High Desert Gold Corporation
TSX VENTURE : HDG

High Desert Gold Corporation

March 18, 2010 15:44 ET

High Desert Gold Announces the Signing of an Option and Earn-In Agreement With Gryphon Gold Covering the Gold Springs Property, Nevada-Utah Border

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2010) - High Desert Gold Corporation ("HDG" or the "Company")(TSX VENTURE:HDG) announces the signing of a final option and earn-in agreement with Gryphon Gold Corporation ("Gryphon"), whereby HDG can earn a 60% interest in the Gold Springs property over a 5 year period by spending US$1 million in exploration expenditures and making payments to Gryphon of US$190,000. First year costs include a US$30,000 payment to Gryphon and a work requirement of US$50,000. The property consists of 250 unpatented lode claims located within Lincoln County, Nevada and Iron County, Utah, comprising a total of approximately 4,780 acres or 1,945 hectares. The Company had previously announced the signing of a Letter of Intent with Gryphon on the Gold Springs property.  (See HDG PR09-11, October 15, 2009).

The gold mineralization style at Gold Springs has similarities to Newmont's large, high grade Midas Mine in Nevada. Large, wide structural zones, often extending for kilometres, have been intensely altered and silicified and host both high-grade and low-grade gold mineralization.  Gold mineralization appears to be controlled by discrete veins, stockwork zones and silicified breccias across widths of over 300 metres. Work thus far has identified 8 distinct targets, all of which have surface rock chip samples in excess of 1 gram per tonne ("gpt") gold and all represent potential drill targets. In addition to the Midas type targets, HDG has collected samples from a tuffaceous unit exposed on the property which returned gold values of up to 3.0 gpt. The mineralized tuff may represent a Round Mountain type target and will be further explored during the coming field season. 

Previous drilling on the Jumbo target area by Energex (1988) and Astral Mining Corporation ("Astral") (2006) has returned significant gold and silver intercepts over a strike length of 850 metres with the zone being open in both directions along strike. Examples of the drill results obtained from Energex and Astral are shown in the following table:  (The J88 series drill hole results were obtained from the Energex drill hole sections. The GS-06-01 data were obtained from the data base provided by Gryphon.)

Drill Hole Target From (metres) To (metres) Interval (metres) Gold gpt Silver gpt Gold Equivalent Grade
Northern Section              
J88-6 Jumbo 50.3 103.6* 53.3 0.35 12.0 0.54
  including 82.3 103.6 21.3 0.54 20.7 0.87
               
GS-06-1 Jumbo 24.4 149.4 125.0 0.657 6.8 0.765
  including 24.4 74.7 50.3 1.401 10.1 1.564
  including 24.4 54.9 30.5 2.027 12.3 2.224
  including 24.4 32.0 7.6 6.715 25.6 7.125
Middle section 100 m South              
J88-4 Jumbo 13.7 71.6* 57.9 1.28 13.9 1.50
  including 13.7 16.8 3.1 17.07 42.0 17.75
J-88-5 Jumbo 16.8 91.4 74.6 0.80 15.4 1.05
  including 19.8 21.3 1.5 12.48 31.0 12.98
  and 77.7 79.2 1.5 8.68 53.0 9.53
South Section 180 m South              
J88-1 Jumbo 21.3 61.0* 39.7 1.68 12.7 1.88
Including   36.6 51.8 15.2 3.00 16.6 3.27
J88-2 Jumbo 27.4 83.8* 56.4 1.27 12.7 1.47
1ncluding   57.9 70.1 12.2 3.16 20.7 3.49
J88-8 Jumbo 80.8 118.9 38.1 0.58 15.8 0.83
including   96.0 106.7 10.7 1.36 35.5 1.93
*J88-1, J88-2, J88-4 and J88-6 end in mineralization of 1.54, 0.33, 0.5 and 0.41gpt gold respectively.
  • Gold Equivalent grade was obtained using the following prices: gold US$1,000/oz and silver US$16/oz.
  • True width: The structural zone has irregular boundaries so true width is difficult to determine accurately; however, it is approximately ¾ of the down-hole length.

The J Series drill hole results were obtained by Energex in 1988 and are pre NI 43-101 requirements; however, the NI 43-101 report issued by Astral, dated July 5, 2005, indicates that the author had viewed the original assay certificates and the report quotes assays from these drill holes. The actual intervals disclosed above are taken from Energex and Astral's drill hole sections and data bases which the Company has in its possession. However, these results have not been verified by the Qualified Person on behalf of the Company. HDG has copies of the Energex drill hole sections with the assays and a data base for the GS-06-1 drill hole provided by Gryphon. HDG has not verified the data but believes it to be representative of the mineralization.

Besides the "bulk tonnage" potential, there is an excellent chance of discovering more high-grade mineralization similar to that found in the numerous historic mines on the property. For example, drill hole J88-4 intersected three metres averaging approximately a half oz. gold (17.07 gpt) and drill hole GS-06-01 intersected three metres averaging 11.93 gpt of gold in the Jumbo zone.

The Company has signed a drill contract with an expected start date being in the Second Quarter. Plans are to complete approximately 1,500 metres of reverse-circulation drilling on several of the target zones starting with the previously drilled Jumbo target.

The Qualified Person on the Gold Springs property is Randall Moore, Executive Vice President of Exploration, High Desert Gold Corporation and he has reviewed and approved the content of this press release.

HDG is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The current focus of the Company is its properties located in Mexico and the Gold Springs gold property on the Nevada-Utah border.

Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential," "interpretation" and similar expressions. Information concerning the interpretation of chip sample results and also geology may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. These forward-looking statements are based on current expectations and entail various risks and uncertainties, which are more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, HDG assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information