Barrick Gold Corp. has published a first resource at Spring Valley, Midway Gold Corp.'s joint venture project in Nevada. Spring Valley is currently in the pre-feasibility stage and that study is expected to be complete in late 2015. Barrick, the operator of the project, has also provided to Midway their planned expenditures in 2015.
Barrick's Initial Spring Valley Resource Estimate & 2015 Planned Expenditures
The initial resource, announced by Barrick on February 18, 2015 can be found in their Fourth Quarter 2014 Results. The resource was calculated using a gold price of $1,400/oz and Barrick reported, "There is good potential to expand the current resource at higher gold prices." As Barrick advances Spring Valley toward a potential production decision, they have budgeted $11 million for the project in 2015, which includes $1 million for continued exploration and $10 million for preparation of an internal pre-feasibility study and other related project development expenditures. Planned development activities will include additional metallurgical studies, hydrological studies, geochemistry studies, environmental baseline studies, geotechnical wall rock stability studies required for mine planning, land related expenses and condemnation drilling.
Spring Valley Project, NevadaSpring Valley is a large porphyry-hosted gold system located about 20 miles northeast of Lovelock in Pershing County, Nevada. Barrick achieved their earn-in by spending $38 million to earn a 70 percent interest in the project (see February 24, 2014 press release). The project is now run as a joint venture with Barrick as manager. Midway converted its 30% interest into a 25% free-carried interest in Spring Valley and will be carried to production, at which point Midway will pay back its share of development capital from production.
Barrick's Resource Differs from Midway's Technical Report
The resource information released by Barrick differs from that published by Midway. Barrick applied its own parameters in arriving at its resource. Barrick is not required to prepare a National Instrument 43-101 compliant technical report with respect to its Spring Valley Resource calculations. In 2014, Midway produced a 43-101 compliant mineral resource estimate based on data provided by Barrick at that time and applied the parameters as described in its technical report. Please refer to Midway's Amended NI 43-101 Technical Report on Resources Spring Valley Project (January 2015) filed on SEDAR and available at our website, www.midwaygold.com, for our technical report prepared in accordance with NI 43-101 and the details of Midway's resource information.