is a Qualified Person within the meaning of National Instrument 43-101. ABOUT GOLD RECOVERY Goldplat Plc's, flagship operation, Goldplat Recovery (Pty) Ltd, operates in South Africa, where it has built a reputation over more than 25 years as a market leader with the ability to extract precious metals from numerous mining waste products. Its technology provides an economic method for mines to dispose of waste materials while at the same time adhering to their environmental obligations. To diversify, a new plant has been built in Tema, Ghana, to service Africa's second largest gold producer as well as those mines in Guinea and Mali. The parent company, GoldPlat plc is an AIM listed company. ABOUT MIDLANDS MINERALS Midlands is a growth oriented and value based gold exploration company operating in Ghana and Tanzania, two stable countries with a history of gold mining. Midlands' top priority project is the fully permitted Sian gold project in Ghana. The Sian property contains Esaase and Ampeha, two previously producing open pit mines with a resource with significant growth potential. Midlands' contiguous Kwahu Praso project, which was once part of Sian, contains extensions of the Esaase and Ampeha trends. Sian and Praso are just 30 kilometers northeast of Newmont Mining's +8.7 million Akyem gold deposit. The Company has a highly qualified management and technical team with extensive experience in the countries in which the Company operates. For more information on the Company, please visit Midlands' Web Site at www.midlandsminerals.com. On behalf of the Board Kim Harris, President and Chief Executive Officer |
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