TSX-VN: "MEX"
TORONTO, Feb. 6 /CNW/ - Kim Harris, Chief Executive Officer, Midlands
Minerals Corporation ("Midlands" or the "Company") is pleased to announce that
a technical evaluation of the Sian Goldfields Limited ("Sian") property and
Midlands' Kwahu Praso gold property in Ghana commenced in January 2006. The
Sian and Kwahu Praso properties are located on the north-east end of the
Ashanti Goldbelt.
Midlands recently entered into an agreement to acquire a 70% interest in
the mineral assets of Sian which include 50 square kilometres of ground, a
historical resource, an open pit mine, plant and equipment.
Sian Goldfields Limited was actively mining gold on the Esaase open pit
mine until July 2004, and there are previous workings on the Besease, an old
prospect also on the Sian property. No estimates of Mineral Resources or
Reserves (as defined by National Instrument 43-101) have been made since the
date NI 43-101 came into effect. Sian ceased its mining operations in July
2004 due to lack of capital and issues related to the management of their
mining operations.
Sian, which is contiguous to Midlands' Kwahu Praso gold property, is
surrounded by Kwahu Praso on three sides. Midlands holds an 80% interest in
the Kwahu Praso gold project, a 109 square kilometre property. Contiguous to
Kwahu Praso (to the south) is the Akaose property held by Resolute Mining
Company. Both Kwahu Praso and Sian are surrounded by Newmont Mining
Corporation and are approximately 30 kilometres from Newmont's Akyem Project,
a $500 million investment which is scheduled to commence production in 2008.
Newmont Mining is reporting over 5 million oz of gold on their Akyem property.
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The technical work program being carried out on Sian and Kwahu Praso
properties was designed by Marc Boisvert, P.Eng. and is being supervised by
Marc Boisvert. The 43-101 reports are expected to be available by the end of
April, 2006.
The work program on Sian includes verification of all gold showing on the
Esaase, Besease, Odumesua and Ampeha. Drill logs and cores from Sian will be
reviewed and about 10% of the existing drill cores will be re-assayed.
Midlands will re-assay approximately 10% of existing duplicate samples, and
will re-sample soil, trenches and out crops as part of the technical review
and evaluation.
In addition to Kwahu Praso and Sian, Midlands holds 100% of the Kaniago
gold project located on the Asankrangwa Gold Belt in Ghana. This project is
45.14 square kilometres and is contiguous to Resolute Mining's open pit Obotan
Mine.
The Kaniago property is located approximately 25 kilometres east of
AngloGold Ashanti's Bibiani Mine with a recorded historical production of
3.2 million oz of gold and current reserves of 1.9 million oz, and is about
the same distance to the south east of AngloGold Ashanti's Ayanfuri/Obuasi
Mines with a recorded historical production of 29 million oz of gold and
recorded current reserves of 34 million oz.
The company also holds mineral rights on gold properties in Tanzania -
The Itilima project in the Lake Victoria Goldfields and the New Kilindi
project located in geology similar to Lupa Goldfields.
Certain statements contained in this news release constitute
forward-looking statements. Such forward-looking statements involve a number
of known and unknown risks, uncertainties and other factors, which may cause
the actual results, performance or achievements of the company to be
materially different from actual results and achievements expressed or implied
by such forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
the statements were made and the readers are also advised to consider such
forward looking statements while considering the risks inherent in the
business of mineral exploration.
The TSX-V has in no way passed upon the merits of the proposed
transactions and has neither approved nor disapproved the contents of
this press release.
%SEDAR: 00020880E
