High Desert Gold Corporation
TSX VENTURE : HDG
OTCQX : HDGCF

High Desert Gold Corporation

December 22, 2011 08:50 ET

High Desert Gold Reports Initial Independent NI 43-101 Qualified Resource Estimate for the Jumbo Zone at Gold Springs

- Initial Inferred Resource of 233,000 Gold-Equivalent Ounces(i) Confirmed

- Mineralization Open to Expansion Laterally and to Depth

- Jumbo Zone Only the First of 18 Geologically Similar Mineralized Targets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2011) - High Desert Gold Corporation (TSX VENTURE:HDG)(OTCQX:HDGCF) ("HDG" or the" Company") is pleased to announce the completion of an initial resource estimate for the Jumbo Zone at the Gold Springs gold-silver project that straddles the Nevada-Utah border. The Gold Springs project is a joint venture between HDG (60%) and Pilot Gold Inc. (40%) with HDG as the managing partner. This initial resource was estimated for only the Jumbo Zone area which is open to expansion. Using a 0.3 qold equivalent (AuEq*) g/t cutoff, an inferred resource of 173,000 oz. gold at 0.57 g/t and 3.88 Moz of silver at 12.9 g/t, equivalent to 233,000 ounces of AuEq* at 0.77 g/t, has been estimated. This resource is based on one of 18 geologically similar zones which have been defined thus far on the Gold Springs project. In addition, follow-up work from the ZTEM geophysical survey has identified new areas of gold mineralization which have now been secured by HDG through the locating of additional lode claims.

Highlights:

  • Newly defined inferred resource of 233,000 oz. AuEq*. The mineralization remains open to expansion laterally in all directions and to depth as the drilling to date has averaged only 148 metres depth.
  • A recently completed ZTEM survey indicates that the area of potential gold-silver mineralization of the Jumbo zone continues for several more kilometers and remains untested along the possible extensions.

Ralph Fitch, President of High Desert Gold, stated "We are very pleased with this initial resource estimate at Gold Springs which is based on drilling in the Jumbo Zone. This resource of 233,000 oz. AuEq* is based on the drilling in just a small part of one target. The Jumbo Zone is one of 18 geologically similar targets at the Gold Springs project, all of which include outcropping gold mineralization. Drilling in 2011 on three of these targets demonstrated similar gold mineralization to that found in the Jumbo Zone area (HDG PR11-13, Aug. 16, 2011). This now gives shareholders a better grasp on the potential size and magnitude of the Gold Springs project as we prepare to continue our drill programs in 2012".

Jumbo Target Resource Estimate
Cut-off
Grade
(AuEq* g/t)
Au (g/t) Ag (g/t) AuEq* (g/t)
Tonnes Grade Grams Ozs Grade Grams Ozs Grade GRAMS OZS
0.1 g/t 12,086,676 0.48 5,793,108 186,274 10.9 132,245,891 4,252,279 0.65 7,843,781 252,212
0.2 g/t 11,024,737 0.51 5,670,896 182,344 11.7 129,182,424 4,153,776 0.70 7,675,037 246,786
0.3 g/t 9,392,155 0.57 5,383,952 173,117 12.9 120,691,161 3,880,745 0.77 7,257,001 233,344
0.4 g/t 7,894,719 0.64 5,021,064 161,449 14.0 110,381,410 3,549,241 0.85 6,734,729 216,551
0.5 g/t 6,679,672 0.70 4,647,248 149,429 14.9 99,459,039 3,198,040 0.93 6,191,525 199,084
0.6 g/t 5,381,736 0.77 4,149,128 133,412 15.9 85,464,998 2,748,071 1.02 5,476,145 176,082
0.7 g/t 4,269,002 0.86 3,651,981 117,427 16.6 70,838,383 2,277,761 1.11 4,751,790 152,791
0.8 g/t 2,992,092 0.99 2,975,010 95,659 17.3 51,833,753 1,666,680 1.26 3,780,095 121,546
0.9 g/t 1,697,424 1.32 2,237,880 71,958 17.2 29,259,494 940,820 1.59 2,692,702 86,582
1.0 g/t 1,318,697 1.50 1,978,769 63,626 17.4 22,987,460 739,147 1.77 2,336,253 75,121
* Gold equivalent (AuEq) calculations reflect gross metal content using approximate 3 year average metals prices of $1020/oz gold (Au), and $15.80/oz silver (Ag), and have not been adjusted for metallurgical recoveries.

The Jumbo Zone mineral resource estimate is based on 28 RC (reverse circulation) drill holes totaling 4,076 metres and 2,633 assay values collected through December 2011. Assay values were verified against drill logs and assay certificates. Drill hole collar locations were checked and verified. The mineral resource was estimated using 1.52-metre composites of the assay values, with zero grades inserted into intervals that were not sampled.

A geological model was constructed of the Au-Ag mineralized zone. This model was used to constrain the composite values chosen for interpolation and the ore blocks reported in the mineral resource. A total of 825 1.52-metre composites were used to interpolate the resource. A block model was constructed using 5-metre by 10-metre by 10-metre blocks in the x, y and z directions respectively. Grades for gold and silver were interpolated into the blocks by the inverse distance squared method using a minimum of two and maximum of 12 composites to generate block grades.

The resource estimate is categorized as "inferred" as defined by the Canadian Institute of Mining guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into minable reserves once economic considerations are applied.

The inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Dr. A. Armitage, PGeol, of GeoVector Management Inc. GeoVector is an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment and project management. Dr. Armitage acted as the qualified person, as defined in NI 43-101, and is independent of the Company and has reviewed the technical information in this release. A NI 43-101 compliant technical report on the resource will be finalized and filed on SEDAR within 45 days of the date of this news release.

ABOUT HIGH DESERT GOLD CORPORATION

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 also has a 34.8% 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 at San Antonio and it is uncertain if further exploration will result in the targets at these two projects 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 "target", "open", "identify", "indicates" "continues", "potential", "possible", "prepare", "demonstrate", "will" and similar expressions. Information concerning mineral resource estimates and the interpretation of drill 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. 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, possible variations in mineral resources, grade, metal prices; 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. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this news 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)