Midway Gold Announces NI 43-101 Gold Resource at Golden Eagle Project

 

VANCOUVER, BC - Midway Gold Corp. reported a Mineral Resource estimate for the Golden Eagle Project, Washington. Using a 0.020 ounce per ton (opt) gold cut-off, the Indicated resource is 31.9 million tons grading 0.055 opt gold, containing 1.769 million ounces of gold. There is an additional Inferred resource of 5.1 million tons grading 0.038 opt gold, containing 194,000 ounces of gold. This estimate is based on historic exploration primarily by Hecla Limited and Santa Fe Pacific Gold.

"This new resource at Golden Eagle represents a significant increase in the mineral resource base controlled by the company," said Alan Branham, President and CEO of Midway Gold Corp. "An independent review of the metallurgical testing shows favorable gold recovery using refractory ore treatments. Midway's next step is to conduct a scoping level study, which will complete a preliminary economic assessment of the resource. This project is 100% on private land owned by Midway and we will be evaluating exploration opportunities to grow this deposit."

Extensive metallurgical work by Hecla Limited and Santa Fe Pacific Gold between 1989 and 1997 was reviewed and summarized by Dr. Thom Seal (PhD, PE) of Differential Engineering Inc. for estimated optimal gold recoveries. According to this independent review, three potential processing options exist for the Golden Eagle refractory ore. These include whole-ore bio-oxidation, flotation, or pressure oxidation treatments, with recoveries ranging from 75-94%. All three processes demonstrate the potential for good gold recoveries. These results have not yet been verified by Midway test work nor have the economics of each process been reviewed.

"In general, the reviewed previous metallurgical reports, if verified as representative of the Golden Eagle project, indicate that the deposit represents a refractory gold ore target with the material types and grade similar to some of the gold ore processed from the Carlin Trend in Nevada. The processing options identified in the metallurgical review show that the project has potential for economic gold recovery within the reviewed parameters and current gold price environment," said Dr. Thom Seal, Principal for Differential Engineering Inc.

The current resource estimate includes verified drill results from 222 historic holes that were available up to May 1, 2009. Verification was completed by comparison of gold values to laboratory 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 domains were established by interpretation of geological, structural and assay information on sections and plans.

The company’s address is 600 Lola Street, Suite 10, Helena, MT 59601, (406) 475-9595, fax: (406) 475-9596, email: [email protected].