Midway Gold (MDW.V, NYSEMKT:MDW) has announced new drill results at the Spring Valley project in Nevada, USA.
Of interest is the intercept of 361 meters at 1.47g/t, including an extremely high-grade interval of 21 meters at in excess of 7.5g/t. The mineralization started at a depth of only 35 meters.
Midway expects to report on 12 more holes within the next few weeks and months, which could increase the current resource estimate from 4.1M oz to in excess of 5Moz of gold. There’s also potential to increase the average grade of the deposit, which will bode well for future studies on the economical viability of the project.
Barrick Gold (ABX.TO, NYSE:ABX) currently has an interest of 60% in the project, and elected to fund an additional $8M of exploration work to increase their interest to 70%. Midway expects Barrick to obtain a 70% ownership in Q1 2014.
Midway also announced they received another key permit for the Pan Project, in Nevada as well. The company received the Class I Air Quality operating permit to construct from the state of Nevada. The permitting schedule remains on track for a final Record of Decision by the US Bureau of Land Management before year’s end. Americas Bullion Royalty Corp (AMB.TO) holds a 4% Gross Production Royalty on the Pan Project.
> Click here to read the press release on the drill results
> Click here to read the press release on the permitting news
Disclosure: The author holds no position in Midway Gold. Please see our disclaimer for current positions.
