- Feasibility Study of Pan Project, White Pine County, Nevada showed the project is robust at a range of gold prices. The NPV accelerates from $123 million at $1,200/oz gold to $344M at $1,900/oz gold. The IRR grows from 32% to 79% using the same range. Both use a 5% discount rate and are after tax figures. Proven and Probable Mineral Reserves increased 20% over the previous estimate to 864,000 oz of gold within 48.3M tonnes at a grade of 0.56 gpt gold. (Please refer to our press release dated November 15, 2011.) The Company continues to aggressively advance the project towards production.
- The Spring Valley Project, Pershing County, Nevada advanced to Barrick’s development and mine site exploration groups (please refer to our press release dated December 6, 2011).
- Drill results including 0.4 meters of 334.9 gpt gold at the Tonopah Project, Nye County, Nevada (please refer to our press release dated December 8, 2011).
- Significant gold resource increase in NI 43-101 compliant estimate for Gold Rock Project, White Pine County, Nevada (please refer to our press release dated February 29, 2012).
- Following the appointment of John W. Sheridan to the Company’s board of directors and audit committee as reported on February 28, 2012, the Company’s audit committee is now comprised of three independent directors. Accordingly, the NYSE Amex informed the Company it is in compliance with the audit committee composition requirements set forth in Section 803B(2)(a) of the NYSE Amex Company Guide.
A comparison of our balance sheets at December 31, 2011 and December 31, 2010 is as follows:
|December 31, 2011||December 31, 2010|
|Cash and cash equivalents||$||10,191,069||$||6,062,816||(1)|
|Total liabilities and shareholders’ equity||$||62,571,952||$||56,398,566|
|(1)||The net increase in cash and cash equivalents of $4.1 million is primarily due to financing activities, including the issuance of common shares and the exercise of stock options and warrants totaling $19.8 million. This amount was offset by operating and investing activities totaling $15.7 million.|
|(2)||The net decrease in liabilities is primarily relates to the warrant and the future income tax liabilities. The warrant liability decreased was due to the exercise or forfeiture of 2,650,000 warrants which had an exercise price denominated in U.S. dollars and, accordingly, were fair valued and classified as a liability at December 31, 2010 in the amount of $1,562,544. The deferred tax liability was also reduced by the amount of $2.8 million primarily as a result of an income tax benefit realized 2011.|
|A comparison of the results of operations for the twelve months ended December 31, 2011 and December 31, 2010 is as follows:|
|---- Twelve Months Ended December 31, ----|
|Basic and diluted loss per share||$||(0.15)||$||(0.07)|
|Weighted average number of shares outstanding||106,992,452||85,133,343|
|Net cash used in operating activities||(14,045,550)||(5,376,845)|
|Net cash used in investing activities||(1,665,648)||(609,667)|
|Net cash provided by financing activities||19,839,451||10,309,006|
To review Midway Gold’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, including our Management Discussion and Analysis, visit any of the following websites: www.sedar.com, www.sec.gov or www.midwaygold.com.The “Recent Highlights” section of this release has also been reviewed and approved by Mr. William S. Neal (M.Sc. and CPG), Midway’s Vice President of Geological Services and a “qualified person” as that term is defined in NI 43-101 of the Canadian Securities Administrators.
|ON BEHALF OF THE BOARD|
|"Kenneth A. Brunk"|
|Kenneth A. Brunk, Director, President and COO|