PATERSON PROJECT


[view location map]

BACKGROUND
Midas has applied for seven Exploration Licences covering key sections of the middle Proterozoic Yeneena Basin sediments in the Paterson Province, Western Australia. The ground applied for is directly on strike from the Nifty copper deposit and it has previously been the subject of exploration by WMC, BHP and more recently Aditya Birla. Due to competing applications by Giralia Resources NL and MPF Exploration Pty Ltd for five of the Exploration Licences the applicants have decidied to enter into a Deed of Consent for Priority of Applications and to form a tripartite joint venture - the "Paterson Joint Venture" (PJV) to explore the tenements. The formtaion of the PJV circumvents the need for the Department of Mines and Petroleum to determine the successful applicants by ballot. Midas is already the successful applicant for E45/3467 and E45/3468 which are not subject to the PJV.

Aditya Birla, the former holder of tenements over the subject area, has objected against all of the applications on various grounds. A Warden's Court hearing is scheduled on 18 December 2009 to commence the process of dealing with the objections. Midas now has in excess of 1,100km2 under application in the high;y prospective Paterson Province, Western Australia.

TARGET SETTING
The Yeneena Basin includes the Broadhurst Formation, which is a sequence of metal rich carbonaceous shales deposited in localised “sag” basins adjacent to a Proterozoic continental margin. Geophysical techniques are effective in targeting the metal-rich Broadhurst sediments. The Nifty copper deposit and the Maroochydore Cu deposit occur in Yeneena Basin sediments that strike north westerly through the tenements.

The Telfer Gold Deposit is a world class gold mine located to the east of the tenements, while the Kintyre uranium deposit is located to the south east.

Major regional scale faults are considered important conduits for base metal mineralisation in the Paterson Province. Northwest trending duplex faults and east northeast trending transfer faults are important bounding structures to the prospective sag basins, as well as acting as the fluid pathways for introducing base metals to the prospective stratigraphy.

Following granting of the tenements and completion of a review of the historical exploration data The PJV intends to undertake an aggressive exploration programme and has already agreed to commit a total of $750,000 to exploration over the first 18 months following granting. The Company is pro-active concerning further opportunities for base metals, gold and uranium in the Paterson Province.