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Midway Gold Corp. is pleased to report the
start of renewed drilling at its Pan Project in White Pine County, Nevada.
Drill plans include 6,500 meters of reverse circulation (RC) drilling and 600
meters of diamond core drilling. This 2011 expansion drilling will follow up
on Midway's 2010 drilling that identified higher gold grades and a possible
new gold zone. (See press release dated November 8, 2010.) The deposit is
still open to the North, the South and at depth. Mineralization between the
proposed North and South Pan open pits will also be tested for possible
continuity with the proposed open pits.
Midway is advancing the Pan Project toward possible production by as early as
2013. Engineering and permitting activities are underway to support a
Prefeasibility Study planned for completion during the first quarter of 2011.
A portion of the 2011 drilling will test for undiscovered mineralization
beneath proposed mine facilities.
A 2010 Preliminary Economic Assessment ("PEA") of the Pan Project
reported a Measured and Indicated Mineral Resource of 38.8 million metric
tonnes containing 682,000 ounces of gold with a grade of 0.55 grams per tonne
("gpt"), at a 0.14 gpt gold cutoff grade. (See the NI 43-101
Technical Report filed on SEDAR July 20, 2010 for further details.) The PEA
reported that the Net Present Value of Pan, at a 5% discount rate and a gold
price of $1,200 per ounce, is $109 million and that the pre-tax Internal Rate
of Return is 41%.
Midway Director Alan Branham has decided to pursue other career opportunities
and has resigned from the Company's Board of Directors. Mr. Branham will
remain a consultant to the Company. Midway sincerely thanks Mr. Branham for
his vision, accomplishments and service in developing an exemplary portfolio
of projects during his tenure with Midway, and we wish him success in his
future endeavors.
This release has been reviewed and approved by Richard D. Moritz, (B.Sc., MBA),
Vice President of Project Development, and a "Qualified Person" as
that term is defined in National Instrument 43-101.
ON BEHALF OF THE BOARD
"Ken Brunk"
Ken Brunk, Director, President and COO
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to design,
build, and operate mines in a manner accountable to all stakeholders while
producing an acceptable return to its shareholders. Midway controls over 65
square miles of mineral rights in the western United States; four advanced
projects include: Spring Valley, Pan, Golden Eagle, and Midway. Two early
stage exploration targets are Gold Rock and Burnt Canyon. For more
information about Midway, please visit our website at www.midwaygold.com or
contact R.J. Smith, Manager of Corporate Administration, at (877) 475-3642
(toll-free).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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. Mineral
Resources are not Mineral Reserves and do not have demonstrated economic
viability. 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.
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