Midway Gold Corp. (MDW:TSX-V; MDW:NYSE-AMEX) has reported intercepts of 81.1 meters of 1.1 grams per tonne gold (266 feet of 0.033 ounce per ton—opt) and 86 meters of 0.9 gpt gold (282 feet of 0.025 opt) in diamond core holes PN10-01c and PN10-02c from its Pan project, White Pine County, Nevada.
“This indication of a large increase in average grade will translate to improved project economics. We carefully selected these holes to represent large tonnages of the deposit. This is all excellent news.”
The weighted average grade of the intercepts shows a significant increase over the 0.55 gpt (0.016 opt) gold average grade of the gold resource reported in the independently prepared Preliminary Economic Assessment dated July 2010. Midway's new core holes were drilled to obtain samples for metallurgical testing of gold bearing rock that were representative of the bulk of the deposit. The new assay intervals are near surface, show good continuity and include intercepts of higher grade gold. All of the samples are from oxidized rock.
"The results support our belief that much of the previous RC drilling and sampling significantly understated the gold grade of the known resource," said Ken Brunk, President and COO of Midway. "This indication of a large increase in average grade will translate to improved project economics. We carefully selected these holes to represent large tonnages of the deposit. This is all excellent news."
Assays are 30 gram fire assays conducted by ALS Chemex labs in Sparks, Nevada. Diamond core drilling was conducted by Redcor Drilling of Winnemucca, Nevada and Ruen Drilling of Coeur d'Alene, Idaho. Intercepts reported include greater than 10 feet grading 0.008 opt gold. All reported intercepts are in oxidized rock, unless otherwise noted. Intercepts are along the length of the hole and may not represent true width.
A total of 1,757 meters (5,764 feet) in 14 core holes were completed in the North and South Pan areas. Additional assays are pending for holes drilled for geotechnical and waste rock characterization studies.
As reported in the July 2010 Preliminary Economic Assessment, Measured and Indicated Mineral Resources are 38.8 million metric tonnes (42.7 million short tons) containing 682,000 ounces of gold at a grade of 0.55 gpt (0.016 opt), using a 0.14 gpt (0.004 opt) gold cutoff grade.
This release has been reviewed and approved by William Neal (M.Sc. and CPG), Vice President of Geological Services, a "qualified person" as that term is defined in National Instrument 43-101.
Source: Midway Gold Corp.