Midway Gold Reports Second Gold Pour at Pan Mine

- April 2nd, 2015

Midway Gold Corp. (TSX:MDW,NYSEMKT:MDW) announced that it achieved a second gold pour at its Nevada-based Pan gold mine on March 30.

Midway Gold Corp. (TSX:MDW,NYSEMKT:MDW) announced that it achieved a second gold pour at its Nevada-based Pan gold mine on March 30. The company also provided an updated on what else is happening at Pan, plus its outlook for 2015.

Pan update:

With gold loading on carbon, we are in the process of dialing in the efficiency of our carbon stripping and electro-winning circuit as we fully commission and operationalize this part of the ADR Plant. March production was about 500 ounces and sales totaled about $600,000. In April, we expect efficiencies to improve as we ramp up gold production. At the end of last week, March 27 th , our operating metrics are as follows:

  • Approximately 3.4 million tons of ore have been stacked on the leach pad.
  • Currently, about 2.6 million tons are under leach.
  • We expect to add an additional 5.9 million tons of ore to the leach pad through the remainder of this year.
  • Mining operations have performed above expectations and Ledcor, our mining contractor, has continued to provide excellent support to the project.
  • The estimated cost to complete construction of the Pan Mine is maintained at $84 million with $78.8 million spent as of the end of February.

2015 outlook:

While we have experienced challenges in development of our first mine, we remain encouraged by the daily progress and achievement of the major milestone of becoming a gold producer. To ensure quality in reporting, we expect to provide formal 2015 production and cost guidance after we have concluded modeling studies at Pan.

We have a number of programs planned or in place this year to confirm or expand on current information. On March 10th, we began a reverse circulation (RC) infill drill program on March 10, 2015. The RC program will include 10,500 feet (approximately 30 holes less than 500 feet deep) of drilling with expected completion of the drilling phase by the end of April. This focused drilling program will also allow us to test and confirm material in the South Pan pit and will support on-going operations and planning.

We also have plans to execute an exploration drill program this year to target possible expansion of the resource at South Pan. Planned leach pad expansion this year is on schedule to increase capacity from approximately 8 million tons to 20 million tons by Q4.

Click here to read the full Midway Gold Corp. (TSX:MDW,NYSEMKT:MDW) press release.

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