Midway jumps on Nevada discovery

Reverse-circulation drilling Midway Gold (MDW-T) has cut a new zone of high-grade gold mineralization on the Midway project in Nye Cty., Nevada.

The best result from seven recently completed holes comes in hole no. 399, which yielded 53.3 metres averaging 12 grams gold per tone, including 21.3 metres of 26.9 grams gold. The angled hole was collared across an untested fault zone around 150 metres southeast of the main Discovery zone.

Selected results from the remaining holes include:

• Hole 398 — 42.7 metres of 0.6 gram gold ;
• Hole 400 — 3 metres of 1 gram gold;
• Hole 401 – 3 metres of 1.1 grams gold;
• Hole 402 – 41 metres of 2 grams, and 3 metres of 9.8 grams; and
• Hole 404 – 3 metres of 0.3 gram gold.

The new zone, dubbed Dauntless, is open to the north and south, and is situated 61 metres below surface. The company believes the zone may represent a feeder zone for the Main Discovery zone.

The zone is entirely oxidized with abundant visible gold in the drill cuttings. It is hosted by the basement Palmetto argillite and contains abundant dikes and veins. The high-grade gold zones in the Palmetto argillite are typically found in favourable structural traps at a distinct elevation control. Midway is currently reviewing previous drill holes to identify potential exploration targets based on this model.

Midway also thinks hole no. 402, which targeted an extension of the north end of the Discovery zone, may have cut an up-dip extension of the new Dauntless zone.

Assay results for hole no. 403 are pending.

Midway plans further drilling to define the true width and orientation of the zones. The company is also reviewing more than a dozen other targets.

Drilling will begin in November or early December.

Shares in Midway were 19, or 12%, higher at $1.77 in late afternoon trading in Toronto following the news on Sept. 28.