Midway Gold Corp. (MDW: TSX-V and NYSE-AMEX) has announced that higher gold grades are present in the last three core holes drilled for metallurgical testing at its 100 percent controlled Pan Project, White Pine County, Nevada.
Assays include 46.3 meters of 1.4 grams per tonne (gpt) (152 ft of 0.042 ounce per ton (opt)) gold in hole PN10-6c, and 89.9 meters of 0.8 gpt (295 feet of 0.022 opt) including 3.0 meters of 4.1 gpt (10 feet of 0.120 opt) gold in hole PN10-09c. The gold grades in these core holes continue to be higher than expected based on previous analyses from nearby holes. An average global resource grade of 0.55 gpt (0.016 opt) gold was verified in the independently prepared Preliminary Economic Assessment technical report published in July 2010.
“These core drilling results continue to support our confidence and enthusiasm for the Pan project”
In addition to finding improved grades, recent drilling discovered a new gold zone to the east and below previously drilled gold mineralization. Drill hole PN10-03 identified gold intercepts of 51 meters of 0.6 gpt (170 feet of 0.017 opt) gold and 23 meters of 1.0 gpt (76 feet of 0.028 opt) gold in a silicified breccia.
"These core drilling results continue to support our confidence and enthusiasm for the Pan project," said Ken Brunk, President and COO of Midway. "If these grade improvements prove to be representative of the deposit there may be improved project economics and growth of the resource."
Gold grades and the intensity of silicification and brecciation in PN10-03c increase at the bottom of the hole, which bottoms in 6.4 meters averaging 1.5 gpt gold (20 feet averaging 0.044 opt). The increased silicification and gold grade may indicate the presence of new mineralization further to the east under volcanic cover or below the intercept. The hole was drilled for geotechnical/waste characterization and gold mineralization was not expected when this hole was planned. The hole was extended beyond the initial target depth due to increasing alteration intensity. Additional reverse circulation drilling will be required to further define this potential new zone.
All of the samples are from oxidized rock. Drill holes PN10-06c, 09c, and 14c were drilled to obtain samples for metallurgical testing. All encountered significant thicknesses of gold bearing rock as expected. PN10-09c also bottomed in mineralization. Holes PN10-04c, 07c, 08c, and 15c were drilled into barren wall rock to obtain samples for geotechnical and waste characterization tests. As expected, they did not carry significant gold mineralization. Samples from these holes will be used for mine planning and environmental studies.
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 3.0 meters grading 0.27 gpt gold (10 feet grading 0.008 opt). 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 during 2010 in the North and South Pan areas.
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, and a "qualified person" as that term is defined in National Instrument 43-101.
Source: Midway Gold Corp.