High Desert Gold Corporation

High Desert Gold Corporation

September 05, 2012 08:30 ET

High Desert Gold Intersects Gold Mineralization at Three New Targets and Prepares for Resource Expansion Drill Program at the Gold Springs Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 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 an additional 12 Nevada drill holes and is now preparing for the "resource expansion" phase of the 2012 drill program. Results for the remaining 4 Nevada/Utah drill holes at Gold springs are pending.

Mineralization, that requires further drill follow-up, was intersected at Silica Hill, Tin Can and Pope in Nevada. The best intercept from this group of assays was at the Pope, even though part of the hole was lost due to drilling into an old mine working:

3 metres @ 4.7 g/t gold equivalent* ("AuEq") within 16.8 metres @ 1.01 g/t AuEq*

This mineralization was intersected at 76 metres in drill hole P-12-001 and is believed to extend to surface. The interval includes 1.5 metres of 9.25 g/t AuEq*, similar to the mineralization historically mined in the area.

Ralph Fitch, President of the Company stated, "These results confirm that gold mineralization is present in numerous additional targets at the very large, approximately 60 sq km, Gold Springs Property. The exploration phase of the 2012 drill program has now located seven new areas, besides the Jumbo Resource Area (233,000 AuEq oz**) in Utah, that have the potential to provide additional resources. The Company is now applying for drill permits for the "resource expansion" phase of the 2012 drill program planned to start in October. This program will start by drilling around the high grade Grey Eagle mineralization with the intent of developing additional resources in this area."

The majority of results have now been received from the following Nevada targets: Grey Eagle (new preliminary results), Silica Hill, Tin Can, Pope and Fluorite. Results are still due from the laboratory for two follow-up holes into the high grade hanging wall vein system at Jumbo and two follow up holes into the mineralization reported earlier in the Shark's Belly Target, both in Utah.

Grey Eagle:

Preliminary results have been received from the remainder of hole GE-12-002 which included the previously reported 62.5 metres at 2.36 g/t AuEq*(see HDG PR12-14, August 16, 2012). These preliminary results suggest that the interval may be extended a further 1.5 metres but no further. GE-12-003 located 150 metres to the north intersected minor mineralization and appears to have missed the mineralization in GE-12-002 which has now been mapped from the old Keno mine adit located 250 metres to the south of the GE-12-002 drill intercept and to a small pit 60 metres to the north, indicating a NNW strike to the zone rather than north-south as originally interpreted. Surface sampling from the small pit north of the drill intercept assayed 7.78 g/t gold. Future drill holes will test this interpretation.


Drill hole P-12-001 intersected 3 metres @ 4.71 g/t AuEq within 16.8 metres @ 1.01 g/t AuEq* as reported above. This interval occurred between 76.2 and 79.2 metres. Between 56.4 and 62.5 metres the hole, unfortunately, penetrated an old working and there was no sample return. This had been the primary target for the hole. Interestingly, the gold bearing fractures in the Pope area strike east-west rather than the more typical north-south that the Company has seen in most parts of the property. Future drilling will be planned to avoid the old workings so that the Company can get a better test of the total width of mineralization in this area.

Tin Can:

Again, drilling intercepted old mine workings so that the Company can only report on the grade of the mineralization near the main target zone. Drill hole TC-12-002 intercepted 0.5 g/t AuEq* mineralization between 141.7 to 153.9 metres where the hole ended in an extremely large void which the drill could not span. This is presumed to be an unmapped, very large old working in one of the old mines. The 12 metres of mineralization bounding the mined area strongly suggests that this will be a good area for further drill testing once the Company better understands the location of the old workings.

Silica Hill:

Drill hole SH-12-002 again intercepted a void thought to be an unmapped old mine working. The intercept suggests this will be a good area for follow up drilling. The hole intercepted 0.5 g/t AuEq* mineralization from 77.7 to 91.4 metres (13.7 metres) followed by a 3 metre void and then an additional 3 metres of mineralization averaging 0.8 g/t AuEq* before the hole was lost.


High grade vein mineralization had been expected here, however, although the same fluorite related mineralization seen in the old dump at the shaft at this location was intercepted, no important gold mineralization was found. Further geological work and surface sampling will be carried out in this area before any further drilling will be planned.

Future Plans:

Now that the majority of drill results have been received, the Company is able to start planning the "resource expansion" phase of its 2012 drill program. Final drill locations will be established in the next few weeks, but will likely include drilling at some or all of the following: the Grey Eagle, Jumbo, Shark's Mouth, Shark's Belly, Etna, Silica Hill, Pope and Tin Can. The Company believes that further drilling at all these targets could lead to additional resource development.

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.

A detailed map of the target areas in both Utah and Nevada can be found on the Company's website at: http://www.hdggold.com/gs3dtargetmap.pdf.

The Gold Springs drill program this year is designed to drill potential extensions to the previously issued 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) as well as test the additional high priority targets within Nevada and Utah.

** 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 2011.

* 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 widths of intercepts reported in this press release are not known; however, they are estimated to be between 42% and 100% of the widths listed.

The following table shows the actual gold and silver grades of the drill holes reported in this release and were used to calculate the gold equivalent (AuEq) results:

P-12-001 76.2 93.0 16.8 0.98 1.5 1.01
including 76.2 79.2 3.0 4.67 2.2 4.71
including 76.2 77.7 1.5 9.20 3.3 9.25
GE-12-002 0.0 62.5 62.5 2.07 16.4 2.36
TC-12-002 141.7 153.9 12.2 0.35 5.9 0.45
SH-12-002 77.7 91.4 13.7 0.44 3.0 0.49
SH-12-002 94.5 97.5 3.0 0.77 3.8 0.83

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 "may", "target", "likely", "next", "further", "planned", "will", "future", "expects", "believed", "developing", "could" 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; timely receipt of required permits; failure of equipment or processes to operate as anticipated; regulatory, environmental and other risks of the mining industry 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. The assumptions made in developing the forward-looking statements include: the accuracy of estimates and interpretations of exploration results; timely receipt of required permits; 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.

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) 584-0608
    (303) 758-2063 (FAX)