Midway Gold Corp.
TSX VENTURE : MDW

Midway Gold Corp.

December 05, 2006 14:33 ET

Midway Discovers More New Gold in Three Areas at Spring Valley Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 5, 2006) - Midway Gold Corp. (the "Company") (TSX VENTURE:MDW) is pleased to announce the discovery of 29 meters of 4.77 g/t gold (95 feet of 0.154 opt gold) and 44.2 meters of 1.27 g/t gold (145 feet of 0.037 opt gold) at the West Diatreme target, in the Spring Valley project. In addition, several high-grade intercepts of 67.4 g/t, 11.9 g/t, and 8.4 g/t gold (1.97 opt, 0.35 opt, and 0.25 opt gold respectively) were discovered in the North Hill area. A third target, the Limerick Basin area, four kilometres west of the Spring Valley Diatreme has also intercepted high-grade gold with the first two holes returning 1.5 meters of 68.1 g/t gold (1.98 opt) and 6.1 meters of 1.68 g/t gold (0.049 opt). The results of twenty holes, testing these targets are listed below.

This year at Spring Valley, Midway has completed 79 holes for a total of 19,115 meters (62,711 feet). All except two deep core tests were drilled outside the reported resource. Most of the drilling focused around the 1.5 km long by one kilometer wide Spring Valley diatreme, which is covered with 15 to 150 meters of gravel. Fifty-seven of the holes have encountered gold. The best gold continuity, thickness, and grade encountered outside the resource has been in North Hill, West Diatreme and Porphyry areas. Thirteen holes are pending assays, eight holes had no significant gold, and one hole could not be completed. Two drills are currently actively exploring the Limerick and West Diatreme areas.



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Limerick Basin Exploration Holes
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True Depth
Hole ID Assay Gold Interval Width Hole- From To Gold Interval
Type g/t/t Meters m m Meters opt Feet
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LM06-01 No significant assays 157
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LM06-05 FA 1.68 6.1 ? 158 229.7 236.2 0.049 20
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LM06-07 FA 68.09 1.5 ? 61 12.2 13.7 1.986 5
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Reverse circulation drilling was conducted by O'Keefe Drilling of Butte, Montana and Layne Christensen of Chandler, Arizona. Drill holes with a (c) suffix are diamond HQ core holes, which were drilled by Kirkness Drilling of Carson City, Nevada. The holes were assayed by 30 gram fire assays (denoted as FA) by ALS-Chemex labs, in Sparks, Nevada. In zones with gold or obvious veining, intense silicification, or noted with visible gold, check assays of 1000 gram metallic screen fire assays (denoted as MS assay type) are conducted at ALS-Chemex. All the sampling was conducted by independent contractors hired by Midway Gold Corporation. True widths are shown if known.

Results from the Limerick Basin tests are especially encouraging since this represents a zone similar to the high-grade Sill zone in which gold is present as quartz-tourmaline stock work veins hosted in rhyolite porphyry sill. The zone starts at the surface, varies from 12 to 46 meters (40 to 150 feet) thickness, and dips to the southwest. The zone was identified by soil and rock chip anomalies. The zone is open in all directions. Results from the West Diatreme Zone are shown below.



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West Diatreme Holes- Spring Valley Project
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Drill
Hole True Depth
Hole ID Assay Gold Interval Width Hole- From To Gold Interval
Type gpt Meters m m Meters opt Feet
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SV06-212 No significant intercepts 152
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SV06-213 FA 1.41 1.5 1.3 238 183.7 185.4 0.041 5
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SV06-214 FA 0.82 53.3 44.7 73.8 131.2 0.024 175
MS 1.13 1.5 1.3 73.8 75.5 0.033 5
(Checks) MS 1.27 44.2 37.1 83.7 131.2 0.037 145
MS 13.95 1.5 1.3 includes 0.407 5
FA 0.82 1.5 1.3 144.4 146.0 0.024 5
FA 0.62 7.6 6.4 244 154.2 162.4 0.018 25
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SV06-215 FA 0.58 1.5 0.9 109.9 111.5 0.017 5
FA 0.34 1.5 0.9 244 218.2 219.8 0.010 5
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SV06-216 Assays of significance but error in standard; being re-assayed
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SV06-217 FA 5.28 6.1 3.5 157.5 164.0 0.154 20
FA 14.43 1.5 0.9 includes 0.421 5
FA 0.55 1.5 0.9 170.6 172.2 0.016 5
FA 0.82 1.5 0.9 188.6 190.3 0.024 5
FA 0.51 6.1 3.5 196.8 203.4 0.015 20
FA 0.75 7.6 4.4 224.7 232.9 0.022 25
Additional assays/
checks pending 244
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SV06-218 FA 1.47 3.0 1.8 134 137.8 141.1 0.043 10
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SV06-219 FA 4.77 29.0 16.7 113.2 144.4 0.139 95
FA 68.81 1.5 0.9 includes 2.007 5
FA 16.29 1.5 0.9 includes 0.475 5
FA 1.47 3.0 1.8 165.7 169.0 0.043 10
FA 3.67 1.5 0.9 180.4 182.1 0.107 5
FA 0.62 1.5 0.9 213.3 214.9 0.018 5
Additional assays pending 226
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SV06-220C No significant intercepts 294
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SV06-227 FA 0.75 1.5 0.9 213.3 214.9 0.022 5
Additional assays pending 256
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SV06-228 FA 0.86 7.6 5.7 98.4 106.6 0.025 25
FA 4.94 1.5 1.1 124.7 126.3 0.144 5
FA 0.45 15.2 11.4 134.5 150.9 0.013 50
FA 1.34 1.5 1.1 175.5 177.2 0.039 5
FA 1.65 6.1 4.6 216.5 223.1 0.048 20
FA 6.14 1.5 1.1 includes 0.179 5
FA 1.17 1.5 1.1 256 264.1 265.7 0.034 5
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The West Diatreme discovery continues to expand. Gold occurs along the edges of porphyry dikes and sills, within high-angle faults, and along volcanic contacts along the west edge of the Spring Valley diatreme. The intrusive rocks occur along a splay of the Black Ridge Fault that controls a portion of the Rochester silver-gold deposit, three kilometres to the south. Native gold is associated with stock works and quartz veins. The current West Diatreme zone is 200 meters wide by over 300 meters long (700 by 1000 feet). Fourteen of seventeen holes drilled in the area have encountered gold, defining the zone, which is open to the northwest, southwest and at depth. Results from the North Hill Area are shown below.

Drill Results of North Hill and Porphyry Area, Spring Valley Project



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True Depth
Hole ID Assay Gold Interval Width Hole- From To Gold Interval
Type g/t/t Meters m m Meters opt Feet
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SV06-210C MS 0.34 8.2 6.9 39.0 47.9 0.010 27
MS 0.75 2.4 2.0 110.6 113.2 0.022 8
FA 0.51 10.4 8.7 148.6 159.8 0.015 34
FA 0.72 11.6 9.7 164.7 177.2 0.021 38
FA 0.62 6.1 5.1 183.1 189.6 0.018 20
FA 0.48 3.0 2.6 225.1 228.3 0.014 10
MS 1.20 3.0 2.6 362.9 366.1 0.035 10
Additional assays pending 443
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SV06-211 No significant assays 209
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SV06-221C MS 0.38 6.7 6.7 73.8 81.0 0.011 22
MS 1.17 3.7 3.7 87.6 91.5 0.034 12
MS 0.34 10.4 10.4 102.4 113.5 0.010 34
FA 6.38 7.3 6.1 211.3 219.2 0.186 24
FA 67.41 0.6 0.5 includes 1.966 2
FA 0.51 5.8 4.9 222.8 229.0 0.015 19.5
Additional assays pending 304
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SV06-222 FA 1.06 3.0 3.0 201 21.3 24.6 0.031 10
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SV06-223C FA 3.05 4.6 3.2 93.5 98.4 0.089 15
FA 0.82 33.2 23.3 105.0 140.7 0.024 109
FA 11.90 1.5 1.1 includes 0.347 5
FA 0.45 1.5 1.1 157.5 159.1 0.013 5
Additional assays pending 284
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SV06-224 Assays pending 244
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SV06-225 Assays pending 232
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SV06-226 Drill problems - lost hole 85
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SV06-229 Assays pending 256
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SV06-230 FA 1.92 9.1 5.3 121.4 131.2 0.056 30
FA 6.55 1.5 0.9 includes 0.191 5
FA 3.87 1.5 0.9 includes 0.113 5
FA 0.51 1.5 0.9 229.7 231.3 0.015 5
FA 8.40 1.5 0.9 244 257.5 259.2 0.245 5
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SV06-231 Assays pending 256
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SV06-232 Assays pending 134
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SV06-233 Assays pending 207
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SV06-234 Assays pending Gold noted 238
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Drilling on the North Hill and Porphyry area continues to identify new high-grade gold intercepts that are open to the north and northwest. Additional drilling will be necessary to delineate the orientation and extent of these zones. Gold is hosted in rhyolite porphyries.

"These results continue to illustrate the size and strength of the Spring Valley project," says Alan Branham, President and CEO of Midway. "We are excited that the known gold inventory continues to expand on the project and are especially pleased to see multiple high-grade intercepts spread throughout the project area, on this widespread drilling. The preliminary results at Limerick Basin are very significant, since the new discovery is of shallow, high-grade gold, identical to our Sill zone in Spring Valley." Midway plans to continue drilling with two drill rigs through the winter, as access and permits allow. Assay results continue to be delayed up to 90 days in the commercial labs due to the unusually high exploration activity in Nevada. With the recent placement with Barrick Gold Corporation, Midway is well funded for continued exploration and potential expansion of the discoveries. This summer, geologic mapping, geochemical sampling, and geophysical surveys identified nine new significant targets on the fifteen square mile claim block, several of these targets had outcropping gold. Midway is currently permitting these targets and has secured two drill rigs for additional exploration work in early 2007.

Other Exploration Projects Update

Midway Project, Nye County, Nevada

Exploration and hydrologic drilling is currently in progress at the Midway project, in Nye County, Nevada with one reverse circulation drill rig. Sixteen hydrologic holes and ten exploration holes are planned by the end of the year. The hydrology holes will determine water characterization for planning and permitting of an underground exploration decline into the Discovery and Dauntless deposits. The ten exploration holes will test three near surface high-grade gold targets up to 1200 feet from the know resources. Recent computer modelling identified vein targets similar to the Dauntless Zone which encountered up to 30.5 meters of 15.41 g/t gold at a 76 meter depth early in the year.

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

Details of Midway Gold's 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 (MSc. and CPG), 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.

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