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Spring Valley Gold Project Advances to Barrick's Development and Mine Site Exploration Group
Midway Gold Corp. (TSX.V: MDW | AMEX: MDW) announced today third quarter progress at its Spring Valley project based on information provided by Barrick Gold Exploration Inc.
Highlights include:
- Continued drilling of gold intercepts outside of the present resource area.
- Increased participation of Barrick's Project Development group and Barrick's Mine Site Exploration group.
- Barrick has expanded the project office in Lovelock. Additionally, Barrick has initiated cultural and biological studies to support an environmental assessment for an expanded drilling area.
- At the north end of the resource a new intercept of 65 meters of 0.86 gpt gold in SV11-513c was reported. Barrick's 2011 drilling through the third quarter totals 33,610 feet in 29 reverse circulation (RC) holes, 3,450 feet of pre-collar RC in the upper levels of core holes, and 15,283 feet in 10 core holes.
- Spring Valley is a large, porphyry-hosted gold system. A May, 2011 updated resource estimate reported 4,100,000 ounces of gold in the Measured plus indicated and Inferred categories.
- Barrick can earn a 60% interest in the project by completing work expenditures totaling US$30 million before December 31, 2013 under the terms of an agreement executed between Midway and Barrick March 11, 2009 - Barrick has the option to purchase 75% of the project by bringing it into a production scenario.
Johnston-Sequoia Commentary:
On the heels of Rye Patch Gold Corp.'s announcement yesterday - Midway announces; "Increased participation of Barrick's Project Development group". Just four years ago the Spring Valley deposit (please click photo above) was just 434,000 ounces of gold in the Measured plus Indicated and Inferred categories. Today the world's largest gold company appears to be taking the project to the next level at nearly ten times it's original size. Trading at just $0.32 per share (October 20th, 2008) when the joint venture was announced and as low as $0.18 - MDW has done a tremendous job at resurrecting it's share price. Today's announcement is a milestone advancement in this evolving district. We shall observe with keen interest as the blanket is lifted from Humboldt's just off the I-80 between Lovelock and Winnemucca.
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