Midway taps Spring Valley gold (January 23, 2006)

Vancouver — Drilling by Midway Gold (MDW-V, MDWGF-O) on its Spring Valley project, in Pershing Cty., Nevada, continues to expand gold mineralization at the Porphyry and Sill zones.

A dozen new holes returned numerous wide, gold-mineralized intercepts. Vertical hole SV05-144 cut 24.4 metres (from 29 metres below surface) grading 3.3 grams gold per tonne in the Sill zone. Another vertical hole (SV05-153) at Sill intersected 15.2 metres (from 165 metres) of 4.7 grams gold.

In the Porphyry zone, hole SV05-163 returned 12.2 metres (from 165 metres) of 1.5 grams gold. Visible gold was noted in some of the Porphyry zone holes, with assays pending.

Midway has engaged engineering firm AMEC to conduct a preliminary resource calculation of the Pond, Porphyry and Sill zones at Spring Valley. The company has drilled over 100 holes on Spring Valley since acquiring it in 2003.

Gold mineralization at the project is hosted in altered Permo-Triassic rhyolite breccias, flows, tuffs, porphyry dikes and sills intruding along a large diatreme vent complex that measures about 1 by 2 km. A 15-60 metre cap of gravel covers the project area.

On its Midway project, near Tonopah in southwestern Nevada, a 20-hole, 3,000-metre, reverse-circulation drill program is under way to test the Dauntless zone where intercepts of up to 12 grams gold over 53.3 metres were encountered in fall 2005 drilling.

Following the release of the drill results on Jan. 6, investors pushed the stock up over 26%, or 45, to a more than 1-year high of $2.15 per share on trading volume of over 300,000.