Midas Gold Corp. (TSE:MAX), a Canadian exploration-stage mining company focused on the U.S., jumped to the highest in two months after reporting results of a mineral resource estimate for the Golden Meadows tailings in Idaho.
Midas rose as much as 8.5 percent to $1.02, the highest price since Aug. 30, before trading at $1 at 3:20 p.m. in Toronto. The shares have lost more than half their value this year, leaving the company with a market value of C$127 million.
As of Oct. 22, indicated resources at the site were estimated at 2.5 million tonnes with an additional inferred resource of 170,000 tonnes, the Vancouver, British Colombia-based company said in a statement today.
The estimate was conducted on a significant portion of the historic tailings located on its Golden Meadows Project in the Stibnite-Yellow Pine Mining District, Valley County, Idaho.
These historic tailings were produced by prior operators during the 1920s through 1950s and currently occupy an impoundment located in the Meadow Creek Valley near the Hangar Flats deposit, Midas said.
These historic tailings present a potential opportunity for Midas Gold to remediate pre-existing disturbance by reprocessing these tailings, while contemporaneously providing potential value to shareholders, it said.
"The mineral resource estimate for the historic tailings at Golden Meadows creates an opportunity to both clean up a pre-existing issue, while also offering potential to recover significant precious metal and antimony values, should environmental, engineering, metallurgical and economic factors prove to be positive," said CEO Stephen Quin said in the statement.