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News Releases
| | August 24, 2009
Midway Gold Announces Spring Valley Quarterly Update
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| | 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 [click PDF link below to view table]. 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. |
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| | You can view the Next News Releases item: Wed Sep 9, 2009, Midway Surface Sampling Discovers Oxide Gold at Golden Eagle Project, Washington
You can view the Previous News Releases item: Wed Aug 5, 2009, Midway Files NI 43-101 Technical Report for Gold Resource at Golden Eagle
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