High Desert Gold Corporation
TSX VENTURE : HDG
PINK SHEETS : HDGCF

High Desert Gold Corporation

July 12, 2011 08:30 ET

High Desert Gold Completes Earn-In for 60%-Interest in the Gold Springs Project, Provides an Update on Gold Springs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2011) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(PINK SHEETS:HDGCF) announces the completion of its earn-in option on the Gold Springs gold project that straddles the Nevada-Utah border ("Gold Springs"). The Option and Earn-in Agreement dated January 10, 2010 (the "Earn-in Agreement") called for HDG to incur $US1 million in exploration expenditures and pay $US160,000 to Pilot Gold Inc. (TSX:PLG) ("Pilot Gold"). These obligations have been met and a notice of completion confirming the Company's earn-in has been provided to, and acknowledged by Pilot Gold. Pilot Gold has elected to participate at a 40% interest in a newly established jointly-owned company called Gold Springs LLC. On closing of the earn-in, and signing of an operating agreement, each company's respective interests in Gold Springs will be conveyed to Gold Springs LLC.

Ralph Fitch, President of HDG, stated, "We are very pleased to have completed this earn-in partnership with Pilot Gold, a company with a very experienced exploration team that will add to our knowledge base at the property."

Pilot Gold was established earlier this year pursuant to a plan of arrangement between Newmont Mining Corporation ("Newmont"), and Fronteer Gold Inc. ("Fronteer Gold"). Pilot Gold is a gold exploration company led by members of the former Fronteer Gold team that discovered or advanced seven deposits since 2003, including the development-stage Long Canyon gold project in Nevada, now owned by Newmont.

The Company has now completed 16 RC holes totaling 1,569 metres and two diamond drill holes totaling 276 metres, together with a property-wide ZTEM geophysical survey at Gold Springs. Early assay results from the RC drilling should be available by late July. HDG now has the ZTEM results and has carried out follow-up work on new targets derived from work to date.

One diamond drill hole was centered on the Thor vein system to acquire orientated core to assess the directions of the gold-bearing veins. The hole intersected two veins, one approximately 4 ft wide averaging 1.8 g/t gold with 27.5 g/t silver, and a second averaging 7.7 g/t gold (0.25 oz/t) and 52.5 g/t silver over 7.5 ft. (this intercept occurred in a zone of poor core recovery). This area of the project contains high-grade veins, without the wide zones of associated mineralization found at the Jumbo Zone (see HDG PR10-14, August 19, 2010), and would more likely lead to an underground rather than an open-pit mine, should a mine be developed. Historic mines in this area typically produced at grades of 0.4-0.5 oz/ton gold and + 2 oz/t silver ore by underground means. This very encouraging intercept extends the Thor vein beyond the historically developed area.

A second diamond drill hole was drilled on the Jumbo Zone to both twin one of the Company's RC holes to confirm grade and to acquire orientated core to assess the directions of gold-bearing veins. Results have been received for a portion of the hole giving similar results to the nearby RC hole GS10-4. The prominent gold-bearing veins in the two holes typically strike NE or NW or NS.

The ZTEM airborne geophysical survey was completed in June with final results received in July. As previously reported (see HDG PR11-05, April 12, 2011), this survey included magneto-telluric and magnetic measurements to outline the potential extensions to the known outcropping, gold-bearing siliceous structures under the thin gravel cover. The gravel cover blankets over two-thirds of the 29 sq. km. property.

The ZTEM resistivity results show an excellent correlation with known gold mineralization and have also outlined 10 new targets that have very similar geophysical characteristics to the known gold areas. Some of these new targets are within the HDG/Pilot Gold joint-venture area, and some are outside and have been staked by HDG. Recent surface samples of veins and breccias from follow-up work following the survey include several samples with values greater than 1 g/t gold with the two highest being 17 g/t and 19 g/t gold. The Company will continue to follow up on the new ZTEM resistivity targets with the expectation that new drill targets will emerge.

Mr. Fitch added, "At Gold Springs, the ZTEM geophysical survey has successfully outlined the resistive, siliceous structures that typically carry gold in both outcropping and partially covered areas. This will significantly speed up our assessment of this large land holding and has expanded the area with potential for gold mineralization beyond the already delineated targets."

The Company is developing a jointly funded exploration program and budget for the second half of 2011.

The Qualified Person on the Gold Springs property is Randall Moore, Executive Vice President of Exploration of High Desert Gold Corporation 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 >1 gpt re-assayed using Au- GRA21 All other elements were analyzed by the ME-MS41 method.

There has been insufficient exploration to define a mineral resource at Gold Springs and it is uncertain if further exploration will result in the targets at the project being delineated as a mineral resource.

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 the Gold Springs gold project situated along the border between Utah and Nevada and the San Antonio project in Sonora, Mexico.

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 such as "should", "likely", "would", "expectation", "targets", "potential", "developing" and similar expressions. These statements include, but are not limited to, statements regarding the mineralization at and continued advancement of the Gold Springs project. In addition, information concerning the interpretation of drilling and survey results and of geology may 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. 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, the 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 and other risks more fully described in the Company's Management Discussion & Analysis of Financial Position and Results of Operations filed and publicly available on SEDAR at www.sedar.com. The material assumptions that were applied in making the forward looking statements in this MD&A include: execution of the Company's existing plans or exploration programs for the Gold Springs project, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs; and the accuracy of current interpretation of drill and other exploration results. 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. 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)
    rdoran@hdggold.com