Midway Gold Corp. (TSX.V and NYSE Amex: MDW) (the “Company”)
announces that the total gold identified at its wholly-owned Spring
Valley project in Pershing County, Nevada has grown significantly
from the previous Inferred resource estimate in 2009. Drilling at
Spring Valley in the last two years has resulted in the conversion
of 2.16 million ounces of gold to the Measured and Indicated
categories, consisting of 0.93 million ounces in the Measured
category and 1.23 million ounces in the Indicated category at a
cut-off grade of 0.14 grams per tonne (g/t). The new drilling also
produced an additional Inferred resource of 1.97 million ounces of
gold at the same cut-off grade. Importantly, the greater part of
the drilling was limited to the resource area labeled in the
following figure. Please click on the following link to view the
figure:
http://www.usetdas.com/maps/midway/MidwayFigureMay2-11.pdf
The Measured resource is contained within 59.0 million tonnes
grading 0.49 g/t, the Indicated resource is contained within 85.8
million tonnes grading 0.45 g/t and the Inferred resource is
contained within 103.9 million tonnes grading 0.59 g/t.
Ken Brunk, President and Chief Operating Officer said, “We
believe these new results show that Spring Valley is rapidly
becoming a world-class gold system and could see further
substantial growth with continued exploration along trend of the
resource reported here. We are anxiously awaiting the commencement
of drilling and future results from ground acquired late last
year.”
The resource remains open at depth, to the south, and to the
northwest. Significant untested strike length remains within land
recently acquired adjacent to the south end of the resource. Drill
hole SV10-499c encountered gold 1,800 meters south-southwest of the
2011 resource area in similar host rocks and alteration along trend
of known mineralization (February 24, 2011 press release). Midway
considers the untested trend to be highly prospective. The resource
is open to the north where hole SV10-511 intercepted 295 meters of
2.5 g/t gold, which included 71.6 meters of 9.0 g/t gold, using the
0.14 g/t cut-off.
Under the terms of a March 9th, 2009 agreement between Midway
and Barrick Gold Exploration Inc., Barrick will earn a 60% interest
in the project by completing work expenditures totaling US$30
million before December 31, 2013. Barrick has informed Midway that
it intends to conduct and fund the minimum required program of US$7
million in 2011 which will result in a cumulative expenditure 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.
The 2011 resource estimate includes all data provided to Midway
by Barrick from its 2009 and 2010 drill campaigns. The estimate has
been prepared by Gustavson Associates, LLC of Lakewood, Colorado,
under the direction of Ms. Terre A. Lane, an independent Qualified
Person. All estimates were prepared utilizing industry standard
software and resource estimation methodology. Further details will
be available in a new NI 43-101 technical report, which will be
posted on SEDAR (www.sedar.com), no later than 45 days from the
date of this release.
Table: Spring Valley Mineral
Resource, May 2011
Cut-offgram/tonne
Cut-offoz/ton
Tonnes(x 1000)
Short Tons(x 1000)
Gradegram/tonne
Gradeoz/ton
GoldOunces
Measured Resource 0.55 0.016 14,369 15,839
1.15 0.033 529,000 0.41 0.012 21,458 23,653 0.93 0.027 639,000 0.27
0.008 33,983 37,460 0.71 0.021 772,000
0.14 0.004
59,032 65,071 0.49 0.014 931,000
Indicated Resource 0.55 0.016 17,701 19,512 1.11
0.032 632,000 0.41 0.012 27,755 30,594 0.88 0.026 783,000 0.27
0.008 45,980 50,684 0.66 0.019 983,000
0.14 0.004
85,793 94,570 0.45 0.013
1,229,000 Measured plus Indicated Resource
0.55 0.016 32,070 35,351 1.13 0.033 1,161,000 0.41 0.012 49,213
54,247 0.90 0.026 1,422,000 0.27 0.008 79,964 88,144 0.68 0.020
1,755,000
0.14 0.004 144,825 159,641
0.46 0.014 2,160,000 Inferred
Resource 0.55 0.016 28,265 31,156 1.45 0.042 1,315,000 0.41
0.012 38,929 42,911 1.18 0.034 1,476,000 0.27 0.008 58,649 64,649
0.89 0.026 1,687,000
0.14 0.004 103,935
114,567 0.59 0.017 1,971,000
Note: The tonnage and total ounces of gold were
determined from the block model. Average grades were calculated
from the tonnage and total ounces and then rounded to the
significant digits shown. Calculations based on this table may
differ due to rounding effects.
Information in this release has been reviewed and approved by
Ms. Terre A. Lane, Principal Mining Engineer and Mr. Donald E.
Hulse (P.E.), Vice President, Mining and Latin American
Development, both of Gustavson, “qualified persons" as that term is
defined in NI 43-101. This release has also been reviewed and
approved for Midway by Mr. William S. Neal (M.Sc. and CPG),
Midway’s Vice President of Geological Services and a "qualified
person" as that term is defined in NI 43-101.
ON BEHALF OF THE BOARD
"Kenneth A. Brunk"
Kenneth A. 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, 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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