Midway, Barrick boost Spring Valley resource to 5.5 Moz. gold

VANCOUVER — Midway Gold (TSX: MDW; NYSE-MKT: MDW) is best known for its pair of development stage assets in Nevada — namely its Pan and Gold Rock projects in White Pine County — but the company also has a joint venture with Barrick Gold (TSX: ABX; NYSE: ABX) in the state at the Spring Valley property, 32 km northeast of the town of Lovelock.

Spring Valley is a porphyry diatreme hosted gold system situated beneath pediment gravels. Gold occurs along the top of a porphyry intrusion, and in overlying volcanic rocks, at stratigraphic contacts, in fracture zones, and in the remains of a diatreme breccia. Gold mineralization is seen in sheeted quartz veins, hydrothermal breccias, and open fractures.

Midway and Barrick struck a formal joint venture agreement in February after the major met its expenditure requirements at Spring Valley more than a year ahead of schedule. Barrick spent US$38 million on the project to earn its 70% interest, though Midway opted to relinquish a further 5% interest in order to be carried to production free of any additional payments or capital outlays. The junior will then pay back its share of development capital from production cash flow.

Read the complete article at NorthernMiner.com/news/midway-barrick