Midway Gold Corp.

Midway Gold Corp.

April 12, 2006 12:30 ET

Midway Encounters 139.2 Gram/Tonne Gold at West Diatreme Zone, Spring Valley Project, Nevada and Increases Land Holdings

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 12, 2006) - Midway Gold Corp. (TSX VENTURE:MDW) (the "Company") is pleased to report a 139.2 g/t gold intercept and 11.34 g/t gold in two holes of the West Diatreme zone, at the Spring Valley project, in Pershing Co., Nevada. In holes SV06-170 and SV05-166, high-grade gold was encountered in paleo-placer gravels on bedrock which overlie low-grade disseminated gold. These occur on the west flank of a diatreme breccia, 300 meters west of the current gold zones. These gold bearing gravels are derived from the western margin of the Spring Valley diatreme. Gold bearing porphyry was also discovered on the west side of the diatreme. This opens up substantial potential for new discoveries on the west side of the diatreme that may mirror the discoveries in the Pond, Sill, and Porphyry zones on the east side of the diatreme. Listed in the table below are results of five recent holes:

Significant intercepts greater than 10 feet of 0.01 opt gold at
Spring Valley Project, Nevada
True True
Hole Gold Interval Width From To Gold Width Target
ID g/t meters (m) meters meters opt ft Area
SV05-166 11.34 1.5 1.5 97 98 0.328 5 West
0.45 30.5 30.5 198 231 0.013 100 Diatreme
0.31 19.8 19.8 254 276 0.009 65
SV06-167 0.45 3.0 3.0 94 97 0.013 10 West
1.42 3.0 3.0 133 136 0.041 10 Diatreme
0.55 6.1 6.1 148 154 0.016 20
0.31 10.7 10.7 171 182 0.009 35
0.76 1.5 1.5 212 213 0.022 5
SV06-168 1.24 1.5 1.5 153 154 0.036 5 West
0.76 1.5 1.5 161 162 0.022 5 Diatreme
0.76 9.1 9.1 172 182 0.022 30
2.59 1.5 1.5 207 208 0.075 5
1.04 1.5 1.5 235 236 0.03 5
1.56 15.2 15.2 246 262 0.045 50
SV06-169 0.97 1.5 1.5 112 113 0.028 5 West
1.87 1.5 1.5 133 135 0.054 5 Diatreme
1.11 1.5 1.5 210 212 0.032 5
2.77 1.5 1.5 261 262 0.08 5
SV06-170 139.20 1.5 1.5 110 112 4.025 5 West
0.76 1.5 1.5 164 166 0.022 5 Diatreme

(i)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, which could be less
than the interval width. True width is indicated where known. Holes
were drilled by O'Keefe Drilling of Butte, Montana as reverse
circulation drill holes. All sampling was monitored by independent
geologic consultants.

"Midway is extremely pleased with the progress at the Spring Valley project, which could significantly expand the known gold at the West Diatreme," says Alan Branham, President and CEO of Midway. "Gold encountered in porphyry intrusive in the West Diatreme is open in all directions. The Porphyry zone is open along strike and at depth as is the Sill zone to south and at depth. These targets strongly suggest the potential for a deep porphyry gold system beneath the Spring Valley project. A preliminary resource estimate is being conducted for three of known gold zones by AMEC Engineering of Sparks, Nevada. These known zones are still open along strike and may represent only a fraction of the gold potential around the diatreme."

One reverse circulation drill rig is working on the project. A core rig will be mobilized to Spring Valley, in late April, to accelerate the exploration effort. The company is in the final stage of a 50 acre exploration Plan of Operations permit application with the Bureau of Land Management. When approved, the permit will allow the Company to drill up to 500 holes on the project. The potential source of the gold bearing gravels at the West Diatreme target can then be tested. The permit is expected in late May or early June.

Midway has increased its land holdings by staking 194 claims (3880 acres), approximately six square miles. These claims fill gaps between pre-existing Midway claims and those acquired from Coeur d'Alene mines. They also contain new geologic targets. Source areas for placers in Dry Gulch, American Gulch, and in Limerick Canyon are now part of the Midway holdings. The recent Midway claims, the claims purchased from Coeur d'Alene Mining, and previous holdings now total over 500 claims (10,160 acres), which is approximately 15 square miles of mineral rights and 544 acres of private surface.

Details can be reviewed at http://www.midwaygold.com/SpringValley.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 (MSc.), 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 (877) 692-8288 (US Toll Free)