Midway Files NI
43-101 Technical Report for Gold Resource at Golden Eagle
Midway Gold Corp. (?Midway?) announces the filing of an NI43-101 Technical
Report on SEDAR to support the Golden Eagle resource announcement dated June
25 2009. The Indicated resource is 31.4 million tons grading 0.055
ounce per ton (opt) gold, containing 1.744 million ounces of gold using a
0.020 opt gold cut-off. There is an additional Inferred resource of 5.1
million tons grading 0.038 opt gold, containing 192,000 ounces of gold.
?Golden Eagle demonstrates
the rapid growth Midway is making through aggressive exploration and
acquisition. It joins our other three NI43-101 gold resources, the Spring
Valley, Pan, and Midway projects in Nevada?, said Alan Branham, President and
CEO of Midway Gold Corp. ?Drill data
indicates that there is additional growth potential to the west and north of
Golden Eagle and at depth. Our next step will be drilling to test
near-surface oxide zones and to test potential expansion to the west.?
Table 1: Golden Eagle Gold
Resource
Indicated
Resource Reported within an Optimal Pit Shell using $750 Gold Price
Cut-Off Grade
(opt gold)
|
Short Tons
(millions)
|
Gold Grade
(opt)
|
Contained Gold
(ounces)
|
0.010
|
43.0
|
0.045
|
1,915,000
|
0.020
|
31.4
|
0.055
|
1,744,000
|
0.030
|
23.4
|
0.066
|
1,545,000
|
0.040
|
17.9
|
0.076
|
1,355,000
|
0.050
|
13.8
|
0.085
|
1,173,000
|
Inferred
Resource Reported within an Optimal Pit Shell using $750 Gold Price
Cut-Off Grade
(opt gold)
|
Short Tons
(millions)
|
Gold Grade
(opt)
|
Contained Gold
(ounces)
|
0.010
|
11.6
|
0.024
|
284,000
|
0.020
|
5.1
|
0.038
|
192,000
|
0.030
|
3.0
|
0.047
|
143,000
|
0.040
|
1.8
|
0.055
|
100,000
|
0.050
|
0.9
|
0.066
|
61,000
|
Notes for Indicated and Inferred Resources
reported:
1.
The most likely cut-off grade for this
deposit is not known at this time and must be confirmed by the appropriate
economic studies.
2.
Tons and ounces have been
rounded and this may result in minor discrepancies in the totals.
3.
The estimated metal content
does not include any consideration of mining, mineral processing, or
metallurgical recoveries.
4.
Historical underground workings
have been depleted from the mineral resource. This resulted in a decrease
from the June 25, 2009 announcement of 25,000 oz in the Indicated category
and 2000 oz in the Inferred category at the 0.020 opt
cut-off.
The resource estimate presented in
this press release has been prepared in accordance with National Instrument
NI 43-101 of the Canadian Securities Administrators (CSA),
and in accordance with CIM Definition Standards for Mineral Resources and
Mineral Reserves. It was
conducted under the supervision of Eric Chapman (M.Sc., C.Geol),
Snowden Mining Industry Consultants Inc. and Thom Seal (PhD, PE), Principal
and Metallurgist, Differential Engineering Inc. who are the Qualified Persons
responsible for the technical report.
The current resource estimate
includes verified drill results from 204 historic holes that were available
up to May 1, 2009. Verification was completed by comparison of gold values
in the database to laboratory assay certificates and drill logs obtained from
historic operators of the project.
Only gold values that had laboratory certificates or drill log
verification were used in the resource estimate. Mineralized grade
estimation domains were established by interpretation of geological,
structural and sample assay information on sections and plans. Sample assays
within the domains were composited into 5 foot intervals. Sample search
distances and directions for resource estimation were established using
spherical variogram models on the sample composites
within the estimation domains. Extreme sample composite grades were capped
from 0.10opt to 0.50 opt gold depending upon the domain, and sample composite
grades greater than the capping threshold were set to the capping value. Less than 0.2% of the sample composites
were affected by the capping. A
density factor of 13.7 cubic feet per short ton (ft3/st) was applied to the mineralized bedrock material, and 13.5 to 14.3 ft3/st
was applied to surrounding bedrock.
A tonnage factor of 15.1 ft3/st was applied to overlying glacial till. A three
dimensional block model was generated and composited sample grades were used
to estimate gold grades within mineralized domains using an ordinary kriging estimation methodology. Resources reported are
included within a Lerch-Grossmann (L-G)
optimization shell, which was generated using a $750 per ounce gold price and
85% gold recovery. The L-G shell
is an economic test that simulates a break-even pit using current mining
costs.
A Technical Report by Snowden
Mining Industry Consultants supporting disclosure of this mineral resource
has been filed on SEDAR. The
Technical Report outlines work on the project through July 1, 2009.
This release has been reviewed and
approved by Eric Chapman, (M.Sc., C.Geol) and Don
Harris, (M.Sc., CPG), both ?qualified persons? as that term is defined in National Instrument 43-101.
ON BEHALF OF THE BOARD
Alan Branham
______________________________
Alan Branham,
President and CEO
For
further information, please contact R.J. Smith at Midway Gold Corp. at (877)
475-3642 (toll-free).
The TSX Venture
Exchange has not reviewed and does not accept 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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