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Midway Gold (MDW:TSX) released assays from their joint venture Spring Valley project in Nevada with operating partner Barrick Gold (ABX:TSX).  Barrick earned a 60% interest in the project in April and has exercised its option to earn in an additional 10% by spending $8 million.  Barrick funds 100% of the exploration and development through to production for which Midway will give up an additional 5% (retaining a total of 25% interest in the project).  Highlights of the assays include hole SV13-625 which intersected 113m of 4.53g/t gold and SV13-625 which intersected 102m of 3.15g/t gold. These are impressive holes for a project that will likely be an open-pit operation.  However, most of these holes are infill in nature.

Midway Gold (MDW:TSX) 3-year Chart

News Release here: Midway Announces Q2 Drilling Results at Spring Valley

Spring Valley is Midway’s third pipeline asset.  The Pan project, also located in Nevada, is Midway’s focus.  It is a Carlin-style, simple, open-pit heap leach development project which is in the final permitting phase in a pro-mining jurisdiction.  Midway expects to be in production there by 2014, producing over 80,000 ounces a year at $585 per ounce cash cost.  The ore at Pan starts at surface making for little to no pre-stripping with a life-of-mine strip of 1.8:1.  Leaching times and recovery rates are also attractive with 75% recoveries during a 45-day leaching cycle.

The project will cost approximately $100 million to put into production, although they are currently looking at ways to optimize it.  The company is financially backed by Hale Capital Partners, which is a heavy-hitting, resource private equity group that put $70 million into Midway in late 2012.  Midway has also lined up attractive leasing and financing rates with Caterpillar for the project.  Watch for Midway to receive final permits and begin to construct late this year and early into 2014.

The company is also working on the Gold Rock project which is a Pan-style deposit located only 8km away from Pan.  They are currently working to develop a mine plan and to initiate the environmental permitting process.