Vancouver — Drilling by
Several recent reverse-circulation holes tested the Sill and Porphyry zones intersecting significant gold.
Drilling on the Sill zone cut 32 metres (from 21 metres depth) grading 7.3 grams gold per tonne, including a 3-metre section averaging 14.9 grams gold in hole SV05-74. A 23-metre intercept (from 35 metres depth) in hole SV05-78 assayed 3.8 grams gold.
Midway’s testing of the Porphyry zone returned up to 2.4 grams gold over 15.2 metres in hole SV05-73 plus several mineralized intercepts ranging from 1.5 to 35 metres averaging 0.4 to 1.8 grams gold.
Situated about 30 km northeast of Lovelock, the Spring Valley project is 5 km northeast and along strike from
Gold mineralization at Spring Valley occurs primarily in breccias and veins cutting sericite altered Permian to Triassic aged rhyolites and porphyry intrusives. There is extensive alluvial cover over the project area ranging from 15-60 metres in thickness. Historic placer gold production from creeks transecting the area is estimated at around 100,000 oz.
Most of the drilling on the project has targeted the central Pond zone intersecting gold mineralization associated with a series of breccia pipes interpreted as diatremes. High-grade gold, up to 40 grams per tonne, occurs in quartz-tourmaline veins. The initial 25 drill holes on the project were conducted by previous operators Echo Bay Mines, now
In mid-2003, Midway Gold entered into agreements to earn a 100% interest in the Spring Valley project, from two vendors, for combined payments of US$3.9 million and cumulative expenditures of US$600,000.
The Nevada-focused junior gold explorer is also drilling on its Midway gold property in Nye Cty., Nev., and recently acquired the Black Prince silver-gold project in Lincoln Cty., Nev.
With 23.2 million shares outstanding, Midway posts a $22 million market capitalization at its recent trading level of 95 per share.
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