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Midway Gold Reports New Long Drill Intercepts At Spring Valley, Nevada

Midway Gold Corp. ("Midway" or the "Company") (MDW:TSX-V; MDW:NYSE-AMEX) announces first quarter drill results calculated from data provided by Barrick Gold Exploration Inc. ("Barrick"), who is earning into Midway's Spring Valley Project, Nevada.

Drill Highlights

  • 136 meters of 0.75 grams per tonne (gpt) gold in SV11-516c
  • 61 meters of 1.03 gpt gold in SV12-562
  • 108 meters of 0.93 gpt gold in SV12-564

Higher Grade Intercepts

  • 0.9 meters of 32.91 gpt gold in SV11-516c
  • 1.5 meters of 12.34 gpt gold in SV12-558c
  • 1.5 meters of 11.01 gpt gold in SV12-564

These 2012 drill results are from both exploration and development programs. Barrick has two drill rigs operating on the property, and in 2012 has completed 2,732 meters of reverse circulation and 883 meters of large diameter PQ (85mm) core drilling. Exploration work is focused on step-out drilling to the south of the defined resource and infill drilling in the resource area to convert and expand lower confidence resource areas into higher confidence categories. Development drilling is gathering information for metallurgical, hydrological, and geotechnical studies which are required for a scoping study economic evaluation.

Barrick has budgeted $11.5 million in 2012 for work at Spring Valley. This amount is $3.5 million, or more than 43%, above their minimum expenditure level that must spent to maintain their earn-in schedule. Barrick's total expenditure through the end of 2011 was approximately $17.7 million which exceeded the cumulative $16 million expenditure required under terms of the March 9th, 2009 agreement between Midway and Barrick. Barrick will earn a 60% interest in the project by completing expenditures totaling US$30 million before December 31, 2013.

Ken Brunk, Midway’s President and CEO said "We are pleased that Barrick’s development work and in-fill drilling continue to confirm the quality and strength of the Spring Valley project. We look forward to continued development of Spring Valley and feel it is an important part of the greater Midway story."

                                       
 

Significant New Drill Hole Gold Intercepts from Q1 Report

Spring Valley Project, Nevada

(Calculated by Midway from data provided by Barrick)

                                                   
Hole ID        

Assay

Type

       

From

(m)

       

To

(m)

       

Interval

(m)

       

Gold grade

(gpt)

SV11-516c MS 230.3 236.1 5.8 6.21
includes 0.9 32.91
MS 273.1 409.3 136.2 0.75
includes 3.0 3.84
and 1.5 4.63
and 1.5 4.39
and 1.5 7.92
and 1.5 4.49
          MS         428.8         434.2         5.4         0.45
SV11-536c MS 135.5 137.0 1.5 1.03
MS 307.7 309.4 1.7 0.45
          MS         385.9         387.4         1.5         0.45
SV12-557c         Assays pending
SV12-558c MS 96.0 97.5 1.5 12.34
          Additional assays pending
SV12-559c MS 64.0 65.5 1.5 1.34
Additional assays pending
FA 351.4 363.0 11.6 0.62
FA 407.2 441.4 34.1 0.72
includes 1.5 5.07
and 1.5 4.22
and                                       1.5         3.74
SV12-560         Assays Pending                              
SV12-561         Assays Pending                              
SV12-562 MS 204.2 265.2 61.0 1.03
includes 1.5 3.63
and 1.5 5.86
MS 277.4 278.9 1.5 0.82
MS 297.2 304.8 7.6 0.27
MS 324.6 353.6 29.0 0.34
MS 361.2 378.0 16.8 0.21
          FA         405.4         406.9         1.5         0.99
SV12-563         Pending re-assays                              
SV12-564 MS 120.4 137.2 16.8 0.17
MS 146.3 160.0 13.7 0.21
MS 181.4 184.4 3.0 1.10
MS 214.9 246.9 32.0 0.38
MS 262.1 274.3 12.2 0.58
MS 286.5 292.6 6.1 0.62
MS 304.8 321.6 16.8 0.24
MS 349.0 457.2 108.2 0.93
includes 1.5 5.76
and 1.5 5.25
and                                       1.5         11.01
SV12-565c         Assays Pending                              
SV12-566         FA         245.4         246.9         1.5         0.69
SV12-567         FA         227.1         228.6         1.5         0.38
 
 

Reverse circulation drilling was conducted by Hard Rock Drilling of Elko, Nevada. Core drilling was conducted by TonaTec Exploration of Mapleton, Utah. Drill hole numbers ending with a "C" indicate core holes. Samples were assayed by ALS-Chemex Labs, in Sparks, Nevada using 30 gram fire assay methods (FA) and by metallic screen assay methods (MS). Results reported represent thickness along the trace of the drill hole and do not necessarily represent true thickness. Intervals may not match to the nearest tenth due to arithmetic rounding.

To view the graphic associated with Spring Valley Project Q1 2012 Drill Results please click on the following link: http://www.usetdas.com/pr/midwayspring06122012.jpg

Spring Valley is a large, porphyry-hosted gold system, located, about 20 miles northeast of Lovelock in Pershing County, Nevada. A May, 2011 updated resource estimate by Midway reported 2.16 million ounces of gold in the combined Measured and Indicated categories at a cut-off grade of 0.14 gpt. There is an additional Inferred resource of 1.97 million ounces of gold at the same cut-off grade. The Measured resource is 0.93 million ounces contained within 59.0 million tonnes grading 0.49 gpt, the Indicated resource is 1.23 million ounces contained within 85.8 million tonnes grading 0.45 gpt, and the Inferred resource is contained within 103.9 million tonnes grading 0.59 gpt. The estimate was prepared for Midway by Gustavson Associates, LLC of Lakewood, Colorado (Midway press release dated May 2, 2011). The updated resource includes Barrick’s 2009 and 2010 drill results and significantly increased the resource in the Measured and Indicated categories and added additional Inferred resources.

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