Midway Gold Corp.

Midway Gold Corp.

May 23, 2006 14:50 ET

Midway Announces Land Acquisition on Gold Mountain at Spring Valley Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 23, 2006) - Midway Gold Corp. (the "Company") (TSX VENTURE:MDW) is pleased to announce the acquisition of 12 additional claims at its Spring Valley project. The new claims are part of the company's emerging Gold Mountain target located 4 km from a gold bearing diatreme currently being drilled at Spring Valley. The claims are adjacent to land recently acquired from Coeur d'Alene Mines and claims staked by Midway Gold earlier this year.

The Gold Mountain target is focused on the 1.5 km by 1.5 km intermontane Limerick Basin located in the same stratigraphic position as Spring Valley. It has similar host rocks and alteration with significant gold occurrences on the flanks of the basin. The new claims are on the north side of the basin at the source of 1 km long gold placers in Panama Flats. At the head of the placers, gold bearing veins on the property are hosted by 15-30 meter thick porphyry sills. Gold nuggets up to 5 mm across occur in quartz-tourmaline-pyrite veins. Nearby greenstone has been intensely altered to a tourmaline-ankerite assemblage along quartz veins. Strong gold anomalies in soil and rock chip sampling have been identified for 500 meters across the suspected strike of the gold zone. The center of the basin lies 3.4 km from the Rochester open pit silver mine.

Drilling by Great Basin Exploration in 1991 in a private report, to the claim owners, encountered anomalous and ore grade gold mineralization in 19 of 21 drill holes along the north side of Limerick Basin. Drill results suggest four near-surface and one deep gold zones. The deep zone was intercepted by 7 holes along a 1500 foot drill fence that appears to be oblique to the strike and dip of the zone. This drilling was not conducted by Midway Gold and has not been verified except in surface samples collect where the zone comes to the surface in a rhyolite porphyry sill. Details of the sampling procedures of the drilling are not known. Drill samples were assayed by Barringer Laboratories Inc. of Reno, Nevada in 1991.

"We are excited about new gold targets emerging on company land as a result of our improved understanding of the geology at Spring Valley," states Mr. Alan Branham, President and CEO of Midway Gold. "Our Gold Mountain target may be another blind diatreme gold system. These new claims help consolidate a strongly mineralized portion of that target. Geologic mapping, sampling, and geophysical surveys are currently in progress to define priority drill targets. We expect to drill test the target this summer."

The claims were leased with 3% NSR royalty burden, with a $600,000 purchase option, a $12,000 Cash payment and an annual advance royalty payment of $24,000 in the second year and $36,000 in year three and thereafter.

Midway is currently drilling on the Spring Valley property, adjacent to the recently announced resources with a core drill and reverse circulation drill rigs. The drilling is part of a 15,000 meter drill program currently in progress to test extensions of known gold mineralization at the Spring Valley project.

The Spring Valley project information can be viewed at http://www.midwaygold.com/SpringValley.htm.

Details of Midway Gold's other projects are available on the Company's website at www.midwaygold.com.

Midway Gold Corp. is a precious metals exploration company, listed as a Tier 1 issuer on the TSX Venture Exchange under the symbol "MDW". Midway focuses on the creation of value for shareholders by exploring and developing high-grade, quality precious metal resources in stable mining areas.

This release has been reviewed and approved by Company President and CEO Alan Branham (P.Geol.), a "qualified person" as that term is defined in National Instrument 43-101.


Alan Branham, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Midway Gold Corp.
    Ron Cooper
    (604) 986-0112 (Canada) or Toll Free: 1-877-692-8288