Midway Gold Corp.
TSX VENTURE : MDW
NYSE Alternext US : MDW

Midway Gold Corp.

March 02, 2009 11:58 ET

Midway Gold Announces 1.8 Million Ounce Gold Resource at Spring Valley Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2009) - Midway Gold Corp. ("Midway") (TSX VENTURE:MDW)(NYSE Alternext US:MDW) is pleased to announce an updated mineral resource estimate for the Spring Valley Project, Nevada of 87.75 million tons grading 0.021 ounce per ton (opt) gold containing 1,835,615 ounces of gold. This updated estimate represents an 85% increase in contained gold at Spring Valley and includes drill holes completed and assay data received after the last resource estimate by AMEC E&C Services, Inc. (AMEC) as at December 15, 2007.

"This resource update represents a significant increase in contained gold at the Spring Valley deposit using a 0.006 opt gold cut-off. It incorporates portions of the West Diatreme, North Hill, and newly discovered Big Leap zones that were not included in previous estimates," said Alan Branham, President and CEO of Midway Gold Corp. "New gold discovered in 2008 in-fill and step-out drilling led to this expansion of the resource. I am pleased with the efficiency of the Midway team which grew the resource at a cost of less than $10 per ounce last year. The Spring Valley project continues to hold strong potential with additional gold intercepted outside of the resource that need further definition drilling to be included. The gold zones are still open to the north, the south, and at depth."



December 31, 2008 Resource:

Inferred Resource Using a $715 Lerchs-Grossman Optimization Shell
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Cut-Off Grade Short Tons Gold Grade Contained Gold
(opt gold) (Millions) (opt) (ounces)
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0.006 87.75 0.021 1,835,615
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0.010 59.62 0.027 1,594,707
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0.020 29.31 0.040 1,173,586
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December 15, 2007 resource:

AMEC Inferred Resource Using a $650 Lerchs-Grossman Optimization Shell
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Cut-Off Grade Short Tons Gold Grade Contained Gold
(opt gold) (Millions) (opt) (ounces)
-------------------------------------------------------------------
0.006 50.6 0.0196 992,152
-------------------------------------------------------------------
0.010 41.1 0.0223 917,109
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0.020 17.7 0.0327 577,602
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Midway drilled 63,565 feet of reverse circulation (RC) and 8,985 feet of core in 87 holes in 2008. Drilling has now identified a coherent gold zone 5,000 feet long by 2,500 feet wide, and extends to a depth of 1,400 feet. Known mineralization remains open to the north, southwest, and at depth.

This resource estimate is in compliance with Canada's NI 43-101 and in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. It was conducted under the supervision of Eric LeLacheur (CPG), Spring Valley Project Manager, and Don Harris (M.Sc., CPG), Vice President-Advanced Projects (Midway), who are the Qualified Persons responsible for the resource. David Mosch, Mining Engineer (Midway) built the block model. Modeling and interpolation methods were reviewed by Nicole Preuss (LG), an independent contractor and qualified person.

The current resource estimate includes drill results from 450 holes up to December 31, 2008 in the Pond, Sill, Porphyry, Valley Breccia, North Hill, West Diatreme, and Big Leap Zones. Mineralized domains were established by interpretation of geological, structural and assay information on sections. Assays within the domains were composited into 10 foot intervals. Search distances and directions were established using spherical variograms on the composites within the domains. A capping threshold of 1.00 opt gold was utilized, and assays greater than 1.00 opt gold were set to 1.00 opt gold. This cap is slightly lower than that used by AMEC. Higher grade composites between 0.25 and 1.0 opt were given a restricted range of 100 feet to limit high grade influences. A density of 12.6 cubic feet per short ton was applied to all bedrock material, and 14.0 cubic feet per short ton was applied to alluvium overburden. A three dimensional block model was generated using Surpac®, a commercially available mine planning software package. Composited assays were used to estimate tons and gold grades within domains using an inverse distance cubed (ID3) estimation method. Resources reported are included within a Lerchs-Grossmann (L-G) optimization shell using a $715 per ounce gold price. The L-G shell is an economic test that simulates a break even pit using current mining costs.

A Technical Report by Midway supporting disclosure of this mineral resource will be filed on Sedar within 45 days of this press release. The Technical Report updates the project as of December 31, 2008, and outlines work on the resource and progress to date.

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.

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. 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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