Paterson Province (Midas 100%)In addition to tenements in the...

Paterson Province (Midas 100%)
In addition to tenements in the Nifty area that are subject to the Paterson Joint Venture, Midas has applications for three exploration licences that cover prospective stratigraphy between Nifty and Kintyre (figure 2). The Midas applications contain extensions of the Broadhurst Formation, the host for copper mineralisation at the BM-1 and BM-2 prospects held by Encounter Resources . A significant magnetic anomaly has been identified in the northern part of ELA 45/3768 (outlined by pink circle in figure 2) adjacent to the Vines Fault. State geological maps indicate that this anomaly is located within the Broadhurst Formation. BHP carried out geophysical surveys over this anomaly in 1996 but did not drill it as the target was believed to be too deep at that time.
Other targets of geological interest (circled in pink) have been identified in the other Midas applications and in the Paterson JV applications and further work remains to be done to complete the assessment of historical exploration in these areas and determine a suitable exploration program to test these targets, subject to granting of the tenements.
The three Exploration Licence applications held 100% by Midas in this area are not subject to any third party objections and they are proceeding through the normal
application process. Paterson Joint Venture ?Nifty Area (Giralia Resources NL 33.33%, Midas
Resources Limited 33.33%, MPF Exploration Pty Ltd 33.33%)
Midas Resources Limited, Giralia Resources NL and MPF Exploration Pty Ltd formed the Paterson Joint Venture (PJV) in November 2009 and are the applicants for Exploration Licences 45/3498, 3499, 3501-3510, 3540 and 3556 in the highly prospective Paterson Province, in the east Pilbara region of W.A. Each company has a one third participating interest in the PJV and Midas is the operator. The tenements are located on strike from the Nifty Copper Mine in a highly mineralised
district that also includes the Telfer Gold Mine and the Kintyre Uranium deposit. Birla Nifty Pty Ltd (Birla Nifty), the owner of the Nifty Copper Mine, and the former
holder of the expired exploration licences covered by the PJV?s applications has objected to all of the applications on various grounds and has also appealed to the
Minister for Mines and Petroleum requesting that the Minister exercise his powers
under section 111A of the Mining Act 1978 (WA) and terminate the PJV applications. The PJV has made a submission to the Minister requesting that the Minister reject the Birla submission and allow the objections to continue to be heard in the Warden?s Court. A decision by the Minister is still pending.

STRATEGY
In the current high gold price environment the Board is keen to extract maximum value for its advanced Fortitude gold project. The possibility of a stand-alone mining project at Lake Carey based on mining supergene mineralisation and using a mobile processing plant for treatment would potentially deliver an early cash flow
for Midas. The existing scoping level study will be updated based on this concept and a decision to carry out the additional resource definition drilling ahead of a
feasibility study will be subject to the results of this study. The Board is keen to progress exploration in the Paterson region as it is only in recent years that junior companies have been able to acquire significant exploration
ground in this province. The Board is delighted with the progress already made by Encounter Resources in ground that has previously been explored by some very large companies. Midas is continuing to monitor exploration progress in the region
and conduct research on its own applications prior to grant in preparation for future
exploration.
G D Balfe
Managing Director/CEO