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Midway Gold Corp. reports that exploration drilling
conducted in the fourth quarter of 2010 has resulted in an extension of the
mineralized strike length by about 1.8 km to the south-southwest of the
previously known gold resource at Spring Valley. The step out in reverse
circulation drill hole SV10-499 intersected 12.2 m of 1.2 gram per tonne (g/t) Au including 1.5 m of 7.8 g/t Au
mineralization, showing strong, relatively shallow Spring Valley-type
mineralization in similar structures and host rocks tothe
existing gold resource.The drill hole is south of
the property acquired late last year and described in the press release dated
December 8, 2010 (see illustration below). The gold resource remains open to
the northwest, to the south, and to depth.
Highlights of fourth quarter drill results reported to the Company by Barrick Gold Exploration Inc. ("Barrick")
includes several high grade intercepts (further described in the table
below):
* Hole SV-511C with 62.5 m of 2.2 g/t Au including 1.5 m of 22.4 g/t Au, 1.5
m of 305.0 g/t Au, and 1.5 m of 21.1 g/t Au; and 42.7 m of 0.9 g/t Au
including 1.5 m of 12.5 g/t Au.
* Hole SV-502C with 3.3 m of 3.0 g/t Au including
0.8 m of 17.8 g/t Au, and 10.5 m of 1.6 g/t Au including 1.0 m of 28.0 g/t
Au.
* Hole SV-510 with 25.9 m of 0.8 g/t Au including
1.5 m of 4.6 g/t Au, and 12.2 m of 3.6 g/t Au including 1.5 m of 96.0 g/t Au.
These holes intersected mineralization below the rim of the north edge of the
conceptual pit and to depth and could therefore expand the length and width
of the resource as well as at depth.
"Midway believes that these results are strong evidence that the new,
untested parcels acquired last year could potentially contain significant
resources at relatively shallow depths," said Ken Brunk, President and COO. "It will be exciting to
watch the development of this potentially world-class gold system."
Barrick has informed Midway that it intends to
conduct and fund the minimum required program of US$7 million in 2011 for a
cumulative amount of US$16 million by December 31, 2011. Drilling in 2011 is
expected to focus on expanding the resource and evaluating satellite targets,
particularly within the recently acquired land south of the existing
resource. Under the terms of the March 9th, 2009 agreement between Midway and
Barrick, Barrick will
earn a 60% interest in the project by completing work expenditures of US$30
million before December 31, 2013.
Midway has commissioned an independently prepared NI 43-101 compliant
resource update to estimate how much the resource may have expanded due to Barrick's drill programs since 2009. As of March, 2009,
the Inferred Resource was 1.8 million ounces of gold contained within 80
million tonnes grading 0.72 g/t gold. See the
Midway press release dated March 2, 2009 and the subsequent NI 43-101
technical report filed on SEDAR March 30, 2009 for more details. The open pit
outline shown below is based upon a $715 gold price pit from the 1.8 million
ounce Inferred Resource.
Please click on the following link to view the Long Section of the Spring
Valley Project, in Nevada (looking northwest):
http://www.usetdas.com/images/MidwayPicfeb23.pdf
Significant Recent Fire Assay Drill Intercepts, Spring Valley Project,
Nevada
(as reported to Midway by Barrick)
Hole ID
|
From (m)
|
To (m)
|
Interval (m)
|
Gold (g/t)
|
SV10-497C
|
|
108.2
|
112.8
|
4.6
|
1.1
|
|
129.5
|
132.6
|
3.0
|
1.3
|
|
395.8
|
398.8
|
3.0
|
2.1
|
|
SV10-498
|
|
152.4
|
157.0
|
4.6
|
0.6
|
|
169.2
|
173.7
|
4.6
|
0.7
|
|
SV10-499
|
|
33.5
|
36.6
|
3.0
|
0.6
|
|
102.1
|
106.7
|
4.6
|
0.5
|
|
118.9
|
125.0
|
6.1
|
0.6
|
|
149.4
|
161.5
|
12.2
|
1.2
|
including
|
149.4
|
150.9
|
1.5
|
7.8
|
|
234.7
|
242.3
|
7.6
|
0.4
|
|
248.4
|
257.6
|
9.1
|
0.9
|
|
297.2
|
301.8
|
4.6
|
0.7
|
|
SV10-500C
|
|
321.9
|
328.0
|
6.1
|
0.9
|
|
SV10-501C
|
|
326.1
|
332.1
|
6.0
|
0.4
|
|
SV10-502C
|
|
182.9
|
187.8
|
4.9
|
1.8
|
|
396.6
|
408.1
|
11.4
|
1.1
|
|
412.8
|
416.1
|
3.3
|
3.0
|
including
|
414.0
|
414.8
|
0.8
|
17.8
|
|
444.7
|
461.8
|
17.1
|
1.4
|
including
|
452.9
|
454.8
|
1.8
|
6.0
|
|
520.3
|
530.7
|
10.3
|
1.4
|
including
|
523.5
|
525.0
|
1.5
|
6.7
|
|
539.0
|
549.6
|
10.5
|
1.6
|
including
|
542.5
|
543.5
|
1.0
|
28.0
|
|
613.0
|
621.6
|
8.6
|
0.8
|
|
630.8
|
642.6
|
11.9
|
1.3
|
including
|
635.7
|
637.2
|
1.5
|
5.4
|
|
649.7
|
665.7
|
16.1
|
0.6
|
|
692.2
|
697.0
|
4.8
|
0.7
|
|
SV10-505C
|
|
358.7
|
366.7
|
7.9
|
1.2
|
|
367.3
|
378.6
|
11.3
|
0.7
|
|
393.5
|
396.8
|
3.3
|
0.6
|
|
393.5
|
396.8
|
3.3
|
0.9
|
|
SV10-506C
|
|
389.9
|
393.4
|
3.5
|
0.6
|
|
416.1
|
437.7
|
21.6
|
0.7
|
|
SV10-507C
|
|
73.2
|
86.9
|
13.7
|
1.4
|
including
|
77.7
|
79.2
|
1.5
|
6.3
|
|
SV10-508
|
|
210.3
|
214.9
|
4.6
|
8.4
|
|
SV10-510
|
|
120.4
|
126.5
|
6.1
|
0.5
|
|
161.5
|
164.6
|
3.0
|
1.2
|
|
233.2
|
236.2
|
3.0
|
1.3
|
|
256.0
|
265.2
|
9.1
|
1.3
|
|
272.8
|
275.8
|
3.0
|
6.6
|
|
291.1
|
301.8
|
10.7
|
0.5
|
|
310.9
|
336.8
|
25.9
|
2.7
|
|
344.4
|
358.1
|
13.7
|
0.6
|
|
368.8
|
394.7
|
25.9
|
0.8
|
including
|
378.0
|
379.5
|
1.5
|
4.6
|
|
405.4
|
417.6
|
12.2
|
3.6
|
including
|
411.5
|
413.0
|
1.5
|
96.0
|
|
SV10-511C
|
|
269.7
|
332.2
|
62.5
|
2.2
|
including
|
275.8
|
277.4
|
1.5
|
22.4
|
including
|
300.2
|
301.8
|
1.5
|
305.0
|
including
|
304.8
|
306.3
|
1.5
|
21.1
|
|
338.3
|
341.4
|
3.0
|
2.0
|
|
350.5
|
358.1
|
7.6
|
0.6
|
|
370.3
|
384.0
|
13.7
|
0.6
|
|
390.1
|
403.9
|
13.7
|
0.4
|
|
410.0
|
452.6
|
42.7
|
0.9
|
including
|
417.6
|
419.1
|
1.5
|
12.5
|
Assays received in the fourth quarter for seven
additional holes produced no significant intercepts.Reverse
circulation drilling was conducted by Hard Rock Drilling of
Elko, Nevada. Core drilling was conducted by TonaTec
Exploration of Mapleton, Utah. Drill hole numbers
ending with a "C" indicate core holes.Samples
were assayed by ALS-Chemex Labs, in Sparks, Nevada
using 30 gram fire assay methods (FA). Results reported represent thickness
along the trace of the drill hole and do not necessarily represent true
thickness. Intervals may not match to the nearest tenth due to arithmetic
rounding.
Data reported to Midway by Barrick and disclosed in
this press release have been reviewed for Midway by Richard D. Moritz,
(B.Sc., MBA), a "Qualified Person" as that term is defined in
National Instrument 43-101.
ON BEHALF OF THE BOARD
"Ken Brunk"
Ken Brunk, Director, President and COO
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a
vision to explore, design, build and operate mines in a manner
accountable to all stakeholders while producing an acceptable return to its
shareholders. For more information about Midway, please visit our website at
www.midwaygold.com or contact R.J. Smith, Manager of Corporate
Administration, at (877) 475-3642 (toll-free).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements about the Company and
its business. Forward looking statements are statements that are not
historical facts and include resource estimates. The forward-looking
statements in this press release are subject to various risks, uncertainties
and other factors that could cause the Company's actual results or achievements
to differ materially from those expressed in or implied by forward looking
statements. These risks, uncertainties and other factors include, without
limitation risks related to fluctuations in gold prices; uncertainties
related to raising sufficient financing to fund the planned work in a timely
manner and on acceptable terms; changes in planned work resulting from
weather, logistical, technical or other factors; the possibility that results
of work will not fulfill expectations and realize the perceived potential of
the Company's properties; uncertainties involved in the interpretation of
drilling results and other tests and the estimation of gold resources; the
possibility that required permits may not be obtained on a timely manner or
at all; the possibility that capital and operating costs may be higher than
currently estimated and may preclude commercial development or render
operations uneconomic; the possibility that the estimated recovery rates may
not be achieved; risk of accidents, equipment breakdowns and labor disputes
or other unanticipated difficulties or interruptions; the possibility of cost
overruns or unanticipated expenses in the work program; and other factors
identified in the Company's SEC filings and its filings with Canadian
securities regulatory authorities. Forward-looking statements are based on
the beliefs, opinions and expectations of the Company's management at the
time they are made, and other than as required by applicable securities laws,
the Company does not assume any obligation to update its forward-looking
statements if those beliefs, opinions or expectations, or other
circumstances, should change.
This press release uses the terms "Measured resources",
"Indicated resources" and "Inferred resources", which are
calculated in accordance with the Canadian National Instrument 43-101 and the
Canadian Institute of Mining and Metallurgy Classification system. Mineral
Resources are not Mineral Reserves and do not have demonstrated economic
viability. We advise investors that while those terms are recognized and
required by Canadian regulations, the U.S. Securities and Exchange Commission
does not recognize them. U.S. investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be converted
into reserves. In addition, "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or any
part of an Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral Resources may
not form the basis of feasibility or pre-feasibility studies, except in rare
cases. U.S. investors are cautioned not to assume that part or all of an
inferred resource exists, or is economically or legally minable.
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