Harvest Gold Corporation
TSX VENTURE : HVG

Harvest Gold Corporation

November 16, 2006 16:50 ET

Harvest Gold Signs LOI to Acquire Rosebud Gold Mine, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 16, 2006) - Harvest Gold Corporation. (TSX VENTURE:HVG) (the "Company") is pleased to announce that it has signed a letter of intent to acquire the Rosebud gold mine property, Rosebud Mining District, Nevada. A compilation and review of archived project data is now underway.

The letter of intent grants the Company a due diligence period ending December 15, 2006, during which the Company has the right to enter an option agreement with Nevada Eagle Resources, LLC. The property vendor was paid US$13,000 on signing of the letter of intent. The terms of the option grant the Company the right to earn a 100% interest in the property by completing a schedule of property payments totaling US$320,000 over a 4 year period and issuing 600,000 shares of the Company to the property vendor. The property is subject to a Net Smelter Royalty of 3%, one half of which may be purchased for US$2,250,000.

The property is comprised of 54 contiguous unpatented claims covering an area of approximately 1,080 acres (4.3 square kilometers) overlying the reclaimed Rosebud Mine, and surrounding area. The property was mined by Hecla Mining Company (NYSE:HL) and Newmont Mining Corporation (NYSE:NEM) as a joint venture with reported production from 1997-2000 of 386,247 ounces Au and 1,254,942 ounces Ag (Nevada Bureau of Mines and Geology, 2005, The Nevada Mining Industry 2004). This publication reports 1992 reserves/resources of 570,000 oz Au (0.362 opt) and 5.5 million oz Ag (5.5 opt).

The Rosebud mine was discovered in 1989 by the LAC Minerals and Equinox Resources joint venture. Drill intercepts reported early in the discovery include 178 feet (54.25 m) of 0.72 opt (22.39 g/t) Au (Northern Miner, 6-24-91). One of the better intercepts in the East zone, from hole 198C, was 30 feet (9.14 m) of 1.89 opt (58.79 g/t) Au (Mining Record, 7-24-91).

Two pods of mineralization, the Main zone and the East zone were defined by LAC and Equinox in the Dozer Hill area. Mineralization is reported to occur in tabular zones associated with the South Ridge fault and cross-cutting high-angle faults. Quartz-calcite-clay veins cut clay altered, silicified, and/or sericitized Tertiary rhyolitic volcanic host rocks.

Company President John Roozendaal states, "Our interest in the property is focused in 3 areas: Evaluating the gold mineralization discovered on the property but not mined, in the light of the much higher precious metals prices that exist today; the exploration for near surface ore bodies like those discovered on the property in the past, and finally test the potential for large bodies of gold-silver mineralization at depth. Significant gold deposits in Nevada have been discovered at depth, beneath near surface, high-grade producers and this potential will be part of our focus as we explore the Rosebud Mine property."

Harvest Gold Corporation is a gold focused exploration company working in Nevada, USA and Manitoba, Canada. In Nevada, the Company is exploring a large generative gold property at Garcia Flats in the South Carlin Trend and an advanced property with a gold-silver resource at the Longstreet Mine, in Northern Nye County. In Manitoba, Harvest is exploring claims in the Rice Lake Gold Belt, the Rocky Ridge Gold property in the Lac du Bonnet mining district, Manitoba and is Joint Ventured with Canadian Gold Hunter Corp (TSX:CGH) at the Assean Lake Gold Project, Manitoba.

All technical information in this release has been reviewed by Dr. George Gale, P.Eng, Vice President of Exploration, Harvest Gold Corporation. Please note that the historical resource figures and drill results are from sources that are not compliant with NI 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

John Roozendaal B.Sc., President


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
    John Roozendaal
    President
    (604) 986-2020 or Toll Free: 1-866-816-0118
    (604) 986-2021 (FAX)
    Website: www.harvestgoldcorp.com