Midway Gold Corp.
TSX VENTURE : MDW

Midway Gold Corp.

January 20, 2006 09:00 ET

Midway Cuts 27.4 Metres Grading 6.82g/t Gold in Porphyry Zone at Spring Valley, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 20, 2006) - Midway Gold Corp. (the "Company") (TSX VENTURE:MDW) is pleased to report that ongoing drilling continues to extend gold discoveries on the Spring Valley project in Pershing County, Nevada.

Drill holes SV05-164 with 27.4m/6.82g/t gold (90'/0.199opt) and SV05-164 21.3m/1.03g/t gold (70'/0.030opt) were drilled 200 feet apart on the edge of the porphyry zone. This zone is still open to the north. Drill hole SV05-166 encountered a new area of intrusive-hosted gold on the west side of the diatreme. The table below shows results of seven holes completed in December 2005.



Significant intercepts greater than 10 feet of 0.01opt gold at
Spring Valley Project, Nevada

------------------------------------------------------------------------
Drill
Interval Gold Width Gold Interval End
HoleID Metres gm/tonnes Feet opt start- ft Feet Target Zone
------------------------------------------------------------------------
SV05-112c 3.0 1.44 10 0.042 271 281 Pond
------------------------------------------------------------------------
16.5 0.74 54 0.022 299 353 Pond
------------------------------------------------------------------------
includes 1.5 5.21 5 0.152 348 353 Pond
------------------------------------------------------------------------
81.1 0.38 266 0.011 389 655 Pond
------------------------------------------------------------------------
4.9 0.48 16 0.014 726 742 Pond
------------------------------------------------------------------------
SV05-112c 8.2 0.62 27 0.018 887 914 Pond
------------------------------------------------------------------------
SV05-130 4.6 0.69 15 0.020 440 455 Pond
------------------------------------------------------------------------
SV05-159 13.7 3.36 45 0.098 70 115 Sill
------------------------------------------------------------------------
includes 1.5 18.55 5 0.541 80 85 Sill
------------------------------------------------------------------------
SV05-162 35.1 0.58 115 0.017 600 715 Porphyry
------------------------------------------------------------------------
SV05-164 33.5 0.51 110 0.015 440 550 Porphyry
------------------------------------------------------------------------
27.4 6.82 90 0.199 700 790 Porphyry
------------------------------------------------------------------------
includes 1.5 56.57 5 1.650 715 720 Porphyry
------------------------------------------------------------------------
includes 1.5 23.01 5 0.671 735 740 Porphyry
------------------------------------------------------------------------
includes 1.5 21.09 5 0.615 775 780 Porphyry
------------------------------------------------------------------------
SV05-165 21.3 1.03 70 0.030 545 615 Porphyry
------------------------------------------------------------------------
SV05-166 1.5 11.25 5 0.328 295 300 W. Diatreme
------------------------------------------------------------------------
3.0 2.13 10 0.062 605 615 W. Diatreme
------------------------------------------------------------------------
4.6 0.41 15 0.012 645 660 W. Diatreme
------------------------------------------------------------------------
SV05-166 1.5 2.81 5 0.082 700 705 W. Diatreme
------------------------------------------------------------------------

- The intervals with abundant quartz veining and assays in excess of
1g/t gold are analyzed by 1000 gram metallic screen fire assays. The
remainder of the holes are analyzed by standard 30 gram fire assays at
ALS-Chemex labs, in Sparks, Nevada. The Interval Width is the down hole
length of the gold intercept and not the true width. Holes were drilled
by O'Keefe and Layne Christensen Drilling companies as reverse
circulation drill holes, unless indicated with a "c" suffix which
indicates HQ core, drilled by Kirkness Drilling, Carson City, Nevada.
All sampling was monitored by independent geologic consultants.


The Spring Valley gold discovery is increasing in size and appears to be open along strike and at depth. The higher grade gold noted in the Sill and Porphyry zones are hosted in rhyolite porphyry dikes and small plugs, intruding along the edge of a large diatreme volcanic vent complex. The gold is hosted in shattered quartz-tourmaline veins, as disseminated stockworks and late breccias that cut the veins. Hole SV05-166 had a surprising 11.25g/t gold intercept at the top of bedrock, a type of paleo-placer. The source of this placer gold is thought to be in an as-yet-untested area to the west.

Drilling is planned to resume next week, weather permitting, as extremely bad weather has hampered access to the site. A 40,000 foot drill program is planned for the first phase of 2006. Approximately 172 holes have been completed at Spring Valley with three large zones of gold identified over a 600m (2000ft) by 500m (1500ft) area along the east side of the large diatreme volcanic vent. Anomalous gold in drill intercepts has been encountered over a 600m (2000ft) by 1520m (5000ft) area that includes the west side of the diatreme. Gold has been encountered from top of bedrock to greater than 300m (1000ft) depth. Midway plans to continue aggressively exploring the project. Details can be reviewed at http://www.midwaygold.com/SpringValley.htm.

Other Exploration Activities

Midway also has two drill rigs currently operating on the Midway project, located halfway between the Round Mountain and Goldfield gold districts in south central Nevada. Drilling is testing the expansion of a new high-grade vein discovery. Details for the Midway project can be viewed at: http://www.midwaygold.com/Midway.htm.

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 aggressively exploring and developing high-grade, quality precious metal resources in stable mining areas. Details of Midway Gold's projects are available on the Company's website at www.midwaygold.com.

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.

ON BEHALF OF THE BOARD

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 1-877-692-8288 (US Toll Free)
    www.midwaygold.com