High Desert Gold Corporation

High Desert Gold Corporation

October 07, 2010 08:31 ET

Norvista Resources Corporation Exercises the Option on High Desert Gold's Canasta Dorada Gold Project in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2010) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(PINK SHEETS:HDGCF) announced today that Norvista Resources Corporation ("Norvista"), a private Canadian corporation headquartered in Toronto, has exercised the option on the Company's Canasta Dorada gold project located in Sonora, Mexico. Under the agreement, as previously reported (see HDG PR10-13, July 2, 2010), Norvista had a six-month option to acquire a 51% interest in a wholly- owned subsidiary of HDG, to be established ("Newco") for US$1.5 million. Newco will be set up to hold all the HDG property interests in the Canasta Dorada Project. Norvista will be manager of the project under the direction of Mr. Rick Adams, most recently a founder and director of Castle Gold Corporation ("Castle Gold"). Under the agreement, Norvista will then be obligated to take Newco public within one year or risk losing operatorship.

Ralph Fitch, HDG President and CEO, stated, "I believe as I previously stated in the July 2 announcement that this is an excellent opportunity for the Company and for our shareholders. Newco will be led by several former members of the Castle Gold management team. 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 this year. Norvista's immediate focus will be to explore extensions of the mineralization already defined by HDG's initial drill program. This affords the Company the opportunity to advance Canasta Dorada without further expense to HDG or share dilution, while at the same time, allowing our management team to focus on advancing the two very promising gold projects in our portfolio, Gold Springs in the US and San Antonio in Mexico."


Norvista Resources Corporation, founded by noted Canadian mining company executive, Gerry McCarvill, is a private merchant bank dedicated to making investments in the natural resource sector. Mr. McCarvill has been instrumental in the founding of a number of international mining companies with a value into several billions of dollars. Norvista is building a portfolio of mining companies designed to provide investors with a broad exposure to the sector. www.norvistaresources.com.


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 Canasta Dorada gold property in Sonora, Mexico, the Gold Springs gold project situated along the border between Utah and Nevada and the San Antonio project in Sonora, Mexico.

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" and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement of the Canasta Dorada property and regarding the possibility of Newco going public. 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 and the ability to complete a public offering if at all; 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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