Midway Advances Construction and Mining Begins at Pan Gold Project, Nevada
15 September 2014 - 10:00PM
Business Wire
Midway Gold Corp. ("Midway" or the "Company") (MDW:TSX,
MDW:NYSE-MKT) provides a progress update on the construction of the
Pan Project, the Company’s first open pit, heap leach project in
White Pine County, NV. Pan is currently under construction with
first gold pour targeted for late Q4 2014.
Construction-Related Milestones:
- The leach pad is complete and ready for
ore
- Pregnant solution pond is complete and
undergoing final integrity tests
- Haul roads to leach pad and waste piles
are complete
- Ore stacking onto the leach pad has
begun today, September 15
- The barren pond is scheduled to be
completed by the week of September 22
- ADR plant concrete is complete and
ready for equipment installation by month end
- ADR steel erection is scheduled to
begin by month end
- ADR and refinery completion is forecast
for mid-December
- The two water wells for commercial
production water are in and operating
- Temporary fire protection systems are
in place
- Intra-plant roads are in place and
operational
- The major earth works contractor, VT
Construction, is de-mobilizing from site
- All equipment is either on site or
awaiting release for shipment to site for installation
Operational Milestones:
- Ledcor, Midway’s contract miner,
mobilized to site on July 21
- Access ramps are completed and ore
faces are now open for mining and placement of mined ore to leach
pad
- Contracts for major consumables are in
place and receipt of goods under the contracts has commenced
- Staffing of Ledcor to full strength of
4 crews for 2 shifts, seven days per week is expected to be
complete September 30
- Operational hiring is on schedule with
most professionals in place
- All operations staff will move to site
by month end from the Ely offices
- Detailed start-up planning is well
underway and operating training will commence by month end for key
positions
A Statement from Midway President and CEO, Ken Brunk
We are providing this update on the construction of the Pan
project as well as other activities occurring while we advance
Midway toward gold production late this year. Overall, the project
is proceeding on a schedule that should allow for gold production
to begin late this year. Unfortunately, the schedule for completion
has slipped by approximately one month due to extraordinary summer
rainfall, especially impacted by a major storm event at a critical
construction time in late July. The severe rainfall referred to has
resulted in excess of 2.5 million dollars in damage and attendant
re-work of the leach pad liner, pond ditching, as well as site
accessibility and other damage. Builders-risk insurance is in place
for the project and we have already received a significant partial
payment for the repairs from the underwriter. We have been able to
recover some of the storm-related delay by hiring additional crews
to repair the damaged areas. Our contractors, VT Construction,
Golder, SRK, and Jacobs and their suppliers have been invaluable in
cooperating in this process. Midway has initiated some double
shifting of the construction work force to make up some of the
schedule to maintain a late 4th quarter first gold pour.
We experienced a second source of project delay due to
complexities associated with more rigorous enforcement of the State
of Nevada Fire Code than we had expected. We have put this learning
curve behind us, and are once again proceeding with the
construction effort to meet our milestones as outlined today.
The combination of these delays is not, at this time, expected
to cause material cost overruns. We applaud our team for their
efforts to regain some setbacks in schedule and minimize our
financial losses. We expect the next few months to come with both
challenges and successes. If we experience additional unseasonal
weather or other factors outside of our control, there is a risk
our first gold pour may not occur until early first quarter next
year. However, we will continue to focus our efforts and conduct
all reasonable activities to reach our planned objective, which is
to achieve a gold pour in 2014.
About the Pan Project, Nevada
The Pan project is a low cost, oxidized, Carlin-style gold
deposit mineable by shallow open pit methods and treatable by heap
leaching. A Feasibility Study was completed in November 2011 (see
press release dated November 15, 2011). Midway contracted with
Ledcor in 2014 to provide all mining-related services including
manpower and equipment. The partnership reduces the capital
required for Pan construction and startup. The Company also plans
to mine via run-of-mine methods in the initials years based on
metallurgical work completed in 2013 (see September 17, 2013 press
release), therefore eliminating the originally planned 2-stage
crushing circuit in the first years of mining at Pan.
About Midway Gold Corp.
Midway is an emerging gold producer on track for production from
its first project in late Q4 2014. Midway’s Pan Mine, will be a
simple, open pit/heap leach operation with low projected capital
costs and robust economics. Midway’s veteran management team has
extensive experience finding, building, and operating mines in
Nevada. Midway focuses on projects that are simple, manageable and
financeable.
For more information about Midway, please visit our website at
www.midwaygold.com or contact Jaime Wells, Investor Relations
Analyst, at (877) 475-3642 (toll-free).
ON BEHALF OF THE BOARD“Kenneth A.
Brunk”Kenneth A. Brunk, President and CEO
Neither the TSX its Regulation Services Provider (as that term
is defined in the policies of the TSX) nor the NYSE MKT 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, but are not limited to,
statements about the Company's intended work plans, the expected
date of the first gold pour, scheduled milestones, operational
hiring schedule, risk insurance coverage, overrun trends, and other
statements, estimates or expectations. Forward-looking statements
are typically identified by words such as: “may”, “should”, “plan”,
“believe”, “predict”, “expect”, “anticipate”, “intend”, “estimate”,
postulate”, scheduled and similar expressions or the negative of
such expressions or which by their nature refer to future events.
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 the timing and completion of intended work plans,
risks related to fluctuations in gold prices; uncertainties related
to raising or accessing sufficient financing to fund the planned
work in a timely manner and on acceptable terms; inability to meet
the covenants, terms or conditions precedent to access funding from
financing facilities; availability and determinations of insurance
coverage for losses or damage to the Pan project; changes in
planned work or delays 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 and reserves; 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; changes in interest and currency
exchanges rates; local and community impacts and issues;
environmental costs and risks; 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. Although the
Company believes that such forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. For the reasons set forth above, investors
should not attribute undue certainty to or place undue reliance on
forward-looking statements.
Midway Gold Corp.Jaime Wells, 877-475-3642Investor Relations
Analystwww.midwaygold.com
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