Midway Gold extends strike length at Spring Valley

Midway Gold’s Spring Valley project got a boost on Thursday with the company reporting an extension of the mineralized strike zone. Midway says exploration drilling in the fourth quarter 2010 has extended the strike by 1.8 kilometres to the southwest of the previously discovered gold resource at Spring Valley, Nevada.

Using reverse circulation drilling, the step-out hole intersected 12.2m of 1.2 g/t gold, which included 1.5m of 7.8 g/t Au mineralization. The deposit remains open to the south, northwest and at depth.

The Q4 exploration program also included several high-grade intercepts.

“Midway believes that these results are strong evidence that the new, untested parcels acquired last year could potentially contain significant resources at relatively shallow depths,” said Ken Brunk, President and COO.

Midway Gold formed a joint venture with Barrick Gold in 2009, where Barrick will earn a 60% interest in the project by completing $30 million in work expenditures before the end of 2013. Barrick committed Thursday to funding $7 million in exploration at Midway in 2011. Barrick has also commissioned an NI 43-101 report to update the resource estimate, which in 2009, stood at 1.8 million ounces of gold (inferred) contained within 80 million tonnes, graded at 0.72 g/t Au.

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