VANCOUVER, BRITISH COLUMBIA, Mar. 23, 2010 (Marketwire) -- Midway Gold Corp. ("Midway") (TSX VENTURE:MDW)(NYSE Amex:MDW) is pleased to announce Barrick Gold Exploration Inc. ("Barrick") has commenced its 2010 drilling program at the Company's Spring Valley project, Nevada. Barrick has approved a budget of US$5,000,000 and a program to include both reverse circulation and core drilling. The focus of the program for 2010 will be continued expansion of the gold resource. Drilling is expected to last through the summer.
"We are pleased that Barrick has demonstrated their commitment to the Spring Valley project, for a second year. Barrick has reported completion of the US$4M program for 2009 with 34 holes that had positive assay and metallurgical test results," said Alan Branham, President and COO of Midway Gold Corp. "A successful 2010 program could continue to add significantly to the underlying resource base, which would add value from the project for both Midway and Barrick."
This deposit is open for expansion, which will be the target of the 2010 program. Extensive metallurgical work conducted by Barrick on this large project has demonstrated positive metallurgical results. Bottle roll tests on 200 mesh material show gold recoveries ranging from 86% to 98% for oxide, transitional, and sulfide composite. Gravity recoverable gold tests had recoveries ranging from 51 to 91%. Details of metallurgical results were noted in August 24, 2009 press releases.
Highlights of the 34 holes drilled at Spring Valley from the 2009 program expanded the gold hosted in and adjacent to a porphyry intrusion. In November 30th, 2009, the Company reported significant intercepts of 339.5 feet of 0.037 opt gold (including 10 feet of 0.485 opt gold) and 156 feet of 0.028 opt gold in SV09-461C and high grade intercepts include a metallic screen assay of 52.5 feet of 0.889 opt gold including 5 feet of 9.101 opt gold in SV09-451C.
Midway and Barrick entered into an agreement on March 9, 2009 for the exploration and development of the Spring Valley property in Pershing County, Nevada, covering approximately 18.4 square miles. Under the terms of the agreement, Barrick may earn a 60% interest in the property by spending US$30,000,000 in work expenditures by December 31, 2013. Barrick must have cumulative expenditures of US$9,000,000 by year end 2010, to maintain the venture earn-in schedule. Midway is a gold exploration and development company that currently has four advanced stage gold resources in Nevada and Washington. Aggressive exploration has resulted in new discoveries in Nevada. For additional information, see the company website at: http://www.midwaygold.com
Data reported to Midway by Barrick and disclosed in this press release has been reviewed for Midway by Eric LeLacheur, (M.Sc., CPG), a "qualified person" as that term is defined in National Instrument 43-101.
ON BEHALF OF THE BOARD
Alan Branham, President and COO
This press release contains forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Company's SEC filings and its filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.