Midway Gold reports Barrick Gold, its earn-in partner at the Spring Valley project in Nevada, continues to make encouraging progress in both exploration drilling and metallurgical testing on the property.
Drilling in the second quarter of 2010 tested extensions and in some cases large step-outs north of the known resource area, while third quarter drilling focused on expansion of the resource in other areas. Significant drill intercepts have included three from a single hole assaying 0.097 oz/t gold over 103 ft, 0.117 oz/t gold over 42.7 ft and 0.026 oz/t gold over 47.1 ft. Basic pit design work is under way.
The Spring Valley project is located about 20 miles northeast of Lovelock, Nevada and covers about 18.4 square miles. The project currently has an inferred resource of at least l.8 million oz of gold in 79.6 million mt grading 0.21 oz/t. Under the terms of the earn-in agreement, Barrick can earn a 60% interest in the project by spending $30 million in work expenditures before December 31, 2013.