Valley Gold Project Advances To Pre-Feasibility

 

DENVER, CO - Midway Gold Corp. reported that Barrick Gold Exploration Inc. has advanced the Spring Valley project to the pre-feasibility development stage. Barrick has earned a 70% interest in the project and has confirmed production potential for the project.

Barrick has earned a 70 percent interest in the Spring Valley project approximately 60 miles west of Cortez by conducting exploration drilling and scoping activities. The project has advanced to the pre-feasibility stage and could potentially be a new stand-alone gold mine.

Ken Brunk, President and CEO of Midway states,  We are pleased that Barrick has completed their 70% earn-in well in advance of the required timeline and doubly pleased by this decision to further develop the project toward production. We expect 2014 will be a productive year for the project and look forward to continuing this partnership at Spring Valley.

Barrick achieved their earn-in by spending $38M to earn a 70% interest in the project. Midway has the option to be carried to production, at which point Midway would retain a 25% interest in Spring Valley.

Spring Valley is a large porphyry-hosted gold system located about 20 miles northeast of Lovelock in Pershing County, Nevada.

Midway also reported that construction is underway at the Pan Project, located in White Pine County, Nevada. Discussions with a contract miner are almost complete and financing is in progress at the Gold Rock Project, also located in White Pine County, Nevada. The Draft Environmental Impact Statement is underway.