High Desert Gold Corporation
TSX VENTURE : HDG
PINK SHEETS : HDGCF

High Desert Gold Corporation

August 16, 2011 08:30 ET

High Desert Gold Reports Strong Results From Initial Drilling at Gold Springs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2011) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(PINK SHEETS:HDGCF) is pleased to announce results from the recently completed reverse-circulation ("RC") drill program on the Gold Springs project at which the Company, together with its 40% partner Pilot Gold Inc., has a 27 sq. km land position in Lincoln County, Nevada and Iron County, Utah. The Company completed 17 RC holes on three of the 18 exploration targets that have been identified on the property by company geologists. All holes intersected gold and silver mineralization and demonstrated continuity of the mineralization laterally and with depth.

Intercepts from the three partially drilled targets include the following:

Target Hole # Thickness (Metres) Gold Equivalent*
(g/t)
These results are within larger mineralized intercepts:
Thor Thor-11-02 3.1 5.69 15 metres @ 2.23 g/t AuEq
Gray Eagle GE-11-08 12.19 1.47 41 metres @ 0.62 g/t AuEq
Homestead HS-11-03 9.14 1.68 46 metres @ 0.49 g/t AuEq
*Gold Equivalent ("AuEq") was developed using a gold to silver price ratio of 40:1 and 100% metallurgical recovery is assumed

All targets drilled exhibited plus-one gram per tonne mineralization at surface and all holes located mineralization at depth. Of the 18 large targets, all of which include samples with plus-one gram per tonne gold mineralization at surface, seven have now been partially drilled including the Jumbo Zone (see HDG PR10-14, August 19, 2010). Drilling of the other targets will be planned once drilling permits have been obtained.

Ralph Fitch, President of the Company stated, "The one-to-one correlation obtained to date, with gold mineralization at depth relating to gold from surface samples, bodes well for the development of the project where we have outlined 18 target areas encompassing approximately 4 square km, all with strong surface sampling results. The RC program on these three new targets followed last year's successful drilling on the Jumbo Zone where intervals up to 169 metres of 0.6 g/t AuEq, including 48 metres of greater than one g/t gold-equivalent, were intersected."

Thor

At the Thor System, mineralization intersected to date is in high grade veins, including 2.3metres at 9 g/t AuEq and 3m @ 5.7 g/t AuEq. Three holes have been drilled to date; Thor-11-01 through Thor-11-03. (Thor-11-03 did not reach the main target). These holes, together with outcrop, indicate an open extent on this vein system of 200 metres and an open depth extent of approximately 100 metres. Many of the historically mined vein systems in the district extend approximately one kilometre in strike length.

Hole # Target From
(Metres)
To
(Meters)
Thickness
(Metres)
Au
g/t
Ag
g/t
Gold
Equivalent
Thor-11-01* 108.20 110.49 2.29 7.7 52.5 9.01
Thor-11-02 Thor 35.05 50.29 15.24 1.32 36.73 2.24
including 36.58 39.62 3.04 3.47 88.65 5.69
including 42.68 45.72 3.04 2.29 42.0 3.34
Thor-11-03 Thor 65.53 70.10 4.57 1.23 32.17 2.04
*Previously reported (see HDG PR11-11, July 12, 2011)

Gray Eagle

At Gray Eagle, mineralization occurs in vein swarms and stockworks leading to wider intervals of gold mineralization such as 41.15 m @ 0.63 g/t AuEq in GE-11-08 which also includes a high grade vein interval of 4.6 m @ 3.2 g/t AuEq. Ten holes were completed on this target in this RC program. These holes explored approximately 200 metres of strike of the system to a maximum depth of 150 metres. On surface the system can be followed for 1.5 km before going under cover.

Hole # Target From
(Metres)
To
(Metres)
Thickness
(Metres)
Au
g/t
Ag
g/t
Gold
Equivalent
GE-11-01 Gray Eagle 6.1 30.48 24.38 0.35 6.34 0.51
GE-11-02 Gray Eagle 6.1 44.2 38.1 0.44 6.87 0.61
including 6.1 15.24 9.14 0.75 8.17 0.96
GE-11-03 Gray Eagle 7.62 53.34 45.72 0.37 4.22 0.48
including 7.62 21.34 13.72 0.9 8.0 1.10
GE-11-04 Gray Eagle 9.14 19.81 10.67 1.23 15.36 1.61
GE-11-05 Gray Eagle 18.29 33.53 15.24 0.61 8.3 0.82
GE-11-06 Gray Eagle 19.81 50.29 30.48 0.32 7.9 0.52
GE-11-07 Gray Eagle 16.76 59.44 42.68 0.32 5.08 0.44
including 16.76 21.33 4.57 0.93 16.0 1.33
GE-11-08 Gray Eagle 7.62 48.77 41.15 0.50 5.23 0.63
including 36.58 48.77 12.19 1.2 10.9 1.47
including 44.1 48.77 4.67 2.71 19.83 3.20

Homestead

The mineralization at Homestead is similar to Gray Eagle and includes wide intervals of gold mineralization such as 46 metres @ 0.49 g/t AuEq including a high grade vein interval of 3 metres of 3.8 g/t AuEq. Five holes were drilled on this target, of which two collapsed and did not reach the target zone. Drill holes tested approximately 100 metres of strike to a depth of 100 metres.

Hole # Target From
(Metres)
To
(Metres)
Thickness
(Metres)
Au
g/t
Ag
g/t
Gold
Equivalent
HS-11-01 Homestead 9.14 24.38 15.24 0.36 2.55 0.43
HS-11-03 Homestead 6.10 51.82 45.72 0.425 2.6 0.49
including 42.67 51.82 9.14 1.52 6.25 1.68
including 47.25 50.29 3.05 3.48 11.0 3.75
HS-11-05 Homestead 45.72 59.44 13.73 0.66 4.2 0.76
including 45.72 51.82 6.1 0.96 5.3 1.09

Jumbo

Jumbo also includes both wide intervals of gold mineralization and higher grade intervals. A total of 28 holes have now been completed on this zone and were previously reported. HDG's last drill program here in 2010 included:

J-10-4: 169 metres of 0.6 g/t AuEq including 48 metres of greater than one g/t AuEq
J-10-3: 98 metres of 0.63 g/t AuEq including 49 metres of greater than one g/t AuEq

Mineralization here has now been followed over 700 metres along strike and to a depth of 200 metres and is still open both along strike and to depth.

The approximate true thickness of all of the drill holes quoted in this release is 70% of the intercept length.

The Gold Mineralization

Gold mineralization occurs within a Low Sulphidation epithermal gold and silver system within North, North-East and North-West trending veins flanking a caldera complex.

Strong gold mineralization within the drill holes is associated with the following:

  • Veins consisting of quarts-adularia+/-calcite+/-fluorite
  • Strong silicification of Andesite
  • Stockwork veins within Andesite
  • Breccia zones with Andesite fragments cemented by silica, and
  • Sericite+clay altered and hematite/jarosite stained Andesite

The highest grades of gold noted in this drill program are associated with veins consisting of quartz+calcite and quartz+adularia.

Holes completed thus far have only tested shallow portions of the various vein systems. Deeper holes may be required to intersect any bonanza type mineralization sometimes found in Low Sulphidation gold systems.

HDG is very encouraged by the results from this drill program and has high expectations for future drilling for extensions of known mineralization and on the 11 new targets that have yet to be drill tested. Further potential also exists once follow up has been completed on the successful ZTEM geophysical survey (see HDG PR11-11, July 12, 2011).

These results demonstrate that Gold Springs is developing into an important new gold district with every hole drilled to date by HDG and its predecessors having encountered gold.

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 AA finish. Gold was analyzed by the Au-AA23 method, with values >1 g/t re-assayed using Au-GRA21. All other elements were analyzed by the ME-MS41 method.

There has been insufficient exploration to define a mineral resource at Gold Springs and it is uncertain if further exploration will result in the targets at the project being delineated as a mineral resource.

ABOUT HIGH DESERT GOLD

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. On July 12, 2011 (see HD PR11-11, July 12, 2011) the Company announced that it had completed its 60% earn-in option at Gold Springs and that Pilot Gold Inc. (TSX:PLG) had elected to participated at a 40% interest in Gold Springs LLC, a newly established company. On closing of the earn-in, and signing of an operating agreement, each company's respective interests in Gold Springs will be conveyed to Gold Springs LLC. HDG will become majority owner and manager of the Gold Springs project.

Cautionary Statement

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 "indicate", "targets", "developing", demonstrate", "may", "might" and similar expressions. These statements include, but are not limited to, statements regarding the mineralization at and continued advancement of the Gold Springs project. In addition, information concerning the interpretation of drilling and survey results and of geology 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. 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 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 filed and publicly available on SEDAR at www.sedar.com. The material assumptions that were applied in making the forward looking statements in this press release include: execution of the Company's existing plans or exploration programs for the Gold Springs project, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs; and the accuracy of current interpretation of drill and other exploration results. 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. 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.

Contact Information

  • High Desert Gold Corporation
    Richard Doran
    Executive Vice President
    (303) 584-0608
    (303) 758-2063 (FAX)
    rdoran@hdggold.com