Midway Gold Corp.
TSX VENTURE : MDW
AMEX : MDW

Midway Gold Corp.

April 21, 2008 08:00 ET

Midway Gold Corp.: Test Results at Midway Project, Nevada Indicates 94% Gold Recovery

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2008) - Midway Gold Corp. (TSX VENTURE:MDW)(AMEX:MDW) (the "Company") is pleased to announce that metallurgical test work completed on samples from the Midway project yielded 94% gold recovery. The test used a simple gravity separation circuit followed by cyanide leaching of the tails, to achieve these high recoveries.

"The excellent gold recovery from Midway using simple processing methods is very encouraging," said Midway Gold President and CEO Alan Branham. "This gives us a great deal of flexibility in where and how we treat any future ore from the project. Our next step will be to drive a 3,000 foot decline into high grade portions of the Discovery veins to obtain a bulk sample for further testing. Permitting and engineering studies are currently underway for the decline."

A 73-pound composite sample from the veins in the Discovery area with a grade of 0.188 opt (ounces per ton) gold, was crushed to 100% passing -10 mesh and split into 4 samples by SGS Lakefield Research Limited of Ontario, Canada. Test results on these samples showed a recovery of 15.4% by a gravity circuit, followed by 87.5-93.1% recovery from cyanide leaching of the tails. When the gravity concentrate was included in the recovery calculation, the total gold recovery was 94.1% The tests indicate that increasing the time the ore was left in the cyanide solution resulted in higher gold extraction at finer grind sizes but neither grinding the ore finer nor increasing cyanide concentration appeared to improve the gold recovery.

A different series of independent tests by McClelland Laboratories in Reno, Nevada, showed higher gravity recoveries than the SGS lab results. McClelland only used gravity concentration to determine gold recovery. Four samples, assaying from 0.15 to 1.0 opt gold, showed recoveries of between 47.5% and 88.3% using gravity separation alone. McClelland did not look at additional recovery by using cyanide leaching of the tails.

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 decline will give access to high grade portions of the Midway, Rochefort and Dauntless veins for test mining, bulk sampling, and additional definition drilling. Gold recovered from the bulk samples may offset a portion of the development costs. The decline will also provide a platform to explore and define 22 other veins that have been identified at the Midway Project and 55 high grade intercepts that may each represent additional veins. In the event that exploration results support a development decision, then underground workings and permits will be in place to begin mining. If there are no unexpected delays, the Company hopes to reach the Discovery gold zone by October of 2009. The bulk sample material will be transported off-site for testing so there will be no processing facility or chemicals on the Midway project site. The Company is currently completing a geotechnical core drilling program to help design underground access and working.

The Midway project is located at the intersection of the 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 5 feet of 119 opt gold in core hole MW210 from the Midway vein (see 43-101 dated February 24, 2005, p.29).

Midway Gold Corp. is focused on expanding and developing its three significant projects including its 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 on the Amex Exchange and 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.

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