Midway Gold Corp.

Midway Gold Corp.

September 09, 2009 08:01 ET

Midway Surface Sampling Discovers Oxide Gold at Golden Eagle Project, Washington

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2009) - Midway Gold Corp. ("Midway") (TSX VENTURE:MDW)(NYSE Amex:MDW) announces that surface sampling has identified an area 750 feet by 700 feet (see Figure 1) of oxidized gold mineralization. This is located along the western flank of the 100% owned Golden Eagle sulfide-rich refractory gold resource, near Republic, Washington. Ninety-seven percent of the samples containing gold mineralization were oxidized.

"Midway plans to complete additional delineation drilling, permitting, metallurgical tests and toll mill arrangements to assess this new opportunity. Evaluating the oxide potential is one step in our plan to look at more economically favorable techniques to develop this large resource," said Alan Branham, President and CEO of Midway Gold Corp. "We are pleased to identify such a strong gold zone with simple metallurgy at the surface."

A total of 206 samples were collected from road cuts and historic open pits exposing strongly altered San Poil volcanic rocks. These rocks are cut by hydrothermal breccia with irregular quartz veins and stockwork veining. All accessible outcrops were sampled by 10 foot-long continuous-chip samples. Assay results ranged from 0.006 to 0.221 ounce per ton ("opt") gold. At a 0.006 opt gold cutoff, 187 samples averaged 0.053 opt gold. Composited intervals included 170 feet of 0.075 opt gold, 260 feet of 0.053 opt gold, and 30 feet of 0.159 opt gold, which are shown in Figure 1. Gold is disseminated in the rock with minor discontinuous quartz veins so true thickness is difficult to determine.

Samples were collected by Blue Eagle Sampling Team, an independent contractor, and submitted to ALS-Chemex Labs in Sparks, Nevada for gold analysis by fire assay. Blanks and standards were submitted with the samples. Samples grading over 0.006 opt gold were further analyzed by a gold cyanide assay. This analysis involves fine crushing and hot cyanide extraction of gold to approximate an oxide mill recovery. Gold recovery ratios, using this standard test, ranged from 36% to 100%, with an average of 81% gold recovery. Depth of oxidation, estimated from historic drilling, ranges from 10-130 feet.

Golden Eagle is a volcanic hosted gold deposit in the Republic Graben near Republic, Washington. A NI43-101 Technical Report has been filed on SEDAR to support a resource announced June 25, 2009. The Indicated Resource is 31.4 million tons grading 0.055 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.

To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/MDW909.pdf.

This release has been reviewed and approved by Don Harris, (M.Sc., CPG), a "qualified person" as that term is defined in National Instrument 43-101.


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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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