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

High Desert Gold Corporation

October 18, 2010 08:31 ET

High Desert Gold Corporation Reports Excellent Gold Recoveries from the Initial Metallurgical Tests on Drill Cuttings from the Gold Springs Project

Average Metallurgical Recovery from 12 Samples was 97%

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2010) - High Desert Gold Corporation (TSX VENTURE:HDG)(PINK SHEETS:HDGCF) ("HDG" or the "Company") announces the results from a series of metallurgical tests designed to assess the recoverability of gold by gravity separation followed by cyanidation. These tests were also conducted to assess the possible variation of gold grades due to the presence of coarse gold, the so called "nugget effect". These tests were conducted on twelve samples collected from the recent drill program at Gold Springs in Nevada and Utah which had previously been analyzed by fire assay.

These metallurgical tests used a much larger sample size of 3 kilograms instead of the original 30 grams used for the fire assays. The average metallurgical recovery for all samples tested was 96.8% and the overall gold grades calculated from the metallurgical recoveries increased by an average of 30% over the original fire assays.

Ralph Fitch, President and CEO stated that "This is extremely positive news for the future of this project. We have just completed a drill program reporting positive results, intersecting typical heap leach grades of 0.6 g/t gold with some zones averaging greater than one g/t gold and now these early stage metallurgical tests indicate the potential for excellent cyanide leach recoveries greatly enhancing the value of the property."

Three kilogram samples were ground to a powder (approximately 70 microns) then subjected to gravity separation. A single pass gravity separation process recovered between 2.0 to 57.2% of the gold. The remaining material (gravity tail), after the removal of the coarse gold by gravity separation, was combined with the remaining sample and subjected to cyanidation for 72 hours. Recoveries from the cyanidation portion of the test ranged from 35.0 to 94.6%. The overall gold recovery from the combination of gravity separation and cyanidation was 91.5% to 99.3% with the average for all samples being 96.8% recovery.

The test work demonstrated that excellent gold recoveries can be obtained through a combination of gravity separation followed by cyanidation and also showed that the true average gold grade for the 12 samples is 30.1% higher than previously reported from the fire assay procedure. The differences between grades derived from the initial fire assays using the smaller 30 gram samples and the bottle rolls using the larger 3 kg samples varied significantly between some samples, with the present tests yielding results which varied between 31.1% lower to 209.9% higher than the original gold fire assays. This type of variation is known as nugget effect and often occurs in mineralization that contains coarse gold. The average 30% increase in grade is economically significant and would have an important positive impact on results reported to date.

The following table summarizes the results from the metallurgical test work:

Sample #   Au gt 30g
Fire Assay
  Au gt 3000g
Grav+Cy
assay
  % Change
in Grade
  Gravity
Recovery %
  Cyanidation
Recovery %
  Total Au
Recovery
25289   2.532   2.660   5.1   10.9   88.4   99.3
25290   1.217   1.290   6.0   10.7   88.3   99.1
25291   0.160   0.220   37.5   16.5   80.3   96.9
25366   0.301   0.360   19.6   9.8   88.2   98.1
25367   1.344   1.380   2.7   11.0   87.4   98.5
25368   0.075   0.120   60.0   12.8   78.7   91.5
25140   0.071   0.220   209.9   57.2   35.0   92.3
25141   6.709   8.100   20.7   33.7   64.8   98.4
25142   1.443   1.850   28.2   23.0   75.6   98.5
25143   0.508   0.350   -31.1   2.0   94.6   96.6
25144   0.495   0.480   -3.0   23.1   73.6   96.7
25145   0.361   0.380   5.3   35.8   59.8   95.6

Samples 25366 through 25368 were from the unoxidized portion of drill hole Jumbo-10-02. All other samples were from the oxidized portions of holes Jumbo-10-02 and Jumbo-10-03. Importantly the recoveries from both oxidized and unoxidized pyritic mineralization were very similar, indicating that good leach recoveries should be obtainable throughout the mineralized system not just in the near surface oxidized material. This is an important economic characteristic and very positive with respect to the property potential and valuation.

HDG is currently permitting a second phase drill program which will continue to define the gold mineralization on the Jumbo target and begin the initial testing of some of the other 13 high priority targets. Recent field work following the first phase drilling results (see HDG PR10-14, August 9, 2010) has defined numerous mineralized zones with sample results ranging as high as 32.6 gpt including 5 samples over 10 gpt and 47 samples over 1.0 gpt. Abundant visible gold associated with quartz-adularia veins or with fluorite has now been noted in 3 of the target areas. Field work is ongoing and plans are to initiate the Phase II drill program later this fall or early next spring depending on permitting and drill availability.

The Gold Springs property is under option from Fronteer Gold Inc. High Desert Gold Corporation can earn a 60% interest over a five-year period by spending US$1 million on exploration and paying Fronteer Gold US$160,000.

The metallurgical tests were carried out by Process Research Associates, a metallurgical Laboratory located in Richmond, BC. Assays at were performed by International Plasma Laboratories, an ISO 9001:2000 Certified laboratory. Gold was analyzed by fire assay of a 30 gram sample with an AA finish. 

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 maps and drill hole locations.

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, Canasta Dorada gold property in Sonora, Mexico, now optioned to Norvista Resource Corporation, and the San Antonio gold project in Sonora, Mexico. The Company is currently well funded for exploration programs in 2010 and has 22.9 million shares outstanding.

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," "positive", "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential," "interpretation" and similar expressions. Information concerning the interpretation of drill results and metallurgical testing also 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. 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. 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.

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