High Desert Gold Corporation

High Desert Gold Corporation

August 16, 2012 14:54 ET

High Desert Gold Intersects 21.4 Metres Grading 5.6 g/t Gold and 32.4 g/t Silver on the Grey Eagle Target in Nevada at the Gold Springs Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2012) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(OTCQX:HDGCF) is pleased to announce the latest results from the Company's Gold Springs project that straddles the Nevada-Utah border. The Company has received final results on two holes drilled on the Grey Eagle target. Results are from all of hole GE-12-001 and for the top 62.5 metres of a total of 98.0 metres of hole GE-12-002.

Highlights from the two Grey Eagle holes include the following intercepts:

21.4 metres of 6.18 g/t gold Eq
62.5 metres of 2.39 g/t gold Eq
3.1 metres of 5.17 g/t gold Eq
33.5 metres of 0.92 g/t gold Eq

Ralph Fitch President of the Company stated "We are very pleased with these results and we were confident that it was only a matter of time before our efforts led to a drill intercept of this quality. With our surface rock chip sampling results along with our ZTEM geophysical survey results we anticipated that the Gold Springs system was capable of producing drill intercepts like those seen at Grey Eagle. We are fortunate that Gold Springs is located in two pro-mining states, Nevada and Utah."

A summary of the drill results from the two holes at Grey Eagle is shown in the following table:

Drill Hole From To Length Gold gpt Silver gpt AuEq* gpt
Metres Metres Metres
GE-12-001 0 33.5 33.5 0.8 8.9 0.92
inc 0 24.4 24.4 1.0 10.5 1.17
inc 13.7 16.8 3.1 4.7 24.6 5.17
GE-12-002 0 62.5 62.5 2.1 16.4 2.39
inc 27.4 48.8 21.4 5.6 32.4 6.18
inc 30.5 32.0 1.5 13.1 34.2 13.65
and 44.2 47.2 3.0 11.9 31.0 12.46
*Gold equivalent (AuEq) calculations reflect gross metal content using metal prices of $1,600/oz gold (Au), and $28/oz silver (Ag), and have not been adjusted for metallurgical recoveries.

The true width of these intercepts is not known; however, it is estimated to be between 42% and 100% of the widths listed.

The two reverse circulation drill holes are collared on the same drill pad and drilled in opposite easterly-westerly directions, thus if the mineralized zone represented by these two drill holes is vertical then the drill intercepts represent a mineralized zone which has 40.6 metres true width @ 1.6 g/t Au and 14.0 g/t Ag.

These holes are located approximately 150 metres south of the hole drilled in 2011; hole GE-11-08 intercepted 12.2 metres @ 1.47 g/t AuEq. The northern most workings of the historic Keno Mine, which are within the same mineralized zone, are located 250 metres to the south of the holes reported above. Altogether, this mineralized zone can be traced one kilometre along strike before going under colluvial cover to the south of the Keno Mine. The previously reported ZTEM geophysical survey also outlined a strong resistivity high that coincides with the Grey Eagle mineralized zone in a similar manner to that seen in the Jumbo zone for which the Company has reported an inferred resource.

It is significant that hole GE-12-002 was drilled under an area covered by post-mineral tuff. The tuff covers other areas of interest and extends south to the Keno Mine. These areas will be drill tested in the next drill program.

Gold Springs is a 70/30 Joint Venture with Pilot Gold Inc., in which HDG holds a 70% interest and is the operator of the Joint Venture.

The Company has completed 34 drill-holes in this year's drill program. Assays are pending for an additional 14 holes from both Nevada and Utah. These results are expected within the next month. Drilling has now stopped for approximately two months so that the Company can receive assays back from the laboratory and make interpretations before moving into the resource expansion phase of drilling.

A detailed map of the target areas in both Utah and Nevada can be found on the Company's website at http://www.highdesertgoldcorp.com/GS%20Geo%20with%20Target%20Areas%20Jan2011.pdf.

The Gold Springs drill program this year is designed to drill potential extensions to the previously reported inferred resource of 9.4 million tonnes grading 0.57 g/t gold and 12.9 g/t silver for a total of 173,000 oz. of gold and 3.88 M oz. of silver. This equates to 233,000 ounces AuEq** grading 0.77 g/t (see HDG PR11-18, December 22, 2011). Drilling will also test the additional high priority targets within Nevada and Utah with a view to identifying new areas of gold mineralization which will be subject to potential resource expansion drilling at a later date.

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 ICP finish. All other elements were analyzed by the 50-4A-UT method.


The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The principal property held by HDG is a 70% interest in the Gold Springs gold project situated along the border between Utah and Nevada. The Company also holds direct interests in a number of other properties including the San Antonio project in Sonora, Mexico, the Gold Lake property in New Mexico and the Kinkaid and Pinyon properties in Nevada. The Company also has a 34.2% 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 such as "estimated", "expected", "expansion", "potential", "will", and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement of the Gold Springs property. 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. 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; 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; 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. The assumptions made in developing the forward-looking statements include the following: the accuracy of estimates and interpretations of exploration results; the availability of equipment and qualified personnel to advance the Gold Springs project. 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.

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.

** Gold equivalent (AuEq) calculations reflect gross metal content using metal prices of $1,020.00/oz gold (Au), and $15.80/oz silver (Ag), and have not been adjusted for metallurgical recoveries. This Gold Equivalent calculation was used when reporting the initial resource at Gold Springs that was reported in December 2012.

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.

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