Midway Gold Corp. announce 2009 work plans will primarily be focused on the Golden Eagle project in Washington and the Midway project in Nevada. Exploration at the Spring Valley project is expected to continue under a proposed earn-in agreement, previously announced (PR October 20, 2008). The Thunder Mountain project is currently being explored under an earn-in agreement with Kinross Gold.
“We plan to update our existing resources at Spring Valley, Golden Eagle, Pan, and Gold Rock based on successful drill results from 2008 and new data acquisitions,” said Alan Branham, President and CEO of Midway Gold Corp. “With recent market changes we have refocused our efforts in areas that will most quickly and cost effectively add value to the company, namely moving the Midway Project towards production and updating resources.”
A summary of 2008 activity and 2009 plans on Midway’s primary projects follows:
Midway, Nye Co., NV: In 2008, initial mining plans were submitted to the BLM and NDEP for an underground decline providing access for collection of a bulk sample and high-grade verification at the Midway Project. Drilling for hydrology and geotechnical testing was completed on 12 RC holes for 1,234 feet and 9 core holes for 2,321 feet. While drilling these holes, two new high grade veins were discovered (Press Release May 14, 2008). Final permit submission is pending approvals from the State Water Engineer. Hydrologic testing suggests that pumping up to 2,000 gallons per minute may be required to dewater the project. Midway is currently negotiating a plan to properly dispose of this water with the Town of Tonopah and the State Water Engineer. Permitting efforts will continue in 2009 as Midway reviews potential capital benefits from mining the bulk sample on a smaller scale.
Midway processing test work by SGS Lakefield Research Limited (Canada) showed up to 94% gold recovery using gravity and cyanide from a 73-lb. composite sample of Discovery vein material grading 0.188 opt gold. Further work by Gekko Systems Metallurgical Laboratory (Australia) indicates that without using cyanide, a gravity and flotation process could achieve 86.7% gold recovery and 66.3% silver recovery, based on a 242-lb. composite sample, grading 0.662 opt gold and 0.475 opt silver.
Golden Eagle, Ferry Co., WA: In 2008, Midway acquired the Golden Eagle project and began compiling and reviewing the historic database of 847 drill holes containing 165,775 feet of mostly core drilling, to create a modern gold model. In 1996, Santa Fe Pacific Gold estimated that the Golden Eagle deposit contained 32.19 million tons grading 0.069 ounce per ton (opt) gold in a historic resource as part of an internal scoping study. A qualified person has not reviewed this resource and the historical estimate should not be relied upon. Efforts in 2009 will be directed toward key issues for moving the project towards a new scoping study, including a NI 43-101 compliant resource, high-grade target identification, evaluation of processing methods, and reviewing permitting. The project is comprised entirely of private land in the historic Republic gold district.
Pan, White Pine Co., NV: A total of 26,245 feet in 49 RC holes was drilled in 2008. Drilling at South Pan found additional near surface oxide gold mineralization. The Wendy zone was expanded to the east where it extends under volcanic cover and step-out drilling at Nana encountered more new gold-both zones are open for expansion. Three target areas outside the resource were tested with no significant results. Fourteen new holes in the resource area were targeted to verify results from previous operators, of which most intercepted higher grades and greater thicknesses than previously reported (Press Release July 9, 2008). Preliminary investigations suggest that assay techniques used by a previous operator may have under-estimated gold values in some of the holes. If confirmed by additional drilling, then portions of the deposit could show improved grades. A new higher-grade gold zone has also been identified over 800 feet in length at North Pan with true widths ranging from 10 to 25 feet and grades ranging from 0.07 to 0.51 opt gold. An updated resource estimate is planned in 2009.
Gold Rock, White Pine Co., NV: In 2008, Midway consolidated a 14 sq. mile property position which includes a Carlin style sediment hosted gold deposit at the Easy Junior pit that was mined by Alta Gold in the 1990’s, and an adjacent gold resource at Decker Flats. A historic database of 577 holes containing 224,985 feet of drilling was acquired, outlining continuous mineralization along 9,200 feet of length Surface work, geophysics, and historic data review have identified a number of exploration targets.
A total of 3,525 feet in 11 RC holes was drilled on the Anchor target during 2008. The best intercept was 60 feet 0.014 opt gold starting at 25 feet in AR08-08. Four other holes found strongly anomalous gold in the Pilot formation, a regionally favorable host rock. Target and data compilation is in progress, followed by a consideration to update the historic resource to compliance later this year.
Roberts Gold (formerly Afgan), Eureka Co., NV: Midway developed a new target concept in 2008 using geophysics and surface exploration, concluding that volcanic rocks of the Northern Nevada rift may cover favorable host rocks in a gravel fill area. The Afgan claim holdings on the southern part of the property were dropped due to a lack of target host rocks. Midway will look to joint venture this project in the first quarter.
Burnt Canyon, Pershing Co., NV: In 2008, surface exploration and geophysics have identified targets in this volcanic hosted epithermal system. Disseminated gold identified in rock chip and soil sampling at five different areas has never been drilled. The project lies between high grade veins in the Seven Troughs district. Midway will consider qualified joint venture offers for the project.
Midway Gold Corp. is a precious metals exploration company, listed on the NYSE Alternext US and on the TSX Venture Exchange under the symbol “MDW”. Midway’s focus is creating value for shareholders through the discovery and development of quality new precious metal resources in politically stable mining areas. The Company has four advanced stage gold exploration projects and four early stage exploration projects that control over 60 square miles of mineral rights along three major gold trends in Nevada and the Republic district in Washington. Additional information on Midway Gold Corp. and these projects can be found at: www.midwaygold.com.