Midway Gold Corp. ("Midway" or the "Company") (MDW:TSX-V; MDW:NYSE-AMEX) announces that drilling on its Gold Rock Project, White Pine County, Nevada intercepted
23 meters of 2.33 grams per tonne (gpt)
3 meters of 4.56 gpt
in drill hole GR11-16 and
44 meters of 0.96 gpt
gold in drill hole GR11-11. The drill results continue to confirm the expected grade and location of mineralization defined by historical drilling. Drill intercepts and hole locations are listed in the table and shown on the map below. Gold Rock is 8 km southeast of Midway’s Pan Project and appears to contain similar host rocks and similar styles of gold mineralization to those at Pan.
Ken Brunk, Midway’s President and COO said
“Our verification drilling is continuing to encounter gold mineralization adjacent to the Easy Junior open pit and along strike to the north and south. The results correlate well with the location and grade of gold intercepts found in historical drill holes. This validation of the historic data should allow us to include data from 673 historic drill holes along with our own drilling when estimating a new NI 43-101 compliant resource. We believe Gold Rock could host a gold deposit that is comparable in size to our nearby Pan gold deposit, but with a potentially higher average grade.”
Midway’s 2011 Gold Rock drill program was designed to verify historic reports of gold mineralization indicated in drill results from past operators and to further evaluate this bulk tonnage, Carlin-style, sediment-hosted gold project. Midway’s verification drilling included 21,100 feet in 25 RC holes and 5,260 feet in 6 core holes. Assay results from 7 RC holes and 6 core holes are pending. Results from the first 7 holes were released earlier
(see press release dated September 14, 2011)
A 1988 historical report of the resource around the Easy Junior open pit mine estimates the presence of 344,770 oz gold contained in 13.5 million tonnes at a grade of 0.8 gpt gold. A Qualified Person has not done sufficient work to classify the historical estimate as a current NI 43-101 compliant mineral resource. Midway is not treating the historical estimate as a current mineral resource and the historical estimate should not be relied upon.