Spring Valley is a joint venture (the "Spring Valley Joint Venture") between Barrick Gold Corp. ("Barrick") holding 75% and Midway holding 25%.
Midway has reported an increase in the measured and indicated mineral resource category and an increase in gold grade from the 2011 to the 2014 resource estimate. A total of 672 drill holes are included in the 2014 resource estimate and include data from an additional 153 holes drilled since the 2011 resource estimate. In addition, Midway has reported that Barrick has increased the 2014 project budget to $17.4 million which includes $9 million for continued in-fill drilling and $8.4 million for preparation of an internal pre-feasibility study and other related project development expenditures required for mine planning (refer to Midway press release dated August 12, 2014).
Terraco has gold royalty coverage of up to 3% net smelter returns royalty ("NSR") on claims covering the majority of Spring Valley and also controls over 35 square kms of early-stage exploration potential (the Moonlight Project) adjoining the Spring Valley Joint Venture to the north.
Terraco shareholders are encouraged to review Midway’s press release of August 12, 2014 and the National Instrument 43-101 technical report summarizing the updated mineral resource estimate on Spring Valley which is expected to be filed by Midway on sedar.com on or before September 26, 2014, and available under Midway’s profile.
"Terraco is pleased to see the continued growth at the Spring Valley Barrick/Midway joint venture project. Our royalty structure, of up to 3% NSR, is a flagship Nevada royalty and a lead asset to our Company. Shareholders of Terraco should be very encouraged by developments outlined in Midway’s August 12th release which we believe will result in additional value for our shareholders. Additional exploration potential was also highlighted in the Midway release as the current mineral resource is open to the south, northwest and at depth. A number of high potential drill targets were also identified outside the current resource area. The Spring Valley project as a whole bodes well for our royalty holdings and adjoining Moonlight Project," said Todd Hilditch, President and Chief Executive Officer of Terraco.
