|
Midway Gold
Announces Project Updates and Plans for 2009
Midway Gold Corp. (?Midway?) is pleased to announce 2009
work plans will primarily be focused on the Golden Eagle project in
Washington and the Midway project in Nevada. Exploration at the Spring Valley
project is expected to continue under a proposed earn-in agreement,
previously announced (PR October 20, 2008). The Thunder Mountain project is
currently being explored under an earn-in agreement with Kinross Gold (NYSE:
KGC) (PR July 16, 2008).
?We
plan to update our existing resources at Spring Valley, Golden Eagle, Pan,
and Gold Rock based on successful drill results from 2008 and new data
acquisitions,? said Alan Branham, President and CEO of Midway Gold Corp. ?With
recent market changes we have refocused our efforts in areas that will most
quickly and cost effectively add value to the company, namely moving the
Midway Project towards production and updating resources.?
A
summary of 2008 activity and 2009 plans on Midway?s primary projects follows:
Midway,
Nye Co., NV: In 2008, initial mining plans were submitted to the BLM and NDEP
for an underground decline providing access for collection of a bulk sample
and high-grade verification at the Midway Project. Drilling for hydrology and
geotechnical testing was completed on 12 RC holes for 1,234 feet and 9 core
holes for 2,321 feet. While drilling these holes, two new high grade veins
were discovered (Press Release May 14, 2008). Final permit submission
is pending approvals from the State Water Engineer. Hydrologic testing
suggests that pumping up to 2,000 gallons per minute may be required to
dewater the project. Midway is currently negotiating a plan to properly
dispose of this water with the Town of Tonopah and the State Water Engineer.
Permitting efforts will continue in 2009 as Midway reviews potential capital
benefits from mining the bulk sample on a smaller scale.
Midway
processing test work by SGS Lakefield Research Limited (Canada) showed up to
94% gold recovery using gravity and cyanide from a 73-lb. composite sample of
Discovery vein material grading 0.188 opt gold. Further work by Gekko
Systems Metallurgical Laboratory (Australia) indicates that without using
cyanide, a gravity and flotation process could achieve 86.7% gold recovery
and 66.3% silver recovery, based on a 242-lb. composite sample, grading 0.662
opt gold and 0.475 opt silver.
Golden
Eagle, Ferry Co., WA: In 2008, Midway acquired the Golden Eagle
project and began compiling and reviewing the historic database of 847 drill
holes containing 165,775 feet of mostly core drilling, to create a modern
gold model. In 1996, Santa Fe Pacific Gold estimated that the Golden Eagle
deposit contained 32.19 million tons grading 0.069 ounce per ton (opt) gold
in a historic resource as part of an internal scoping study. A qualified
person has not reviewed this resource and the historical estimate should not
be relied upon. Efforts in 2009 will be directed toward key issues for
moving the project towards a new scoping study, including a NI 43-101
compliant resource, high-grade target identification, evaluation of
processing methods, and reviewing permitting. The project is comprised
entirely of private land in the historic Republic gold district.
Pan,
White Pine Co., NV: A total of 26,245 feet in 49 RC holes was drilled in
2008. Drilling at South Pan found additional near surface oxide gold
mineralization. The Wendy zone was expanded to the east where it extends
under volcanic cover and step-out drilling at Nana encountered more new
gold?both zones are open for expansion. Three target areas outside the
resource were tested with no significant results. Fourteen new holes in the
resource area were targeted to verify results from previous operators, of
which most intercepted higher grades and greater thicknesses than previously
reported (Press Release July 9, 2008). Preliminary investigations suggest
that assay techniques used by a previous operator may have under-estimated
gold values in some of the holes. If confirmed by additional drilling, then
portions of the deposit could show improved grades. A new higher-grade gold
zone has also been identified over 800 feet in length at North Pan with true
widths ranging from 10 to 25 feet and grades ranging from 0.07 to 0.51 opt
gold. An updated resource estimate is planned in 2009.
Gold
Rock, White Pine Co., NV: In 2008, Midway consolidated a 14 sq. mile
property position which includes a Carlin style sediment hosted gold deposit
at the Easy Junior pit that was mined by Alta Gold in the 1990?s, and
an adjacent gold resource at Decker Flats. A historic database of 577
holes containing 224,985 feet of drilling was acquired, outlining continuous
mineralization along 9,200 feet of length Surface work, geophysics, and
historic data review have identified a number of exploration targets.
A
total of 3,525 feet in 11 RC holes was drilled on the Anchor target during
2008. The best intercept was 60 feet 0.014 opt gold starting at 25 feet in
AR08-08. Four other holes found strongly anomalous gold in the Pilot
formation, a regionally favorable host rock. Target and data compilation is
in progress, followed by a consideration to update the historic resource to
compliance later this year.
Roberts
Gold (formerly Afgan), Eureka Co., NV: Midway developed a new target
concept in 2008 using geophysics and surface exploration, concluding that
volcanic rocks of the Northern Nevada rift may cover favorable host rocks in
a gravel fill area. The Afgan claim holdings on the southern part of the
property were dropped due to a lack of target host rocks. Midway will look to
joint venture this project in the first quarter.
Burnt
Canyon, Pershing Co., NV: In 2008, surface exploration and geophysics
have identified targets in this volcanic hosted epithermal system.
Disseminated gold identified in rock chip and soil sampling at five different
areas has never been drilled. The project lies between high grade veins in
the Seven Troughs district. Midway will consider qualified joint venture
offers for the project.
Midway
Gold Corp. is a precious metals exploration company, listed on the NYSE
Alternext US and on the TSX Venture Exchange under the symbol ?MDW.? Midway?s
focus is creating value for shareholders through the discovery and
development of quality new precious metal resources in politically stable
mining areas. The Company has four advanced stage gold exploration projects
and four early stage exploration projects that control over 60 square miles
of mineral rights along three major gold trends in Nevada and the Republic
district in Washington. Additional information on Midway Gold Corp. and these
projects can be found at: www.midwaygold.com.
This
release has been reviewed and approved by Don Harris, (M.Sc. and 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 labour 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.
|