High Desert Gold Corporation

High Desert Gold Corporation

February 07, 2012 19:07 ET

High Desert Gold Corporation Files Technical Report Confirming Resource Estimate for the Jumbo Zone at Gold Springs (Nevada/Utah)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2012) - High Desert Gold Corporation (TSX VENTURE:HDG)(OTCQX:HDGCF) ("HDG" or the "Company") is pleased to announce the filing on SEDAR of a technical report under National Instrument 43-101-Standards of Disclosure for Mineral Properties ("NI 43-101") confirming the original announcement of an initial resource for the Jumbo Zone at the Gold Springs gold silver project (see HDG PR11-18, December 22, 2011). The independent NI 43-101 compliant technical report has been completed by Mr. Kurt Katsura, registered Professional Geologist and Dr. Allan Armitage, registered Professional Geologist, both Independent Qualified Persons as defined by NI 43-101. The Gold Springs project is a joint venture between HDG (60%) and Pilot Gold Inc. (40%) with HDG as the managing partner. Gold Springs is located on the Utah/Nevada border.

Recent Highlights from the Property include:

  • Newly defined inferred resource estimate at the Jumbo Zone of 233,000 oz. AuEq*. The mineralization remains open to expansion laterally in all directions and to depth as the drilling to date has averaged only 148 metres in depth.
  • 18 similar targets to the Jumbo Zone with +1gpt gold values from surface rock chip sampling.
  • ZTEM geophysical survey definition of a large 8 kilometer long north-south trending target which includes the resource on the Jumbo target.
  • Newly expanded land position to 6,287 ha covering numerous ZTEM anomalies

Ralph Fitch, President of High Desert Gold Corporation, stated "There are several important points for investors that can be taken from the NI 43-101 study:

  1. There are a total of 18 areas with a similar geological setting and exposed mineralization to the Jumbo Zone; therefore, the potential exists, if drilling defines similar resources on many of these targets, for a large resource.

  2. The ZTEM geophysical survey resistivity anomalies correlate very well with known gold occurrences in areas of outcrop. The ZTEM anomalies extend into areas that are covered by a thin layer of alluvium which we will be exploring going forward."

The initial resource was estimated for a 700 metre long segment of the Jumbo Zone which is open to expansion. Using a 0.3 gold equivalent (AuEq*) g/t cutoff, an inferred resource of 173,000 oz. gold at 0.57 g/t and 3.88 Moz of silver at 12.9 g/t, equivalent to 233,000 ounces of AuEq* at 0.77 g/t, has been estimated.

Jumbo Target Resource Estimate
Cut-off Grade (AuEq* g/t) Au (g/t) Ag (g/t) AuEq* (g/t)
Tonnes Grade Grams Ozs Grade Grams Ozs Grade GRAMS OZS
0.3 g/t 9,392,155 0.57 5,383,952 173,117 12.9 120,691,161 3,880,745 0.77 7,257,001 233,344
0.8 g/t 2,992,092 0.99 2,975,010 95,659 17.3 51,833,753 1,666,680 1.26 3,780,095 121,546
* Gold equivalent (AuEq) calculations reflect gross metal content using approximate 3 year average metals prices of $1020/oz gold (Au), and $15.80/oz silver (Ag), and have not been adjusted for metallurgical recoveries.

The resource estimate is categorized as "inferred" as defined by the Canadian Institute of Mining guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into minable reserves once economic considerations are applied.

HDG has secured a drill for the 2012 exploration program which would allow for up to 21,000 feet (6,400 metres) of reverse-circulation drilling. This season's exploration efforts will focus on expanding the resource at the Jumbo Zone and testing several of the remaining targets. HDG has permits for continued drilling in Utah and is working with the BLM in Nevada to develop access and drill sites which will allow for the testing of several of the priority targets.


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 its 60% interest in the Gold Springs gold project situated along the border between Utah and Nevada and the 100%-owned 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 or at San Antonio and it is uncertain if further exploration will result in additional 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 "target", "open", "continued", "potential", "develop", "will" 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 news 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.

This news release uses the term 'inferred resources' which is recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), however, such term is not a defined term under SEC Industry Guide 7 and is not normally permitted to be used in reports and registration statements filed with the United States Securities and Exchange Commission. Investors are cautioned not to assume that any part or all of the 'inferred resources' will be upgraded or converted into 'indicated resources' or 'reserves' as defined under NI 43-101. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. Under Canadian rules, estimates of inferred resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary economic assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

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) 584-0606
    (303) 758-2063 (FAX)