High Desert Gold Corporation

High Desert Gold Corporation

April 12, 2011 08:32 ET

High Desert Gold Corporation Announces 2011 Exploration Program, Including Plans for the Start of Drilling at Gold Springs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 12, 2011) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(OTCQX:HDGCF) is advancing all of its exploration projects as planned. Drilling at the Company's flagship Gold Springs Project on the Nevada-Utah border is expected to start on April 18. Phase I drilling at the San Antonio gold project in Sonora, Mexico is complete and an initial trenching program at Artillery Peak in Arizona is complete. Results from the latter two projects should be available to release later in April.

At Gold Springs, the Company is pleased to report that planning for the upcoming program is advancing and includes an initial airborne geophysical ZTEM survey expected to start on April 14. This survey will include magneto-telluric and magnetic measurements to outline the potential extensions to the known outcropping, gold-bearing siliceous structures under the thin gravel cover that blankets over two thirds of the 29 sq. km property. Management strongly believes that these covered targets include the same high grade material that the Company has been finding in the exposed areas (See HDG PR11-01, January 10, 2011), and with the added attraction that they were never explored nor developed by the early miners in the late 1800's. Early mines produced average grades of 0.411 oz per tonne gold and 4.34 oz per tonne silver as reported by the U.S. Bureau of Mines (see Perry, Lee I., 1976, Gold Springs Mining District, Iron County, Utah, and Lincoln County, Nevada, Utah Geology, Vol. 3, No. 1, p. 23-49) though early records were incomplete. Several of the vein systems have been traced to the edge of gravel cover where they become obscured.

Following the ZTEM survey, the Company plans an early diamond drill program to collect orientated cores to better understand vein orientation, location and controls of the gold-silver mineralization. The core drill rig is scheduled to arrive on the property on April 18 to complete a 4-6 diamond-drill hole program. This will then be followed by a reverse circulation ("RC") program scheduled to start in early May.

Ralph Fitch, President, stated that, "These are exciting plans which will lead up to a well conceived drill program at Gold Springs to test the subsurface below outcrops often assaying from 0.1 to several ounces per tonne (see HDG PR11-01, January 10, 2011) gold from exposures of quartz adularia veins. Our intention is to start putting together an initial resource by the end of the year."

At San Antonio, the Company has completed a scouting drill program consisting of 11 RC drill holes and expects to have results in hand to release before the end of the month. The purpose of the program was to drill under a "cut" made previously by local miners which is approximately 10 metres deep that contained many chip samples with values greater than one gram per tonne gold within a range of 5 ppb to 100 grams per tonne. The samples were collected by HDG staff under the supervision or by a Qualified Person (see HDG PR10-10, May 19, 2010). In addition to the holes located near the "cut", holes were located to also test other areas of the property where anomalous geochemistry had been found in the rocks and to better understand the stratigraphic sequence.

At Artillery Peak, three short trenches using a trackhoe have been completed to depths of one to two metres to test the gold content of the rocks in the subsurface within the large 700 metre long surface gold anomaly (see HDG PR09-10, August 20, 2009). Again, these results should be available to release during April.

The Company's Canasta Dorada gold property in Sonora, Mexico has now been transferred into the newly formed Highvista Gold Corp. As previously announced, Norvista Resources Corporation (see HDG PR10-16, October 7, 2010) exercised its right to earn a 51% interest in this entity by funding it with $1.75 million. HDG's 49% share consists of approximately 11.2 million shares, 3.5 million of which the Company plans to sell in the near term to provide additional funding for the aggressive exploration program at Gold Springs, without any further share dilution to existing HDG shareholders.

Ralph Fitch, President, stated, "We are excited to be part of this new company, Highvista Gold, which will be run by members of the ex-Castle Gold management team, including Rick Adams as CEO."

The Qualified Person on the Gold Springs project is Randall Moore, EVP Exploration and a certified professional geologist. He has reviewed the content of this press release.

Please see High Desert Gold Corporation's website, www.hdggold.com, for further information and the latest corporate presentation.


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.

There has been insufficient exploration to define a mineral resource at Gold Springs and at San Antonio and it is uncertain if further exploration will result in the targets at these two projects 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 such as "plans", "expects", "should", "will", "believe", "likely", "intention" and similar expressions. These statements include, but are not limited to, statements regarding the mineralization at and continued advancement of the Gold Springs, San Antonio and Artillery Peak properties. 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, the effect of capital market conditions and other factors on capital availability; 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, 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