Barrick Announces First Resource at Spring Valley
February 25 2015 - 7:30AM
Business Wire
Midway Provides 2015 Budget and Progress
Update
Midway Gold Corp. (TSX and NYSE-MKT: MDW) (the “Company” or
“Midway”) announces that Barrick Gold Corporation (“Barrick”) has
published a first resource at Spring Valley, the Company’s joint
venture project in Nevada. Spring Valley is currently in the
pre-feasibility stage and that study is expected to be complete in
late 2015. Barrick, the operator of the project, has also provided
to Midway their planned expenditures in 2015.
Barrick’s Initial Spring Valley Resource Estimate & 2015
Planned Expenditures
The initial resource, announced by Barrick on February 18, 2015
can be found in their Fourth Quarter 2014 Results. The resource was
calculated using a gold price of $1,400/oz and Barrick reported,
“There is good potential to expand the current resource at higher
gold prices.”
As Barrick advances Spring Valley toward a potential production
decision, they have budgeted $11 million for the project in 2015,
which includes $1 million for continued exploration and $10 million
for preparation of an internal pre-feasibility study and other
related project development expenditures. Planned development
activities will include additional metallurgical studies,
hydrological studies, geochemistry studies, environmental baseline
studies, geotechnical wall rock stability studies required for mine
planning, land related expenses and condemnation drilling.
Spring Valley Project, Nevada
Spring Valley is a large porphyry-hosted gold system located
about 20 miles northeast of Lovelock in Pershing County, Nevada.
Barrick achieved their earn-in by spending $38 million to earn a 70
percent interest in the project (see February 24, 2014 press
release). The project is now run as a joint venture with Barrick as
manager. Midway converted its 30% interest into a 25% free-carried
interest in Spring Valley and will be carried to production, at
which point Midway will pay back its share of development capital
from production.
Barrick’s Resource Differs from Midway’s Technical
Report
The resource information released by Barrick differs from that
published by Midway. Barrick applied its own parameters in arriving
at its resource. Barrick is not required to prepare a National
Instrument 43-101 compliant technical report with respect to its
Spring Valley Resource calculations. In 2014, Midway produced a
43-101 compliant mineral resource estimate based on data provided
by Barrick at that time and applied the parameters as described in
its technical report. Please refer to Midway’s Amended NI 43-101
Technical Report on Resources Spring Valley Project (January 2015)
filed on SEDAR and available at our website, www.midwaygold.com,
for our technical report prepared in accordance with NI 43-101 and
the details of Midway’s resource information.
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to
explore, design, build and operate gold mines in a manner
accountable to all stakeholders while assuring return on
shareholder investments.
Midway Gold Corp.Jaime Wells, 720-979-0900Investor
Relationswww.midwaygold.com
Neither the TSX its Regulation Services Provider (as that term
is defined in the policies of the TSX) nor the NYSE MKT accepts
responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements about the
Company and its business. Forward looking statements are statements
that are not historical facts and include, but are not limited to,
statements about the Company's intended work plans and resource
estimates, including plans for the further development of the
Spring Valley Project and plans for a preliminary economic
assessment in relation to the Spring Valley Project.
Forward-looking statements are typically identified by words such
as: “may”, “should”, “plan”, “believe”, “predict”, “expect”,
“anticipate”, “intend”, “estimate”, postulate” and similar
expressions or the negative of such expressions or which by their
nature refer to future events. The forward-looking statements in
this press release are subject to various risks, uncertainties and
other factors that could cause the Company's actual results or
achievements to differ materially from those expressed in or
implied by forward looking statements. These risks, uncertainties
and other factors include, without limitation, risks related to the
timing and completion of intended work plans, risks related to
fluctuations in gold prices; uncertainties related to raising
sufficient financing to fund the planned work in a timely manner
and on acceptable terms; changes in planned work resulting from
weather, logistical, technical or other factors; the possibility
that results of work will not fulfill expectations and realize the
perceived potential of the Company's properties; uncertainties
involved in the interpretation of drilling results and other tests
and the estimation of gold resources and reserves; the possibility
that required permits may not be obtained on a timely manner or at
all; the possibility that capital and operating costs may be higher
than currently estimated and may preclude commercial development or
render operations uneconomic; the possibility that the estimated
recovery rates may not be achieved; risk of accidents, equipment
breakdowns and labor disputes or other unanticipated difficulties
or interruptions; the possibility of cost overruns or unanticipated
expenses in the work program; changes in interest and currency
exchanges rates; local and community impacts and issues;
environmental costs and risks; and other factors identified in the
Company's SEC filings and its filings with Canadian securities
regulatory authorities. Forward-looking statements are based on the
beliefs, opinions and expectations of the Company's management at
the time they are made, and other than as required by applicable
securities laws, the Company does not assume any obligation to
update its forward-looking statements if those beliefs, opinions or
expectations, or other circumstances, should change. Although the
Company believes that such forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. For the reasons set forth above, investors
should not attribute undue certainty to or place undue reliance on
forward-looking statements.
Cautionary note to U.S. investors concerning estimates of
reserves and resources: This press release and the documents
referenced in this press release use the terms “reserve" and
"mineral resource“, which are terms defined under Canadian National
Instrument 43-101 and the Canadian Institute of Mining and
Metallurgy Classification system. Such definitions differ from the
definitions in U.S. Securities and Exchange Commission ("SEC")
Industry Guide 7. Under SEC Industry Guide 7 standards, a
"final" or "bankable" feasibility study is required to report
reserves, the three-year historical average price is used in any
reserve or cash flow analysis to designate reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority. Mineral resources are not mineral reserves
and do not have demonstrated economic viability. The SEC normally
only permits issuers to report mineralization that does not
constitute SEC Industry Guide 7 compliant "reserves" as in-place
tonnage and grade without reference to unit measures. The
references to a “resource” in this press release and the documents
referenced in this press release are not normally permitted under
the rules of the SEC. It cannot be assumed that all or any part of
mineral deposits in any of the above categories will ever be
upgraded to Guide 7 compliant reserves. Accordingly, disclosure in
this press release and in the technical reports referenced in this
press release may not be comparable to information from U.S.
companies subject to the reporting and disclosure requirements of
the SEC.
Midway Gold Corp.Jaime Wells, 720-979-0900Investor
Relationswww.midwaygold.com
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