Midway Gold Corp.
TSX VENTURE : MDW

Midway Gold Corp.

February 01, 2006 14:43 ET

Midway Enhances Spring Valley Land Package in Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 1, 2006) - Midway Gold Corp. (the "Company") (TSX VENTURE:MDW) is pleased to announce the strategic purchase of 102 federal mining claims, from Coeur d'Alene Mining Corporation, adjoining its wholly-owned Spring Valley gold project in Pershing County, Nevada.

The claims, which extend the Spring Valley project four kilometres to the south, add over 2,000 acres to the companies land position north, east, and west of Coeur's Rochester mining operation. The claims contain the source basin for the Dry Gulch placers and Gold Hill area.

"With this purchase we nearly double the size of the Company's land holdings and more importantly it opens up the potential for additional discoveries to complement the existing gold zones currently being defined on the Spring Valley project," says Midway Gold's CEO, Alan Branham.

To date, over 165 drill holes have been completed on Midway held lands resulting in the discovery of four gold zones hosted in a buried volcanic neck/diatreme complex located on the main project area. The gold is associated with rhyolite porphyry intrusive, hydrothermal breccias, and quartz tourmaline veins. Included with the claim sale is a complete database of geochemical and drilling data for the area that has already identified several anomalies.

Midway Gold purchased the land package from Coeur d'Alene Mining Corporation for 40,000 shares of Midway stock and Coeur retains a 3% net smelter royalty (NSR) on the claims.

Midway will begin drilling on the project to expand recent gold discoveries in the Porphyry and West Diatreme targets within the next week. Additional project work (geologic mapping, sampling, geophysical surveys, and permitting) will be required before drill testing can begin on these new claims. Details of Midway Gold's projects are available on the Company's website at www.midwaygold.com.

Other Exploration Activities

Midway is currently drilling on the Midway Project, in Nye County, Nevada with two drill rigs to expand the recent Dauntless zone discovery. The Midway gold property information 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 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.

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