Harvest Gold Corporation

Harvest Gold Corporation

September 01, 2010 06:30 ET

Harvest Gold's Phase One Drill Results Complete; Gold and Silver Intersected in Each Hole at Rosebud Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2010) - Harvest Gold Corporation (TSX VENTURE:HVG) (the "Company") is pleased to announce that all gold and silver assays have been received for the twelve reverse circulation drill holes completed during the Company's first phase drill program at its Rosebud Mine property in Pershing County, Nevada. Highlights from holes HVG-11 and HVG-12 are reported below.

Significantly, in hole HVG-11, the unconformity target was intersected with 24.4 metres of 0.64 g AuEq/t. A northeast oriented mineralized zone is emerging in which gold and silver are enriched at the unconformity. This zone is at least 250 metres long and is open to the northeast and southwest. Along with intercepts in four holes drilled during this first phase program, HGR-3, HGR-4, HGR-8, and HGR-11, and nearly all historical holes that penetrated the unconformity in this zone contain anomalous gold and silver mineralization. Several examples of mineralization at and beneath unconformities occur in Nevada. The most important is the Hollister deposit, where Great Basin Gold is developing high grade veins within Ordovician quartzite beneath Tertiary volcanic rocks.

Greg Hill, President of Harvest Gold Corp. (US) states: "We are very encouraged by the results in our first drill program at Rosebud. While each hole intersected gold and silver mineralization, three key intercepts stand out: HGR-3 drilled 35 metres of high grade silver at the unconformity extending mineralization beyond the underground mine workings; HGR-5 drilled 114 metres of bulk tonnage gold mineralization, expanding the bulk tonnage halo and increasing the volume of rock prospective for hosting high grade pods; and HGR-10 drilled 12 metres of shallow gold mineralization in the large, sparsely drilled Valley target, less than 500 metres (1,600 ft) from the mine footprint.

The Rosebud property is varied and complex. The shallow mineralization in the Valley target and deeper mineralization at the unconformity beneath and adjacent to the historic mine workings are both large, underexplored targets. In each target, nearly every historical drill hole contains precious metals mineralization or anomalous gold and silver concentrations. The size of the Valley and the unconformity target areas is similar to the mine footprint. And, there are four other targets, peripheral to the mine footprint, waiting to be tested in future programs.

Discovery of high grade chimneys within the bulk tonnage halo remains the Company's main focus. The addition of one or more high grade zones would have a major impact on the minability of the bulk tonnage halo. These results are now being integrated into our structural model, allowing us to fine tune the targeting for our phase two drill program."

To summarize the first phase drill program, twelve reverse circulation drill holes were completed for a total of 4,574 metres (15,005 feet). Ten of these holes were drilled at targets within the mine footprint area with the objectives of: searching for high grade pods or "chimneys" within the bulk tonnage halo; expanding the bulk tonnage halo; exploring the unconformity for high grade mineralization; and testing for feeder veins beneath high grade, previously mined ore zones.

The program was successful in achieving two of these four objectives: expanding the bulk tonnage halo in several holes, most notably hole HGR-5; and, discovering high grade silver mineralization at the unconformity in hole HGR-3.

Two holes were drilled at the Valley target with the goal of intersecting near surface mineralization in this largely unexplored blind target. HGR-10 achieved this goal with one of the best intercepts ever drilled in the Valley target.

The drill targets tested in this first phase drill program were based on Harvest Gold's reinterpretation of the geology, and particularly the structural framework at Rosebud. In addition to the achievements detailed above, the Company confirmed the presence of mineralized structures in many places predicted by the model.

Results from the final two holes of the program, HGR-11 and HGR-12, drilled in the mine footprint area, are as follows.

Drill hole HGR-11 contains intercepts of:

  54.9 metres of 0.29 g Au/t and 3.9 g Ag/t (0.34 g AuEq/t)
  3.0 metres of 1.15 g Au/t and 3.3 g Ag/t (1.20 g AuEq/t)
  24.4 metres of 0.29 g Au/t and 23.1 g Ag/t (0.64 g AuEq/t)
  3.0 metres of 0.75 g Au/t and 48.2 g Ag/t (1.48 g AuEq/t)
  3.0 metres of 0.51 g Au/t and 60.2 g Ag/t (1.43 g AuEq/t)

Drill hole HGR-12 contains intercepts of:

  15.2 metres of 0.26 g Au/t and 8.8 g Ag/t (0.39 g AuEq/t)
  1.5 metres of 0.88 g Au/t and 34.6 g Ag/t (1.41 g AuEq/t)
  21.3 metres of 0.19 g Au/t and 7.2 g Ag/t (0.30 g AuEq/t)
  1.5 metres of 0.16 g Au/t and 59.7 g Ag/t (1.07 g AuEq/t)

The intercepts in HGR-12 begin near surface (7.6 metres downhole). The upper mineralized zone is bounded by a modeled fault with mineralization occurring in the hanging wall of this structure. As with many other intercepts from the first phase drill program, these results are confirming the Company's structural model, and allow for advancement of the model.

  metres metres metres g/t g/t g/t
*HGR-1 77.7 85.3 7.6 0.74 11.1 0.90
*HGR-2 259.1 269.7 10.6 0.61 13.1 0.81
*HGR-3 315.5 350.5 35.1 0.82 238.1 4.43
including 318.5 330.7 12.2 1.58 564.3 10.13
  including 323.1 327.7 4.6 2.47 1235.1 21.19
    including 324.6 326.1 1.5 1.00 2159.8 33.72
    and 326.1 327.7 1.6 6.24 473.5 13.42
*HGR-4 79.2 93.0 13.8 0.28 4.0 0.34
  342.9 347.5 4.6 0.10 14.6 0.32
  349.0 352.0 3.0 0.07 12.1 0.26
  406.9 410.0 3.1 0.53 4.9 0.61
*HGR-5 97.5 211.8 114.3 0.49 4.7 0.56
including 106.7 108.2 1.5 2.59 3.8 2.65
and 129.5 134.1 4.6 2.16 3.9 2.22
and 163.1 172.2 9.1 1.40 4.6 1.47
*HGR-6 140.2 204.2 64.0 0.48 2.9 0.52
including 163.1 167.6 4.6 1.31 5.5 1.39
and 195.1 199.6 4.6 1.64 2.6 1.68
*HGR-7 42.7 56.4 13.7 0.12 25.4 0.50
including 50.3 54.9 4.6 0.13 60.7 1.05
*HGR-8 129.5 137.2 7.6 0.69 1.4 0.71
  202.7 219.5 16.8 0.21 21.9 0.54
  234.7 266.7 32.0 0.27 2.4 0.30
  289.6 301.8 12.2 0.39 3.4 0.44
  367.3 374.9 7.6 0.92 16.8 1.18
  403.9 405.4 1.5 0.93 5.1 1.00
*HGR-9 13.7 16.8 3.0 1.16 7.7 1.28
*HGR-10 19.8 32.0 12.2 1.81 20.9 2.13
including 21.3 24.4 3.0 4.26 15.3 4.49
and 27.4 29.0 1.5 3.53 58.6 4.42
  48.8 50.3 1.5 2.77 12.2 2.96
  61.0 77.7 16.8 0.21 31.5 0.69
  129.5 138.7 9.1 0.20 8.3 0.32
HGR-11 62.5 117.3 54.9 0.29 3.9 0.34
including 77.7 80.8 3.0 1.15 3.3 1.20
  350.5 353.6 3.0 1.10 15.8 1.34
  364.2 388.6 24.4 0.29 23.1 0.64
including 370.3 373.4 3.0 0.75 48.2 1.48
and 385.6 388.6 3.0 0.51 60.2 1.43
HGR-12 7.6 22.9 15.2 0.26 8.8 0.39
including 21.3 22.9 1.5 0.88 34.6 1.41
  36.6 57.9 21.3 0.19 7.2 0.30
including 36.6 38.1 1.5 0.16 59.7 1.07
  193.5 213.4 19.8 0.31 3.1 0.36
  280.4 283.5 3.0 0.36 12.0 0.54
Gold equivalent (AuEq) values calculated using a Ag:Au ratio of 66:1, based on a gold price of US$1160/oz and a silver price of US$17.60/oz. No Ag or Au recovery factors have been applied due to a lack of appropriate metallurgical data. All holes are inclined except for HGR-1. True widths are not known and additional modeling and drilling will be required to determine true widths. *Intervals for HGR-1 through HGR-8 previously reported 5 Aug 2010, 11 Aug 2010, and 25 Aug 2010

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. Samples returning assays exceeding 10 grams Au per tonne were re-assayed using a gravimetric finish. Silver results were determined by ICP. Samples returning assays exceeding 200 grams Ag per tonne were re-assayed using a gravimetric finish. Rigorous QA/QC was employed including the insertion of standards and blanks into the sample stream.

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, 2.42 oz Ag/t. Due to falling gold prices, the cut-off grade was increased from 0.15 oz Au/t to 0.18 oz Au/ton 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/pdfs/Rosebud_43101l_10Sept08.pdf

The Rosebud deposit is a high-grade low-sulfidation volcanic-hosted precious metals deposit, 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 an option to acquire 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 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 is exploring the 100% optioned Rosebud Mine property, and a generative gold property at Garcia Flats in the South Carlin Trend. In Manitoba, Harvest is exploring one group of claims in the Rice Lake Gold Belt of south eastern Manitoba and at Assean Lake, Manitoba.

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
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.

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