Midway Gold Corp.
TSX VENTURE : MDW
AMEX : MDW

Midway Gold Corp.

July 16, 2008 16:00 ET

Midway Gold Corp.: Kinross Enters Option to Joint Venture Midway's Thunder Mountain Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2008) - Midway Gold Corp. ("Midway") (TSX VENTURE:MDW)(AMEX:MDW) is pleased to announce that Kinross Gold Corporation (NYSE:KGC) has entered into an exploration and option to joint venture agreement by which they can earn a 75% interest in Midway's 100% owned Thunder Mountain project, in Nye County, Nevada.

Alan Branham, President and CEO of Midway stated, "We have discovered impressive high-grade gold at Thunder Mountain this year, and it is clear that Kinross adds significant power to the exploration process. The joint venture at Thunder Mountain is especially exciting given Kinross's extensive expertise gained from their nearby Round Mountain deposit which will assist them when exploring the Thunder Mountain area."

To maintain the option, Kinross must spend a minimum of $500,000 by August 1, 2010 and a total of $3 million over a five year period. Upon completion of the earn-in, standard joint venture terms will apply.

Thunder Mountain is a gold and silver rich epithermal vein and disseminated system hosted in rhyolite tuffs and flow dome complexes located six miles southeast of the Midway project. Adularia alteration has affected rhyolite tuff units over the three square mile project area. Recent drilling has intercepted higher grade gold in silicified breccias hosted rhyolite tuff containing 70 feet of 0.105 ounce per ton gold beginning at a 55 foot depth (MDW Press Release dated October 18, 2007) and 40 feet of 0.135 ounce per ton gold at 70 foot depth (MDW Press Release dated May 1, 2008) along with other reported intercepts.

Pursuant to Midway's shareholder approved stock option plan the directors have today granted incentive stock options on a total of 215,000 shares of Midway's common stock exercisable for up to five years at a price of $2.00 per share. The options are subject to vesting provisions and all of the options granted are subject to any applicable regulatory hold periods.

Midway Gold Corp. is a precious metals exploration company, listed on the American Stock Exchange and on the TSX Venture Exchange under the symbol "MDW." Midway's focus is creating value for shareholders through the discovery and development of quality new precious metal resources in politically stable mining areas. The company has three advanced stage gold exploration projects and four early stage exploration projects that control over 60 square miles of mineral rights along three major gold trends in Nevada.

ON BEHALF OF THE BOARD

Alan Branham, President and CEO

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the timing of our exploration and drilling programs; timing of the preparation of our preliminary economic assessment, geological models, mine plan and definitive feasibility study; expectations related to enhancing resource grades; financing plans and the availability of future financing for our projects; anticipated results of our exploration, and other plans, projections, estimates and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking statements.

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

Contact Information

  • Midway Gold Corp.
    Morgan Moffatt
    Investor Relations Manager
    Toll Free: 1-877-475-3642, Ext. 14
    Website: www.midwaygold.com