Desert Gold Ventures Inc.
TSX VENTURE : DAU

Desert Gold Ventures Inc.

October 14, 2008 07:00 ET

Desert Gold Hits New High-Grade Intersection Confirming Past Structural High Grade Intercepts-Expands Drilling Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2008) - Desert Gold Ventures Inc. ("Desert Gold" or the "Company") (TSX VENTURE:DAU) is pleased to announce that initial assay results from a major drilling program underway on the Goldbanks Property in Nevada, USA, have given highly encouraging results of 0.44 oz/ton Au over 5 feet and 0.21 oz/ton Au over 15 feet from drill hole GB08-01. This hole is related structurally to the previous high-grade intercept in hole KW-19 containing 10 feet at 0.460 oz/ton Au from 395-405 feet (see table below for past high grade results). This is the initial result for only 1 completed core hole - GB08-01. We are waiting for the results from 2 other completed holes. A total of 24 holes have been completed or are currently in progress. We expect to be showing results over the next 3 months from a total of 60-65 holes targeting the basement rock ranging from 400-1200 feet.

These initial results are consistent with the interpretation that the newly defined KW Fault Zone is a major structural zone that was a focus of epithermal quartz veining and gold mineralization ("KW Zone") that can be followed along strike and down-dip, the limits of which are yet to be determined. To date the Assay results received from 3 holes (one complete GB08-01 and two partial complete assays) confirm that the zone is gold-bearing.

The drilling program to date is designed to determine the principal control(s) of the high grade feeder veins that were poorly defined by previous drilling. Detailed cross sections based on logging of old drill holes by Company Geologists strongly suggest that a northwest-trending and southwest-dipping fault zone ("KW Fault Zone") is a principal mineralization control. Each of 7 core holes drilled on the hanging wall side of this projected structural zone over a strike length of 1,800 feet, have intersected one or more major fault-breccia-fracture zone(s) that confirm the presence of such a structural corridor. This drilling program is focused on the northern part of the Property in the vicinity of the known KW Zone mineralization.

The main focus of the current drill program is to test the high grade feeder system, evident throughout the zones of gold mineralization that may link two proximal geophysical anomalies and a large high priority near surface target north and west of the historic gold deposits. Analytical results have been slow in coming at the height of the summer exploration season, although it is expected that sample turn-around will decrease this fall and additional assays of completed holes are expected very soon. These holes are part of the 30,000 feet RC drilling and 25,000 feet HQ core drilling, part of the $2.89 million exploration program.

In addition to these positive results, the number of drills under operation has been increased to 5 drills which are expected to provide substantial geological information and data for determining the principal control(s) of the high grade feeder veins that were not completely defined by previous drilling.

The additional drills will serve to expedite the first phase of the Company's 2008 major exploration program, which is planned to be completed by the end of the year. The program is designed to define and extend laterally and at depth the numerous high-grade veins that from the feeder system to the Company's NI 43-101 surface deposit resource 556, 700 ounces of gold. The program is also designed to test newly defined areas of near surface mineralization (see the Company's News Release dated March 28, 2006).

This structural zone is silicified, altered to a quartz-sericite-pyrite assemblage, contains abundant Fe+Mn-oxides, and significant quartz veining that exhibits classic epithermal textures. The most significant result to date is from diamond drill hole GB08-01, which intersected 15 feet at 7.13 ppm (7.13 gram/0.21 oz) Au/t from 445-460 feet (including 5 feet at 15.05 ppm (15.05 gram/0.44 oz) Au/t from 455-460 feet).

The reverse circulation drilling is focused on soil and rock geochemical anomalies distal to the KW Zone. The KW-West Zone occurs 4,800 feet west of the KW Zone and 7 holes (6,910 feet total footage) were drilled to test surface gold anomalies.

Desert Gold is planning drilling in the remainder of 2008 to determine the geometry and continue to extend and define the high-grade (greater than 1.0 oz Au/t) mineralized zones along strike. These high-grade zones were intersected by previous drilling campaigns and are located primarily within the Cube and Main Zone of the known resource area.



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PREVIOUS High-Grade Selected Drill Holes in the Basement Rock:
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Hole Number From To Feet Oz Per Ton
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G211 485 505 20 .627
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KDV 04 570.3 577.7 7.4 .837
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KG 06 715 725 10 1.265
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KW 19 455 485 30 .627
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KW 38 585 595 10 .789
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KW 52 645 655 10 3.58
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KW 133 605 615 10 1.059
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KWDA 09 465 470 5 2.5
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See NI 43-101 Technical Report dated February 27, 2006 filed under our profile on www.sedar.com.

Desert Gold is exploring the Goldbanks Property under an option and joint venture agreement with Kinross Gold Corporation (NYSE:KGC). Exploration work is being conducted under the supervision of the Company's Qualified Person, Timothy J. Percival, PG. ALS Chemex Ltd. of Vancouver analyzed the samples.

CORPORATE UPDATE - FINANCING AMENDMENT

Further to the Company's news release dated September 29, 2008, the terms of the common share purchase warrant have been amended to an exercise price of $0.75 per common share for a period of 6 months from closing of the Offering. To clarify, the Company has arranged a non-brokered private placement (the "Offering") to raise up to $1,400,000 by the issuance of up to 2,333,333 units ("Units") priced at $0.60 per Unit. Each Unit will consist of one common share and one transferable common share purchase warrant; each such purchase warrant will be exercisable into one additional common share of the Company for a period of six months from closing of the Offering at an exercise price of $0.75 per common share. All other terms remain unchanged.

The above private placement is subject to all regulatory and board approvals.

On Behalf of the Board of Directors:

Eugene Beukman, President

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Desert Gold Ventures Inc.
    Eugene Beukman
    President
    (604) 687-2038
    (604) 687-3141 (FAX)
    Website: www.desertgold.ca