Resource World Magazine

F E B R U A R Y / M A R C H 2 0 1 5 www.resourceworld.com 47 www.precisiongeosurveys.com 604.484.9402 Magnetics - Radiometrics - Time Domain EM Specialists in high resolution airborne geophysics in mountainous terrain MINING M idway Gold plans to pour its first doré bar early in 2015 at its Pan Project, aiming to become the next gold producer in the Silver State. Based in Denver and Vancouver, Midway Gold corp. [MDW-TSX, NYSE], is led by its new President and CEO, William Zisch. With a handful of holdings in Nevada and Washington, Midway has operated with a strategy of starting "simple and manageable", drilling to a million ounces, developing a mining plan, and getting proj- ects permitted efficiently. This has led to the Pan Project's readi- ness for production in the near future; steady progress at the Gold Rock Project; and a JV partnership with Barrick Gold corp. [ABX-TSX, NYSE] to further Midway's largest gold project, Spring Valley (closer to Reno). Barrick will acquire 75% ownership for taking Spring Valley from Midway's exploration to produc- tion. Spring Valley is much larger than the company-operated Pan, with more than 5 million ounces of gold estimated, and is currently in the pre-feasibility stage. Midway's current rising star is Pan, located between Eureka and Ely in the Pancake Range of mid-Nevada along the Battle Mountain – Eureka Gold Trend accompanied by Midway's nearby (about 10 km) second up-and-coming gold mine, the Gold Rock past producer. With Carlin-type mineralization, both Pan and Gold Rock are disseminated gold deposits hosted in faulted upper Paleozoic carbonate and clas- tic sediments, with structurally controlled alteration and mineralization, especially along brecciated fault zones. Their near- surface, low-grade and bulk tonnage characteristics make them similarly suitable for open pit heap leach mining. With permittin in place for Pan, taking only 19 months to go from notice of intent to record of decision, and Gold Rock in the draft EIS stage, Midway should be see- ing gold production soon. Contract miner Ledcor has been engaged. Jacobs is setting up a processing facility. Total mining rate would be 60,000 tpd ore and waste with 17,000 tpd ore to the leach pad. Mineral resource estimates for the Pan Project include several figures depending on designated cut-off grades as well as favorable pricing for gold (say $1,200/oz). For instance, a recent presentation sum- mary offers a table of measured resources, based on a cutoff grade of 0.14 g/t gold, showing 36.92 million tonnes grading 0.49 g/t gold containing 579,000 oz gold. Using the same assumptions, measured plus indi- cated resources add up to 80.037 million tonnes grading 0.44 g/t gold, containing 1,130,000 oz gold. Inferred resources are 3.928 million tonnes grading 0.36 g/t gold, containing 45,000 oz gold. Proven reserves, based on a cutoff grade of 0.27 g/t gold (South Pan) and 0.21 g/t (North Pan), are estimated at 25.245 million tonnes grading 0.60 g/t gold con- taining 487,000 oz gold. The Pan Project is expected to produce gold that can be sold sometime in 2015, according to a recent telephone interview with IR person, Jaime Wells, at Midway's office in Colorado. Mining of Pan's near- surface (top 200 metrres) oxide ore is expected to last eight or nine years, and possibly double that if continued explora- tion expands the mineable areas. The Gold Rock Project was a past pro- ducer under the operation of Alta Gold and Echo Bay, until it became unfeasible due to a combination of factors. When brought back into production, possibly by 2017, it could expand Midway's con- tribution to the local mining community for years. Using a local mining services contractor appears to be the most eco- nomically best way to go, and keeps the mining workforce in central Nevada going. Although the Pan Project is in the same area as Duckwater Shoshone Tribe, no conflicts are expected as the native population is small and they are already accepting nuclear waste. On the back burner, Midway Gold also holds a gold property in Tonopah, south- west Nevada, and the Pinyon Project, not far from Pan, as well as the Golden Eagle gold project in Republic, Washington (2 million tonnes at 1.7 g/t gold on private land). With current strategies of develop- ment by advancing a few projects from exploration through resource expansion to development of potential mines, Midway Gold has developed a sustainable business strategy. n The Pan Project, located between Eureka and Ely in the Pancake Range of mid-Nevada. Photo courtesy Midway Gold Corp. Midway builds a Nevada gold mine by Jennifer S. Getsinger, PhD, PGeo

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