Midway Gold Provides Initial Evaluation of the Gold Rock Project, Nevada
Midway Gold Corp. (TSX.V and NYSE Amex: MDW) (the
"Company") announces the results of an initial evaluation of its Gold
Rock project located in White Pine County, Nevada. The accompanying National
Instrument (NI) 43-101 technical report to be filed on SEDAR within 45 days
contains a technical and a scientific review of historic information regarding
the project and makes certain recommendations regarding future work programs. A
summary of the conclusions in the technical report is provided below. The NI
43-101 report was independently prepared by Gustavson
Associates, LLC ("Gustavson") of Lakewood,
Colorado.
In 1986, Echo Bay Mines discovered the Easy Junior gold deposit in what is now
the center of Midway's Gold Rock project. Open pit mining at Easy Junior by
Alta Gold occurred between 1989 and 1994, and leach production continued to
1996. Midway Gold Corp., through its acquisition of Pan-Nevada Gold
Corporation, gained control of the project in 2007.
The Company has secured and compiled historic project drill results for 673
drill holes -- primarily shallow, vertical reverse circulation holes within and
surrounding the Easy Junior open pit. Historic drilling information suggests
there could be significant unmined gold
mineralization along strike of Easy Junior, and this mineralization appears to
represent a bulk tonnage epithermal gold target. Additional work will be
required to confirm these initial impressions.
Gustavson reviewed selected portions of the existing
assay and geologic drill hole information during the
preparation of the Gold Rock report. Their review confirmed that the assay
database agrees with the original assay certificates from historic drilling by
Echo Bay, Tenneco Minerals Company, Santa Fe Minerals, Inc. and Houston Oil and
Gas.
International Mining Consultants of Tucson, Arizona ("IMC") completed
a resource estimate in 1988 prior to mining (see table below). During
operations, the mine reportedly produced approximately 52,400 ounces of gold. A
qualified person has not done sufficient work to classify the historical
estimate as current mineral resources; Midway is not treating the historical
estimate as current mineral resources and the historical estimate should not be
relied upon.
IMC geological reserve (1988 geologic inventory, no economic constraint)
|
|
Short
Tons
|
|
Grade
(oz/ton)
|
|
Ounces
|
|
0.050
|
|
758,000
|
|
0.064
|
|
48,512
|
|
0.030
|
|
3,552,000
|
|
0.043
|
|
152,736
|
|
0.025
|
|
4,953,000
|
|
0.039
|
|
193,167
|
|
0.020
|
|
6,963,000
|
|
0.034
|
|
236,742
|
|
0.015
|
|
9,934,000
|
|
0.029
|
|
288,086
|
|
0.012
|
|
12,641,000
|
|
0.025
|
|
316,025
|
|
0.010
|
|
14,990,000
|
|
0.023
|
|
344,770
|
|
Gustavson's evaluation confirms that Gold Rock
contains a gold system that warrants additional confirmation, validation, exploration
and evaluation. The mineralizing system is strong, with a known strike length
of over 8,000 feet. The lithology, alteration, and mineralization are similar
to other sediment hosted Carlin-type systems such as Alligator Ridge, Bald
Mountain, Rain, and Midway's Pan Project, 8 miles to the northwest. Only a
portion of the system has been explored and mined, and drilling outside of the
Easy Junior pit area is widely spaced and shallow. The Gold Rock system has
structural controls; these feeder structures have not been explored, and
previous exploration has not closed off mineralization in any direction.
Recommendations
Gustavson has recommended the following work plan,
which the Company intends to conduct this season:
• Verify that the conversion of drill hole collar coordinates from the
previous property owners mine grid system was correctly translated to Midway's
established coordinate system.
• Review, compile and confirm historical geologic, mining, metallurgy,
geotechnical data, hydrology, and environmental information from the Company's
historic files.
• Continue to verify historic data by conducting a reverse circulation
and diamond core drilling program.
• Assess geologic and structural controls on mineralization in the
vicinity of the Easy Junior pit based on the results of the new drilling
program.
• Construct a lithology and alteration model for grade estimation,
mining/process designs, geotechnical studies, and waste rock characterization
planning.
• Complete surface geology and alteration mapping and compilation of all
historical and modern data to identify additional drill targets on the
property.
The completion of this work combined with the verification of all assay
certificates against the drill hole assay database should provide data to
support an estimation of a NI 43-101 compliant Mineral Resource.
___
Midway and Pan Technical Reports
Further to its press release dated February 18, 2011, the Company is also
preparing updated NI 43-101 compliant technical reports on its Midway and Pan
mineral properties. Those reports have been submitted to the Company's
principal regulator for review and are expected to be available shortly.
___
This release has been reviewed and approved by Mr.
Donald E. Hulse (P.E.), Principal Mining Engineer of Gustavson, and a "qualified person" 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), Vice President of Geological
Services of Midway, 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 Gold Rock project, the potential for a NI 43-101
compliant resource at the Gold Rock project, the expected timing for the
Company to release its NI 43-101 compliant technical reports on the Midway and
Pan projects, 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 Gold
Rock project, uncertainties and risks related to the potential for a NI 43-101
compliant resource at the Gold Rock project, uncertainties and risks related to
the completion, regulatory approval and timing for release of the NI 43-101
compliant technical reports on the Midway and Pan projects, 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 contains information about and comparisons to adjacent
properties on which we have no right to explore or mine. We advise U.S.
investors that the SEC's mining guidelines strictly prohibit information on
this type in documents filed with the SEC. U.S. investors are cautioned that
mineral deposits on adjacent properties are not indicative of mineral deposits
on our properties.
Cautionary note to U.S. investors concerning estimates of reserves and
resources: This press release uses the terms "reserve" and
"mineral resource", which are terms defined under Canadian National
Instrument 43-101 and the Canadian Institute of Mining and Metallurgy
Classification system. 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. 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. The references to
a "geologic reserve" and "ounces" of gold in this press
release are not normally permitted under the rules of the SEC. 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 contained in this press release
may not be comparable to information from U.S. companies subject to the
reporting and disclosure requirements of the SEC.