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

Midway Gold Corp.

August 24, 2009 08:00 ET

Midway Gold Announces Spring Valley Quarterly Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2009) - Midway Gold Corp. ("Midway") (TSX VENTURE:MDW)(NYSE Amex:MDW) is pleased to announce second quarter results from drilling and metallurgical work underway by Barrick Gold Exploration Inc. ("Barrick") at the Spring Valley Project, Nevada. Bottle roll tests as reported by Barrick show excellent gold recoveries of over 90% for both oxide and sulfide-bearing composite samples. Drilling completed through June 2009 totaled 14,122 feet of reverse circulation (RC) and 6,736 feet of core.

"We are encouraged by the quality of work that Barrick is doing to move the Spring Valley project forward and by the results we are seeing," said Alan Branham, President and CEO of Midway Gold Corp. "Barrick is well on their way to completing this year's work commitment on the property. High gold recoveries demonstrate that gold can be extracted easily from both oxide and sulfide portions of the deposit. Barrick's expertise in these areas is a great benefit to the project."

Barrick has bottle roll, column leach, and gravity separation tests underway at McClelland Labs in Reno on thirteen composite samples. Bottle roll tests show gold recoveries ranging from 86% to 98% for oxide, transitional, and sulfide composite samples at grind sizes of 100 and 200 mesh. Recoveries range from 70% to 97% in the coarser grind size of 48 mesh. Column leach and gravity separation test results are pending and anticipated by year end.

New reportable drill intercepts provided to Midway by Barrick are summarized in Table 1 below. Mineralization remains open at depths greater than previously modeled. High grade fire assays (FA) such as 4.5 feet of 1.108 opt gold in SV09-451C have metallic screen assays pending. High grade metallic screen (MS) intervals include 5 feet of 0.792 opt gold in SV09-445 and 10 feet of 0.624 opt gold in SV09-446.

A twin hole program was designed to confirm gold intervals in RC holes by drilling parallel core holes immediately beside the RC holes. Preliminary fire assay results show mineralized zones in both types of holes occur over similar intervals. Complete metallic screen assay results are still pending. Drilling is now focused on in-fill and step-out holes with potential to add ounces to the gold resource.

Expenditures by Barrick through the period of the quarterly report stand at 49% of their US$4,000,000 firm commitment through December 31, 2009. All land payments are being paid by Barrick and Midway bonding has been replaced with Barrick bonding. Three Midway project geologists were contracted to run daily project operations under Barrick supervision.

Midway and Barrick entered into an agreement on March 9, 2009 for the exploration and development of the Spring Valley property in Pershing County, Nevada, covering approximately 18.4 square miles. Under the terms of the agreement, Barrick may earn a 60% interest in the property by spending US$30,000,000 in work expenditures by December 31, 2013.

Data reported to Midway by Barrick and disclosed in this press release, have been reviewed for Midway by William Neal, (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.



Table 1: Spring Valley significant assays as reported by Barrick.

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Assay Gold Interval Gold Interval
Drill Hole Type opt ft From To g/t m
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SV08-441C MS 0.023 26.8 572.5 599.3 0.79 8.2
(2008 drilling) MS 0.150 22 620 642 5.14 6.7
Including MS 0.610 4.9 637.1 642 20.91 1.5
MS 0.027 18.5 656.8 675.3 0.93 5.6
MS 0.048 13.6 895.4 909 1.65 4.1
Including MS 0.124 4.8 904.2 909 4.25 1.5
---------------------------------------------------------------------
SV08-441C (2009) MS 0.095 30.9 1056 1086.9 3.26 9.4
Including MS 0.412 5 1056 1061 14.13 1.5
MS 0.013 13 1108 1121 0.45 4.0
---------------------------------------------------------------------
SV08-442C MS 0.016 30 1073 1103 0.55 9.1
MS 0.012 43.5 1249.5 1293 0.41 13.3
---------------------------------------------------------------------
SV09-443 MS No Significant intercept
---------------------------------------------------------------------
SV09-444 MS 0.017 105 680 785 0.58 32.0
MS 0.012 110 810 920 0.41 33.5
MS 0.011 25 940 965 0.38 7.6
MS 0.023 125 1070 1195 0.79 38.1
---------------------------------------------------------------------
SV09-445 MS 0.029 15 85 100 0.99 4.6
MS 0.020 45 195 240 0.69 13.7
MS 0.021 35 260 295 0.72 10.7
MS 0.140 30 320 350 4.80 9.1
Including MS 0.796 5 320 325 27.29 1.5
MS 0.015 35 425 460 0.51 10.7
MS 0.023 115 490 605 0.79 35.1
MS 0.017 30 640 670 0.58 9.1
---------------------------------------------------------------------
SV09-446 MS 0.032 50 140 190 1.10 15.2
MS 0.047 25 220 245 1.61 7.6
Including MS 0.194 5 240 245 6.65 1.5
MS 0.156 55 265 320 5.35 16.8
Including MS 0.624 10 270 280 21.39 3.0
MS 0.029 10 375 385 0.99 3.0
MS 0.152 20 485 505 5.21 6.1
Including MS 0.382 5 485 490 13.10 1.5
Including MS 0.225 5 500 505 7.71 1.5
MS 0.026 10 590 600 0.89 3.0
---------------------------------------------------------------------
SV09-447 MS 0.019 20 275 295 0.65 6.1
MS 0.011 20 320 340 0.38 6.1
MS 0.014 160 405 565 0.48 48.8
MS 0.019 65 805 870 0.65 19.8
MS 0.010 10 905 915 0.34 3.0
MS 0.075 15 985 1000 2.57 4.6
Including MS 0.197 5 985 990 6.75 1.5
---------------------------------------------------------------------
SV09-448 MS 0.026 20 240 260 0.89 6.1
MS 0.010 35 310 345 0.34 10.7
MS 0.022 45 365 410 0.75 13.7
MS 0.028 10 480 490 0.96 3.0
MS 0.074 20 525 545 2.54 6.1
Including MS 0.275 5 540 545 9.43 1.5
---------------------------------------------------------------------
SV09-451C FA 0.011 32.9 122 154.9 0.38 10.0
FA 0.019 12 272 284 0.65 3.7
FA 0.537 9.5 321 330.5 18.41 2.9
Including FA 1.108 4.5 326 330.5 37.99 1.4
FA 0.038 31.8 396 427.8 1.30 9.7
Including FA 0.108 3.6 424.2 427.8 3.70 1.1
FA 0.023 72 485 557 0.79 21.9
FA 0.019 30.4 714.6 745 0.65 9.3
---------------------------------------------------------------------
SV09-452C FA 0.022 86.7 140 226.7 0.75 26.4
Including FA 0.120 5 140 145 4.11 1.5
FA 0.055 15 578.6 593.6 1.89 4.6
Including FA 0.147 5 578.6 583.6 5.04 1.5
FA 0.020 10.3 628.8 639.1 0.69 3.1
---------------------------------------------------------------------
SV09-453C FA 0.022 28.2 310 338.2 0.75 8.6
FA 0.022 34.4 745.6 780 0.75 10.5
---------------------------------------------------------------------
SV09-456 FA 0.072 15 765 780 2.47 4.6
Including FA 0.149 5 765 770 5.11 1.5
FA 0.028 10 835 845 0.96 3.0
FA 0.024 10 935 945 0.82 3.0
FA 0.029 210 985 1195 0.99 64.0
Including FA 0.159 10 1105 1115 5.45 3.0
Including FA 0.166 5 1125 1130 5.69 1.5
Including FA 0.134 5 1185 1190 4.59 1.5
FA 0.040 10 1220 1230 1.37 3.0
FA 0.019 10 1260 1270 0.65 3.0
---------------------------------------------------------------------
SV09-457 FA 0.030 20 1345 1365 1.03 6.1
Including FA 0.100 5 1360 1365 3.43 1.5
---------------------------------------------------------------------

Reverse circulation drilling was conducted by Hard Rock Drilling of Elko,
Nevada. Core drilling was conducted by Boart Longyear of Salt Lake City,
Utah. Drill hole numbers ending with a "C" indicate core holes. Samples
were assayed by ALS- Chemex Labs, in Sparks, Nevada by 30 gram fire assays
(FA). Intervals with quartz veining, strong alteration, visible gold, or
anomalous fire assay were re-assayed using 1000 gram metallic screen assays
(MS). Results reported represent thickness along the trace of the drill
hole and do not necessarily represent true thickness. The upper part of
hole SV08-441C was drilled in 2008. The hole was completed in 2009.


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