Midway drills Spring Valley

A reverse-circulation drill program is testing a strong gold prospect at the Spring Valley property in Nevada’s Pershing Cty.

Midway Gold (MDW-V) will drill 3,000 metres in order to test a gold-bearing rhyolite intersected in hole ESV-2. The hole averaged 2.16 grams per tonne over 72 metres.

Mineralization is hosted by oxidized, quartz-sericite-pyrite altered rhyolite of the Rochester formation. Gold is typically found in the quartz veins, and coarse grains are noted.

Results are pending for the first hole, SV-20, collared 125 metres east of the discovery hole. After cutting through 21 metres of alluvium, the hole pulled up 192 metres of variably altered and oxidized rhyolite, which, between 178 and 198 metres, was stockworked.

The hole bottomed at 213 metres, in weakly altered flow-banded rhyolite.

Midway notes that the targeted area is topographically above a historic placer operation, which worked about 15-61 metres of alluvium. To prevent contamination, all holes are being cased down to the bedrock. About 12 holes will be drilled in all.

To earn 100% interests in 72 claims, Midway must pay the vendors US$3.9 million and spend US$600,000 on exploration. It is also subject to a net smelter return royalty should commercial production be achieved.

Midway also owns the Midway project, where partner Newmont Mining (NEM-N) is drilling a low-sulphidation, quartz-andularia zone in rhyolite volcanics and volcaniclastics (T.N.M., June 9/03).

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