Midway Gold Corp. (TSX:T.MDW, Stock Forum) said it’s making progress at its Spring Valley gold project in Nevada.
Spring Valley is a large porphyry-hosted gold system, located about 20 miles northeast of Lovelock in Pershing County, with a measured and indicated resource estimate of 2.16 million ounces of gold.
According to the press release, second quarter drill results calculated by Midway from data provided by Barrick Gold Corp. (TSX:T.ABX, Stock Forum) include hole SV12-565 with a grading of 1.65 grams per tonne gold at 144.8 metres with 113.52 grams per tonne gold at 1.5 metres and hole SV12-570 with a grading of 1.61 grams per tonne gold at 80.8 metres with 45.60 grams per tonne gold at 1.5 metres.
“We are very pleased with Barrick’s continued progress at our Spring Valley project,” said Ken Brunk, President and CEO. “The exploration phase of this year’s program continues to show growth potential, particularly in the north, as well as identifying new targets.”
Barrick has two drill rigs operating on the property and has completed 6,035 meters of reverse circulation and 2,970 meters of core drilling during the second quarter.
Development drilling is gathering metallurgical, hydrological and geotechnical data for a scoping-level economic evaluation. Hydrology studies are underway and geotechnical drilling will follow. A second round of metallurgical test work is expected to begin later this year.
Barrick has the right to earn a 60% interest in the project by completing expenditures totaling US$30 million before December 31, 2013.
Midway is a precious metals company with a vision to explore and operate gold mines.
On Monday, Midway’s stock was up 5% and was trading at $1.17 a share. The company has a market cap of 149.6 million, based on 128 million shares outstanding. The 52-week high and low was $2.99 and $1.08 respectively.