High Desert Gold Corporation
TSX VENTURE : HDG
OTCQX : HDGCF

High Desert Gold Corporation

January 18, 2012 08:30 ET

High Desert Gold Announces the Acquisition by Staking of a Substantial Extension of the Jumbo Gold Zone and the Discovery of a Second Major Gold Target at Gold Springs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2012) - High Desert Gold Corporation ("HDG" or the" Company) (TSX VENTURE:HDG)(OTCQX:HDGCF) is pleased to announce it has completed staking a further extension of the Jumbo Zone as interpreted from the ZTEM geophysical survey completed in the summer of 2011 (see HDG PR11-11, July 12, 2011). The Company recently reported an initial inferred mineral resource of 173,000 oz. gold at 0.57 g/t and 3.88 Moz of silver at 12.9 g/t which equates to 233,000 gold equivalent ounces at 0.77 g/t AuEq, over a small portion of the then known Jumbo Zone (see HDG PR11-18, Dec. 22, 2011). The Company has also completed staking on a new zone, the Midnight Extension. The Gold Springs project is a joint venture between HDG (60%) and Pilot Gold Inc. (40%) with HDG as the managing partner.

Ralph Fitch, President and CEO stated, "We are very pleased to have acquired these new claims in the Jumbo and Midnight Zone extensions. The ongoing interpretation of the ZTEM geophysical survey has allowed us to identify a number of targets within the Gold Springs District which have the potential to be large scale, bulk mineable gold deposits. Prior to this latest development, we had defined 18 individual target areas, with each having the potential to host gold mineralization. With the benefit of the interpretation of the ZTEM survey results, some of these targets have coalesced into two much larger targets, the Jumbo Extension and the Midnight Extension."

Ongoing interpretation of the ZTEM survey and surface geological and geochemical exploration show that the high resistivity rock units defined by the ZTEM have excellent correlation with known gold mineralization in the Gold Springs District. One of these high resistivity features extends for at least 8 km along the extension of the Jumbo Zone, of which only 700 metres has been drilled-to-date. Claim staking has been completed over this feature as outlined by the ZTEM survey and for 1.5 km north and 1.5 km south beyond the limits of the survey.

Staking has also been completed on a second major new zone (Midnight Extension) on the west side of the joint venture's property position in an area of thin gravel cover. The strike extent of this feature is approximately 6 km. This feature, which was also found through the ZTEM geophysical survey, includes several old shafts on its northern and southern ends but the majority of the central portion (approximately 4 km) is covered by a thin veneer of alluvial material and remains unsampled. Fifty-six samples of surface material, including outcropping mineralization, have been collected at the north end of the zone which contain greater than 0.1 gpt gold with a high value of 13.85gpt gold. At the south end in the area of the historical Midnight Mine, 34 samples contain values greater than 0.1 gpt gold with a high value of 19.58 gpt gold.

A map showing the extension of the Jumbo Zone and the new discovery on the west side of the property can be found at the Company's web page, www.hdggold.com/ztem700.pdf.

The Company has filed an additional 332 federal lode claims, significantly expanding the size of the Gold Springs Project. The addition of these claims brings the total land position to approximately 5,900 ha, an increase of more than 70%.

The Company continues to advance its permitting efforts for a drill program to be conducted in spring 2012. A permit has been obtained in Utah and applications are in progress in Nevada.

The Qualified Person on the Gold Springs property is Randall Moore, Executive Vice President of Exploration of HDG and he has reviewed and approved the content of this press release. Assays were performed in Reno, Nevada by Inspectorate Laboratories, an ISO 9001:2000 Certified laboratory. Gold was analyzed by fire assay of a 30 gram sample with an AA finish. Gold was analyzed by the Au-AA23 method, with values >3 g/t re-assayed using Au- GRA21. All other elements were analyzed by the ME-MS41 method.

ABOUT HIGH DESERT GOLD

The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The major properties held by HDG are a 60% interest in the Gold Springs gold project situated along the border between Utah and Nevada and the San Antonio project in Sonora, Mexico. The Company also has a 34.8% interest in the Canasta Dorada property in Sonora, Mexico, through its equity interest in Highvista Gold Inc. There has been insufficient exploration to define a property-wide mineral resource at Gold Springs and it is uncertain if further exploration will result in the additional targets at Gold Springs being delineated as a mineral resource.

Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words or phrases such as "ongoing", "interpretation", "creating", "potential", "target", "continues", "in progress", and similar expressions. Information concerning mineral resource estimates and the interpretation of exploration results may also be considered forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, grade, metal prices; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined, failure of equipment or processes to operate as anticipated; regulatory, environmental and other risks of the mining industry more fully described in the Company's Management Discussion & Analysis of Financial Position and Results of Operations, which is available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, HDG assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Neither the 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

  • High Desert Gold Corporation
    Richard Doran
    Executive Vice President
    (303) 584-0608
    (303) 758-2063 (FAX)
    www.hdggold.com