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Midway Drills 50 Meters Of 1.3 Gpt Gold At Gold Rock, Nevada

Stocks in this article: MDW

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 50 meters of 1.37 grams per tonne (gpt) gold including 8 meters of 4.4 gpt gold in core hole GR11-23c. Drilling also intercepted 45 meters of 1.44 gpt gold including 3 meters of 4.8 gpt gold and 4.4 meters of 3.9 gpt gold in GR11-14c, and 30 meters of 1.34 gpt gold including 16 meters of 2.1 gpt gold in GR11-29. These final results from the 2011 drilling program continue to confirm the expected grade and location of this bulk tonnage, Carlin-style, sediment-hosted gold mineralization defined by historical drilling. Drill intercepts are listed in the table below.

Core holes that twinned adjacent reverse circulation (RC) holes show very good correlation in intercept thickness and average grade. The core holes GR11-23c and GR11-25c intercepted better gold grades than in the RC holes as shown in the twin hole comparison table below. Another core hole, GR11-14c, intercepted thicker gold mineralization with similar higher grade zones as seen in the RC twin.

Ken Brunk, Midway’s President and COO said “Our 2011 drilling verified the gold mineralization adjacent to the Easy Junior pit and along strike to the north and south. The results from the three pairs of twin holes are a robust confirmation of the RC drilling. Validation of the historic data is being conducted independently and will be included in a new NI 43-101 resource estimate in progress. We believe the Gold Rock gold deposit is comparable in size to our nearby Pan gold deposit, but with a potentially higher average grade. We are planning an aggressive drill program for 2012 to establish the size and grade of the deposit and to put the project on a course for mine development.”

Significant Drill Hole Assay Intercepts
Gold Rock Project, Nevada
Hole       Type       From (m)       To (m)       Length (m)       Grade (gpt)       Comment
GR11-13C       core               No Significant intercept        
GR11-14C core 63.7 109.3 45.6 1.44 Twin of GR11-05
Includes: 3.0 4.87
and                               4.4       3.94        
GR11-15C       core       209.4       230.1       20.7       0.41        
GR11-18       RC       106.7       166.1       59.4       0.34        
GR11-19       RC       114.3       121.9       7.6       0.65        
GR11-23C core 53.3 103.9 50.6 1.37 Twin of GR11-11
Includes: 8.2 4.42
                187.5       199.6       12.2       0.62        
GR11-24C       core                       No Significant intercept        
GR11-25C core 106.7 161.2 54.6 0.55 Twin of GR11-18
Includes:                               27.1       0.79        
GR11-27       RC       178.3       189.0       10.7       0.21        
GR11-28       RC       179.8       246.9       67.1       0.58        
GR11-29 RC 192.0 222.5 30.5 1.34
Includes:                               16.8       2.16        
GR11-30       RC               No Significant intercept        
GR11-31       RC               No Significant intercept        

Reverse circulation drilling was conducted by O’Keefe Drilling of Butte, Montana and National Drilling of Elko, Nevada. Core drilling was conducted by KB Drilling of Carson City, Nevada. Samples were assayed by ALS-Chemex Labs, in Sparks, Nevada by 30-gram fire assays. Results reported represent thickness along the trace of the drill hole and do not necessarily represent true thickness.

Midway’s 2011 Gold Rock drill program was part of a two-stage verification program designed to confirm a 2,500 meter long gold zone that Midway geologists identified from historic drill results by past operators. Verification drilling included 20,900 feet in 25 RC holes and 5,155 feet in 6 core holes. A detailed evaluation of historic drill hole survey locations, confirmation of assay results, and review of geology and alteration are in progress as part of 43-101 resource estimate currently in progress.

Twin Hole Comparisons
Gold Rock Project, Nevada
Hole       Type       From (m)       To (m)       Length (m)       Grade (gpt)       Comment
GR11-05 RC 62.5 96.0 33.5 2.06 Previously reported
Includes:                               7.6       4.18        
GR11-14C core 63.7 109.3 45.6 1.44 Twin of GR11-05
Includes: 3.0 4.87
and                               4.4       3.94        
GR11-11       RC       51.8       96.0       44.2       0.96       Previously reported
GR11-23C core 53.3 103.9 50.6 1.37 Twin of GR11-11
Includes:                               8.2       4.42        
GR11-18       RC       106.7       166.1       59.4       0.34        
GR11-25C core 106.7 161.2 54.6 0.55 Twin of GR11-18
Includes:                               27.1       0.79        

Core-RC pairs GR11-07 & GR11-15c and GR11-29 & GR11-13C deviated away from each other down the hole to such a degree that they do not represent a true twin test at the depth of the intercept.

Gold Rock is 8 km southeast of Midway’s Pan Project and appears to contain similar host rocks and similar styles of gold mineralization. A 1988 historical report of the resource around the Easy Junior open pit mine estimates 344,770 oz gold in 13.5 million tonnes of 0.8 gpt gold (NI 43-101 Technical Report dated March 28, 2011). A Qualified Person has not done sufficient work to classify the historical estimate as a current NI43-101 compliant mineral resource. Midway is not treating the historical estimate as a current mineral resource and the historical estimate should not be relied upon.

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