Newmont walks away from Midway (June 21, 2004)

Vancouver — After spending US$3.5 million and drilling more than 100 holes on the Midway gold project in Nevada’s Nye Cty., Newmont Mining (NEM-N) has decided to call it quits.

The major cancelled its joint-venture agreement with Midway Gold (MDW-T), which was signed in Setember 2002 after the latter reported large chunks of gold in drill core. However, the extent of the mineralization did not meet Newmont’s expectations.

The last round of drilling was designed to test for deeper, bonanza veins in the vicinity of the Enterprise, Cross Fault, Nautilus, 121, and South Discovery zones. The major completed 22 angle holes in the final phase, including 15 HQ core tails (5,874 ft.) and seven reverse-circulation holes (10,195 ft.).

Midway has reported assays for 19 holes (assays for three others are pending). Highlights include 9.3 grams gold per tonne over 3.1 metres at a depth of 76.2 metres in the Cross Fault area, and 12.2 metres grading 1.4 grams gold at a depth of 51.8 metres in the South Discovery zone. Drilling in the Enterprise zone failed to turn up any significant intercepts.

Midway will review all the data Newmont has obtained from the work and then decide how to advance the project.