Harvest Gold Corporation
TSX VENTURE : HVG

Harvest Gold Corporation

November 29, 2006 12:15 ET

Harvest Gold Corporation: Grandview Completes Option Agreement for Rocky Ridge, Manitoba, Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 29, 2006) - Harvest Gold Corporation (TSX VENTURE:HVG) (the "Company") is pleased to announce it has signed a formal option agreement with Grandview Gold (TSX:GVX) relating to the acquisition of a 70% interest in the Company's Rocky Ridge gold property in mining-friendly Manitoba's historic Lac du Bonnet Mining District.

Under the terms of the agreement, Grandview has an option to earn an undivided 70 per-cent interest in the Rocky Ridge property by incurring $600,000 (CAD) in resource exploration and development expenditures, $85,000 (CAD) in payments, and issuing 225,000 Grandview shares, over a two-year period. The issue of the 225,000 shares is subject to receipt of all required regulatory approvals.

The Rocky Ridge gold property is located 170 km by all-weather-access road from Manitoba's capital city of Winnipeg, and covers an 11.2 square km area over a seven km strike length of the East Peterson Creek Deformation Zone ("EPCDZ").

Harvest Gold President John Roozendaal states, "This partnership is consistent with our commitment to finding strong Joint Venture partners to assist us in exploring and developing our properties in Manitoba and Nevada. We are pleased that Grandview's management team shares our belief that Southeast Manitoba is an excellent place to find Canada's next significant gold deposit."

Grandview will initiate diamond drilling shortly. Field crews have already been mobilized. "The Rocky Ridge project is a good example of how Grandview can apply the most advanced geology, geophysical and geochemical science to advantage on a property that has significant historic high-grade gold mineralization, but is vastly under-explored," says Grandview President and CEO Paul Sarjeant.

Gold mineralization was first discovered on the property in 1993. Initial prospecting and sampling returned gold values up to 140.6 g/tonne gold (4.1 oz/ton) from grab samples and two consecutive 1 meter chip samples that assayed 53.1 g/tonne and 53.1 g/tonne respectively (1.55 oz/ton and 1.56 oz/ton). The exploration program continued with magnetic-VLF geophysical surveying and mapping, and concluded with a moderate drill program involving 615.49 feet over four holes testing the "A" showing. Two diamond drill hole intercepts into one deformation zone reported 0.7 m of 11 g/tonne gold (2.3 feet of 0.325 oz/ton) and 1.2 m of 8.91 g/tonne (4 feet of 0.26 oz/ton) gold in archived assessment file reports. All of this work was completed prior to implementation of National Instrument 43-101 reporting standards and has not been verified by a qualified person and should not be relied upon. Geological mapping has identified 3 distinct northeast and southeast trending gold bearing structures that intersect at the "A" showing. The structures vary from 25 to 100 meters in width and are intensely sheared and silicified. All historic data was gathered from a 1997 assessment report titled "A Summary Report on the Rock Ridge Property, Cat Lake - Bernic Lake Area, Lac Du Bonnet Mining Division, Manitoba on behalf of Cordal Resources Ltd by R.A. Bernatchez, P.Eng., October 5th, 1997".

"Work on Rocky Ridge to date shows potential for both high-grade narrow vein and low-grade larger tonnage mineralization and ultimately, in Grandview management's opinion, the potential for development of an entirely new major gold camp. There are high-grade surface showings and decent grades over narrow widths in drill core which has not been comprehensively sampled. We hope to apply current thinking and geological expertise to upgrade and explore this under-explored property," added Paul Sarjeant.

During a visit to the Rock Ridge property in 2006, Dr. George Gale, Vice President Exploration of Harvest Gold Corp, and former head of the Mineral Deposits Section at the Manitoba Geological Survey (1977-2005) recognized some previously unrecognized and potentially key attributes for understanding gold mineralization on the property. These features include structural controls mentioned in earlier reports and an association between the higher grade mineralization and large areas of hematite altered intrusion. The hematite altered intrusion presents the possibility of a previously unrecognized large tonnage gold system (porphyry-type) though further field work is required before confirming this potential.

Grandview hopes to explore and develop the Rocky Ridge gold property sufficiently to demonstrate a large tonnage gold system of sufficient caliber to attract a mid to senior resource company. It is widely understood that Manitoba and Ontario, while divided by provincial boundary, share gold belts of common geology, rock type and crustal fault.

The 2006/2007 exploration and drill program for the Rocky Ridge gold property will comprise the compilation of historic and recent exploration data, diamond drilling to a depth of 100-200 metres to test the extent of known gold zones and wall rock mineralization that was not sampled in the earlier drill program, and undertaking geochemical and geophysical surveys to identify additional drill targets.

Upon signing, Grandview will make a payment of $20,000 (CAD) and will, subject to receipt of all required regulatory approval, issue 50,000 shares to Harvest Gold. At the end of year one, the Company will have incurred $250,000 (CAD) in exploration expenditures, make a payment of $30,000, and issue 75,000 shares to Harvest Gold. At the end of year two, the Company will have completed a further $350,000 (CAD) in exploration expenditures, make a final $35,000 (CAD) payment, and issue the outstanding 100,000 Grandview shares.

Harvest Gold has an option to buy-out up to 2% of a 3% underlying NSR (Net Smelter Royalty) assigned to the original property owner, at a cost of $250,000 (CAD) per each 1%, for a potential total of $500,000 (CAD). The 1% - 2% NSR buy-out would occur on a pro-rata basis, with Grandview acquiring 70% and Harvest Gold acquiring 30%.

ON BEHALF OF THE BOARD OF DIRECTORS

Richard Mark, CEO


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

Contact Information

  • Harvest Gold Corporation
    Richard Mark
    CEO
    (604) 986-2020 or Toll Free: 1-866-816-0118
    (604) 986-2021 (FAX)
    Website: www.harvestgoldcorp.com