TSX-V: MGC
VANCOUVER, Aug. 29, 2011 /CNW/ - The Company (MIDASCO CAPITAL CORP. - TSX-V Symbol MGC) has received from its legal counsel, Alianza W.J. S.A. in Medellin, a copy of the formal payment agreement signed with the Secretary of Mines and Energy for the Government of Bolivar State to bring current the Surface Canon arrears for the seven (7) mineral licenses obtained by Midasco (see April 20, 2011 news release). These 7 licenses cover approximately 10,000 hectares in the southern portion of the State of Bolivar, Colombia. To transfer 100% interest in the 7 licenses Midasco will pay Colombian Peso's $1,013,901,317 (approx. USD $550,000) as to 25% within the first month of signing, 25% 6 months later and 50% 3 months after the second payment. Upon receipt of payment each license will then be transferred to Midasco.
Midasco's 7 licenses are located in two of the four distinct gold mining areas in Southern Bolivar. (see attached map). Four licenses (269, 270, 271 272) covering 4,893 hectares are located in the Monte Cristo Tiquisio area, and three licenses (582, 583 585) covering 5,183 hectares are in the Santa Rosa Canelos area.
Southern Bolivar is located on the Serrania de San Lucas, northern foothills of the Cordillera Central of Colombia and is the geological continuity of the mining districts of north-eastern Antioquia. From published information from Mines and Energy in Bolivar State, the main mineralogical composition in these areas is massive sulphide veins (80% pyrite) with quartz as a kind of matrix.
The Monte Cristo Tiquisio area, according to the latest census conducted, this area may contain about 500 to 600 "mines" and around 3,000 people working. Gold vein mineralization are presented with thicknesses ranging from 0.24 m to 4.0 m. With structural trend N50 ° -70 ° E and dips to 75 ° towards the SE. The veins may have lengths in the course of several kilometers and averages tenors ranging from 0.2 to 65.0 g / t gold.
The Santa Rosa Canelos area, this area contains some 300 "mines" and about 1,500 people working. Although no systematic exploration work has been done on any of these licenses, several gold mineralized structures are currently being mined by local miners at Mina Penon and Mina Walter which have been identified as extending unto Midasco's license 583.
The Company is mobilizing an exploration crew to the properties for an initial exploration program of mapping and sampling in order to identify immediate drill targets.
We seek safe harbour.
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