Preliminary site layout plan for Midway’s Pan open-pit gold mine project.

Midway has awarded the Pan project mining contract to Ledcor CMI Inc. During the early years of operation, Ledcor will provide all mining-related services, including manpower and equipment, and will be directly responsible for drilling, blasting, loading and hauling ore to the leach pad for processing by Midway. The term of the agreement between Midway and Ledcor is five years.

Midway President and CEO Ken Brunk said, “We have been working hard to reduce initial capital costs at Pan to achieve an improved return on capital for our shareholders. Entering into this contract with Ledcor goes a long way toward bringing down our pre-production capital, as we no longer need to purchase a mine fleet and the ancillary facilities associated with an owner-operated mine. Our new partnership with Ledcor will provide the highest return to our shareholders and to the local community as we build out the company. Midway and Ledcor look forward to a long and prosperous relationship.”

The 2011 Pan feasibility study had budgeted $29.5 million for mine equipment, mostly for the mine fleet, as part of the $99 million initial capital estimate.

Construction at Pan remains on track for startup before year-end 2014. The mine is expected to produce a total of 864,000 oz of gold over a mine life of nine years. The project is based on a low-cost, oxidized, Carlin-style gold deposit mineable by shallow open-pit methods and treatable by heap leaching.

Midway is also deferring purchase and installation of crushers for the first two to three years of the mine life at Pan. The feasibility study had included a two-stage crushing circuit at South Pan. However, detailed metallurgical tests have confirmed that this ore responds favorably to run-ofmine leaching, and initial production will be based on this processing route.

On May 22, Midway announced the signing of a binding commitment letter with Commonwealth Bank of Australia for a $55 million, three-year senior secured project finance facility for the development of the Pan project. Closing is expected to occur by the end of June.

Spring Valley 2014 Budget: In other news from Midway, the company reported in mid-May that Barrick Gold has budgeted $13.3 million ($8.3 million for project development and $5 million for exploration) for the Spring Valley gold project in Pershing County, Nevada, in 2014. Spring Valley is a 70% Barrick, 30% Midway joint venture, with Barrick as the operator.

Barrick has mobilized one reverse circulation drill rig and two core rigs to Spring Valley for further in-fill drilling, primarily focused on upgrading the categories of the resource.