8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report: December 20, 2011

(Date of earliest event reported)

MIDWAY GOLD CORP.

(Exact Name of Registrant as Specified in Charter)

British Columbia, Canada (State or Other Jurisdiction of Incorporation) 001-33894 (Commission File Number) 98-0459178 (IRS Employer Identification No.)

Point at Inverness, Suite 280 8310 South Valley Highway Englewood, Colorado (Address of principal executive offices) 80112 (Zip Code)

Registrant’s telephone number, including area code:   (720) 979-0900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

On December 20, 2011, the Registrant filed a technical report titled “NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada” dated December 19, 2011 with an effective date of November 15, 2011 (the “Technical Report”) with the securities regulatory authorities in Canada. The Technical Report is hereby being furnished to the Securities and Exchange Commission (“SEC”) as Exhibit 99.1 to this Current Report on Form 8-K to satisfy the Registrant’s “public disclosure” obligations under Regulation FD of the SEC. The Technical Report was prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”) by William J. Crowl, R.G., Vice-President Mining of Gustavson Associates, LLC, Donald E. Hulse, P.E., Principal Mining Engineer of Gustavson Associates, LLC, Terre A. Lane, Associate Principal Mining Engineer of Gustavson Associates, LLC, Donald J Baker, Ph.D., Associate Principal Geologist of Gustavson Associates, LLC, and Jennifer J. Brown, P.G. Principal Geologist of Lowham Walsh LLC, each of whom is a Qualified Person as defined by NI 43-101.

In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the Technical Report is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended. The information set forth in Item 7.01 of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information in this report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

All mineral resources in the Technical Report have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the SEC Industry Guide 7 (“Guide 7”). NI 43-101 and Guide 7 standards are substantially different. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with NI 43-101. These definitions differ from the definitions in Guide 7. Under Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.  While estimates of reserves contained in the Technical Report were prepared in accordance with NI 43-101, the Technical Report is a final feasibility study, estimates of proven and probable mineral reserves used a three-year historical average price and the primary environmental analysis has been filed with the appropriate governmental authority.  Therefore, the estimates of proven and probable mineral reserves contained in the Technical Report comply with Guide 7 standards.

The Technical Report uses the terms “mineral resource,” “measured mineral resource,” “indicated mineral resource” and “inferred mineral resource”. These terms are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained pounds” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

Item 9.01. Exhibits.

The following Exhibits relating to Item 7.01 are intended to be furnished to, not filed with, the SEC pursuant to Regulation FD.

Exhibit	Description
99.1	NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada dated December 19, 2011

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MIDWAY GOLD CORP.
DATE:  December 23, 2011	By:	/s/ Kenneth Brunk
		Kenneth Brunk President

EXHIBIT INDEX

The following Exhibits relating to Item 7.01 are intended to be furnished to, not filed with, the SEC pursuant to Regulation FD.

Exhibit	Description
99.1	NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada dated December 19, 2011

EX-99.1

NI 43-101 TECHNICAL REPORT

Feasibility Study

for the

PAN GOLD PROJECT

White Pine County, Nevada

PREPARED FOR MIDWAY GOLD CORP.

Effective date:   November 15, 2011

Signature date:  December 19, 2011

Prepared by

William J. Crowl, R.G. QP MMSA

Donald E. Hulse, P.E.

Terre A. Lane, QP MMSA

Donald J. Baker, PhD QP MMSA

Jennifer J. Brown, P.G. Registered Member SME

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

WILLIAM J. CROWL, R.G.

Vice President, Mining

Gustavson Associates, LLC

274 Union Boulevard, Suite 450

Lakewood, Colorado   80228

Telephone: 720-407-4062   Facsimile: 720-407-4067

Email: wcrowl@gustavson.com

CERTIFICATE of AUTHOR

I, William J. Crowl do hereby certify that:

1.   I am currently employed as Vice President, Mining by Gustavson Associates, LLC at:

274 Union Boulevard

Suite 450

Lakewood, Colorado   80228

2.   I am a graduate of the University of Southern California with a Bachelor of Arts in Earth Science (1968), and an MSc. in Economic Geology from the University of Arizona in 1979, and have practiced my profession continuously since 1973.

3.   I am a member in good standing of the Mining and Metallurgical Society of America, member # 01412QP

4.   I have worked as a geologist for a total of 38 years since my graduation from university; as a graduate student, as an employee of a major mining company, a major engineering company, and as a consulting geologist.

5.   I have read the definition of “qualified person” set out in NI 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

6.   I am responsible for the preparation of the report titled “NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada,” effective date, November 15, 2011 (the “Technical Report”), with specific responsibility for oversight of the entire document.

7.   I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

December 19, 2011  i  

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

8.   I do not hold, nor do I expect to receive, any securities or any other interest in any corporate entity, private or public, with interests in the properties that are the subject of this report or in the properties themselves, nor do I have any business relationship with any such entity apart from a professional consulting relationship with the issuer, nor to the best of my knowledge do I have any interest in any securities of any corporate entity with property within a two (2) kilometer distance of any of the subject properties.

9.   I have read NI 43-101 and Form 43-101, and the Technical Report has been prepared in compliance with that instrument and form.

10.   I consent to the filing of the Technical Report with any stock exchanges or other regulatory authority and any publication by them, including electronic publication in the public company files on the websites accessible by the public, of the Technical Report.

Dated this 19th day of December, 2011.

 /s/ William J. Crowl (Signature)

  Signature of Qualified Person

       “William J. Crowl”

Print name of Qualified Person

December 19, 2011  ii  

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

DONALD E. HULSE, P.E.

Principal Mining Engineer

Gustavson Associates, LLC

274 Union Boulevard, Suite 450

Lakewood, Colorado   80228

Telephone: 720-407-4062   Facsimile: 720-407-4067

Email: dhulse@gustavson.com

CERTIFICATE of AUTHOR

I, Donald E. Hulse do hereby certify that:

1.   I am currently employed as Principal Mining Engineer by Gustavson Associates, LLC at:

274 Union Boulevard

Suite 450

Lakewood, Colorado   80228

2.   I am a graduate of the Colorado School of Mines with a Bachelor of Science in Mining Engineering (1982), and have practiced my profession continuously since 1983.

3.   I am a registered Professional Engineer in the State of Colorado (35269).

4.   I have worked as a mining engineer for a total of 25 years since my graduation from university; as an employee of a major mining company, a major engineering company, and as a consulting engineer.

5.   I have read the definition of “qualified person” set out in NI 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

6.   I am responsible for the preparation of the technical report titled “NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada,” effective date, November 15, 2011 (the “Technical Report”), with specific responsibility for Sections 14, 15, and 19 through 27.

7.   I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

December 19, 2011  iii  

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

8.   I do not hold, nor do I expect to receive, any securities or any other interest in any corporate entity, private or public, with interests in the properties that are the subject of this report or in the properties themselves, nor do I have any business relationship with any such entity apart from a professional consulting relationship with the issuer, nor to the best of my knowledge do I have any interest in any securities of any corporate entity with property within a two (2) kilometer distance of any of the subject properties.

9.   I have read NI 43-101 and Form 43-101, and the Technical Report has been prepared in compliance with that instrument and form.

10.   I consent to the filing of the Technical Report with any stock exchanges or other regulatory authority and any publication by them, including electronic publication in the public company files on the websites accessible by the public, of the Technical Report.

Dated this 19th day of December, 2011.

 /s/Donald E. Hulse (Signature)

 Signature of Qualified Person

       “Donald E. Hulse”

Print name of Qualified Person

December 19, 2011  iv  

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

TERRE A. LANE

Associate Principal Mining Engineer

Gustavson Associates, LLC

274 Union Boulevard, Suite 450

Lakewood, Colorado   80228

Telephone: 720-407-4062   Facsimile: 720-407-4067

Email: tlane@gustavson.com

CERTIFICATE of AUTHOR

I, Terre A. Lane do hereby certify that:

1.   I am currently employed as Principal Mining Engineer by Gustavson Associates, LLC at:

274 Union Boulevard

Suite 450

Lakewood, Colorado   80228

2.   I am a graduate of the Michigan Technological University of Michigan with a Bachelor of Science degree in Mining Engineering (1982).

3.   I am a member in good standing of the Mining and Metallurgical Society of America, member #10407QP

4.   I have worked as a Mine Engineer for a total of 23 years since my graduation from university; as an employee of several mining companies, an engineering company, a mine development and mine construction company, an exploration company, and as a consulting engineer.

5.   I have read the definition of “qualified person” set out in NI 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

6.   I am responsible for the preparation of the report titled “NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada,” effective date, November 15, 2011 (the “Technical Report”), with specific responsibility for Sections 1, 9 through 13, and 16 through 18.  I most recently visited the property May 27, 2010.

7.   I have personally completed an independent review and analysis of the data and written information contained in this Technical Report.

8.   I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

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Pan Gold Project Feasibility Study	NI 43-101 Technical Report

9.   I do not hold, nor do I expect to receive, any securities or any other interest in any corporate entity, private or public, with interests in the properties that are the subject of this report or in the properties themselves, nor do I have any business relationship with any such entity apart from a professional consulting relationship with the issuer, nor to the best of my knowledge do I have any interest in any securities of any corporate entity with property within a two (2) kilometer distance of any of the subject properties.

10.   I have read NI 43-101 and Form 43-101, and the Technical Report has been prepared in compliance with that instrument and form.

11.   I consent to the filing of the Technical Report with any stock exchanges or other regulatory authority and any publication by them, including electronic publication in the public company files on the websites accessible by the public, of the Technical Report.

Dated this 19th day of December, 2011.

/s/Terre A. Lane (Signature)

 Signature of Qualified Person

        “Terre A. Lane”

 Print name of Qualified Person

December 19, 2011 vi  

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

DONALD J. BAKER, PhD

Associate Principal Geologist

Gustavson Associates, LLC

274 Union Boulevard, Suite 450

Lakewood, Colorado   80228

Telephone: 720-407-4062   Facsimile: 720-407-4067

Email: dbaker@gustavson.com

CERTIFICATE of AUTHOR

I, Donald J. Baker do hereby certify that:

1.   I am currently employed as Associate Principal Geologist by Gustavson Associates, LLC at:

274 Union Boulevard

Suite 450

Lakewood, Colorado   80228

2.   I am a graduate of The Ohio State University with an MSc in Geology (1974), a PhD. in Geology from the University of Georgia (1980), and an M.B.A. from the University of Colorado at Denver (1991) and have practiced my profession continuously since 1978.

3.   I am a member in good standing of the Mining and Metallurgical Society of America, member #01088QP.

4.   I have worked as a geologist for a total of 40 years since my graduation from university; as a graduate student, as an employee of a major mining company, a major engineering company, and as a consulting geologist.

5.   I have read the definition of “qualified person” set out in NI 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

6.   I am responsible for the preparation of the report titled “NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada,” effective date, November 15, 2011 (the “Technical Report”), with specific responsibility for Sections 7 and 8.  

7.   I have personally completed an independent review and analysis of the data and written information contained in this Technical Report.

8.   I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

December 19, 2011  vii  

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

9.   I do not hold, nor do I expect to receive, any securities or any other interest in any corporate entity, private or public, with interests in the properties that are the subject of this report or in the properties themselves, nor do I have any business relationship with any such entity apart from a professional consulting relationship with the issuer, nor to the best of my knowledge do I have any interest in any securities of any corporate entity with property within a two (2) kilometer distance of any of the subject properties.

10.   I have read NI 43-101 and Form 43-101, and the Technical Report has been prepared in compliance with that instrument and form.

11.   I consent to the filing of the Technical Report with any stock exchanges or other regulatory authority and any publication by them, including electronic publication in the public company files on the websites accessible by the public, of the Technical Report.

Dated this 19th day of December, 2011.

  /s/Donald J. Baker (Signature)

  Signature of Qualified Person

       “Donald J. Baker”

 Print name of Qualified Person

December 19, 2011  viii  

Midway Gold Corp.	Date and Signature Pages
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

JENNIFER J. BROWN, P.G.

Principal Geologist

Lowham Walsh LLC1

205 South Third Street

Lander, Wyoming USA   82520

Telephone: 307-335-8466   Facsimile: 307-335-7343

Email: jjbrown@lowhamwalsh.com

CERTIFICATE of AUTHOR

I, Jennifer J. Brown, do hereby certify that:

1.   I am currently employed as a Principal Geologist by Lowham Walsh LLC at:

205 South Third Street

Lander, Wyoming USA 82520

2.   I am a graduate of the University of Montana with a Bachelor of Arts in Geology (1996), and I have practiced my profession continuously since 1997.

3.   I am a licensed Professional Geologist in the States of Wyoming (PG-3719) and Idaho (PGL-1414), and am a Registered Member in good standing of the Society of Mining, Metallurgy and Exploration (#4168244RM) with recognized special expertise in geology and mining. I am also a member of the American Institute of Professional Geologists (MEM-0174)

4.   I have worked as a geologist for a total of 14 years since graduation from university - as an employee of four separate engineering and geological consulting firms and the U.S.D.A. Forest Service.

5.   I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

6.   I am responsible for the preparation of the technical report titled “NI 43-101 Technical Report Feasibility Study for the Pan Gold Project, White Pine County, Nevada,” effective date, November 15, 2011 (the “Technical Report”), with specific responsibility for Sections 2 through 6, and overall organization and preparation of the Technical Report.

 

1 Lowham Walsh LLC is part of a group of companies, including Gustavson Associates, that are controlled by Ecology and Environment, Inc.

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Pan Gold Project Feasibility Study	NI 43-101 Technical Report

7.   I have not had prior involvement with the properties that are the subject of the Technical Report.

8.   I am independent of the issuer applying all of the tests in Section 1.5 of National Instrument 43-101.

9.   As of the date of this certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed and I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

10.   I have read National Instrument 43-101 and Form 43-101, and the Technical Report has been prepared in compliance with that instrument and form.

Dated this 19th day of December, 2011.

/s/ Jennifer J. Brown (Signature)

  Signature of Qualified Person

       “Jennifer J. Brown”

 Print name of Qualified Person

December 19, 2011  x  

Midway Gold Corp.	Table of Contents
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

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Pan Gold Project Feasibility Study	NI 43-101 Technical Report

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Midway Gold Corp.	Table of Contents
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

LIST OF FIGURES

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Midway Gold Corp.	Table of Contents
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

LIST OF TABLES

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Pan Gold Project Feasibility Study	NI 43-101 Technical Report

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Pan Gold Project Feasibility Study	NI 43-101 Technical Report

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Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

1   SUMMARY

1.1   Introduction

Gustavson Associates, LLC (Gustavson) was commissioned by Midway Gold Corp. to complete a Feasibility Study for the Pan Gold Project in White Pine County, Nevada, based on the Updated Mineral Resource Estimate dated September 1, 2011.The Feasibility Study is intended to provide a comprehensive technical and economic analysis of the selected development option for the mineral project. This study includes detailed assessments of realistically assumed mining, processing, metallurgical, economic, legal, environmental, social, and other relevant considerations which have successfully demonstrated the economic viability of the project. The purpose of this report is to document the results of the Feasibility Study in compliance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects.

The Pan gold deposit is a sediment-hosted, bulk tonnage Carlin-type gold deposit along the prolific Battle Mountain-Eureka gold trend in east-central Nevada.  Midway Gold US Inc. (hereafter referred to as MIDWAY) has drilled, sampled, and mapped the Pan deposit since acquiring the project in 2007. MIDWAY completed 61,875 ft of drilling in 162 holes in 2007 and 2008, and released an updated mineral resource estimate in December 2009. Gustavson performed an independent audit of the 2009 mineral resource estimate as part of a Preliminary Economic Assessment in 2010, and  MIDWAY conducted a 14-hole (5774 ft) diamond core drilling program to obtain additional metallurgical and geotechnical data during the latter half of that same year. Gustavson completed a mineral reserve and mine plan as part of the March 2011 Preliminary Feasibility Study, which included an updated geologic model and mineral resource based on data obtained through February 28, 2011. MIDWAY has since completed an additional 33 holes totaling 27,795 ft.

1.2   Property Description and Ownership

The Pan Project is located in White Pine County, Nevada, approximately 22 miles southeast of Eureka and 50 miles west of Ely. The project area consists of 10,373 acres on 550 contiguous, unpatented federal mining claims controlled by MIDWAY. The property is located in the rolling hills of the Pancake Range in the Basin and Range physiographic province. Terrain is gentle to moderate throughout most of the project area, with no major stream drainages. Elevation of the property ranges from 6,400 to 7,500 ft above mean sea level.

At present, no infrastructure or power is in place at the Pan site. A relatively low voltage distribution line crosses the valley floor near a local ranch approximately 5 miles away. A higher voltage transmission line, 69 kV, with capacity suitable for mining and processing operations, is located approximately 14 miles from the project site and six miles north of US 50. Water to support exploration drilling is available from ranch wells approximately 3 miles to the west of the property. Logistical support is available in Eureka, Ely, and Elko, all of which currently

December 19, 2011  1  

Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

support large open pit mining operations. Mining personnel and resources for operations at Pan are expected to be available from Eureka, White Pine, and Elko Counties.

1.3   Geology and Mineralization

The geology of the Pan property is dominated by Devonian to Permian carbonate and clastic sedimentary rocks cut by the Pan fault, a steeply west dipping fault  that trends north-south. The Pan fault juxtaposes gently west dipping sedimentary units on the west side of the fault with steeply northeast dipping sedimentary units on the east side. Post-mineral Tertiary volcanic rocks nonconformably overlie the faulted Devonian-Permian sedimentary units.

Gold mineralization at Pan occurs in a Carlin-style, epithermal, disseminated, sediment-hosted system. The distribution of the mineralization is controlled by structure, particularly with regard to the development of breccias, and by sedimentary bedding and alteration along unit contacts. Gold deposits within the project area generally occur as elongate bodies associated with structures and dissolution/hydrothermal breccia bodies hosted by the Pilot Shale and, to a lesser extent, the Devils Gate Limestone. Gold deposits also occur in a more tabular fashion within altered and mineralized sedimentary horizons.

1.4   Concept and Status of Exploration

MIDWAY’s exploration program includes core and reverse circulation drilling, geologic mapping, geochemical sampling, and geophysical surveys at the Pan property. This comprehensive program has helped to define the geologic occurrence of gold mineralization and identify additional exploration targets on the Pan property. The level of exploration in individual target areas varies from rock and soil sampling with anomalous results to drill holes which reveal anomalous to ore-grade gold values, as determined during the February 2011 Preliminary Feasibility Study. Geochemical and geophysical targets merit additional work, primarily drilling, to test anomalous rock and soil geochemical results. Additional drilling is needed in portions of the deposit to expand and better understand existing drill intercepts.

1.5   Mineral Resource Estimate

Gustavson completed an updated mineral resource estimate for the Pan Project in November 2011. As part of that study, Gustavson created a model to estimate the mineral resources at Pan based on data provided by MIDWAY as of September 1, 2011. No new drilling occurred at North Pan and the February 2011 resource model was not modified during the current study. Gold mineralization in Central and South Pan was re-evaluated during the course of this resource update. Drill hole data including collar coordinates, MIDWAY surveys, sample assay intervals, and geologic logs were provided in a secure Microsoft Access database. Surficial geology maps and cross-sections detailing alteration and lithology were also provided in electronic format. The database has been updated to include the additional 33 reverse circulation drill holes completed by MIDWAY in 2011.

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Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

Gustavson modeled and estimated the mineral resource by constructing geologic, alteration, and mineral domains from the MIDWAY cross sections, and by geostatistically analyzing the drill data to define the parameters required to estimate gold grades in the 3-Dimensional (3D) block model. Leapfrog 3D® geological modeling software was used to create 3D stratigraphic, alteration, and mineral domain solids. MicroModel® software was used to estimate gold grades.

MIDWAY defined the structure, stratigraphy, and alteration of the North, Central, and South Pan zones on 1 inch = 50 ft cross-sections spaced 200 feet apart and oriented east to west. Gustavson combined the MIDWAY subsurface interpretations with surface geology to create 3D stratigraphic and alteration models.

A block model was created for the Pan Deposit using blocks that are 20 feet wide, 20 feet long, and 20 feet high. Each of the blocks was assigned attributes of gold grade, mineral resource classification, rock density, tonnage factor, lithology, alteration, and a grade classification. The blocks were then assigned to a domain as appropriate to assist in estimation.

1.5.1   North Pan

All of the domains were estimated in 3 passes and each block was assigned a classification of measured, indicated, or inferred. The resource classification of each block was based on a factor of the average sample distance in an anisotropic direction as established by the second structure range from the variogram model for the domain being estimated. The measured class utilized a ½ ellipsoid variogram search distance. Indicated was set at a full variogram search distance and inferred was set at 2 times the variogram distance. As an additional requirement, Gustavson limited the measured and indicated estimation data to include only the fire assay intervals. Inferred resource was estimated using all available assay data.  Ordinary Kriging was used to estimate grade for all domains.

1.5.2   Central and South Pan

All of the domains were estimated by using large search ellipses oriented in the direction of maximum continuity to provide an estimation of the gold grade within every block inside of the grade shells. The resource classification of each block was based on a factor of the closest sample distance in an anisotropic direction as established by the second structure range from the variogram model for the domain being estimated. The measured class utilized a ½ ellipsoid variogram search distance. Indicated resource was set at a full variogram search distance and inferred resource was set at 2 times the variogram distance. Each domain was estimated using a minimum of 5 composites with no more than 4 composites from a single drill hole. A maximum of 12 composites was allowed to better represent the local variability. Ordinary Kriging was used to estimate grade for all domains.

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Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

The mineral resource estimate is summarized in Tables 1-1 through 1-4. This mineral resource estimate includes all drill data obtained as of September 1, 2011, and has been independently verified by Gustavson.

Table 1-1  North Pan Mineral Resource

North Pan Measured Resource
Opt	Tons	Au Opt	oz
0.008	13,994,415	0.0168	234,844
0.006	15,592,007	0.0158	245,850
0.004	18,597,319	0.0140	260,404
North Pan Indicated Resource
0.008	10,565,126	0.0146	154,540
0.006	12,702,959	0.0133	169,135
0.004	17,006,845	0.0112	189,823
North Pan Measured plus Indicated Resource
0.008	24,559,541	0.0159	389,384
0.006	28,294,966	0.0147	414,985
0.004	35,604,164	0.0126	450,228
North Pan Inferred Resource
0.008	122,858	0.0112	1,376
0.006	233,476	0.0091	2,129
0.004	511,402	0.0067	3,427

Table 1-2  Central Pan Mineral Resource

Central Pan Measured Resource
Opt	Tons	Au Opt	oz
0.008	2,329,227	0.0146	33,991
0.006	2,837,448	0.0132	37,482
0.004	3,802,537	0.0111	42,192
Central Pan Indicated Resource
0.008	1,895,266	0.0122	23,216
0.006	2,524,520	0.0109	27,623
0.004	4,053,056	0.0086	34,885
Central Pan Measured plus Indicated Resource

0.008	4,224,493	0.0135	57,207
0.006	5,361,968	0.0121	65,105
0.004	7,855,593	0.0098	77,077
Central Pan Inferred Resource
0.008	240,912	0.0103	2,470
0.006	290,465	0.0096	2,802
0.004	722,079	0.0066	4,741

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Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

Table 1-3  South Pan Mineral Resource

South Pan Measured Resource
Opt	Tons	Au Opt	oz
0.008	13,826,998	0.0182	251,350
0.006	15,584,480	0.0169	263,423
0.004	18,297,337	0.0151	276,641
South Pan Indicated Resource
0.008	17,440,794	0.0158	275,596
0.006	20,764,856	0.0144	298,599
0.004	26,469,130	0.0123	325,863
South Pan Measured plus Indicated Resource
0.008	31,267,792	0.0169	526,946
0.006	36,349,336	0.0155	562,022
0.004	44,766,467	0.0135	602,504
South Pan Inferred Resource
0.008	1,588,716	0.0184	29,274
0.006	1,933,540	0.0164	31,651
0.004	3,096,599	0.0120	37,093

Table 1-4  Total Pan Mineral Resource

Pan Total Measured Resource
Opt	Tons	Au Opt	oz
0.008	30,150,640	0.0173	520,186
0.006	34,013,935	0.0161	546,756
0.004	40,697,193	0.0142	579,238
Pan Total Indicated Resource
0.008	29,901,186	0.0152	453,351
0.006	35,992,335	0.0138	495,357
0.004	47,529,031	0.0116	550,571
Pan Total Measured plus Indicated Resource

0.008	60,051,826	0.0162	973,537
0.006	70,006,270	0.0149	1,042,112
0.004	88,226,224	0.0128	1,129,809
Pan Total Inferred Resource
0.008	1,952,486	0.0170	33,120
0.006	2,457,481	0.0149	36,581
0.004	4,330,080	0.0105	45,261

December 19, 2011  5  

Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

1.6   Mineral Reserve Estimate

The February 2011 Prefeasibility Study demonstrated that the Pan Project is economically viable, and this Feasibility Study has strengthened that conclusion. Based on the results of the Feasibility Study, Measured and Indicated Mineral Reserves within the designed pits are considered Proven and Probable Reserves as defined by the Canadian Institute of Mining, Metallurgy, and Petroleum.  The final reserves are reported using a 0.008 Au opt cutoff for the North and Central pits, and a 0.006 Au opt cutoff for the South pit.  Cutoffs were chosen to maximize the NPV of the project and do not necessarily represent the minimum economic cutoff.  Pit designs are based on geologic criteria provided in the April 2011 Pit Slope Evaluation report produced by Golder Associates. Geologic solids created for each lithological unit were used as a guide during the pit design process. The limestone units were designed with a 50° inter-ramp wall angle assuming pre-split blasting in these units; all other lithological units were designed with a 45° inter-ramp wall angle.

1.6.1   Whittle Optimization

Gustavson generated a series of optimization shells on the South and North resource blocks, ranging from $236/oz to $2360/oz. Forty six shells were generated separately for the North and South resource areas.  Heap leach recoveries of 65% and 85%, for North and South Pan, respectively, were used in the optimization runs.  The general parameters were based on preliminary estimates of operating cost, and incorporated recommendations from the April 2011 Pit Slope Evaluation report.  Mining costs were estimated to be $1.09/ton of material moved for the pit optimization.  Crushing, agglomeration, leaching, general and administration, and gold recovery costs were estimated at $3.71/ton of ore.  Only Measured and Indicated Resources were considered in the evaluation; Inferred resources were treated as waste.

1.6.2   Calculation Parameters

The series of pit optimizations were graphed and evaluated to compare cash flows, net present values (NPV’s) and internal rates of return (IRR’s).  The final South pit and the North pit optimizations are based on shells at a cost  less than the three year trailing average price of

December 19, 2011  6  

Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

$1200/oz in order to achieve a higher NPV and overall lower cash cost per ounce.  The option of mining the entire South Pan pit before the North Pan pit was evaluated during the scheduling process.  Although the South Pan pit has a 20% higher recovery factor, mining the South Pan in phases results in a higher IRR by delaying the high strip of the Phase 2 South Pit until the end of the mine life. The option of mining the North pit first was also evaluated, but the higher recovery from the South Pan pit (85%, compared to 65% from North Pan) and shorter estimated leach times render the South pit the more favorable option to mine first.

1.6.3   Cutoff Grade Equations

The mineral reserve estimate for the Pan Project is based on designed open pits with maximized revenues at a gold price of $1180 per ounce. Cutoff grades of 0.006 Au opt (0.21 gpt) in the South pit and 0.008 Au opt (0.27 gpt) in the North & Central pits provide the highest NPV for the project.

1.6.4   Mineral Reserve Estimate

Using the NI 43-101 Updated Mineral Resource Estimate filed in November 2011, Proven and Probable Reserves of 53,254,000 tons at a grade of 0.016 opt are contained in the mineral resource at Pan.  A total of 864,000 oz of gold are contained in the Pan Project mineral reserves. Estimated mineral reserves for the Pan Project are presented in Table 1-5.

Table 1-5  Pan Project Mineral Reserves Estimate

North and Central Pan	Tons	Gold
Cutoff Grade:	(x 1000)	opt	ounces    (x 1000)
0.008 opt / 0.274 g/tonnes
North Pan
Proven Reserves	12,625	0.018	223.30
Probable Reserves	10,993	0.015	162.66
Proven & Probable Reserves	23,618	0.016	385.95
Inferred within Designed Pit	351	0.012	4.29
Waste within Designed Pit	27,823
Total tons within Designed Pit	51,791
Central Pan
Proven Reserves	1,799	0.015	27.78
Probable Reserves	1,125	0.013	15.00
Proven & Probable Reserves	2,924	0.015	42.78
Inferred within Designed Pit	75	0.010	0.77
Waste within Designed Pit	5,387
Total tons within Designed Pit	8,386

Sub Total - North + Central
Proven Reserves	14,423	0.017	251.08
Probable Reserves	12,119	0.015	177.66
Proven & Probable Reserves	26,542	0.016	428.74
Inferred within Designed Pit	426	0.012	5.06
Waste within Designed Pit	33,210
Total tons within Designed Pit	60,177

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Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

Table 1-5 cont.

South Pan - Phases 1 and 2	Tons	Gold
Cutoff Grade:	(x 1000)	opt	ounces    (x 1000)
0.006 opt / 0.206 g/tonnes
South Pan  - Phase 1
Proven Reserves	11,856	0.018	215.44
Probable Reserves	7,593	0.016	119.26
Proven & Probable Reserves	19,449	0.017	334.70
Inferred within Designed Pit	56	0.010	0.55
Waste within Designed Pit	31,887
Total tons within Designed Pit	51,392
South Pan - Phase 2
Proven Reserves	1,548	0.014	21.01
Probable Reserves	5,716	0.014	79.80
Proven & Probable Reserves	7,263	0.014	100.81
Inferred within Designed Pit	212	0.016	3.39
Waste within Designed Pit	29,485
Total tons within Designed Pit	36,961
Sub Total - Phase 1 + 2
Proven Reserves	13,404	0.018	236.46
Probable Reserves	13,308	0.015	199.05
Proven & Probable Reserves	26,713	0.016	435.51
Inferred within Designed Pit	269	0.015	3.94
Waste within Designed Pit	61,372
Total tons within Designed Pit	88,353

Total Reserves	Tons	Gold
	(x 1000)	opt	ounces    (x 1000)
Proven Reserves	27,827	0.018	487.51
Probable Reserves	25,427	0.015	376.71
Proven & Probable Reserves	53,254	0.016	864.22
Inferred within Designed Pit	695	0.013	9.0
Waste within Designed Pit	94,582
Total tons within Designed Pit	148,531

December 19, 2011  8  

Midway Gold Corp.	Summary
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

1.7   Conclusions and Recommendations

As a result of the work done as part of and resulting from this Feasibility Study, Gustavson concludes:

● The Pan deposit now contains over 1.1 million ounces of gold in Measured and Indicated Mineral Resource categories using a 0.004 opt cutoff.

● There continues to be good potential for the discovery of additional Mineral Resources at Pan.

● There is a proven and probable Mineral Reserve of 53,254,000 tons, containing 864,000 ounces of gold.

● The Pan project is an economic mining project generating approximately $122 million net present value, and an internal rate of return of 32.4% at a gold price of $1200.

Based on the results of this Feasibility Study, Gustavson recommends:

● Continuation of drilling to fill-in areas that are promising development areas, specifically between the North and South pits.  MIDWAY is planning on $ 1.5 million in drilling for the next two years.

● Finalization of engineering for infrastructure, buildings, mining, and site facilities.  This is currently estimated at $0.86 million (included in capital costs in the Feasibility Study)

● Support for the EIS and permitting, estimated to be $ 0.4 million over the next 2 years.

● Construction of the access road which is estimated at $ 1.7 million.

● Drilling and testing of a water well, estimated at $0.1 million.

● Purchase of long-lead equipment estimated at approximately $ 2.0 million.

December 19, 2011  9  

Midway Gold Corp.	Introduction
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

2   INTRODUCTION

2.1 Purpose

Gustavson Associates, LLC (Gustavson) was commissioned by Midway Gold Corp. to conduct a Feasibility Study for the Pan Project in White Pine County, Nevada. The purpose of this report is to document the results of the Feasibility Study according to Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects and guidelines for technical reporting. This study includes detailed assessments of realistically assumed mining, processing, metallurgical, economic, legal, environmental, social, and other relevant considerations needed to demonstrate the economic viability of the project.  All data and interpretations are based on information available prior to the effective date of this report, November 15, 2011.

2.2 Qualified Persons

The qualified persons responsible for this report are:

● William J. Crowl, R.G., Vice President, Mining Sector, Gustavson Associates

● Donald E. Hulse, PE, Principal Mining Engineer, Gustavson Associates

● Terre A. Lane, Member  MMSA QP Reserves and Mining, Associate Principal Mining Engineer, Gustavson Associates

● Donald J. Baker, PhD, QP Geology and Reserves, Member MMSA, Associate Principal Geologist, Gustavson Associates

● Jennifer J. Brown, P.G., Registered Member SME, Principal Geologist, Lowham Walsh LLC

Terre Lane acted as project manager during preparation of this report, and is specifically responsible for Sections 1, 9 through 13, and 16 through 18. Dr. Donald Baker is responsible for Sections 7 and 8. Donald Hulse is responsible for Sections 14, 15, and 19 through 27. Ms. Brown is responsible for Sections 2 through 6, and Mr. William Crowl has reviewed the entire document.

2.3 Site Visit of Qualified Person

Terre Lane visited the Pan site on May 27, 2010, and the Ely office on October 7 and 8, 2010. While on site, Ms. Lane reviewed drill cuttings, drill logs, and assay certificates, and compared selected assay certificates to data included in the project database. At the Ely office, Ms. Lane inspected core samples and reviewed core logging and splitting procedures, data handling and sample security protocols, and chain of custody. During a site visit on February 21 and 22, 2011, Dr. Donald Baker reviewed the local geology and organization of project data, verified drill locations, and evaluated sampling methods and security protocols.

December 19, 2011  10  

Midway Gold Corp.	Introduction
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

2.4 Sources of Information

Gustavson sourced information from referenced documents as cited in the text and summarized in Section 27 of this report. Gustavson and others have previously filed the following technical reports on the Pan Project:

M. Gustin (2005). Pan Gold Project, Updated Technical Report, White Pine County, Nevada USA, prepared by Mine Development Associates Mine Engineering Services, issued by Castleworth Ventures Inc.

D. Harris (2009). Pan Project, White Pine County, Nevada NI 43-101 Technical Report, prepared by MGC Resources, filed by Midway Gold Corp.

Gustavson Associates, LLC (2010).NI 43-101 Preliminary Economic Assessment of the Pan Gold Project, White Pine County, Nevada, issued by Midway Gold Corp.

Gustavson Associates, LLC (2011).NI 43-101 Preliminary Feasibility Study of the Pan Gold Project, White Pine County, Nevada, issued by Midway Gold Corp.

Gustavson Associates, LLC (2011).NI 43-101 Updated Mineral Resource Estimate for the Pan Gold Project, White Pine County, Nevada, issued by Midway Gold Corp.

A portion of the background information and technical data for this report was obtained from the above reports. Additional information was requested from and provided by Midway Gold U.S. Inc. (MIDWAY).

2.5 Units of Measure

Unless stated otherwise, all measurements reported here are in US Commercial Imperial units, and currencies are expressed in constant 2011 US dollars. The mineral resource estimates cited in this report are classified in accordance with Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves.

December 19, 2011  11  

Midway Gold Corp.	Reliance  on Other Experts
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

3 RELIANCE ON OTHER EXPERTS

The conclusions and recommendations included in this report rely in part on work performed and information provided by MIDWAY personnel. Much of the data and some of the geologic interpretations and conclusions presented here were first presented in the previously issued technical reports identified in Section 2.4. Additional information was provided by internal reports generated by MIDWAY geologists. This study also relies on information provided by Mr. R.J. Smith, a Registered Landman with MIDWAY, regarding land agreements, options, claims of accuracy of title, royalty information, and environmental liabilities.

December 19, 2011  12  

Midway Gold Corp.	Property Description and Location
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

4 PROPERTY DESCRIPTION AND LOCATION

4.1   Location

The Pan property is situated in the northern portion of the Pancake Range in White Pine County, Nevada, 22 miles southeast of the town of Eureka and 50 miles west of Ely (Figure 4-1). The project area encompasses approximately 10,373 acres (4,198 ha), all located within surveyed townships (Figure 4-2). The geographic center of the property is located at 39°17’N latitude and 115°44’W longitude, and the primary zones of mineralization on the property are located in Sections 25 and 36, Township 17 North, Range 55 East (T17N, R55E) and Section 1, T16N, R55E, Mount Diablo Base and Meridian (MDBM). Access to the Pan site is provided by an unmaintained dirt road that originates at US 50 and traverses the width of the property.

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Midway Gold Corp.	Property Description and Location
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

4.2   Mineral Tenure, Agreements, and Exploration Permits

4.2.1     Mineral Rights

The Pan Project consists of 550 contiguous, active, unpatented lode mining claims covering portions of Sections 12 through 15, 22 through 27, and 34 through 36, T17N, R55E; portions of Sections 19, 29, and 30, T17N, R56E; portions of Sections 1 through 3, 10 through 15, 22, and 23, T16N, R56E; and portions of Sections 6 and 7, T16N, R56E, as shown on Figure 4-2.

December 19, 2011  14  

Midway Gold Corp.	Property Description and Location
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

The unpatented lode claims were individually surveyed at time of location. Claim maps filed with the BLM and White Pine County are kept active through payment of an annual maintenance fee due each August 31. A complete listing of the claims on file with the BLM and White Pine County is available upon request.

4.2.1.1   Newark Valley Mining Agreement

Pursuant to acquisition of the Pan Nevada Gold Corporation (PNV) effective April 16, 2007, Midway Gold Corp. acquired a 100% interest in the January 7, 2003 mineral lease agreement by and between Pan Nevada Gold Corporation (formerly Castleworth Ventures, Inc.) and Newark Valley Mining Corp. (NVMC), derivative successor in interest to the Lyle F. Campbell Trust (LFC Trust). On or before January 5 of each year, PNV must pay an advance minimum royalty of the greater of US$60,000 or the US dollar equivalent of 174 ounces of gold valued by the average of the London afternoon fixing for the third calendar quarter preceding January 1 of the year in which the payment is due.  All minimum advance royalties will be creditable against a sliding scale gross production royalty of between 2.5% and 4% (Table 4-1).

If the total amount of gross production royalty due NVMC in any calendar year exceeds the advance minimum royalty due within that year, PNV can credit all un-credited advance minimum royalties paid in previous years against 50% of the gross production royalty due NVMC within that calendar year. Ten claims are also subject to an overriding 1% Net Smelter Royalty (NSR) royalty payable to a third party.

PNV must incur a minimum of US$65,000 per year work expenditures, including claim maintenance fees, during the term of the mining lease.

Table 4-1 Pan Royalty Schedule

Price of Gold	Percentage
To and including $340.00/oz	2.5%
From $340.00/oz to $450.00/oz	3.0%
$450.00/oz and greater	4.0%

(Source: MIDWAY)

The original lease encompassed 98 claims and established a 1-mile area of interest within which all new claims located by PNV or an affiliate are subject to the lease agreement. As noted, 10 PA claims are subject to the 1% NSR overriding royalty. PNV (or its predecessors) expanded the claim holdings within the area of interest to a total of 410 unpatented claims.

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Midway Gold Corp.	Property Description and Location
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

4.2.1.2   Additional Claims

Over the years, MIDWAY, a wholly owned subsidiary of Midway Gold Corp., has staked 111 additional unpatented claims (56 NC, 53 GWEN, and 2 REE claim blocks), within and adjacent to the Pan property that are without royalty burden and are not subject to the NVMC area of interest.

4.3   Environmental Liabilities

The BLM prepared an Environmental Assessment (EA) for exploration activities on the Pan property in 2004. This evaluation, conducted as part of the Plan of Operations (POO) process to permit surface disturbance resulting from exploration activities, produced a Finding of No Significant Impact (FONSI). Although the BLM found no significant environmental impact during the EA, the associated scoping process identified air quality, soils, vegetation, wildlife (migratory birds), grazing, wild horses, cultural resources, visual resources, and hazardous/solid wastes as potential areas of concern.

An Exploration POO Amendment describing additional exploration activities was submitted to the BLM by MIDWAY in 2010, triggering the NEPA process. The POO Amendment includes an additional 75 acres of disturbance and construction of a new access road. Based on BLM scoping, issues of concern for additional exploration include cultural resources, migratory birds, sage grouse, wildlife, vegetation, paleontology, soils, recreation, and visual resources. The draft EA prepared to address these issues did not identify any significant impacts. The draft EA was made available for public comment in March 2011 and a FONSI was signed in July 2011.

Baseline studies to support a potential Mining POO have been initiated and are ongoing. To date, soils, vegetation, and wildlife baseline surveys have been completed. No threatened and endangered or special status species plants were found in the proposed areas of exploration or road construction. Sage grouse are a special status wildlife species present in the vicinity of the existing access road. A new road designed to avoid existing sage grouse leks has been permitted, and its location approved by the BLM and the Nevada Division of Wildlife (NDOW).

A Mining Plan of Operations (POO) was submitted to the Bureau of Land Management (BLM) in September, 2011, and was deemed to be administratively complete by the BLM.

The triggered Environmental Impact Statement (EIS) will likely need to address the following issues prior to project development:

● Potential impacts to local sensitive species: sage grouse, white sage, pygmy rabbits, and migratory birds and bats, which have potential to occur within the claim block.

● Potential impacts to segments of the Lincoln Highway/Hamilton Stage Road, Carbonari sites, and other historic/archaeological sites

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Midway Gold Corp.	Property Description and Location
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

● Geochemistry

● Gold mineralization in the Pan deposit occurs as sub-microscopic particles disseminated in carbonate and clastic sedimentary rocks. All known mineralization is non-sulphur bearing oxide, and clay and silica alteration are the dominant styles of alteration. Acid rock drainage (ARD) is unlikely based on these conditions, but given the importance of the issue and according to current regulatory requirements, geochemical evaluations of waste materials will need to be completed.

The permitting schedule for the Pan Project will be dominated by the NEPA process requirements, which typically take at least one year for baseline studies and public review followed by comment periods for scoping and Draft EIS documents.

The schedule for other required permits will fall within the NEPA time frame and should not impact the overall permit schedule. Examples of other potentially required permits include the following:

● Nevada Division of Minerals – Mine Registration – requires an approved POO if on Federal land – not approved until after ROD

● Nevada Department of Environmental Protection – Reclamation Permit Application – Requirements are the same as the POO if on Federal Lands.

● Nevada Bureau of Water Pollution Control – Application for Permit to Discharge Process Wastewater

● Nevada Bureau of Water Pollution Control – Groundwater Discharge Permit, if necessary

● Nevada Bureau of Air Pollution Control – Permit to Construct and Operate

4.4   Exploration Permits and Jurisdictions

MIDWAY exploration activities are permitted under the POO approved by BLM in 2004 and the POO Amendment approved by BLM in 2011. MIDWAY was originally bonded through Pan Nevada at $63,170, which allowed for surface disturbance as a result of exploratory drilling on about 22 acres within the POO boundary. The POO Amendment added approximately 75 acres of new disturbance for access roads and drill pads, and increased the bond amount to a total of $362,696. Approximately 12 acres of ground surface are currently disturbed due to recent exploration activities, and the disturbance and bonding level are updated annually and every three years, respectively, as required by BLM. There are no known historic hard rock or placer mining disturbances on the property.

Portions of the Pan Project were disturbed during previous exploration activity and only some of those areas have been reclaimed. According to the BLM and SRK (2009), MIDWAY’s responsibility is limited to those disturbed areas that are currently used for exploration activities.

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Midway Gold Corp.	Property Description and Location
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

MIDWAY is currently responsible for monitoring and reclamation of active drill roads and drill sites totaling approximately 100 acres.

December 19, 2011  18  

Midway Gold Corp.	Accessibility, Climate, Local Resources, Infrastructure, and Physiography
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

5   ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

5.1   Accessibility, Infrastructure, and Local Resources

Access to the Pan property is provided by an unmaintained dirt road that intersects US Highway 50 approximately 17 miles southeast of Eureka, Nevada. It is approximately 7 miles by road from US 50 to the Pan Project site. The property is accessible year-round, but weather conditions occasionally make access and on-site travel difficult during the winter months.

The Pan Project is wholly located on and operations will be contained within MIDWAY land holdings. Electrical power is available via a power line, which runs adjacent to US 50, approximately 6 miles north of the highway and 14 miles from the project site. Water to support exploration drilling is available from ranch wells located approximately 3 miles to the west of the property. Water rights have been secured to provide for year-round water from the Newark Valley, just west of the mine site, for a term of 25 years.

The town nearest to the project site, Eureka, Nevada, hosts a population of 610 according to 2010 US Census data. Greater Eureka County and White Pine County host area populations of 1,987 and 10,030 respectively, though population is centered primarily in Eureka and Ely, Nevada. Elko, Nevada, population of 18,400, is the nearest city to the project site, and is located approximately 110 miles to the north by road.

Logistical support is available in Eureka, Ely, and Elko, all of which currently support large open pit mining operations. Barrick Gold Corporation currently operates the Ruby Hill Mine near Eureka and the Bald Mountain Mine approximately 50 miles to the north. Quadra Mining operates the Ruth Copper pit near Ely, and large-scale mining by Barrick and Newmont Mining Corporation is ongoing near Elko and Carlin, Nevada to the north. Mining personnel and resources for operations at Pan are expected to be available from Eureka, White Pine, and Elko Counties.

5.2   Topography, Elevation, Vegetation, and Climate

The Pan property is located within the rolling hills of the northern most portion of the Pancake Range. The terrain is gentle to moderate throughout most of the project area, with no major stream drainages. Elevation ranges from 6,400 to 7,500 ft above mean sea level. Local vegetation includes Piñon-Juniper woodlands broken by open areas of sagebrush and grass. No springs are known to exist on the property.

The local climate is typical for the high desert of east-central Nevada and the Basin and Range province. Climate data shows average annual precipitation of 11.85 inches, average temperatures ranging from 17°F in the winter to 86° F in the summer. Daytime temperatures in Eureka

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Midway Gold Corp.	Accessibility, Climate, Local Resources, Infrastructure, and Physiography
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

commonly exceed 90°F during the months of July and August (Western Regional Climate Center, 2008).

December 19, 2011  20  

Midway Gold Corp.	History
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

6   HISTORY

6.1   Exploration History

Mr. Lyle Campbell discovered the Pan deposit while prospecting in 1978, when he encountered gold-bearing jasperoid, now referred to as Campbell Jasperoid. Mr. Campbell staked 147 original unpatented mining claims, and transferred ownership of the claims to the LFC Trust in 1986. The LFC Trust was bought out in 2008 and is now owned by NVMC.

Several companies have conducted exploration on the property since 1978. The following paragraphs summarize exploration activities at Pan based on information provided in previously issued technical reports:

● Mr. Campbell leased his claims to Amselco in 1978. The majority of drilling exploration carried out by Amselco took place in North Pan.

● In 1986, Hecla conducted a drilling exploration program in the central portion of the Pan property.

● Echo Bay leased the claims in 1987 and completed an exploration drilling program that resulted in the discovery of gold mineralization at South Pan.

● The Pan property was explored under a joint venture between Alta Gold and Echo Bay from 1988 through 1991. Drilling was conducted in both North and South Pan, in conjunction with geologic mapping, geochemical sampling, and an induced polarization geophysical survey. The Alta Bay joint venture initiated studies in support of mining development, including an archaeological survey, additional metallurgical test work, and preliminary mineral reserve calculations and mine designs.

● Alta Gold retained ownership of the Pan Project after dissolution of the joint venture until 1992. Drilling exploration was reported, but the associated holes have not been validated and are not included in the modern day resource database.

● In 1993, Southwestern Gold Corporation completed drilling exploration on a small section of claims that they held at that time west of North Pan. The associated drill hole collars have been identified in the field, but no other information has been validated and these holes are not included in the modern resource database.

● The Pan Project was dormant from 1993 until 1999, when Latitude leased the property from LFC Trust. Between 1999 and 2001, Latitude explored the property as part of a joint venture with Degerstrom. Geologic mapping and outcrop and soil sampling were completed under the joint venture, as was drilling and metallurgical testing.

● Latitude drilling focused primarily on North and South Pan mineralization, but also resulted in the discovery of mineralization in the modern day Syncline and Black

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Midway Gold Corp.	History
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

Stallion target areas of Central Pan. Latitude terminated the joint venture with Degerstrom in mid-2001, and joint ventured the project to Metallica later that year. From LFC Trust files, it appears that Metallica focused on thermal imagery and lineament study of satellite data over the Pan area. No additional subsurface exploration work was completed. The LFC Trust terminated the lease agreement with Latitude in 2002, citing Latitude’s inability to meet financial obligations.

● Castleworth Ventures. Inc. leased the Pan claims in January 2003. The company completed drilling exploration and conducted geologic mapping, sampling, metallurgical test work, and resource estimation. On April 16, 2007, Pan Nevada Gold Corporation (formerly Castleworth Ventures, Inc.) was acquired by MIDWAY.

● Since acquiring the Pan Project in 2007, MIDWAY has completed 209 holes, of which 195 were reverse circulation and 14 diamond core drill holes for a total of 95,394 ft. Drilling efforts have generally focused on expanding known mineralization, but also include confirmation drilling and exploration drilling in several potential target areas on the Pan property. In addition to drilling exploration, MIDWAY has completed geologic mapping, soil and outcrop sampling, and gravity survey.

6.2   Historical Resource and Reserve Estimates

Historical resource and reserve estimates are described in detail in the 2005 report produced by Mine Development Associates (MDA). These resource and reserve estimates have not been verified, are not considered reliable, are not relevant to the updated mineral resource presented in this report, and are mentioned here for historical completeness only.

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

7  GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Geology

The Pan property is located in the core of the northern portion of the Pancake Range of east-central Nevada. The Pancake Range is part of the Basin and Range Province, a large physiographic region characterized by a series of normal faults expressed as a sequence of north-south trending narrow mountain ranges separated by flat, arid valleys. The Pancake Range is approximately 85 miles long and 8 to 10 miles wide and is composed of Paleozoic carbonate and clastic sedimentary rocks, Cretaceous igneous intrusives, and Tertiary volcanics. A regional geologic map of the northern Pancake Range is presented as Figure 7-1.

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

December 19, 2011  24  

Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

The Pan property is bounded to the east and west by the Newark Valley. Devonian, Carboniferous, and Permian carbonate and clastic sedimentary rocks form the core of the Pancake Range, and are exposed in bedrock outcrop in the project area. A representative stratigraphic section is presented as Figure 7-2.

A Cretaceous intrusion of quartz monzonite is present just south of the Pan Project area and a quartz monzonite sill intrudes along an east-west fault in the south central portion of the property. These intrusives are assumed to be age related to the Seligman and Monte Cristo stocks, which outcrop in the Mount Hamilton area to the east of the Pan property. The Seligman and Monte Cristo stocks may have provided a heat source for the Pan mineral deposits. Post-

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

mineral Tertiary volcanic rocks, including basalt and quartz latite airfall tuff, nonconformably cap the Devonian to Permian sedimentary bedrock geology in the vicinity of the Pan Project.

7.2   Property Geology

The geology of the Pan property is dominated by Devonian to Permian carbonate and clastic sedimentary rocks cut by the Pan fault, a steeply west dipping normal fault that trends north-south. The Pan fault juxtaposes gently west dipping sedimentary units on the west side of the fault, and steeply northeast dipping sedimentary units on the east side. Post-mineral Tertiary volcanic rocks nonconformably overlie the faulted Devonian through Permian sedimentary units. Individual lithologic units identified at the project site are described below, from oldest to youngest.

 7.2.1   Lithological Units

 7.2.1.1   Simonson Dolomite (Ds) - Devonian

The Simonson Dolomite is the lowermost lithologic unit intersected by drilling at the Pan property. This unit is not exposed on the surface. Thickness ranges from 500 to 1,300 ft thick in White Pine County (Smith, 1976) but only the top portion of the dolomite has been drilled at South Pan. The dolomite is a light gray, massively bedded unit.

 7.2.1.2   Devils Gate Limestone (Dd) - Late Devonian

The oldest lithologic unit exposed in the northern Pancake Range is the Late Devonian Devil’s Gate Limestone. This unit is massive to thinly bedded, medium to dark gray, fine to coarse grained limestone. Thickness of the unit ranges from about 1000 ft to 2500 ft locally. The Devil’s Gate Limestone is the secondary host of gold mineralization at the Pan property.

 7.2.1.3   Pilot Shale (MDp) - Late Devonian to Early Mississippian

The Pilot Shale has an upper series of thinly interbedded dolomitic and calcareous siltstone and silty shale, and a lower section of more thickly bedded calcareous siltstone with local limestone beds. The unit ranges in thickness from about 300 to 900 ft, but locally thickens structurally along the Pan fault. Silicified and argillized Pilot Shale is the primary host of gold mineralization at the Pan property.

 7.2.1.4   Joana Limestone (Mj) - Mississippian

The Joana Limestone is a gray, medium grained, unevenly bedded limestone with abundant fossil fragments and detrital limestone interbeds. Reported fossil types include echinoderm, bryozoans, foraminifera, algae, and crinoids. Locally, light brown calcareous sandstone is present at the base of the unit. Thickness of the Joana Limestone is typically less than 150 ft at the Pan property, though the total thickness reportedly ranges from 90 to 500 ft throughout the county (Smith, 1976).

December 19, 2011  26  

Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

 7.2.1.5   Chainman Shale (Mc) - Mississippian

The Chainman Shale consists of dark gray to black shale with thin interbeds of olive gray silty shale and siltstone. Thickness of the unit ranges from 1000 to 2000 ft (Smith, 1976) and is about 1000 ft at the Pan property.

 7.2.1.6   Diamond Peak Formation (Md) - Mississippian

The Diamond Peak Formation consists of medium beds of coarse grained, quartz-rich sandstone and olive gray siltstone overlain by thick to massive conglomerate. Thickness of the Formation ranges from less than 1,000 to 3,700 ft, and is about 2400 ft in the Pan Project area.

 7.2.1.7   Ely Limestone (Pe) - Pennsylvanian

The Ely Limestone is a medium bedded, coarsely crystalline, medium gray limestone with local interbeds of siltstone and chert. Thickness ranges from 1800 to 3000 ft, and averages about 2000 ft in the Pancake Range.

 7.2.1.8   Rib Hill Siltstone - Permian

The Rib Hill Siltstone is a thinly bedded, quartz-rich, calcite-cemented siltstone with sandstone interbeds and high iron oxide and carbonate content. Thickness ranges from 800 to 1,400 ft (Smith, 1976). Thickness at the Pan property is unknown as a full section is not exposed, but based on limited drilling is greater than 600 ft.

 7.2.1.9   Kaibab Limestone - Permian

The Kaibab Limestone is a thick-bedded limestone with reportedly high fossil content. This unit is found in isolated outcrops throughout White Pine County (Smith, 1976) at thicknesses ranging from 50 to 200 ft. True thickness at the Pan property is unknown as only two isolated outcrops of lower Kaibab are exposed.

 7.2.1.l0   Intrusives - Cretaceous

In the Mount Hamilton area to the east, both the Seligman and Monte Cristo stock have been age dated at 90.4 to 128.0 million years (Adair and Stringham, 1960). A small intrusive body south of the Pan property, the Pancake stock, was age dated at 108 million years (Smith, 1976). The Pancake stock ranges in composition from quartz monzonite to granodiorite. A quartz monzonite sill intrudes along an east-west fault in the south-central portion of the property.

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

 7.2.1.11   Volcanic Units (Tv) - Tertiary

Tertiary volcanics exposed in the northern Pancake Range include a lower (Oligocene) quartz latite airfall tuff (50-200 ft thick) and an upper basalt flow (50-100 ft thick). Infrequent quartz-rich rhyodacite of similar age is present along the northern portion of the Pan property. These units are post mineral and overlie projections of gold mineralization and structure to the north and south of the known gold deposits at Pan.

 7.2.2   Structural Geology

The geology of the Pan property is structurally dominated by the north-south trending Pan fault, a high angle fault with possible right lateral offset. Based on drill intercepts and interpretation, the fault dips between 80° to 85° west. On the west side of the fault, Devonian through Mississippian stratigraphy dips 10° to 30° westward. On the east side of the fault, Devonian through Permian stratigraphy dips 65° to 70° to the northeast.

The stratigraphic units on the east side of the Pan fault comprise the southwest limb of a northwest trending syncline. The Pan fault is recognizable in the field by the juxtaposition of younger sedimentary rocks to the east against older sedimentary rocks to the west, and can be tracked north until covered by Tertiary volcanic units. To the south, the Pan fault appears to horsetail with splays arcing to the southeast until covered by post-mineral volcanic units.

The terrain west of the Pan fault is cut by a number of northeasterly trending high angle faults with varying displacement senses. There are also a number of northerly trending faults, which may include high angle, dip-slip faults, and low angle, easterly-directed thrust faults. Thrust faulting reasonably accounts for the multiple repetitions of the Devils Gate Limestone and Pilot Shale, the principal hosts of mineralization.

Considerable breccia is present along and in proximity to the Pan fault and other structures to the west. The breccias host a substantial portion of the gold resource at the Pan Project and are interpreted as dissolution collapse breccia and hydrothermal breccia formed during the mineralizing event. Narrow breccia zones in the Devils Gate Limestone expand in lateral dimensions in the overlying Pilot Shale. The resultant geometry is one of elongate pods of breccia extending along structural trends within the Pilot Shale, with the breccia body necking down at depth in the Devils Gate Limestone. The breccia varies from clast to matrix supported, and contains angular to subrounded sedimentary fragments. Associated crackle breccia, wherein the rock is shattered but fragments remain roughly in place and not rotated, occurs marginal to or as relicts within the breccia bodies, and is altered and mineralized in a manner similar to the dissolution/hydrothermal breccia.

7.3   Mineralization

The Pan Project can be separated into three general geographic zones: North Pan, South Pan, and Central Pan. Gold mineralization at the Pan Project is encountered in all three zones.

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

Mineralization is both structurally and stratigraphically controlled, occurring primarily in breccias along the trend of the Pan fault, within high-angle northwest- and northeast-trending structural zones, and within calcareous shale beds. Collapse breccias in the upper Devil’s Gate Limestone and pipe-like breccia bodies that developed within the Devil’s Gate Limestone below the collapse breccia zones likely acted as conduits for gold-bearing hydrothermal solution.

In South Pan, mineralization occurs in breccias developed within both the Pilot Shale and the Devil’s Gate Limestone, distributed within a broad zone of silicification and calcite veining associated with the Pan fault zone, and appears to be stratabound in limestone and shale along the limbs of an anticline dissected by the Pan fault. The contact between the Pilot Shale and Devil’s Gate Limestone hosts mineralization along strike within both the Central and North Pan zones. These occurrences are described as Carlin-style, epithermal, disseminated, sediment-hosted systems.

Mineralization is primarily hosted in structurally controlled dissolution breccias along sub-vertical faults. Dissolution breccias formed along the Pan fault as well as minor cross faults in both North and South Pan. Wide zones of breccia developed in the Pilot Shale with narrower zones occurring in the Devils Gate Limestone.

Stratigraphically controlled mineralization occurs along argillized contacts between the Pilot Shale and Devils Gate Limestone. Better mineralization along these contacts tends to be hosted within the Pilot Shale. This style of mineralization is less common but is significant in the Wendy area of South Pan and in the Black Stallion and Syncline areas of Central Pan.

Estimation domains were delineated within the North Pan, South Pan, and Central Pan zones based on the style and orientation of mineralization in each area. Both styles of mineralization can be present within the same zone, though one is usually dominant. The search parameters within each domain were restricted to those most appropriate for the dominant style of mineralization.

 7.3.1   Alteration

Alteration associated with the Pan deposits is typical of Carlin-style gold systems, and includes silicification, argillization, decalcification, and oxidation. Breccia bodies may be silicified (jasperoid) or argillized and can contain variably altered fragments, including silicified, clay altered, and/or decalcified fragments. The Pilot Shale- Devils Gate Limestone contact may be argillized and/or decalcified.

Silicification is characterized by multi-phase breccia and passive silica flooding along bedding and structures. Silicification occurs in breccia zones and in the Pilot Shale, and small zones have also been identified in the Devils Gate Limestone. Minor quartz veining has been reported in the North Pan zone, particularly in association with the Campbell Jasperoid.

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

Clay alteration is generally associated with hydrothermal alteration and carbonate destruction. Clay along faults and bedding is common in both the Pilot Shale and Devil’s Gate Limestone, and is a common matrix of collapse breccias.

Decalcification of both the Devils Gate Limestone and calcareous siltstones of the Pilot Shale is spatially associated with mineralization encountered at Pan. Decalcification results in a sanded, punky texture, especially in lithologic units with high original carbonate content.

Mineralization at Pan occurs in strongly oxidized rock. Oxidation is prevalent throughout each of the zones with strong development of iron oxides (hematite and limonite). Liesegang banding formed in the Pilot Shale in association with oxidation. Sulphide minerals have rarely been described in drill logs at Pan, and are not associated with the gold mineralization.

The bulk of the mineralized area contains elevated barite levels, typically above 0.2%. Hydrothermal barite veins are present in the southeast portion of the property in association with the old Cue Ball Barite Mine, briefly worked in the 1970s.

 7.3.2   Geometry of Mineralization

Gold deposits at the Pan Project generally occur as elongate pods in association with structures and dissolution/hydrothermal breccia bodies hosted by the Pilot Shale and, to a lesser extent, the Devils Gate Limestone. Gold deposits also occur as more tabular bodies in deposits hosted by altered and mineralized sedimentary horizons. Cross sections typical of the North and South Pan zones are shown on Figures 7-3 and 7-4.

North Pan mineralization is predominantly hosted in breccias developed in the moderately folded Pilot Shale along the Pan fault and other structures to the west. At present, very little mineralization has been identified in the Devils Gate Limestone, in part due to the lack of drilling which intersects the Pilot Shale-Devil’s Gate contact. Mineralization occurs along a north-south trend approximately 5,000 ft long and 500 to 1,000 ft wide. Gold mineralization has been identified to depths up to 650 ft, but remains open at depth and to the north under volcanic cover.

The Central Pan zone contains mostly sub-horizontal, tabular mineralization hosted along the Pilot Shale- Devils Gate Limestone contact. Mineralization in the Black Stallion and Syncline areas is dominantly hosted in folded and faulted Pilot Shale, but also occurs in Devils Gate Limestone. This area of mineralization is relatively small, but there is some potential for expansion with additional drilling.

In the South Pan zone, mineralization has been identified along the north-south trend of the Pan fault for approximately 5,000 ft, ranging in width from 300 to 700 ft. To the east of the Pan fault, sedimentary units dip 30° to 70° to the northeast, with pronounced fault drag against major structures. Gold occurs in breccias composed of shattered and clay altered, decalcified Devils

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

Gate Limestone. Rock types are typically decalcified limestone and, where present, silicified and argillized Pilot Shale. A significant portion of the Pilot Shale at South Pan is eroded away. Mineralization in the Barite area is structurally dominated and mineralization occurs along the Pan fault in breccias of both the Pilot Shale and Devil’s Gate Limestone. Mineralization in the Wendy area is stratigraphically dominated, more tabular in shape, and is controlled by alteration of the Pilot Shale- Devils Gate Limestone contact. Known mineralization in this zone is open to the east and to the south under volcanic cover.

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Midway Gold Corp.	Geological Setting and Mineralization
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

December 19, 2011  32  

Midway Gold Corp.	Deposit Types
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

8   DEPOSIT TYPES

MIDWAY interprets gold deposits at the Pan Project to be Carlin-style, epithermal, disseminated gold hosted in Devonian and Mississippian sedimentary units. This type of system falls under the general classification of low sulfidation epithermal deposits. Gold particles occur as micron to submicron size disseminations. Visible or coarse gold is not common in this type of deposit, and has not been observed at Pan.

Controls on mineralization in Carlin-style systems and at the Pan Project include both structure and stratigraphy. Gold mineralization is generally distributed along high-angle faults, and in a more tabular fashion subparallel to stratigraphy. Dissolution breccias developed in association with faults at the Pan Project serve as the primary host for gold mineralization. Additional mineralization is hosted in favorable stratigraphy, primarily in the lower Pilot Shale and to a lesser extent, the upper Devil’s Gate Limestone.

Similar type gold deposits in the surrounding area include Bald Mountain, Maverick Springs, Emigrant Springs, and Midway Gold Corp.’s Gold Rock deposit.

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Midway Gold Corp.	Exploration
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

9   EXPLORATION

Exploration at the Pan Project is a comprehensive effort utilizing a variety of methodologies, including:

● Geochemical sampling

● Geophysics

● Surface and subsurface geologic mapping

● Drilling within the known resource area

● Drilling on exploration targets

9.1   Previous Operators Exploration Work

Previous exploration work includes geologic mapping, metallurgy, geochemical sampling, geophysical surveys, and drilling. Exploration conducted by previous operators is described in detail in previously filed technical reports, including Gustavson’s 2011 Preliminary Feasibility Study.

9.2   MIDWAY Exploration Work

Since acquiring the Pan property in 2007, MIDWAY has conducted exploration using a number of different investigative techniques. Drill targets proximal to North and South Pan and additional exploration targets throughout the project area have been identified based on the results of surface geochemical surveys, chip sample analysis, geologic mapping, and geophysical surveys.

 9.2.1   Surface Geochemistry

Soil sampling on 100 x 200 and 200 x 200 ft grids was carried out by Pan Nevada (2006) and MIDWAY (2007 and 2008). This grid covered the majority of the property and consisted of collection and analysis of 9,525 soil samples. Soils were sieved to the -10+80 mesh size fraction and assayed for gold at ALS Chemex. Assay for gold was accomplished by standard fire assay methods on a 30g subsample, and for an additional 50 elements by aqua regia digestion of a 0.5-gram subsample and inductively coupled plasma (ICP) finish.

 9.2.2   Rock Samples

Between 2003 and 2008, MIDWAY and Pan Nevada collected and analyzed a total of 786 surface rock samples. Individual chip samples were collected from outcrops scattered throughout the property, and 10 ft continuous chip samples were collected from Pilot Ridge in the south central portion of North Pan. Samples were collected during geologic reconnaissance traverses, prospect mapping, and target delineation. Rock chips were crushed to 70% passing 2mm with a nominal 250 gram split, pulverized to 85% passing 75μm, and were then assayed by standard fire

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Midway Gold Corp.	Exploration
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

assay methods by ALS Chemex. Only a small number of samples were analyzed for an additional 50 elements by aqua regia digestion of a 0.5-gram subsample and ICP finish.

 9.2.3   Geologic Mapping

Latitude produced a geologic map of the Pan property at a scale of 1:6000 in 2001, focusing on North and South Pan. MIDWAY completed reconnaissance mapping, scale 1:12000 and more detailed local mapping, scale 1:6000, in 2007 in order to extend map coverage over the entire Pan Project area.  This work helped to clarify the geologic setting, identify structural trends, and indicate prospective areas for additional exploration.

 9.2.4   Geophysical Surveys

MaGee Geophysical Services conducted a ground gravity survey at the Pan property in 2008. J.L. Wright Geophysics of Spring Creek, Nevada, interpreted the results of the survey, which identified several major structural features and were used to identify target areas for future drilling.

December 19, 2011  35  

Midway Gold Corp.	Drilling
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

10   DRILLING

10.1   Introduction

Gustavson has validated 975 holes drilled at the Pan property since 1978. Historic drilling campaigns carried out by operators other than MIDWAY account for 766 of the total number of holes. Historic drilling is described in detail in previously filed reports, including Gustavson’s 2010 Preliminary Feasibility Study.

10.2 Drilling by Midway Gold Corp.

As of September 1, 2011, MIDWAY has drilled a total of 209 holes for a total of 95,394 ft. Of the 209 holes drilled by MIDWAY, 195 were drilled using reverse circulation, and 14 are diamond core holes. Drilling exploration conducted by MIDWAY is summarized in Table 10-1, and drill hole distribution is shown on Figure 10-1.

Table 10-1  Midway Dilling Exporation Summary

Exploration Program (Year)	Number of Holes Drilled	Total Footage	Type of Drill Hole
2007-2008	162	61,875	RC
2010	14	5774.5	Core
2011	33	27,744.5	RC

MIDWAY completed 33 reverse circulation (RC) holes in 2011. Data from these holes was added to the project database, and was used to update the Pan mineral resource estimate. Drill hole information from drilling completed from January through June 2011 is summarized in Table 10-2.

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Midway Gold Corp.	Drilling
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Table 10-2  2011 Drill Hole Summary

Hole ID	Area	Northing (ft)	Easting (ft)	Northing (m)	Easting (m)	Elevation (ft)	TD	Date Completed	Dip	Azimuth	Purpose
PN11-01	S.Dep	14270552.22	1998752.916	4349673.016	609221.1072	6977.43	450	1/19/2011	-65	275	Resource
PN11-02	S.Dep	14272129.29	1998525.103	4350153.708	609151.6697	6831.36	560	1/29/2011	-75	270	Resource
PN11-03	S.Dep	14272211.68	1998838.24	4350178.82	609247.114	6796.22	570	2/3/2011	-70	270	Resource
PN11-04	S.Dep	14272182.5	1999069.96	4350169.926	609317.7424	6838.91	800	2/13/2011	-90	None	Resource
PN11-05	S.Dep	14271994.47	1999047.982	4350112.615	609311.0435	6834.19	654	2/16/2011	-90	None	Resource
PN11-06	S.Dep	14272409.22	1998944.925	4350239.031	609279.6317	6791.72	680	2/23/2011	-90	None	Resource
PN11-07	S.Dep	14272420.96	1998805.859	4350242.609	609237.2443	6777.94	600	2/26/2011	-90	None	Resource
PN11-08	S.Dep	14271392.6	1999364.466	4349929.164	609407.5081	6883.61	620	3/2/2011	-90	None	Resource
PN11-09	S.Dep	14271867.75	1999245.998	4350073.99	609371.3989	6880.66	750	3/12/2011	-90	None	Resource
PN11-10	S.Dep	14271663.27	1999271.248	4350011.665	609379.0951	6875.71	750	3/14/2011	-90	None	Resource
PN11-11	S.Dep	14273269.31	1998896.799	4350501.187	609264.9629	6730.77	700	3/17/2011	-90	None	Resource
PN11-17	Heap	14275730.44	1994893.624	4351251.341	608044.7927	6744.17	1300	3/23/2011	-90	None	Condemnation
PN11-12	S.Dep	14273236.97	1998700.482	4350491.329	609205.1253	6749.03	700	3/27/2011	-80	278	Resource
PN11-13	S.Dep	14272615.5	1998711.867	4350301.905	609208.5955	6772.67	600	3/30/2011	-75	133	Resource
PN11-18	Heap	14274966.78	1995829.893	4351018.577	608330.168	6550.17	1435	3/30/2011	-70	133	Condemnation
PN11-14	S.Dep	14273638.6	1998727.974	4350613.747	609213.5049	6729.41	700	4/6/2011	-75	220	Resource
PN11-15	S.Dep	14273935.52	1998425.131	4350704.248	609121.1982	6753.79	780	4/10/2011	-75	90	Resource
PN11-19	Heap	14274670.99	1996129.294	4350928.42	608421.4257	6543.61	1450	4/10/2011	-70	130	Condemnation
PN11-16	S.Dep	14273445.42	1998612.7	4350554.865	609178.3693	6755.6	700	4/13/2011	-90	None	Resource
PN11-20	Heap	14274787.34	1995969.275	4350963.883	608372.6518	6531.94	800	4/13/2011	-80	130	Condemnation
PN11-30	S.Pan	14273648.92	1998516.91	4350616.892	609149.1725	6751.3	690	4/20/2011	-90	None	Resource
PN11-31	N.Rock Pile	14280607.49	1997928.55	4352737.868	608969.84	6667.53	650	4/22/2011	-70	90	Condemnation
PN11-21	Heap	14275690.93	1996341.796	4351239.298	608486.1964	6581.58	1500	4/23/2011	-80	90	Condemnation
PN11-22	Heap	14276750.67	1996346.337	4351562.307	608487.5805	6592.32	1500	4/26/2011	-75	90	Condemnation
PN11-32	E.Heap	14272719.63	1992674.556	4350333.644	607368.4194	6393.96	850	4/26/2011	-70	90	Condemnation
PN11-33	S.Rock Pile	14271400.53	1996667.375	4349931.581	608585.4331	6687.87	900	5/4/2011	-90	0	Condemnation
PN11-23	Heap	14274621.03	1994159.031	4350913.192	607820.8883	6447.69	1418.5	5/9/2011	-70	90	Condemnation
PN11-34	S.Rock Pile	14269746.67	1997203.947	4349427.484	608748.9805	6704.7	497	5/9/2011	-70	90	Condemnation
PN11-24	E.Heap	14275327.94	1992689.707	4351128.658	607373.0374	6363.27	1200	5/19/2011	-80	90	Condemnation
PN11-35	Heap	14272804.65	1995020.974	4350359.558	608083.609	6538.05	830	5/23/2011	-75	90	Condemnation
PN11-36	Heap	14272636.4	1996272.06	4350308.28	608464.939	6588.52	450	5/23/2011	-70	90	Condemnation
PN11-37	Heap	14273560.7	1994195.49	4350590	607832	6595	830	6/4/2011	-70	90	Condemnation
PN11-29	Heap	14277054.78	1992404.15	4351655	607286	6415	830	6/5/2011	-70	90	Condemnation
33	Total Holes					Total:	27744.5			Total Condemnation	16440.5
17	Resource holes					June Footage	1660			Total Resource	11304
16	Condemnation

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Midway Gold Corp.	Drilling
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Midway Gold Corp.	Drilling
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

 10.2.1    Drilling Procedures and Conditions

Drilling conditions at Pan are favorable given the moderate terrain and existing road network. Drill sites are prepared by digging a sump and leveling a pad for the drill rig, if necessary. Holes are generally collared in bedrock and completed above the water table. Historical drilling results and recent hydrologic data indicate that the water table is at least 1,000 ft below ground surface.

RC and rotary methods were used for nearly all drilling at Pan to date. RC drilling was generally carried out using a down hole hammer with hammer bits ranging in diameter from 4 ½ to 5 ¾”. The use of Tricone bits was limited to a small number of holes where drilling conditions prevented penetration and sample recovery using the down hole hammer.  These holes were generally cased to depths of 10 to 20 ft.

Most of the core holes drilled at the Pan property were advanced using HQ (2½ inch) size core from ground surface and with no precollars. Core recovery was generally good, but core loss increased in highly fractured and brecciated rock commonly associated with mineralization. Core recovery is discussed in further detail below.

 10.2.2    Drill hole Collar Surveys

A digital database of collar locations for the Pan Project was developed by MDA for the 2005 resource estimate. This data was physically compared to all known drill logs to confirm locations and no errors were identified.

A licensed surveyor surveyed all MIDWAY holes. The UTM NAD 83 coordinate locations of MIDWAY holes were compared to associated proposed locations, topography, and GPS coordinates to evaluate accuracy and identify errors.

Geologic logs were completed for each drill hole and are compiled in the Pan Project database. Since 2007, MIDWAY geologists have logged core data directly into Microsoft Excel® spreadsheets using an on-site laptop station during drilling. The logging terminology for formation, lithology, alteration, oxidation, and waste type were preapproved, and any changes to the form required the approval of the project manager. MIDWAY did collect core samples from the 2010 and 2011 drilling programs. Core samples from previous operators have either been consumed or lost. All project drill logs are printed and catalogued by hole name, together with related drill information, in binders maintained by MIDWAY. All collar and drill log information was imported into a secure Microsoft Access® database, stored on the main project computer, and backed up to the corporate server. For security, access to the primary database is limited to the MIDWAY project manager.

 10.2.3    Down hole Surveys

Down hole surveys were completed at Pan for all MIDWAY drilling.

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 10.2.4    Extent of Drilling

Drill hole spacing at ground surface ranges from 100 ft to over 400 ft, but is generally on nominal 100 ft centers. The majority of the drill holes (65%) were advanced vertically. Approximately half of the holes drilled at an angle were oriented westerly, and one third of the angled drill holes were oriented easterly. Intercepts equal to or greater than 20 ft with grades equal to or greater than 0.010 ozAu/st were encountered in 464 of the total 864 holes drilled at the property since 1978. The intercept downhole thickness does not necessarily represent the true thickness of mineralization. With few exceptions, drilled lengths are greater than true thicknesses.

 10.2.5    MIDWAY Data Compilation and Grid Conversion

For the 2005 resource estimate, MDA converted the Pan database from a local coordinate system to NAD83, Zone 11 UTM coordinates, expressed in US ft.

10.3 Sampling Method and Approach

The Pan drill hole database includes sample data from reverse circulation, core, and rotary drilling. Drilling was performed by a variety of operators during a total of nine drilling campaigns over a 20-year period. Drill spacing is on nominal 100 ft centers at North Pan and Central Pan, and nominal 165 ft centers at South Pan. Drill spacing tighter than 100 ft centers occurs in some areas of mineralization at North Pan and Central Pan. Most RC and rotary samples (99%) were collected on 5 ft intervals, and all core samples were collected on intervals of 5 ft or less. Very little documentation is available on drilling and sampling procedures employed prior to 2004. However, the drilling was conducted by companies experienced in exploration and production and is considered reliable.

MIDWAY performed RC drilling at Pan in 2007 and 2008, and again in 2011. The drilling was performed wet, with water injection between 1 and 2 gallons per minute. Groundwater was encountered in the deeper holes, the deepest of which was drilled to a depth of 1500  ft.

RC samples were collected every 5 ft by a designated and trained sampler provided by the drilling contractor. Cuttings from each interval were passed through a cyclone and into a rotary vane splitter with 16 openings. The number of splitter openings was adjusted to maintain a roughly constant sample size of 7 kg. A representative split from the discharge material was placed into a plastic RC chip tray for geological logging. The chip tray was marked with the drill hole name and downhole interval.

RC samples were collected in large micro-pore bags marked with the sample number and suspended from the discharge tube of the splitter. Overflow was minimal because of low water injection rates and lack of groundwater. Nominal sample weight was 5 to 10 kg.

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Midway Gold Corp.	Drilling
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RC samples were allowed to drain at the drill site and were taken to a Eureka (2007-2008) or Ely (2010-2011) office facility at the end of each day by MIDWAY personnel. Samples were stored in secure bins until transported to an assay laboratory in Elko or Winnemucca by certified laboratory personnel.

During the 2010 drilling campaign carried out by MIDWAY, core was placed in core boxes by the drill crew at the drill site. Core boxes were picked up from the rig daily and transported to the MIDWAY logging facility. Geotechnical measurements including RQD and rock strength data were collected before the core was placed in the core box. Then the core was washed and photographed with color and scale cards included. A geologist selected appropriate intervals for sampling, and logged and photographed the core prior to splitting or sampling. The preferred sample interval and maximum sample length was 5 ft. Smaller intervals were used where significant geological breaks occurred, but not less than 1 ft.

Core was split using a diamond saw where competent. A manual splitter was used for core not suitable for sawing. In soft clay zones, a putty knife was used to split the core. A quarter split was used for assay purposes. The remaining core was sampled for metallurgical and waste rock characterization testing. Skeleton core, a small piece every 2-3 ft, was saved for the core archive. The remainder of the core was sent to the lab.

ALS Chemex picked up the assay samples from the Ely office and transported them to a Nevada prep facility. For quality assurance and quality control, standards and blanks were inserted into the sample stream at a rate of one for every 25 project samples. Commercial Standard Reference Materials (SRM’s) and blanks were acquired from Shea Clark Smith in 2007 and 2008 and from Ore Research & Exploration (Ore Research) of Bayswater North, Australia in 2010 and 2011. SRM’s grading 0.01 opt Au and 0.03 opt Au were alternated with blanks in the sample stream.

 

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Midway Gold Corp.	Sample Preparation, Analyses, and Security
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

11   SAMPLE PREPARATION, ANALYSES, AND SECURIITY

Based on available assay certificate information, samples collected during the ten drilling campaigns at Pan were analyzed for gold by fire assay (AuFA) and/or gold cyanide extraction assay (AuCN). Gustavson and Dr. Baker consider the sample preparation, security, and analytical procedures to be adequate for use in resource and reserve estimation. Table 11-1 summarizes the type of assay data currently in the database.

Table 11-1  Drill Data by Analytical Method

Company	Number AuFA Determinations	Number AuCN Determinations	AuCN/AuFA Pairs	AuCN Only	Percent of Data Represented by AuCN Data
Amselco	610	3,641	303	3,338	84.6
Hecla	121	0	0	0	0
Echo Bay	3,980	0	0	0	0
Alta Bay	6,288	13,318	6,284	7,034	52.8
Latitude	2,874	0	0	0	0
Castleworth/ Pan Nevada	13,738	254	254	0	0
Southwest	282	0	0	0	0
MIDWAY	26,099	1,190	1,190	0	0
TOTAL	53,992	18,403	8,031	10,372	19.2

11.1   Sample Preparation and Analysis Procedures

RC samples collected by MIDWAY were processed by ALS Chemex in Elko and Winnemucca, and by SGS Laboratories in Elko, Nevada. Standards and blanks developed and/or purchased by MIDWAY were included in the sample sets dispatched to the laboratory. At the labs, samples were crushed to 70% passing -6mm, split to 250g using a riffle splitter, then pulverized to 85% passing 75 microns. Pulps were analyzed using 30g fire assay with an AA finish. Higher grade samples (>0.291 ozAu/st) received a gravimetric finish. For samples returning greater than 300 ppb Au, a cyanide leach analysis was performed. A one-hour cyanide digestion was completed on a 30g sample pulp, followed by AA determination of gold content in the pregnant cyanide solution. MIDWAY data from 9,957 sample intervals with AuFA determinations, and 1,035 sample intervals with paired AuCN information, are included in the Pan database.

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12   DATA VERIFICATION

MDA (2005) and AMEC (2008) verified exploration and drilling data through 2007. Both companies found the logs, surveys, and assays in the Pan mineral resource database accurately represent the source documentation. MIDWAY did a complete check of the Pan database in 2007; MIDWAY reinterpreted drill logs and created new interpretations of geology and alteration on cross sections in 2010 and 2011. Gustavson generated a new model based on the updated geologic sections including lithology and alteration.

MIDWAY personnel verified exploration data collected after January 1, 2008, including checking logs, surveys, and assays. 100% of the 2008 data matches the original information, constituting an error of less than 0.01%. Gustavson independently verified exploration data collected from 2009 through the effective date of this report, September 1, 2011, by checking logs and assay data against core samples, field checking survey data, and comparing assay data reported by MIDWAY to laboratory assay certificates. Gustavson finds the quality of data collected to date adequate for use in estimating the mineral resources of the Pan Project.

12.1   Check Assays

In 2007, MIDWAY conducted a rig duplicate program, collecting a duplicate sample from most of the holes completed during the year. Duplicate samples were collected on site approximately every 100 ft. The original assay and duplicate samples were then sent to the same laboratory for analysis. Duplicate samples were split and analyzed using the same procedures as the original sample.

For samples with values less than detection limit (5 ppb), the gold value was set to 0.0 ppb. Sample weights were also compared in order to ensure that the duplicates were representative of the original sample. MIDWAY utilized two assay laboratories (ALS Chemex and SGS) for this study. The sample statistics are reported by assay laboratory in Table 12-1. The close correlation between the original and duplicate sample results is presented graphically in Figure 12-1.

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Based on a total of 316 samples, original assays average 0.0958 ppm Au, and range from 0 to 3.68 ppm Au. Duplicates average 0.0951 ppm Au, ranging from 0 to 1.76 ppm Au.

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Table 12-1  Descriptive Statistics of MIDWAY Duplicate Rig Samples

	ALS- Chemex Original (Au ppm)	ALS- Chemex Duplicate (Au ppm)	SGS Original (Au ppm)	SGS Duplicate (Au ppm)	All (Au ppm)	All (Au ppm)
Mean	0.1107	0.1062	0.0650	0.0722	0.0958	0.0951
Standard Dev	0.3323	0.2702	0.1638	0.1683	0.2889	0.2420
Min	0.000	0.0000	0.0000	0.0000	0.0000	0.0000
Max	3.6800	1.7600	1.2700	1.1500	3.6800	1.7600
Count	213	213	103	103	316	316

12.2   Midway Gold Corp. QA/QC Programs

SRK reviewed the QA/QC data from 2007 and 2008 drilling and reported the results of that review in 2009. The following summary is based on information from the 2009 SRK review:

MIDWAY maintained a regular program of commercial SRM’s as well as blanks and rig duplicates (2007 only). Standards were purchased from Shea Clark Smith of Reno, Nevada, at increments of 0.55, 1.0, and 2.0 ppm Au. MIDWAY employed the following QA/QC protocols during 2007 and 2008 drilling:

● Rig duplicates, every 100 ft

● Coarse (1/4 inch minus) blank reference material, 1 per 50, minimum 1 per hole

● Standards (-200 mesh) reference material, 1 per 50, minimum 1 per hole

A limestone stockpile was used as coarse blank material in 2007 and 2008. In 2007, 115 coarse blank samples were used, with an average result of 0.0029 ppm Au. Nine blanks returned values of >0.013 ppm Au and were investigated further. Significant gold values were not returned in the sample assays from seven holes, and these samples were not rerun. The remaining two holes were reanalyzed for gold, along with a fresh blank sample.

In 2008 a different portion of the limestone stockpile was used as a source for the coarse sample blanks. These samples returned anomalous gold results (>0.030 ppm Au) and use of the blanks was discontinued until a better blank control could be located. Commercial blank material was obtained and used during the 2010 and 2011 drilling programs.

Industry standards were obtained and submitted blindly with drill samples. Three standards at a 2.0 ppm, 1.0 ppm, and 0.55 ppm threshold were utilized. Values within +1 standard deviation (std) were considered valid and accepted into the database. Values greater than +1 std were further investigated and either reanalyzed or accepted into the database, as appropriate. The 2.0 

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Midway Gold Corp.	Data Verification
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ppm standard was frequently found to be outside of the +1 std, and use of the 2.0 ppm threshold was discontinued in mid-2007.

Based on the protocol employed by MIDWAY and the standard/blank assay results, Gustavson finds the quality of the assays completed in 2007 and 2008 acceptable.

Gustavson reviewed sampling and assaying protocols from the 2010 and 2011 drilling programs. Standards, blanks, and duplicates are inserted into the sample numbering scheme at rates of 4%, 3%, and 3%, respectively. Standard sample assay results are analyzed under the guidelines outlined above. Analysis of laboratory quality control and MIDWAY quality assurance analytical results is conducted in concert with receipt of analytical results from the laboratory, and an inter-laboratory check assay program is carried out to ensure no systematic bias between or among the commercial laboratories. Gustavson finds MIDWAY’s QA/QC procedures and protocols satisfactory according to current industry standards.

12.3   Twin Hole Study

Two twin holes were drilled by MIDWAY as part of the QA/QC program. Two RC holes, PN11-01 and PN11-02, were drilled as twins to two diamond core holes, PN10-01C and PN10-10C, respectively. To compare the diamond core holes (assayed at varying intervals) with the RC holes (assayed at regular 5 ft intervals), the diamond core hole assay data were composited to 5 ft intervals. Initial comparisons of grade versus depth for each set of holes were dominated by variability over the 5 ft intervals; so all holes were composited sliding downhole at 25 ft intervals to smooth out these effects.

Drill holes PN10-01C and PN11-01 show favorable correlation in a grade versus depth comparison (Figure 12-2). This comparison is useful in showing that higher-grade zones occur at similar depths in both holes. Both holes are lithologically similar, being logged as mostly solution breccia of the Devils Gate Limestone. The generally higher grades in PN11-01 in the interval from ~140 ft to ~270 ft may be due to lithologic variations or due to the natural variability of grade in the system.

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Midway Gold Corp.	Data Verification
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Drill holes PN10-10C and PN11-02 also show good correlation in a grade versus depth comparison (Figure 12-3). Again, both holes are logged as mostly solution breccias of the Devils Gate Limestone. Higher grading zones occur at similar depth intervals in both holes, suggesting some lateral continuity. Correlation is particularly strong in the ~200 ft to 400 ft interval. The RC hole again shows generally higher assay values.

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Midway Gold Corp.	Mineral Processing and Metallurgical Testing
Pan Gold Project Feasibility Study	NI 43-101 Technical Report

13   MINERAL PROCESSING AND METALLURGICAL TESTING

13.1   Ore Sampling and Test Wor

Extensive metallurgical testing has been undertaken on samples from the Pan Project. Ongoing metallurgical analysis of fresh core samples and trench samples collected in 2010 was initiated in December 2010 by MIDWAY, and is conducted by Resource Development Inc. (RDi). The primary objective of this analysis is to generate sufficient metallurgical data for use in Preliminary Feasibility and Feasibility Studies.  Data from both previous work and from the ongoing test program indicate that the ore is amenable to heap leaching with economic recoveries. The analysis described in this section is limited to the ongoing test program, as previous test work was discussed in detail in the 2010 Preliminary Feasibility Study.

13.2  Ongoing Metallurgical Test work

RDi received three surface samples, designated NP 1, NP 2, and SP 1, and a ½ split of HQ (2.5-in diameter) drill core from thirteen drill holes. Seven of the drill holes are located in South Pan, and six are located in North Pan. A total of twenty nine composites were prepared from the drill hole samples. The composites were prepared to evaluate different lithologies, ore types, and feed grades. Composites 1 to 10 represent North Pan and composites 11 to 29 represent South Pan.  The lithology associated with each composite sample is identified in Table 13-1.

Table 13-1  Lithology of Composite Samples

Lithology of Composite Samples
Pit	Lithology	Composites
North Pit	Sbs	1-8, 10, NP-1, NP-2
	SbA	9
South Pit	ShA	11, 28, 29
	ShS	12, 13
	SbA	14-18, 22, 24-27, SP-1
	SbA	19, 23
	HbS	20
	HbA	21

Detailed information regarding sample preparation protocols and quality control procedures is presented in a report prepared by RDi, “Midway Gold Corporation, Metallurgical Testing of Midway Pan Samples”, dated September 14, 2011. The following paragraphs summarize the metallurgical test results described in the text of that report.

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 13.2.1   Head Assays

The results of head analyses conducted on the composite samples are given in Table 13-2. The samples were submitted for gold and silver assay using one-assay-ton fire assay, mercury, and preg robbing analyses.

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Midway Gold Corp.	Mineral Processing and Metallurgical Testing
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The head analyses indicate the following:

● The gold assays range from 0.023 g/t Au to 2.15 g/t Au

● The mercury values in these samples range from 0.56 to 5.63 g/t Hg

● The majority of the composites exhibited negligible preg-robbing properties

 13.2.2  XRF Analyses

X-ray fluorescence (XRF) analyses were conducted on selected samples representing the various composite lithologies, and on the surface samples.  The XRF test results are presented in Table 13-3. Test results indicate that traces of arsenic were present in the samples, though the major elements present were silica and alumina.

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 13.2.3   XRD Analysis

X-ray diffraction (XRD) analyses provide an indication of major minerals in the samples. The samples analyzed by XRF were also analyzed by XRD. The results of the XRD analyses indicate that the major host rock minerals are quartz, mica/illite, and alunite. The XRD test results are summarized in Table 13-4.

Table 13-4  XRD Test Results

XRD Analysis of Different Rock Types
Element, ppm	Approximate Wt. %
	7	12	15	20	21	28	NP1	NP2	SP1
Quartz	85	74	63	83	79	66	85	70	63
Mica/illite	10	7	24	9	6	21	5	10	16
Kaolinite	-	8	<5	<5	<3	5	-	-	8
K-spar	-	-	-	-	-	3?	-	-	-
Alunite	<3	9	-	<5	10	-	8	14	9
Calcite	-	-	<5		-	10	-	-	<3
Hematite	<2?	<3	<3	<3	<3	-	-	<3	<3
Barite	-	-	-		-	-	<5	<3	-
Unidentified	<5	<5	<5	<5	<5	<5	<3	<5	<5

 13.2.4   ICP Analysis

The results of ICP analysis of the composite samples are summarized in Table 13-5. The results of the ICP analyses are similar to the results of XRF analyses of the composite samples.

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Table 13-5  ICP Analyses of Composite Samples

Element, %	Composite No.
	1	2	3	4	5	6	7	8	9
Al	2.46	1.99	1.99	2.14	2.44	4.03	2.20	2.68	3.71
Ca	0.09	0.07	0.09	0.08	0.06	4.49	0.08	0.83	1.90
Fe	0.89	0.68	0.81	1.43	1.44	2.32	0.69	0.69	2.15
K	1.00	0.86	0.69	0.85	0.80	1.70	1.02	1.21	1.50
Mg	0.12	0.14	0.12	0.06	0.06	0.38	0.14	0.23	0.29
Na	0.03	0.05	0.05	0.03	0.06	0.04	0.03	0.08	0.04
Ti	0.08	0.03	0.06	0.06	0.03	0.09	0.05	0.05	0.10
Element, ppm
As	88	249	179	279	562	342	145	100	436
Ba	417	1995	1955	8020	858	5219	798	2344	7730
Bi	26	<10	<10	22	<10	36	18	20	41
Cd	3	0	1	9	2	14	4	4	13
Co	5	10	<1	9	6	33	17	9	10
Cr	39	31	117	28	33	49	31	35	52
Cu	69	16	20	43	16	52	41	63	53
Mn	13	17	13	13	35	260	18	40	146
Mo	2	4	5	9	8	8	10	2	8
Ni	14	18	23	15	22	152	20	25	61
Pb	78	52	39	185	29	146	64	82	101
Sr	116	81	107	196	168	164	84	137	254
	105	81	106	60	81	107	84	62	85
W	44	168	<10	77	63	25	105	75	51
Zn	36	62	43	70	76	574	65	227	233

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Table 13-5 cont.

Element, %	Composite No.
	10	11	12	13	14	15	16	17	18	19	20
Al	2.17	5.55	3.72	4.65	3.77	4.41	3.92	3.27	3.89	2.41	3.07
Ca	0.09	6.59	0.11	0.46	16.02	1.43	0.13	0.11	0.12	0.10	0.12
Fe	0.49	2.81	1.65	4.69	1.94	2.28	1.92	1.67	1.85	1.80	1.58
K	0.70	2.33	1.30	1.27	1.60	2.16	1.25	1.17	1.51	0.97	1.16
Mg	0.15	0.79	0.13	0.22	0.32	0.31	0.11	0.12	0.15	0.14	0.13
Na	0.05	0.07	0.13	0.10	0.09	0.07	0.13	0.06	0.04	0.05	0.03
Ti	0.09	0.07	0.08	0.14	0.09	0.11	0.04	0.08	0.10	0.06	0.07
Element, ppm
As	39	3120	350	1120	451	851	2360	1012	1063	464	302
Ba	295	426	216	273	430	952	332	378	617	1056	328
Bi	<10	27	31	11	32	41	<10	27	29	21	26
Cd	1	6	10	6	12	25	2	27	30	12	8
Co	2	36	3	5	5	11	3	4	4	5	2
Cr	92	59	57	95	43	65	43	52	52	41	52
Cu	20	31	37	34	19	27	11	22	41	24	42
Mn	4	1226	30	73	585	334	15	16	10	18	8
Mo	2	21	20	24	7	9	9	6	9	2	4
Ni	19	148	33	57	52	83	23	31	33	26	14
Pb	28	29	81	34	38	77	24	49	52	30	53
Sr	111