Midway Gold
Announces Spring Valley Quarterly Update
Midway Gold Corp. (Midway)
is pleased to announce second quarter results from drilling and metallurgical
work underway by Barrick Gold Exploration Inc. (Barrick) at the Spring Valley Project, Nevada. Bottle roll tests as reported by Barrick show excellent gold recoveries of over 90% for
both oxide and sulfide-bearing composite samples. Drilling
completed through June 2009 totaled 14,122 feet of
reverse circulation (RC) and 6,736 feet of core.
We are encouraged by the quality of work that Barrick
is doing to move the Spring Valley project
forward and by the results we are seeing, said Alan Branham, President and CEO of
Midway Gold Corp. Barrick is well on their way to completing this
year’s work commitment on the property. High gold recoveries demonstrate
that gold can be extracted easily from both oxide and sulfide
portions of the deposit. Barrick’s expertise
in these areas is a great benefit to the project.
Barrick has bottle roll,
column leach, and gravity separation tests underway at McClelland Labs in Reno on thirteen
composite samples. Bottle roll tests show gold recoveries ranging from 86% to
98% for oxide, transitional, and sulfide composite
samples at grind sizes of 100 and 200 mesh. Recoveries range from 70% to 97% in
the coarser grind size of 48 mesh. Column leach and
gravity separation test results are pending and anticipated by year end.
New reportable drill
intercepts provided to Midway by Barrick are
summarized in Table 1 below. Mineralization remains open at depths greater
than previously modeled. High grade fire assays
(FA) such as 4.5 feet
of 1.108 opt gold in SV09-451C have metallic screen
assays pending. High grade metallic screen (MS) intervals include 5 feet of 0.792 opt gold
in SV09-445 and 10 feet
of 0.624 opt gold in SV09-446.
A twin hole program was designed to confirm gold intervals in RC
holes by drilling parallel core holes immediately beside the RC holes. Preliminary
fire assay results show mineralized zones in both types of holes occur over
similar intervals. Complete metallic screen assay results are still pending.
Drilling is now focused on in-fill and step-out holes with potential to add
ounces to the gold resource.
Expenditures by Barrick through the period of the quarterly report stand
at 49% of their US$4,000,000 firm commitment through December 31, 2009. All land payments are being paid
by Barrick and Midway bonding has been replaced
with Barrick bonding. Three
Midway project geologists were contracted to run daily project operations
under Barrick supervision.
Midway
and Barrick entered into an agreement on March 9,
2009 for the exploration and development of the Spring Valley property in Pershing County, Nevada,
covering approximately 18.4 square miles. Under the terms of the agreement, Barrick may earn a 60% interest in the property by
spending US$30,000,000 in work expenditures by December 31, 2013.
Data reported to Midway by Barrick and disclosed in this press release, have been
reviewed for Midway by William Neal, (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).
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 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.
Table 1: Spring
Valley significant assays as reported by Barrick.
Drill Hole
|
Assay
|
Gold
|
Interval
|
From
|
To
|
Gold
|
Interval
|
|
Type
|
opt
|
ft
|
|
|
g/t
|
m
|
SV08-441C
|
MS
|
0.023
|
26.8
|
572.5
|
599.3
|
0.79
|
8.2
|
(2008 drilling)
|
MS
|
0.150
|
22
|
620
|
642
|
5.14
|
6.7
|
including
|
MS
|
0.610
|
4.9
|
637.1
|
642
|
20.91
|
1.5
|
|
MS
|
0.027
|
18.5
|
656.8
|
675.3
|
0.93
|
5.6
|
|
MS
|
0.048
|
13.6
|
895.4
|
909
|
1.65
|
4.1
|
including
|
MS
|
0.124
|
4.8
|
904.2
|
909
|
4.25
|
1.5
|
SV08-441C (2009)
|
MS
|
0.095
|
30.9
|
1056
|
1086.9
|
3.26
|
9.4
|
Including
|
MS
|
0.412
|
5
|
1056
|
1061
|
14.13
|
1.5
|
|
MS
|
0.013
|
13
|
1108
|
1121
|
0.45
|
4.0
|
SV08-442C
|
MS
|
0.016
|
30
|
1073
|
1103
|
0.55
|
9.1
|
|
MS
|
0.012
|
43.5
|
1249.5
|
1293
|
0.41
|
13.3
|
SV09-443
|
MS
|
No Significant intercept
|
|
|
|
SV09-444
|
MS
|
0.017
|
105
|
680
|
785
|
0.58
|
32.0
|
|
MS
|
0.012
|
110
|
810
|
920
|
0.41
|
33.5
|
|
MS
|
0.011
|
25
|
940
|
965
|
0.38
|
7.6
|
|
MS
|
0.023
|
125
|
1070
|
1195
|
0.79
|
38.1
|
SV09-445
|
MS
|
0.029
|
15
|
85
|
100
|
0.99
|
4.6
|
|
MS
|
0.020
|
45
|
195
|
240
|
0.69
|
13.7
|
|
MS
|
0.021
|
35
|
260
|
295
|
0.72
|
10.7
|
|
MS
|
0.140
|
30
|
320
|
350
|
4.80
|
9.1
|
Including
|
MS
|
0.796
|
5
|
320
|
325
|
27.29
|
1.5
|
|
MS
|
0.015
|
35
|
425
|
460
|
0.51
|
10.7
|
|
MS
|
0.023
|
115
|
490
|
605
|
0.79
|
35.1
|
|
MS
|
0.017
|
30
|
640
|
670
|
0.58
|
9.1
|
SV09-446
|
MS
|
0.032
|
50
|
140
|
190
|
1.10
|
15.2
|
|
MS
|
0.047
|
25
|
220
|
245
|
1.61
|
7.6
|
Including
|
MS
|
0.194
|
5
|
240
|
245
|
6.65
|
1.5
|
|
MS
|
0.156
|
55
|
265
|
320
|
5.35
|
16.8
|
Including
|
MS
|
0.624
|
10
|
270
|
280
|
21.39
|
3.0
|
|
MS
|
0.029
|
10
|
375
|
385
|
0.99
|
3.0
|
|
MS
|
0.152
|
20
|
485
|
505
|
5.21
|
6.1
|
Including
|
MS
|
0.382
|
5
|
485
|
490
|
13.10
|
1.5
|
Including
|
MS
|
0.225
|
5
|
500
|
505
|
7.71
|
1.5
|
|
MS
|
0.026
|
10
|
590
|
600
|
0.89
|
3.0
|
SV09-447
|
MS
|
0.019
|
20
|
275
|
295
|
0.65
|
6.1
|
|
MS
|
0.011
|
20
|
320
|
340
|
0.38
|
6.1
|
|
MS
|
0.014
|
160
|
405
|
565
|
0.48
|
48.8
|
|
MS
|
0.019
|
65
|
805
|
870
|
0.65
|
19.8
|
|
MS
|
0.010
|
10
|
905
|
915
|
0.34
|
3.0
|
|
MS
|
0.075
|
15
|
985
|
1000
|
2.57
|
4.6
|
Including
|
MS
|
0.197
|
5
|
985
|
990
|
6.75
|
1.5
|
Drill Hole
|
Assay
|
Gold
|
Interval
|
From
|
To
|
Gold
|
Interval
|
|
Type
|
opt
|
ft
|
|
|
g/t
|
m
|
SV09-448
|
MS
|
0.026
|
20
|
240
|
260
|
0.89
|
6.1
|
|
MS
|
0.010
|
35
|
310
|
345
|
0.34
|
10.7
|
|
MS
|
0.022
|
45
|
365
|
410
|
0.75
|
13.7
|
|
MS
|
0.028
|
10
|
480
|
490
|
0.96
|
3.0
|
|
MS
|
0.074
|
20
|
525
|
545
|
2.54
|
6.1
|
Including
|
MS
|
0.275
|
5
|
540
|
545
|
9.43
|
1.5
|
SV09-451C
|
FA
|
0.011
|
32.9
|
122
|
154.9
|
0.38
|
10.0
|
|
FA
|
0.019
|
12
|
272
|
284
|
0.65
|
3.7
|
|
FA
|
0.537
|
9.5
|
321
|
330.5
|
18.41
|
2.9
|
Including
|
FA
|
1.108
|
4.5
|
326
|
330.5
|
37.99
|
1.4
|
|
FA
|
0.038
|
31.8
|
396
|
427.8
|
1.30
|
9.7
|
Including
|
FA
|
0.108
|
3.6
|
424.2
|
427.8
|
3.70
|
1.1
|
|
FA
|
0.023
|
72
|
485
|
557
|
0.79
|
21.9
|
|
FA
|
0.019
|
30.4
|
714.6
|
745
|
0.65
|
9.3
|
SV09-452C
|
FA
|
0.022
|
86.7
|
140
|
226.7
|
0.75
|
26.4
|
Including
|
FA
|
0.120
|
5
|
140
|
145
|
4.11
|
1.5
|
|
FA
|
0.055
|
15
|
578.6
|
593.6
|
1.89
|
4.6
|
Including
|
FA
|
0.147
|
5
|
578.6
|
583.6
|
5.04
|
1.5
|
|
FA
|
0.020
|
10.3
|
628.8
|
639.1
|
0.69
|
3.1
|
SV09-453C
|
FA
|
0.022
|
28.2
|
310
|
338.2
|
0.75
|
8.6
|
|
FA
|
0.022
|
34.4
|
745.6
|
780
|
0.75
|
10.5
|
SV09-456
|
FA
|
0.072
|
15
|
765
|
780
|
2.47
|
4.6
|
Including
|
FA
|
0.149
|
5
|
765
|
770
|
5.11
|
1.5
|
|
FA
|
0.028
|
10
|
835
|
845
|
0.96
|
3.0
|
|
FA
|
0.024
|
10
|
935
|
945
|
0.82
|
3.0
|
|
FA
|
0.029
|
210
|
985
|
1195
|
0.99
|
64.0
|
Including
|
FA
|
0.159
|
10
|
1105
|
1115
|
5.45
|
3.0
|
Including
|
FA
|
0.166
|
5
|
1125
|
1130
|
5.69
|
1.5
|
Including
|
FA
|
0.134
|
5
|
1185
|
1190
|
4.59
|
1.5
|
|
FA
|
0.040
|
10
|
1220
|
1230
|
1.37
|
3.0
|
|
FA
|
0.019
|
10
|
1260
|
1270
|
0.65
|
3.0
|
SV09-457
|
FA
|
0.030
|
20
|
1345
|
1365
|
1.03
|
6.1
|
Including
|
FA
|
0.100
|
5
|
1360
|
1365
|
3.43
|
1.5
|
Reverse
circulation drilling was conducted by Hard Rock Drilling of Elko, Nevada. Core drilling was conducted by Boart Longyear of Salt
Lake City, 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).
Intervals with quartz veining, strong alteration, visible gold, or anomalous
fire assay were re-assayed using 1000 gram metallic screen assays (MS). Results
reported represent thickness along the trace of the drill hole and do not
necessarily represent true thickness. The upper part of hole
SV08-441C
was drilled in 2008. The hole was completed
in 2009.
|