Midway Gold Corp. ("Midway" or the "Company") (MDW:TSX-V;
MDW:NYSE-AMEX) announces third quarter progress at its Spring
Valley project based on information provided by Barrick Gold
Exploration Inc. (“Barrick”), who is earning into the project.
Progress includes:
- Continued drilling of gold intercepts
outside of the present resource area.
- Increased participation of Barrick’s
Project Development group and Barrick’s Mine Site Exploration
group.
To accommodate a planned increase in operations, Barrick has
expanded the project office in Lovelock. Additionally, Barrick has
initiated cultural and biological studies to support an
environmental assessment for an expanded drilling area.
Ken Brunk, Midway’s President and COO said, “We are pleased to
see good drill results that continue to expand our resources beyond
the current resource area. We are pleased to see that Barrick is
now involving both the mine development and mine exploration groups
in this project. We also want to thank the exploration group that
had responsibility for the project for their effort and diligence
in conducting their activities on the project prior to this
transition. Spring Valley is in the initial stages of transitioning
from a pure exploration project to a mine development project. This
is an important step in the making of a future mine.”
Widely spaced reconnaissance drilling south of the current
resource continues to encounter gold over an area 1.5 km long by
0.5 km wide. New gold intercepts include 27 meters of 0.79 grams
per tonne (gpt) gold in SV11-525, and 32 meters of 0.86
gpt gold in SV11-534. Higher grade intercepts included 6.1
meters of 6.86 gpt (including 1.5 meters of 21.91 gpt) gold in
SV11-521, 6.1 meters of 4.97 gpt (including 1.5 meters of 18.89
gpt) gold in SV11-530 and 10.7 meters of 1.44 gpt (including
1.5 meters of 8.95 gpt) gold in SV11-532c. At the north end of
the resource a new intercept of 65 meters of 0.86 gpt gold
in SV11-513c was reported. Barrick’s 2011 drilling through the
third quarter totals 33,610 feet in 29 reverse circulation (RC)
holes, 3,450 feet of pre-collar RC in the upper levels of core
holes, and 15,283 feet in 10 core holes. Final metallic screen
assay results have been received for 8 holes, the remaining assay
results are from preliminary fire assays. Assays remain pending for
an additional 15 holes. Core drilling was completed in September;
RC drilling was completed in November.
Spring Valley is a large, porphyry-hosted gold system. A May,
2011 updated resource estimate reported 2.16 million ounces of gold
in the combined Measured and Indicated categories at a cut-off
grade of 0.14 gpt. There is an additional Inferred resource of 1.97
million ounces of gold at the same cut-off grade. The Measured
resource is 0.93 million ounces contained within 59.0 million
tonnes grading 0.49 gpt, the Indicated resource is 1.23 million
ounces contained within 85.8 million tonnes grading 0.45 gpt, and
the Inferred resource is contained within 103.9 million tonnes
grading 0.59 gpt. The estimate was prepared for Midway by Gustavson
Associates, LLC of Lakewood, Colorado (Midway press release dated
May 2, 2011).
Significant New Drill Hole Gold
Intercepts
Spring Valley Project, Nevada
(Calculated by Midway from data
provided by Barrick)
Hole From (m)
To (m) Width (m) Grade
gpt SV11-513c 53.3 56.4 3.0 0.96
165.8 168.9 3.0 1.03
272.8 275.2 2.4 1.03
321.9 330.4 8.5 1.75 342.0
351.7 9.8 1.17
362.7
428.5 65.8 0.86
455.7 465.4 9.8 1.47
516.9 526.4 9.4 0.69 SV11-518 102.1
103.6 1.5 3.74 423.7
288.0 1.5 7.95
449.6
486.2 36.6 0.51 SV11-519
65.5 67.1 1.5 3.09 193.5
195.1 1.5 3.15
213.4
239.3 25.9 0.31 SV11-520
106.7 118.9 12.2 0.58 164.6
169.2 4.6 1.58 189.0
190.5 1.5 1.82 SV11-521 143.3 149.4
6.1 0.65
170.7
176.8 6.1 6.86 includes
1.5 21.91
216.4 219.5 3.0 0.82
365.8 367.3 1.5 1.20 495.3
501.4 6.1 0.96 510.5
513.6 3.0 3.29 SV11-522c no significant
intercepts SV11-523c 24.4
32.0 7.6 0.96
1.5 1.27 additional assays pending
SV11-524c 166.4 167.9 1.5
0.82 SV11-525
179.8 207.3
27.4 0.79 213.4 216.4
3.0 0.86 224.0 228.6 4.6
0.48 271.3 275.8 4.6 0.48
344.4 345.9 1.5 0.79
365.8 367.3 1.5
4.59 SV11-526 no significant intercepts
SV11-527 no significant intercepts
SV11-528 67.1 68.6 1.5
0.79 SV11-529 no significant intercepts
SV11-530 125.0 132.6 7.6
0.34
172.2 178.3
6.1 4.97 includes
1.5 18.89 207.3
213.4 6.1 1.82 includes
1.5 5.90
428.2 429.8 1.5 0.96 SV11-531
no significant intercepts
SV11-532c
85.3 96.0 10.7
1.44 includes
1.5 8.95 additional assays
pending SV11-533
no significant intercepts
SV11-534
86.9
93.0 6.1 4.94
246.9 249.9 3.0 0.38 376.4
379.5 3.0 1.41
400.8
432.8 32.0 0.86 includes
400.8 403.9 3.0 0.51 includes
413.0 423.7 10.7 1.51 includes 429.8
432.8 3.0 2.98 SV11-537 41.1
42.7 1.5 0.93 additional assays pending
SV11-538c
no significant intercepts to 115m
additional assays pending
SV11-539c
89.9 112.8
22.9 0.55 SV11-540 221.0
227.1 6.1 0.58 295.7 297.2
1.5 1.85 SV11-541 114.3 115.8
1.5 1.06 182.9 184.4 1.5
0.41 219.5 221.0 1.5 0.34
SV11-542c
no significant intercepts to 91m
additional assays pending
SV11-543 117.3 118.9 1.5
1.51 126.5 128.0 1.5 0.79
152.4 153.9 1.5 0.79
192.0 199.6 7.6 0.79 257.6
259.1 1.5 8.50 SV11-547 88.4
91.4 3.0 0.82 160.0 163.1
3.0 0.62
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 by 30-gram fire assays (FA) or 1000-gram metallic screen
assays (MS). Results reported represent thickness along the trace
of the drill hole and do not necessarily represent true
thickness.
To view the map associated with this release, please click on
the following link:
http://www.usetdas.com/pr/midwaymap12062011.jpg
Barrick can earn a 60% interest in the project by completing
work expenditures totaling US$30 million before December 31, 2013
under the terms of an agreement executed between Midway and Barrick
March 9, 2009. Barrick has informed Midway that it intends to
conduct and fund the required program of US$7 million in 2011,
resulting in cumulative expenditures of US$16 million by December
31, 2011.
Data reported to Midway by Barrick and disclosed in this press
release have been reviewed for Midway by William S. Neal, (M.Sc.,
CPG), a “Qualified Person” as that term is defined in National
Instrument 43-101.
ON BEHALF OF THE BOARD
“Kenneth A. Brunk”
Kenneth A. Brunk, President, COO and Director
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to
explore, design, build, and operate gold 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, Vice President of 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, but are not limited to,
statements about the Company's intended work plans for the Spring
Valley project and 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 the timing and completion of the Company's intended work
plans for the Spring Valley project, 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 and reserves; 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.
Cautionary note to U.S. investors concerning estimates of
reserves and resources: This press release and the technical report
referred to in this press release use the terms "resource",
"reserve", "measured resources", "indicated resources" and
"inferred resources", which are terms defined under Canadian
National Instrument 43-101 and the Canadian Institute of Mining and
Metallurgy Classification system. Estimates of mineral resources in
this press release and in the technical report referred to in this
press release have been prepared in accordance with NI 43-101 and
such definitions differ from the definitions in U.S. Securities and
Exchange Commission ("SEC") Industry Guide 7. Under SEC Industry
Guide 7 standards, a "final" or "bankable" feasibility study is
required to report reserves, the three-year historical average
price is used in any reserve or cash flow analysis to designate
reserves and the primary environmental analysis or report must be
filed with the appropriate governmental authority. 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 SEC 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 as defined in the SEC's Guide 7. 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. The SEC normally only permits
issuers to report mineralization that does not constitute SEC
Industry Guide 7 compliant "reserves" as in-place tonnage and grade
without reference to unit measures. It cannot be assumed that all
or any part of mineral deposits in any of the above categories will
ever be upgraded to Guide 7 compliant reserves. Accordingly,
disclosure in this press release and in the technical reports
referred to in this press release may not be comparable to
information from U.S. companies subject to the reporting and
disclosure requirements of the SEC.
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