Midway Gold Corp.
TSX VENTURE : MDW
NYSE Amex : MDW

Midway Gold Corp.

August 05, 2009 08:01 ET

Midway Files NI 43-101 Technical Report for Gold Resource at Golden Eagle

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2009) - Midway Gold Corp. ("Midway") (TSX VENTURE:MDW)(NYSE Amex:MDW) announces the filing of an NI43-101 Technical Report on SEDAR to support the Golden Eagle resource announcement dated June 25 2009. The Indicated resource is 31.4 million tons grading 0.055 ounce per ton (opt) gold, containing 1.744 million ounces of gold using a 0.020 opt gold cut-off. There is an additional Inferred resource of 5.1 million tons grading 0.038 opt gold, containing 192,000 ounces of gold.

"Golden Eagle demonstrates the rapid growth Midway is making through aggressive exploration and acquisition. It joins our other three NI43-101 gold resources, the Spring Valley, Pan, and Midway projects in Nevada," said Alan Branham, President and CEO of Midway Gold Corp. "Drill data indicates that there is additional growth potential to the west and north of Golden Eagle and at depth. Our next step will be drilling to test near-surface oxide zones and to test potential expansion to the west."



Table 1: Golden Eagle Gold Resource

Indicated Resource Reported within an Optimal Pit Shell
using $750 Gold Price
--------------------------------------------------------
Cut-Off Grade Short Tons Gold Grade Contained Gold
(opt gold) (millions) (opt) (ounces)
--------------------------------------------------------
0.010 43.0 0.045 1,915,000
--------------------------------------------------------
0.020 31.4 0.055 1,744,000
--------------------------------------------------------
0.030 23.4 0.066 1,545,000
--------------------------------------------------------
0.040 17.9 0.076 1,355,000
--------------------------------------------------------
0.050 13.8 0.085 1,173,000
--------------------------------------------------------


Inferred Resource Reported within an Optimal Pit Shell
using $750 Gold Price
--------------------------------------------------------
Cut-Off Grade Short Tons Gold Grade Contained Gold
(opt gold) (millions) (opt) (ounces)
--------------------------------------------------------
0.010 11.6 0.024 284,000
--------------------------------------------------------
0.020 5.1 0.038 192,000
--------------------------------------------------------
0.030 3.0 0.047 143,000
--------------------------------------------------------
0.040 1.8 0.055 100,000
--------------------------------------------------------
0.050 0.9 0.066 61,000
--------------------------------------------------------

Notes for Indicated and Inferred Resources reported:
1. The most likely cut-off grade for this deposit is not
known at this time and must be confirmed by the
appropriate economic studies.
2. Tons and ounces have been rounded and this may result
in minor discrepancies in the totals.
3. The estimated metal content does not include any
consideration of mining, mineral processing, or
metallurgical recoveries.
4. Historical underground workings have been depleted
from the mineral resource. This resulted in a decrease
from the June 25, 2009 announcement of 25,000 oz in
the Indicated category and 2000 oz in the Inferred
category at the 0.020 opt cut-off.


The resource estimate presented in this press release has been prepared in accordance with National Instrument NI 43-101 of the Canadian Securities Administrators (CSA), and in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. It was conducted under the supervision of Eric Chapman (M.Sc., C.Geol), Snowden Mining Industry Consultants Inc. and Thom Seal (PhD, PE), Principal and Metallurgist, Differential Engineering Inc. who are the Qualified Persons responsible for the technical report.

The current resource estimate includes verified drill results from 204 historic holes that were available up to May 1, 2009. Verification was completed by comparison of gold values in the database to laboratory assay certificates and drill logs obtained from historic operators of the project. Only gold values that had laboratory certificates or drill log verification were used in the resource estimate. Mineralized grade estimation domains were established by interpretation of geological, structural and sample assay information on sections and plans. Sample assays within the domains were composited into 5 foot intervals. Sample search distances and directions for resource estimation were established using spherical variogram models on the sample composites within the estimation domains. Extreme sample composite grades were capped from 0.10opt to 0.50 opt gold depending upon the domain, and sample composite grades greater than the capping threshold were set to the capping value. Less than 0.2% of the sample composites were affected by the capping. A density factor of 13.7 cubic feet per short ton (ft3/st) was applied to the mineralized bedrock material, and 13.5 to 14.3 ft3/st was applied to surrounding bedrock. A tonnage factor of 15.1 ft3/st was applied to overlying glacial till. A three dimensional block model was generated and composited sample grades were used to estimate gold grades within mineralized domains using an ordinary kriging estimation methodology. Resources reported are included within a Lerch-Grossmann (L-G) optimization shell, which was generated using a $750 per ounce gold price and 85% gold recovery. The L-G shell is an economic test that simulates a break-even pit using current mining costs.

A Technical Report by Snowden Mining Industry Consultants supporting disclosure of this mineral resource has been filed on SEDAR. The Technical Report outlines work on the project through July 1, 2009.

This release has been reviewed and approved by Eric Chapman, (M.Sc., C.Geol) and Don Harris, (M.Sc., CPG), both "qualified persons" as that term is defined in National Instrument 43-101.

ON BEHALF OF THE BOARD

Alan Branham, President and CEO

This press release contains forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Company's SEC filings and its filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.

This press release uses the terms "Measured resources", "Indicated resources" and "Inferred resources", which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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