High Desert Gold Corporation

High Desert Gold Corporation

May 15, 2008 16:54 ET

High Desert Gold Intersects 626 Metres of Mineralization at Gold Lake Confirming Size Extent of Molybdenum-Copper-Gold-Uranium System

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - High Desert Gold Corporation ("HDG" or the "Company") (TSX:HDG)(TSX:HDG.WT) is pleased to announce that it has intersected molybdenum-copper mineralization with associated gold and uranium in diamond drill hole GL-2 at its Gold Lake, New Mexico property.

Drill From To Length Molybdenum Copper
Hole (metres) (metres) (metres) (ppm) (ppm)
GL-2 3 629 626 155 230
360 610 250 308 190

Ralph Fitch, President of the Company, stated "These results continue to support the potential for a very large molybdenum-copper-gold-uranium mineralized system. Our two holes to date are only a pin-prick in this very large, three square kilometre geochemical-geophysical-geological target and we eagerly look forward to future drill results. The porphyry mineralization intersected has similarities to an Iron Oxide-Copper-Gold (IOGC) deposit with its copper-molybdenum-gold-uranium association and abundant hematite. IOGC's can be very large such as the Olympic Dam mine in Australia. These early results are very encouraging at this stage of Gold Lake's development."

Since the HDG press release of March 13, 2008 (PR08-04) describing the copper-molybdenum mineralization observed in the core, the Company has been approached by a number of mining companies interested in reviewing the data for potential joint venture. The Company is proceeding with these enquiries and will consider joint venture proposals if terms are acceptable.

The mineralization intersected is hosted within quartz monzonite, granite and mafic dykes and typical alteration includes hematite-sericite-silica with up to 8% pyrite. The top 76 metres of the hole is leached with a weak zone of secondary copper enrichment at the base of leaching. Values of up to 0.12% copper over 3 metres occur within the 43 metre enriched zone immediately below the zone of oxidation. Low grade copper mineralization continues from this point to the end of the hole. The character of mineralization changes to predominantly copper-molybdenum mineralization at 235 metres and continues to the end of the hole. The highest molybdenum value is 963 ppm (0.096%) and the highest copper grade is 0.23%. Interesting values of uranium are found over an 89 metre interval where uranium averaged 44 ppm with the highest value being 280 ppm. Detectable gold is present in most of the uppermost 305 metres of the hole, with values ranging from 0.005 -0.705 gpt. Also of note is the high phosphorous content of up to 0.95% and the high iron content of up to 13.75%, both of which are characteristics that might be found in an IOGC environment.

Drill From To Length enum Copper Uranium Mineralization
Hole (metres) (metres) (metres) (ppm) (ppm) (ppm) Type
GL-2 235 630 395 243 176 6 Molybdenum
76 165 89 10 351 44 Uranium
76 119 43 15 647 25 Copper

Continuing surface work approximately 550 metres to the east of GL-2 has produced rock chip samples which have assayed up to 0.6% molybdenum within the area of the molybdenum in soil anomaly. In addition, HDG has discovered a large structural zone up to 250 metres wide, which extends for at least 1.5 km. This structural corridor is located just north of the current area of drilling and contains high gold, copper and uranium values. Initial sampling within this area has produced gold values of greater than 10 gpt (maximum 26 gpt gold) with numerous samples having gold values greater than 1 gpt. Uranium values reach a high of 410 ppm together with many copper values in the 0.1% -0.2% range. Follow up work in this area is ongoing and will be a target for future drilling.

Hole GL-1 was completed to a depth of 233 metres at a -60 degree angle in the eastern portion of the property and was located on the edge of a copper in soil anomaly. Results showed weak anomalies in copper of up to 938 ppm and 18 ppm molybdenum. Hole GL-2 was completed to a depth of 629 metres at a -65 degree angle in the western portion of the property and was collared on the edge of the molybdenum in soil anomaly. HDG is currently drilling hole GL-3, located approximately 250 metres east of hole GL-2. Hole GL-3 is at a depth of 200 metres as of the writing of this press release. These holes are being drilled as part of a 3,000 metre drill program to explore the property.

Gold Lake is located approximately 10 km south-southeast of the Tyrone porphyry copper deposit and 23 km west-southwest of the Chino and Santa Rita porphyry copper deposits in Grant County, New Mexico.

The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The three major properties held by HDG are the flagship Canasta Dorada gold property in Sonora, Mexico, the Gold Lake porphyry copper-gold-molybdenum property in New Mexico and the Monitor copper-silver property in Arizona.

The Qualified Person on the Gold Lake property is Randall Moore, Executive Vice President of Exploration, High Desert Gold Corporation and he has reviewed the content of this press release.

Assays at Gold Lake were performed by ALS Chemex (ALS) which is an ISO 9001:2000 certified laboratory. Gold was analyzed by the Au-AA23 method that includes fire assay of a 30 gram sample with an AA finish. All other elements were analyzed by the ME-ICP61 method. Gold assays were performed in the ALS Reno, Nevada laboratory while the other elements were assayed in their Vancouver, B.C. laboratory, both of which are ISO certified.

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

Contact Information

  • High Desert Gold Corporation
    Richard Doran
    Executive Vice President, Investor Relations
    (303) 584-0606
    (303) 758-2063 (FAX)
    Email: rdoran@highdesertgoldcorp.com