Midway Gold Corporation - QwikReport

MIDWAY GOLD CORPORATION : http://www.midwaygold.com/ : QwikReport

Midway Project

Midway Project
Nye County, Nevada

The Midway project is a high grade epithermal quartz-gold vein system situated between the Round Mountain mine and Goldfields, Nevada. Bonanza gold veins occur in a series of parallel northwest-trending vein clusters for a 1.5 mile distance. The best previously reported gold intercept was 2.5 feet of 119 opt (ounce per ton) gold within 17 feet that averaged 34.7 opt gold from the Midway vein.

Midway is a low-sulfidation epithermal gold system. Gold occurs in near-vertical quartz adularia veins hosted by Tertiary-age volcanic rock and sedimentary rock of the Ordovician-age Palmetto Formation. Interlayered rhyolite tuffs and volcaniclastics unconformably overly the Palmetto Formation argillite and shale. Post-mineral rhyolite and basalt flows cover much of the western portion of the project area. Up to 100 feet of sand and gravel covers the known gold zones.

In January 2008, the Company submitted a Plan of Operations for an underground mining operation to the Bureau of Land Management (BLM) and the Nevada Division of Environmental Protection (NDEP). Plans call for a 3000 foot inclined adit (underground tunnel) that will provide access to high grade portions of 14 gold veins in the Discovery Zone. A 50,000 ton bulk sample and metallurgical testing will help determine the true grade of the veins, help delineate reserves, and move the project toward production. Gold recovered from the bulk sample will offset a portion of the development cost of the decline. If there are no unexpected delays, the Company hopes to reach the Discovery gold zone in late 2009.

In 2008, the Company plans to drill 2,200 feet in 16 holes for geotechnical tests and to evaluate planned facility sites. Drilling is currently underway on the project with one core rig. Baseline studies for permitting are in progress. Pump tests are underway for groundwater hydrology studies. Additional work will support environmental studies for permitting and to finalize underground development plans. A NI 43-101 compliant report dated February 2005 is
available for this property.

In an August 16, 2007 news release, Alan Branham, President and CEO of Midway Gold Corp. said, "The re-analysis of the Midway veins has greatly improved our understanding of the gold system. Recognition of a boiling horizon and the structural control of gold deposition, show that many past drill holes missed the key gold horizon along the veins, so some targets were never tested. This gives us an opportunity to significantly expand the gold resource on the project. We modeled the gold to 400 feet, but there is limited testing below that level so gold could extend deeper. Our next step in expanding the resource will be to drive an underground decline into the Discovery Zone. This will create a platform to take a bulk sample of the better defined high grade veins and convert other veins to reserve."

The Discovery gold resource from 100 to 300 feet deep and is entirely oxidized. Cyanide bottle roll and shaker tests show 49% to 90% recoveries. There is a probable nugget effect but good recoveries are obtainable by cyanide leach.

Engineering and environmental studies necessary to begin the permitting process are underway. Hydrological, metallurgical, and waste rock testing are currently in progress. Once permits are in hand, plans call for reaching the Discovery gold zone in Oct of 2009.

See Press Releases for the latest on the Midway Project

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This page was created on Thu Sep 9, 2010 at 4:21:00 PM Pacific Time.