Midway tables preliminary Spring Valley number (April 26, 2006)

AMEC E&C Services has pinned a preliminary resource estimate for Midway Gold‘s (MDW-V, MDWGF-O) Spring Valley project, in Pershing Cty., Nevada.

Based on some 164 widely spaced holes, measured resources are estimated at 2.1 million tonnes running 1.1 grams gold per tonne, for 67,500 contained oz. of gold. The indicated resource category is home to 7.9 million tonnes averaging 0.74 gram gold, for 171,643 contained oz, with another 7.8 million tonnes of inferred material grading 0.84 gram gold, or 195,375 oz. The estimates are based on a gold price of US$450 per oz and a cutoff grade of 0.03 gram gold.

The resource is contained within a 500-metre-by-1-km area to a depth of 300 metres. The area comprises the Pond, Sill, and Porphyry zones, which coalesce into a single system. Gold mineralization is hosted in altered Permo-Triassic rhyolite breccias, flows, tuffs, porphyry dikes and sills intruding along a large diatreme vent complex.

So far, only 20% of the diatreme’s margin has been drill tested. Mineralization remains open to the north, south, west, and at depth.

“The resource is an encouraging start for the project, especially with the drilling as wide of spaced as it currently exists,” said Midway chief executive Alan Branham. “The resource is open in several directions, at depth and especially to the south and west, where current drilling is finding gold in the West Diatreme target.”

A pair of holes that returned 1.5-metre intervals running 139.2 grams gold and 11.34 grams highlights recent drilling there. The holes encountered paleoplacer gravels on bedrock, which overlies low-grade disseminated gold. The gravels are situated on the west flank of a diatreme breccia, 300 meters west of the main diatreme. Midway says the gravels are derived from the main Spring Valley diatreme.

Meanwhile, drilling also cut gold-bearing porphyry on the west side of the diatreme, generally yielding 0.3-2.8 grams gold over 1.5-15 metres. The zone remains open in all directions.

Midway currently has 2 drill rigs completing step-out and infill drilling. The company hopes to receive a permit to allow the drilling of up to 500 more holes by early June.

Midway recently picked up another 16-sq.-km of land to fill in gaps between its pre-existing claims and those acquired from Coeur d’Alene Mines (CDM-T, CDE-N). The company now holds some 41 sq. km.