High Desert Gold Corporation

High Desert Gold Corporation

February 07, 2011 08:31 ET

High Desert Gold Purchases Batamote Concessions in Sonora, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(PINK SHEETS:HDGCF) announced today that it has purchased the Batamote concessions that were originally staked and controlled by Vancouver-based TUMI Resources Limited ("TUMI") and its Mexican subsidiary, TMXI Resources S.A. ("TMXI"). The Batamote concessions were previously optioned by HDG from TUMI in May, 2007. The Batamote concessions form part of HDG's Canasta Dorada property interests which also include the Basurero claims, on which the majority of the HDG drilling was previously completed and two other wholly owned concessions, one of which adjoins the El Chanate concessions.

As announced in October, 2010 (see HDG PR10-16, October 7, 2010), HDG intends to transfer all of its interests in the Canasta Dorada property, including the Batamote concessions, to a new company whose Canadian parent will be the new private company, Highvista Gold Corp. ("HVG"). The initial ownership of HVG will be 49% HDG and 51% Norvista Resources Corporation ("Norvista") and its shareholders. Norvista funded HVG with US$1.5 million as consideration and spent an additional US$250,000. for its 51% share. The transfer of the Canasta Dorada property interests into HVG is expected to be completed in the next several weeks. The Company expects that its equity interest in HVG will be diluted over time, as HVG raises additional capital. This affords the Company the opportunity to advance the Canasta properties without further expense to HDG or share dilution.

The Canasta properties are in an excellent location within the Sonoran Gold Belt and are adjacent to Capital Gold Corporation's 1.5 million oz. gold-resource El Chanate gold mine.

Ralph Fitch, HDG President and CEO, noted that as previously stated in an earlier press release, "I believe this is an excellent opportunity for the Company and for our shareholders. HVG is being led by several former members of the Castle Gold management team, including Rick Adams as its CEO. Castle Gold successfully developed and operated two open-pit, heap-leach gold mines in Mexico and Guatemala, and was acquired by Argonaut Gold Corp. for gross proceeds of approximately Cdn$110 million during the first quarter of 2010. HVG's immediate focus will be to drill extensions of the mineralization already defined by HDG's earlier drill program. At the same time this allows our management team to focus on advancing the two very promising new gold projects in our portfolio, Gold Springs in the US and San Antonio in Mexico."


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 and the San Antonio project in Sonora, Mexico. The Company recently completed a financing for gross proceeds of Cdn$3.0 million and is in the process of initiating drilling programs in the next several weeks at San Antonio and at Gold Springs in early spring.

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 "will", "would", "plans", "intends", "expects", "initiating", "promising" and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement of the Canasta Dorada, Gold Springs and San Antonio properties and regarding the possibility of HVG raising additional capital. 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, 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 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. 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.

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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