Midway Gold Announces 1.8 Million Ounce Gold
Resource at Spring Valley Project, Nevada
Midway Gold Corp. (?Midway?) is pleased to announce an
updated mineral resource estimate for the Spring Valley Project, Nevada of
87.75 million tons grading 0.021 ounce per ton (opt) gold containing
1,835,615 ounces of gold. This
updated estimate represents an 85% increase in contained gold at Spring
Valley and includes drill holes completed and assay data received after the
last resource estimate by AMEC E&C Services, Inc. (AMEC) as at December 15, 2007.
?This resource update represents a
significant increase in contained gold at the Spring Valley deposit using an
0.006 opt gold cut-off. It incorporates portions of the West Diatreme, North
Hill, and newly discovered Big Leap zones that were not included in previous
estimates,? said Alan Branham, President and CEO of Midway Gold Corp. ?New gold discovered in 2008 in-fill
and step-out drilling led to this expansion of the resource. I am pleased
with the efficiency of the Midway team which grew the resource at a cost of
less than $10 per ounce last year. The Spring Valley project continues to
hold strong potential with additional gold intercepted outside of the
resource that need further definition drilling to be included. The gold zones
are still open to the north, the south, and at depth.?
December 31, 2008 Resource:
Inferred Resource Using a $715 Lerchs-Grossman
Optimization Shell
Cut-Off Grade
(opt gold)
|
Short Tons
(Millions)
|
Gold Grade
(opt)
|
Contained Gold
(ounces)
|
0.006
|
87.75
|
0.021
|
1,835,615
|
0.010
|
59.62
|
0.027
|
1,594,707
|
0.020
|
29.31
|
0.040
|
1,173,586
|
December
15, 2007 resource:
AMEC Inferred Resource Using a $650 Lerchs-Grossman
Optimization Shell
Cut-Off
Grade
|
Short
Tons
|
Gold
Grade
|
Contained
Gold
|
(opt
gold)
|
(Millions)
|
(opt)
|
(ounces)
|
0.006
|
50.6
|
0.0196
|
992,152
|
0.010
|
41.1
|
0.0223
|
917,109
|
0.020
|
17.7
|
0.0327
|
577,602
|
Midway
drilled 63,565 feet of reverse circulation (RC) and 8,985 feet of core in 87
holes in 2008. Drilling has now identified a coherent gold zone 5,000 feet
long by 2,500 feet wide, and extends to a depth of 1,400 feet. Known mineralization remains open to
the north, southwest, and at depth.
This
resource estimate is in compliance with Canada?s NI 43-101 and in accordance
with CIM Definition Standards for Mineral Resources and Mineral
Reserves. It was conducted under
the supervision of Eric LeLacheur (CPG), Spring Valley Project Manager, and
Don Harris (M.Sc., CPG), Vice President-Advanced Projects (Midway), who are
the Qualified Persons responsible for the resource. David Mosch, Mining
Engineer (Midway) built the block model. Modeling and interpolation methods
were reviewed by Nicole Preuss (LG), an independent contractor and qualified
person.
The
current resource estimate includes drill results from 450 holes up to
December 31, 2008 in the Pond, Sill, Porphyry, Valley Breccia, North Hill,
West Diatreme, and Big Leap Zones.
Mineralized domains were established by interpretation of geological,
structural and assay information on sections. Assays within the domains were
composited into 10 foot intervals. Search distances and directions were
established using spherical variograms on the composites within the domains.
A capping threshold of 1.00 opt gold was utilized, and assays greater than
1.00 opt gold were set to 1.00 opt gold. This cap is slightly lower than that
used by AMEC. Higher grade composites between 0.25 and 1.0 opt were given a
restricted range of 100 feet to limit high grade influences. A density of
12.6 cubic feet per short ton was applied to all bedrock material, and 14.0
cubic feet per short ton was applied to alluvium overburden. A three
dimensional block model was generated using Surpac?, a
commercially available mine planning software package. Composited assays were
used to estimate tons and gold grades within domains using an inverse
distance cubed (ID3) estimation method. Resources reported are included
within a Lerchs-Grossmann (L-G) optimization shell using a $715 per ounce
gold price. The L-G shell is an
economic test that simulates a break even pit using current mining costs.
A
Technical Report by Midway supporting disclosure of this mineral resource
will be filed on Sedar within 45 days of this press release. The Technical Report updates the
project as of December 31, 2008, and outlines work on the resource and
progress to date.
This
release has been reviewed and approved by Don Harris, (M.Sc., CPG), a
?qualified person? as that term is defined in National
Instrument 43-101.
ON BEHALF OF THE BOARD
?Alan Branham?
______________________________
Alan Branham, President and CEO
For further information, please contact R.J. Smith
at Midway
Gold Corp. at (877) 475-3642 (toll-free).
The TSX Venture Exchange has not reviewed and does not accept
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. 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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