Spring Valley Project
Pershing County, Nevada
Spring Valley has a large, porphyry hosted gold resource and is still growing
Barrick is earning-in to a joint venture on the project and must spend a minimum of $7M in 2011 to maintain the option agreement.
Midway completed an independent NI43-101 resource update in May 2011 to assess potential additions to the resource as a result of Barrick’s 2009-2010 drilling.
Coarse, easily liberated gold shows excellent recovery in metallurgy tests
The Spring Valley property is located in the Spring Valley Mining District, Pershing County, Nevada, approximately 20 miles northeast of the town of Lovelock. The property is accessed from Nevada State Highway 50, which extends eastward from US Interstate 80 and is paved to the Rochester turn-off; thereafter it is a dirt road. Water for exploration purposes is available from water wells drilled on the property under temporary grant of water rights. Power is accessible from existing power lines, however capacity is unknown.
Gold has been intercepted over an area 5,200 feet long by 3,500 feet wide that extended to a depth of 1,400 feet, suggesting the presence of a large mineral system. The Spring Valley project is under an exploration and option to joint venture agreement with Barrick. Barrick is funding 100% of the costs to earn an interest in this project. Barrick spent $7.6 million (unaudited) in 2011. Barrick’s total expenditure through the end of fiscal year 2011 of approximately $17.7 million exceeds the cumulative $16 million expenditure required. Barrick has informed Midway that it intends to conduct and fund an $11 million program in fiscal year 2012 that includes both exploration drilling and development work in preparation for an internal pre-feasibility study. Exploration will be focused on in-fill drilling in the north resource area and expansion drilling of the south resource area. The development work will include metallurgical, geotechnical and hydrological studies. This program exceeds the minimum required 2012 program.
Barrick provided the Company with results from fourth quarter 2011 drilling. In fiscal year 2011, Barrick completed 4,682 meters in 14 core holes and 14,458 meters in 32 reverse circulation (RC) holes and 10 core pre-collars. Higher grade intercepts include:
21.3 meters of 4.73 grams per tonne (gpt) including 1.5 meters of 62.71 gpt in SV11-538C
6.1 meters of 6.86 gpt including 3.0 meters of 13.51 gpt in SV11-521
6.1 meters of 4.97 gpt including 1.5 meters of 18.89 gpt in SV11-530
1.5 meters of 22.11 gpt in SV11-544
9.8 meters of 2.13 gpt in SV11-537C
Spring Valley is a porphyry/diatreme hosted gold system beneath pediment gravels in the Humboldt Mountains near Lovelock, Nevada. Gold is distributed along the top of a porphyry intrusion, and in overlying volcanic rocks, at stratigraphic contacts, in fracture zones, and in the remains of a diatreme breccia. Gold mineralization occurs in sheeted quartz veins, hydrothermal breccias, and open fractures. It is commonly found as grains of easily liberated coarse gold up to 3 mm across.
Note: The tonnage and total ounces of gold were determined from the block model. Average grades were calculated from the tonnage and total ounces and then rounded to the significant digits shown. Calculations based on this table may differ due to rounding effects.
Information reported here has been reviewed and approved by Ms. Terre A. Lane, Principal Mining Engineer and Mr. Donald E. Hulse (P.E.), Vice President, Mining and Latin American Development, both of Gustavson, “qualified persons” as that term is defined in NI 43-101.
Click here to view the May 24, 2011 dated NI 43-101 Technical Report on the Spring Valley Project, Pershing County, Nevada.
See Press Releases for the latest on the Spring Valley Project.
(1) Resources as per Independent NI 43-101 compliant Technical Report by Gustavson Associates, LLC (May, 2011). Assumes cutoff grade of 0.14 g/t.
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