Midway Updates Pan Gold Mine Development

 

DENVER, CO - Midway Gold Corp. reported on a 2012 year-end review of the Pan Gold Mine Project ('Pan') and a road map for the year ahead. The Pan Project is an open pit mining, development stage project in eastern Nevada with an expected 2014 production date.

Chairman, President and CEO, Ken Brunk said, 2013 will be a transformational year for Midway. Key 2012 accomplishments for the Pan project: Permitting is on schedule and well positioned for construction in 2013 and production in 2014; Continued engineering and testing activities to better understand project economics; Successful capital raise of $70 million at a significant premium to market.

Pan, our flagship project, is an oxidized, Carlin-type gold deposit that will be an open pit, heap leach mine. During 2012 Midway worked diligently to advance Pan to be ready for 2013 construction and for production in mid-2014.

We have advanced well into the NEPA permitting process. Progress in 2012 includes: Selection of our 3rd Party contractor who specializes in mining activity in Nevada to draft the Environmental Impact Statement; Publication in the Federal Register pursuant to the EIS notice requirements; Holding multiple public scoping and informational meetings.

Our engineering and operational team are preparing for the next phase of our growth. The team's 2012 focus included: Optimizing pit plans and mining equipment needs; Continuing gold recovery tests on bulk samples from the mining area; Working with Jacobs Engineering Group Inc. (NYSE:JEC), a world-class construction and engineering company to detail and refine the design of the project; Midway's goal has been to develop streamlined construction schedules that enhance cost effectiveness. We believe you will all see the positive benefits of these efforts as 2013 unfolds.

Between now and the Fall of 2013, Midway will be placing the orders for our long lead time equipment for Pan, such as the main electrical sub-station, front-end loaders for mining and heap leach operational equipment. We will negotiate supply contracts for the diesel fuel, reagents and other consumables needed for Pan's operation in 2014. Our goal is to ensure that we have the materials at cost effective prices to meet our business plan in a timely manner, Brunk said.