Harvest Gold Corporation
TSX VENTURE : HVG

Harvest Gold Corporation

December 21, 2010 14:14 ET

Harvest Gold Announces Flow Through Financing to Evaluate Drill Targets Adjacent to San Gold's #2-3 Zone in Rice Lake Gold Belt, Manitoba

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2010) - Harvest Gold Corporation (TSX VENTURE:HVG) December 21, 2010 (the "Company") plans to raise $125,000 to investigate and drill test its Cud3 Claim located adjacent to San Gold Corporation's (TSX: SGR) #2-3 Zone, near Bissett, Manitoba.

The financing is a non-brokered private placement of up to 1,250,000 units at a price per unit of $0.10 for gross proceeds of $125,000. Each unit will consist of one flow through common share and one half of one share purchase warrant. Each whole warrant will be exercisable into one common share for a period of one year from the closing of the placement at an exercise price of $0.15 per share. The financing is subject to regulatory approval.

The proceeds from the offering will be used to fund exploration work including complete compilation of data, geological mapping and prospecting, geochemical sampling and Induced Polarization geophysical surveying designed to detect mineralization at depth. Drill testing will follow.

THE CUD CLAIM: BISSET, MANITOBA

Based on technical reports available in Manitoba Government assessment files and on San Gold's website, in 2005 San Gold drilled 16 diamond drill holes located between 40 m and 180 m of the Company's CUD claims' southern and western boundary, which is shared by the San Gold claims San 1 and Jade 2. The San Gold holes were drilled in a south-southwest direction and appear to be designed to intersect a north plunging zone of gold mineralization.

The Company's CUD Claim may cover the down dip extent of this mineralized zone and also may host separate mineralized structures such as those which host the gold mineralization on the neighboring San Gold claims. The location of the San Gold drill holes, in close approximation to the Cud claim boundary indicate the mineralization may continue onto Harvest Gold's claims at depth. Available drill hole information is being modeled to determine the best potential sites for drilling in order to test for the continuation of gold mineralization and additional mineralized zones on Harvest's CUD3 claim. Drill intercept highlights reported by San Gold from the 2005 drill program include 19.5 feet assaying 0.51 ounce per tonne gold in hole SG-05-47, 21 feet assaying 0.21 ounce per tonne gold in hole SG-05-51 and 8.9 feet assaying 0.33 ounce per tonne gold in hole SG-05-39.

The CUD3 claim property is located 7 km from the gold mining community of Bissett, Manitoba where San Gold Resources Corporation (TSX-V: SGR) is operating two mines and a mill.

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/HVGmap.pdf

Greg Hill, Certified Professional Geologist, is the Qualified Person who has reviewed the contents of this news release.

Harvest Gold Corporation is a mineral exploration company working in Nevada, USA and Manitoba, Canada. In Nevada, the Company has 100% of the Rosebud Mine property, and generative gold properties at Garcia Flats in the South Carlin Trend, and the RW claims in the Battle Mountain Eureka Trend. Harvest is exploring three groups of claims in the Rice Lake Gold Belt of south eastern Manitoba and at Assean Lake, Manitoba.

On behalf of the Board of Directors,

John Roozendaal, President

Harvest Gold Corporation

Neither 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

  • Harvest Gold Corporation
    Keith Patey
    Director of Communications
    (604) 986-2020 or Toll Free: 1-866-816-0118
    (604) 986-2021 (FAX)
    www.harvestgoldcorp.com
    or
    Progressive Investor Relations
    Andrew Mugridge
    (604) 689-2881
    or
    Progressive Investor Relations
    Benjamin Curry
    (604) 689-2881