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Midway Gold Corp. (the
"Company") advises that in connection with its preliminary
prospectus filed February 2, 2011 (the "Prospectus"), it has
received comments from the British Columbia Securities Commission (the
"BCSC") regarding the Company's disclosure of technical and
scientific information about its Midway, Pan and Gold Rock properties.
The BCSC's comments relate to the Company's compliance with various
provisions of National Instrument 43-101 of the Canadian Securities
Administrators ("NI 43-101"). To address the BCSC's comments, the
Company intends to file updated NI 43-101 compliant technical reports on each
of Midway, Pan and Gold Rock properties within the next 30 days, and will
issue further news releases summarizing the contents of such reports as they
become available.
The following is a brief summary of the BCSC's comments relating to the
Company's technical disclosure on each of the three properties mentioned in
its correspondence.
Midway
The Company's disclosure regarding the Midway property takes into account
certain high grade zones on the property delineated since the most recent
February 2005 report. The Company expects that these high grade zones will be
taken into account by the author of the new technical report on the Midway
property which the Company is having prepared. The status of the low grade resource
estimate in the February 2005 report, and other corporate disclosure made
since the February 2005 report are also expected to be addressed in the new
report.
Pan
The July 20, 2010 technical report which the Company filed in respect of the
Pan property contained economic analysis insufficiently comprehensive to meet
the definition of a "prefeasibility study". As a result the Company
intends to file a new report for the Pan property which will meet the
requirements of a prefeasibility study under NI 43-101.
Gold Rock
The Company disclosed a 2009 estimate of 17.2 million tons grading 0.82 grams
of gold per tonne containing 415,000 ounces of gold at Gold Rock in a January
2011 presentation formerly on the Company's web page. This estimate was an in
house estimate prepared by the Company which did not comply with the
requirements of NI 43-101.
The Company (a) withdraws its "in house" 415,000 ounce estimate;
(b) confirms that the only information on Gold Rock is the historical
information contained in its March 11, 2008 news release identifying a
200,000-ounce "historical" estimate present; and (c) advises that
it is having an independent NI 43-101 compliant technical report respecting
Gold Rock prepared which is expected to be filed shortly.
The Company looks forward to providing updated technical information on each
of its Midway, Pan and Gold Rock properties within the next 30 days, and
expects to provide further information as the new technical reports on each
property is received.
ON BEHALF OF THE BOARD
"Daniel Wolfus"
Dan Wolfus, Director, Chairman and CEO
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to explore,
design, build and operate mines in a manner accountable to all stakeholders
while producing an acceptable return to its shareholders. 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 statements regarding the anticipated timing to
file updated technical reports regarding the Company's Midway, Pan and Gold
Rock properties, the anticipated contents of such technical reports, the
anticipated resource and reserve estimates in such technical reports, the
Company's future release of information regarding such technical reports, and
the expected compliance of such technical reports with NI 43-101. 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 delays and difficulties in
completing technical reports on the Company's Midway, Pan and Gold Rock
properties in the time periods anticipated, risks related to fluctuations in
gold prices; 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 and the technical reports referred to in this press
release use the terms "resource", "reserve",
"measured resources", "indicated resources" and
"inferred resources", which are terms defined under Canadian
National Instrument 43-101 and the Canadian Institute of Mining and
Metallurgy Classification system. Estimates of mineral reserves in this press
release and in the technical reports referred to in this press release have
been prepared in accordance with NI 43-101 and differ from the definitions in
U.S. Securities and Exchange Commission ("SEC") Industry Guide 7.
Under SEC Industry Guide 7 standards, a "final" or
"bankable" feasibility study is required to report reserves, the
three-year historical average price is used in any reserve or cash flow
analysis to designate reserves and the primary environmental analysis or
report must be filed with the appropriate governmental authority. 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 SEC 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 as defined
in the SEC's Guide 7. 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. Accordingly,
disclosure in this press release and in the technical reports contained in
this press release may not be comparable to information from U.S. companies
subject to the reporting and disclosure requirements of the SEC.
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