Midway drills North prospect in Nevada

Vancouver — Drilling is enabling Midway Gold (MDW-V) to evaluate one of several targets at its project in Nevada’s Nye Cty.

Initial prospecting at the target, known as North, identified mineralization similar to that seen at the Discovery zone, 8 km to the south. Assays of float samples ranged up to 11.7 grams gold per tonne. Mapping and sampling have failed to locate the source of the mineralized rock, owing to heavy alluvial cover.

The current, reverse-circulation program is testing geophysical, geochemical and geological targets identified over the past 10 months.

Meanwhile, drill samples from the Discovery area are being evaluated, and assays are expected in April. Gold in the Discovery zone is found in a silicified portion of a rhyolite sequence, and, to a lesser extent, inn 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 20th century, and the latter is today a heap-leach operation held by Kinross Gold (K-T) and Barrick Gold (ABX-T).