Vancouver —Midway Gold (MDW-V) has kicked off a drilling campaign on its North target, which represents one of several regional targets on the Midway gold project in Nye County, Nevada.
The Midway North area is situated about 8 km north of the Discovery zone. The company decided to evaluate the area after initial prospecting identified mineralization similar to that seen at the Discovery zone. Assay values taken form float samples ranged up to 11.7 grams gold per tonne. Mapping and sampling has not located a source for the mineralized rock due to the heavy alluvial and post-mineral cover.
The initial 1,800 metre reverse circulation drill campaign is designed to test a number of geophysical, geochemical and geological targets identified over the past ten months. Midway states that the current round of drilling, (9,100 metres), at the Discovery area is now almost compete. Samples are being processed and assays are expected in early April. Midway anticipates that Newmont will approve the next stage of exploration by mid-May.
At the Discovery zone, gold is mainly found in a silicified portion of a rhyolite sequence, and, to a lesser extent, in a similarly altered argillite unit of the Palmetto formation. Regional extensional faulting provided the conduits for the hydrothermal fluids, but mineralization is pervasive.
Last year, Newmont Mining (NEM-N) inked a deal to earn a 51% interest in the property by spending US$8.8 million on exploration and development. The major can acquire a further 19% by delivering a feasibility study.
The Midway property lies between the famous Tonopah mining district, to the south, and the venerable Round Mountain gold mine, to the north. Tonopah and Round Mountain were considerable producers in the first half of the past century, and the latter lives on as a heap-leach operation under Kinross Gold (K-T) and Barrick Gold (ABX-T).
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