Harvest Gold Corporation
TSX VENTURE : HVG

Harvest Gold Corporation

June 20, 2011 14:00 ET

Harvest Gold Corporation: Rosebud Mine, Nevada, Phase II Drill Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2011) - Harvest Gold Corporation (TSX VENTURE:HVG) (the "Company") announces results from the Phase II reverse circulation drilling program at its 100% owned Rosebud gold mine project, Nevada. Maps and photos can be viewed on our Rosebud property page at:
http://www.harvestgoldcorp.com/Projects/Rosebud-Mine-Project-Nevada-USA/default.aspx

Phase II Drill Program highlights include:

South Zone

  • 10.67 metres of 1.4 g Au/t, 15.1 g Ag/t,
    including 1.52 metres of 3.8 g Au/t, and
    including 1.52 metres of 60.5 g Ag/t
  • Confirmation in historical, non NI 43-101 resource

Southern Extension

  • Visible gold intersected; Metallic screen assays show grade increases up to 500% above standard fire assays; Additional metallic screens are in progress. (see link to website for photo)
  • Au intercepts in all Southern Extension holes
  • 44.20 metres of 0.3 g Au/t in HGR-30,
    including 9.14 metres of0.9 g Au/t
  • 15.24 metres of 0.4 g Au/t in HGR-33,
    including3.05 metres of 1.6 g Au/t

Valley target

  • Au and Ag intercepts in all holes with mineralization outlined near surface
  • 9.14 metres of 0.7 g Au/t in HGR-31
  • 7.62 metres of 0.3 g Au/t, 41.5 g Ag/t in HGR-22,
    including 3.05 metres of 0.6 g Au/t, 87.4 g Ag/t
  • 7.62 metres of 0.7 g Au/t in HGR-21
    including 1.52 metres of 1.7 g Au/t
  • Structural controls defined in blind mineralization beneath thin cover
  • 185 metre strike length; open in all directions

Untested targets remaining at Rosebud

  • Dreamland, Motherland, Gold Hill, Motherlode targets untested by Harvest Gold drilling; high grade historical intercepts in Dreamland and Motherland targets.
  • High grade Ag intercept from Phase I (DDH HGR3 intersected 35.1 metres of 238.1 g Ag/t; Aug. 5, 2010 news release) in Unconformity target also remains to be followed up

Greg Hill, President of Harvest Gold Corp. (US), states: "We are pleased to have encountered visible gold near surface in the Southern Extension target and shallow mineralization in each hole in the Valley target. Due to the presence of visible gold in several intervals in the Southern Extension target, metallic screen assays were performed on selected samples. Although this delayed the release of the Phase II drill results, it has resulted in a doubling to quintupling of Au grades in nearly 20% of samples tested by the metallic screen assay method. Additional metallic screen assays are underway. In the Valley target, drilling has, for the first time, defined important structural controls on Au and Ag mineralization in this blind, covered zone. And, mineralization starts almost at surface in the Valley target. Understanding these structural controls will be important to expanding the mineralized zone at the large Valley target, most of which remains untested beneath a thin post-mineral cover."

Twenty-two reverse circulation holes were drilled for a total of 4,622 metres in six target areas, the majority testing the Valley and Southern Extension targets. Gold and silver assays from significant intercepts are summarized below.

Southern Extension Target

Drill hole HGR-30 intersected 9.14 metres of 0.9 g Au/t within a larger intercept of 44.2 metres of 0.3 g Au/t, 2.3 g Ag/t (0.4 g AuEq/t) in the Southern Extension target. Six other drill holes tested the Southern Extension and all contain significant intercepts (see table below) within quartz vein, hydrothermal breccia, and stockworks in silicified volcanic rocks. Mineralization occurs near surface, at and above the faulted contact between fine grained volcanic rocks and Dozer rhyolite, as well as within a deeper zone in Dozer rhyolite. The deeper mineralization was intersected near the ends of HGR-32 and HGR-33 and is characterized by quartz-sulfide veinlets with minor to absent wall rock alteration. The Dozer rhyolite is a very competent host rock that is capable of hosting bonanza veins.

Phase II drilling extended mineralization by approximately 100 metres from a thick intercept in HGR-5 (114.3 meters of 0.49 g Au/t; Aug. 5, 2010 news release) drilled in Phase I. Mineralization in the upper and lower zones is open to the south, southeast, and southwest, and may connect with historical intercepts approximately 100-200 metres to the west.

Phase II Southern Extension intercepts.
FROMTOINTERVAL1Au2AgAuEq3,4
metresmetresmetresg/tg/tg/t
HGR-1825.9138.1012.190.21.80.2
109.73118.879.140.31.90.3
135.64137.161.520.51.30.5
144.78146.301.520.410.4
152.40153.921.521.321.3
HGR-1928.9699.0670.100.23.40.3
including79.2580.771.521.23.31.2
115.82134.1118.290.21.80.2
including118.87120.401.520.71.50.8
HGR-2830.4891.4460.960.22.40.3
including44.2045.721.520.730.8
and including54.8656.391.520.82.20.9
106.68115.829.140.13.10.2
128.02140.2112.190.23.60.3
including131.06134.113.050.55.20.6
HGR-3022.8667.0644.200.32.30.4
including56.3965.539.140.91.60.9
74.6880.776.100.31.00.3
HGR-3212.1913.721.520.51.10.5
33.5356.3922.860.22.30.3
79.2580.771.520.51.10.5
156.97170.6913.720.41.70.5
including156.97158.501.522.23.12.2
HGR-330.001.521.520.30.40.3
18.2919.811.520.31.80.4
27.4344.2016.760.22.90.3
48.7764.0115.240.46.50.6
including51.8254.863.051.62.51.7
including53.3454.861.522.32.52.3
73.1588.3915.240.24.20.3
129.54132.593.050.31.60.3
175.26176.781.520.61.10.6
HGR-3421.3433.5312.190.41.40.4
including22.8624.381.521.61.11.6
47.2473.1525.910.31.80.3
including50.2960.9610.670.52.20.6
including51.8253.341.522.15.82.2
1 - True widths unknown; additional drilling required to determine true widths
2 - Metallic screen fire assays used in all intervals where available for HGR-30, HGR-32, HGR-33, and HGR-34. Remaining intervals are reported from 30g fire assays.
3 - Cutoff values set at 0.17 g AuEq/t
4 - Gold equivalent (AuEq) calculated using a Ag to Au ratio of 41.7:1, calculated at spot prices, $1500 Au and $36 Ag
5 - All holes are inclined except for HGR-14 and HGR-18 which are vertical.

Valley Target

All eight holes drilled in the Valley target intersected precious metals mineralization, starting near surface, beneath thin post mineral alluvial cover, with widths ranging up to 67.06 metres. HGR-31 intersected 9.14 metres of 0.7 g Au/t, 1.0 g Ag/t (0.8 g AuEq/t) within a larger interval of 16.76 metres of 0.4 g Au/t, 2.5 g Ag/t (0.5 g AuEq/t). Multi-ounce Ag was intersected in three holes, with HGR-22 returning 153.9 g Ag/t, 1.0 g Au/t over 1.52 metres within a 7.62 metre interval of 0.3 g Au/t, 41.5 g Ag/t (1.3 g Au Eq). Phase II drilling has defined structural controls on mineralization along a contiguous west-northwest striking zone extending 185 metres from historic intercepts (WW-1, MW-4, RL-56). Mineralization is contained within stockworks and hydrothermal breccias developed in trachytic and rhyolitic host rocks with associated chalcedonic silica and minor banded veining at shallow depths. Historic intercepts to the north, south, east, and west suggest that mineralization can be expanded in several directions with additional drilling.

Phase II Valley intercepts.
FROMTOINTERVALAuAgAuEq1
metresmetresmetresg/tg/tg/t
HGR-1301.521.520.70.80.7
48.7754.866.100.62.30.7
including53.3454.861.520.92.01.0
102.11114.3012.190.15.40.3
including102.11103.631.520.222.70.7
HGR-143.0518.2915.240.24.30.3
including3.054.571.520.433.11.2
HGR-1533.5347.2413.720.43.50.4
including36.5841.154.570.82.90.9
including38.1039.621.521.83.81.9
85.34152.4067.060.25.20.3
including106.68108.201.520.523.41.1
118.87120.401.520.122.10.6
149.35150.881.520.125.60.7
HGR-2048.7753.344.570.323.20.8
including48.7751.823.050.232.41.0
74.68103.6328.960.212.50.5
including74.6889.9215.240.220.80.7
including77.7279.251.520.445.21.5
and including85.3486.871.520.256.41.5
HGR-2136.5844.207.620.74.40.8
including41.1542.671.521.73.31.8
83.8296.0112.190.32.70.3
HGR-2219.8127.437.620.341.51.3
including19.8122.863.050.687.42.7
including19.8121.341.521.0153.94.7
45.7274.6828.960.14.00.2
96.01102.116.100.110.80.4
108.20114.306.100.18.90.3
HGR-2328.9668.5839.620.28.90.4
including39.6254.8615.240.314.00.6
and including35.0541.156.100.136.31.0
83.82103.6319.810.21.00.2
including102.11103.631.521.05.21.1
120.40126.496.100.22.40.2
HGR-294.5710.676.100.24.20.3
21.3459.4438.100.16.80.3
including56.3957.911.520.267.31.8
97.54150.8853.340.23.80.3
including128.02131.063.051.122.41.6
170.69178.317.620.31.30.3
207.26208.791.521.12.41.1
220.98224.033.050.31.20.3
HGR-3115.2430.4815.240.14.10.2
64.0182.3018.290.14.50.2
108.20124.9716.760.42.50.5
including115.82124.979.140.71.00.8
132.59135.643.050.40.60.4
152.40155.453.050.21.30.3

South Zone

Drill hole HGR-17 intersected 10.67 metres of 1.4 g Au/t, 15.1 g Ag/t (1.7g AuEq/t) and a 22.86 metre intercept of 0.8 g Au/t, 9.8 g Ag/t (1.0 g AuEq/t) in the South Zone. This hole confirms mineralization within the pre NI-43-101 resource.

South Zone intercepts.
FROMTOINTERVALAuAgAuEq1
metresmetresmetresg/tg/tg/t
HGR-1738.1045.727.620.17.90.3
86.8794.497.620.79.80.9
including88.3989.921.520.130.50.8
and including89.9291.441.521.53.61.6
138.68161.5422.860.89.81.0
including150.88161.5410.671.415.11.7
including152.40153.921.523.813.84.1
and including160.02161.541.520.960.52.3
170.69192.0221.340.46.10.5

Far East Target

Two holes were drilled in the Far East target. Results are summarized in the following table.

Far East target intercepts.
FROMTOINTERVALAuAgAuEq1
metresmetresmetresg/tg/tg/t
HGR-2550.2959.449.140.36.20.5
including50.2951.821.521.34.51.4
74.6891.4416.760.47.30.6
including80.7782.301.521.19.11.4
HGR-26156.97161.544.570.116.60.5
including156.97158.501.520.231.01.0
222.50225.553.050.30.90.3

Metallic Screen Assays

Due to the presence of visible gold in certain intervals in the Southern Extension target, metallic screen assays were performed on selected mineralized intervals in HGR-30, HGR-32, HGR-33, and HGR-34. Metallic screen assays are the preferred analytical method for samples containing coarse gold because coarse Au may plate out during preparation of samples for conventional 30g (1 assay ton) fire assays, resulting in under-reporting of Au values. Metallic screen assays provide more accurate results where coarse gold is present because total Au values are calculated from analyses of both fine and coarse fractions. The metallic screen assay procedure is as follows. Approximately 1kg of sample is sieved through a 150 mesh screen and the -150 mesh and +150 mesh fractions are both saved. Gold assays are then performed on two -150 mesh splits and on the +150 mesh fraction, and a total Au value is then calculated based on the weights and assays from each fraction. The presence of coarse gold in the sample is determined by Au analysis of the coarse fraction and comparison with results from the fine fraction. Results of the metallic screen assays are summarized below.

Approximately 42% of samples analyzed by the metallic screen technique show decreases in Au relative to standard 30g fire assays, whereas 58% show increases. Moreover, the median decrease in Au grade is 26% whereas the median increase is 59%. Large increases in Au grade by metallic screen assays are seen in HGR-30 and HGR-33, and to a lesser extent in HGR-32 and HGR-34, and coarse Au has been detected in 26% of samples (22 out of 86) submitted for metallic screen assays. Additional samples from mineralized intervals in the Southern Extension target are being selected to be submitted for metallic screen assays.

Comparison between standard 30g fire assay and metallic screen assay results for Southern Extension drill holes.
Percent
Sample IDFromToAu g/tAu g/tdifference
metresmetres30 g fire Metallic
assay screen
assay
HGR-30 150'-155'45.7247.240.4560.226-50
HGR-30 155'-160'47.2448.770.2320.171-26
HGR-30 160'-165'48.7750.290.130<0.103
HGR-30 165'-170'50.2951.820.121<0.103
HGR-30 170'-175'51.8253.340.1650.38130
HGR-30 175'-180'53.3454.860.3710.205-45
HGR-30 180'-185'54.8656.390.122<0.103
HGR-30 185'-190'56.3957.910.2200.887303
HGR-30 190'-195'57.9159.440.1660.856416
HGR-30 195'-200'59.4460.960.1510.649330
HGR-30 200'-205'60.9662.480.1260.786524
HGR-30 205'-210'62.4864.010.3620.972169
HGR-30 210'-215'64.0165.530.3901.074175
HGR-30 215'-220'65.5367.060.1690.20622
HGR-30 245'-250'74.6876.200.1990.23317
HGR-30 250'-255'76.2077.720.4170.49519
HGR-30 255'-260'77.7279.250.3990.31-22
HGR-30 260'-265'79.2580.770.1120.1752
HGR-32 110'-115'33.5335.050.1680.30883
HGR-32 115'-120'35.0536.580.3000.3072
HGR-32 120'-125'36.5838.100.7800.431-45
HGR-32 125'-130'38.1039.620.4140.227-45
HGR-32 130'-135'39.6241.150.1340.17128
HGR-32 135'-140'41.1542.670.083<0.103
HGR-32 140'-145'42.6744.200.1620.25759
HGR-32 145'-150'44.2045.720.2980.14-53
HGR-32 150'-155'45.7247.240.1560.105-33
HGR-32 155'-160'47.2448.770.1110.258132
HGR-32 160'-165'48.7750.290.1230.13913
HGR-32 165'-170'50.2951.820.2050.29845
HGR-32 170'-175'51.8253.340.1430.139-3
HGR-32 175'-180'53.3454.860.1060.17262
HGR-32 180'-185'54.8656.390.5090.123-76
HGR-33 95'-100'28.9630.480.3430.718109
HGR-33 135'-140'41.1542.670.3090.25-19
HGR-33 160'-165'48.7750.290.2060.153-26
HGR-33 165'-170'50.2951.820.4460.227-49
HGR-33 170'-175'51.8253.340.1710.946452
HGR-33 175'-180'53.3454.860.6172.253265
HGR-33 180'-185'54.8656.390.1710.23537
HGR-33 185'-190'56.3957.910.1710.156-9
HGR-33 190'-195'57.9159.440.1370.1466
HGR-33 250'-255'76.2077.720.1710.31584
HGR-33 255'-260'77.7279.250.2740.141-49
HGR-33 260'-265'79.2580.770.1710.14-18
HGR-33 265'-270'80.7782.300.171<0.103
HGR-33 270'-275'82.3083.820.2400.222-7
HGR-33 275'-280'83.8285.340.3430.208-39
HGR-33 280'-285'85.3486.870.2740.139-49
HGR-34 70'-75'21.3422.860.1710.20721
HGR-34 75'-80'22.8624.381.1661.5735
HGR-34 80'-85'24.3825.910.1710.143-17
HGR-34 85'-90'25.9127.430.1030.1129
HGR-34 90'-95'27.4328.960.0690.158130
HGR-34 95'-100'28.9630.480.2400.27715
HGR-34 100'-105'30.4832.000.1030.1217
HGR-34 105'-110'32.0033.530.5490.65720
HGR-34 155'-160'47.2448.770.2060.191-7
HGR-34 160'-165'48.7750.290.1370.1617
HGR-34 165'-170'50.2951.820.1710.138-19
HGR-34 170'-175'51.8253.341.3032.09361
HGR-34 175'-180'53.3454.860.1710.33595
HGR-34 180'-185'54.8656.390.2740.221-19
HGR-34 185'-190'56.3957.910.2400.29623
HGR-34 190'-195'57.9159.440.1710.29773
HGR-34 195'-200'59.4460.960.4110.4-3

Drill samples were collected at the drill site, transported to Sparks, NV and assayed by Inspectorate America of Reno, following standard industry practice. Gold results were determined using standard fire assay techniques on a 30 gram sample with an atomic absorption finish. Additional gold values were determined by metallic screen assays as described and tabulated above. Samples or standards returning assays exceeding 10 grams Au per tonne were re-assayed using a gravimetric finish. Silver results were determined by ICP. Rigorous QA/QC was employed including the insertion of standards and blanks into the sample stream.

About Rosebud

The Rosebud property is an advanced exploration project consisting of 54 unpatented mining claims centered on the former Rosebud underground mine, which produced nearly 400,000 oz gold and 2,300,000 oz silver between 1997 and 2000. The underground operation mined three high-grade ore zones, with an average production grade of 0.416 oz Au/t (14.2 g/tonne), 2.42 oz Ag/t (83 g/tonne). Due to falling gold prices, the cut-off grade was increased from 0.15 oz Au/t (5.1 g/tonne) to 0.18 oz Au/ton (6.2 g/tonne) over the life of the mine, and mineralized material below the cutoff was not mined. An in-place, non-43-101-compliant Measured and Indicated Global resource of 242,000 oz Au, 2,130,000 oz Ag (6.81 million t @ 0.036 oz Au/t, 0.31 oz Ag/t), was calculated by Hecla at the close of mining in 2000. (This historical resource estimate was made by a source believed to be reliable, however the Company has not yet independently verified the estimate according to CIM standards and thus this historical estimate should not be relied upon.) The Harvest Gold 43-101 report on Rosebud can be accessed on the website at: http://www.harvestgoldcorp.com/Theme/HarvestGold/files/Rosebud%2043-101%20final_10%20Oct%2022.pdf

The Rosebud deposit is a low-sulfidation epithermal precious metals deposit hosted in felsic volcanic rocks, similar in origin, geologic setting, and mineralization style to other low-sulfidation gold deposits in northern Nevada, including the high-grade multi-million-ounce Sleeper and Midas deposits. The property is located in a highly mineralized portion of the Lovelock-Austin Mineral Belt, about 5 miles south of Allied Nevada's Hycroft mine.

The company has acquired a 100% interest in the property, subject to a net smelter royalty.

Greg Hill, Certified Professional Geologist, the President of Harvest Gold Corp. (US), is the Qualified Person that 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 controls 100% interests in the advanced-stage Rosebud Gold Mine property, and generative gold properties at Garcia Flats in the South Carlin Trend and the RW property in the southern Battle Mountain - Eureka Trend. In Manitoba, Harvest is engaged in early-stage exploration of three groups of 100% owned claims in the Rice Lake Gold Belt and holds a 40% interest in the more advanced-stage, Assean Lake project.

This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, uncertainties of resource and reserve estimations, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. Fluctuations in metals prices, availability of financing, and general business conditions are all factors that could cause actual results to vary materially from forward-looking statements.

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

    Progressive Investor Relations
    Andrew Mugridge
    (604) 689-2881

    Progressive Investor Relations
    Benjamin Curry
    (604) 689-2881