Midway Gold Corp.

Midway Gold Corp.

January 18, 2008 08:00 ET

Underground Plans Submitted for Permitting at Midway Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2008) - Midway Gold Corp. (TSX VENTURE:MDW)(AMEX:MDW) (the "Company") is pleased to announce initiation of permitting for an exploration decline at its Midway Project, Nevada. A Plan of Operations has been submitted to the Bureau of Land Management (BLM) and the Nevada Division of Environmental Protection (NDEP) for a 3,000 foot decline.

"The Company completed a cost analysis to convert the 77 high-grade veins, intercepted by previous drilling, into reserves and this underground bulk sample plan is the most effective way to advance the project. This allows the Company the opportunity to determine the true grade of the veins in the Midway discovery and help to delineate reserves and move toward production. The actual date of beginning the decline will depend upon the length of time it takes to achieve regulatory approval, which typically takes 8 to 18 months. In addition, we have several hurdles to overcome such as processing site, financing, and availability of contract mining equipment and personnel but the high-grade nature of the deposit and simple metallurgy make the underground bulk sample a logical next step in the exploration and development," said Midway Gold President and CEO, Alan Branham. "The Midway operation has the potential to provide 30 well-paying jobs for the local community."

The decline will be a 13 foot by 13 foot inclined adit (underground tunnel) that will start west of the highway and drive 3000 feet to the east to develop access 200 feet below high grade portions of the Midway, Rochefort and Dauntless veins (see table below and please click on the following link to view accompanying map: http://www.ccnmatthews.com/docs/MDW_0118.jpg). From these three veins a 50,000 ton bulk sample will be taken and processed. Gold recovered from the bulk samples will offset a portion of the development costs. The decline will also provide a platform to explore and develop 77 high-grade vein intercepts currently identified on the project. In the event that exploration results support a development decision, then underground workings and permits will be in place to begin full scale mining. If there are no unexpected delays, the Company hopes to reach the Discovery gold zone in late 2009.

The Plan of Operations includes 75 new acres of disturbance which will be reclaimed at the end of the project. If mining proceeds, most mine workings will be filled in with rock from the development work. Any ore or bulk samples will be transported off-site for testing so there will be no processing facility or chemicals on the site. A water treatment plant will treat water discharged from the mine workings. The BLM and NDEP review an environmental analysis of the proposed Plan of Operations which includes public comment periods. In addition, there are 18 other permits required from a variety of federal, state, and local authorities.

Average Average Strike
Discovery Grade Width Vertical Length
Zone Vein (opt gold) (ft) (ft) (ft)
Midway Vein 4.387 5.9 280 370
Rochefort 1.296 4.0 324 422
Dauntless East 0.772 4.6 349 443
Dauntless HW 0.991 8.6 231 150
Dauntless FW 0.478 12.4 198 152

The Midway project is located at the intersection of the well-known Round Mountain/Goldfield trend and the Walker Lane. It is a low-sulfidation epithermal gold system with near-vertical quartz-adularia-gold veins. Bonanza gold veins occur in a series of en echelon vein clusters along a 1.5 mile northwest-trending band of mineralization. The best previously reported gold intercept was 2.5 feet of 119 opt gold in 17 feet that averaged 34.7 opt gold in core hole MW210 from the Midway vein.

Midway Gold Corp. is focused on expanding and developing its three significant projects including their flagship resource, the Spring Valley deposit, along with its Midway and Pan deposits; all three of which are situated along major gold trends in the mining friendly state of Nevada. Midway is a precious metals company, listed as a Tier 1 issuer on the TSX Venture Exchange under the symbol "MDW". Details of Midway Gold's projects are available on the Company's website at www.midwaygold.com.

This release has been reviewed and approved by Don Harris, (M.Sc. and 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 labour 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.

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

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