Midas' Golden Meadows resource area (Company)

Midas' Golden Meadows resource area (Company)

Midas Gold (MAX:TSX) released assays from recent drilling at their Hanger Flats deposit at the Golden Meadows project in Idaho.  The company is completing resource definition drilling at Golden Meadows in order to complete an updated economic study.  The highlight of the release today was hole MGI-13-361 which intersected an impressive 100.6m of 3.09g/t gold starting at 128.3m depth.

"The results of our most recent drilling continue to confirm the higher-grade nature of portions of the Hangar Flats deposit," said Stephen P. Quin, President and CEO of Midas. "Additional drilling is continuing at the Yellow Pine deposit to more fully define the core area to measured and indicated standards, while results from the recent drilling of the historic tailings are due shortly."

Here’s the release: Midas Gold Intercepts High-Grade at Hanger Flats

Midas expects to put out a prefeasibility study in 2014 which intends to optimize the capital intensity of the project by reviewing processing methods and better defining grade and tonnages at the project.  According to the company’s September 2012 PEA, at $1,400 per ounce gold, the Golden Meadows project produces an after-tax NPV(5%) of $1.5 billion and a 27.2% IRR.  Initial capital required is estimated at $879 million which is for a 20,000tpd open-pit milling operation of oxides and sulphides.

The company has less than $18 million in cash which should see them through to prefeasibility, but not much further. However, given the antimony and silver component, this project offers high-grade, low cost ounces and is surely on the radar of some of the majors, although jurisdiction could prove to be an obstacle.

Click here for MAX CEO Stephen Quin’s presentation at last week’s Denver Gold Forum.