High Desert Gold Continues to Achieve Strong Drilling Results from the Gold Springs Project, Including 7.6 Metres @ 6.7 gpt Gold Equivalent Within 59.4 Metres @ 1.3 gpt Gold Eq
17.12.2012 | Marketwired
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Dec. 17, 2012) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG) (OTCQX:HDGCF) has now received final results for holes GE-12-006 through GE-12-009, GE-12-015 and portions of GE-12-012 and GE-12-013 from the Grey Eagle target and is pleased to report positive gold intercepts in the majority of the holes. Highlighted is hole GE-12-015 which returned 59.4 metres at 1.3 gpt gold Eq, including 7.6 metres at 6.7 gpt gold Eq as shown in the following table. The Company has completed a total of 21 drill holes within the Grey Eagle target on the Nevada side of the Gold Springs Project. Eighteen of these holes have been completed in the second phase drill program. Much of the drilling and trenching in the second phase program has been designed to determine the orientation and structural controls of the high-grade mineralization intersected in hole GE-12-001 and GE-12-002 (PR 12-14, August 16, 2012).From To Intercept Gold Silver AuEq*
Drill Hole Metres Metres Metres gpt gpt gpt
GE-12-015 67.1 71.6 4.6 9.43 34.4 10.03
67.1 74.7 7.6 6.22 27.30 6.70
32.0 74.7 42.7 1.47 9.63 1.64
21.3 80.8 59.4 1.15 8.11 1.29
*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 width of these intercepts is not known but is believed to be between 70-100% of the widths listed.
This intersection confirms the continuation of the high grade mineralization previously reported in hole GE-12-002 and is located approximately 40 metres further to the SSW at a vertical depth of approximately 70 metres below surface. The hole is significant in that it indicates the strike of this style of mineralization and also because it is in a covered area not explored during the historic mining in the 1900's. It is also significant that these grades are continuing into the area of the resistivity high "bulls-eye" that occurs another 500 metres to the SSW on the same trend at the intersection of the interpreted major ring-fracture (typically a circular fault feature developed around a collapsed caldera or volcano) that the Company is drilling and another NW-SE regional structure.
Ralph Fitch, President and CEO, stated, "We continue to drill significant near-surface gold mineralization at Grey Eagle which bodes well for an expansion of the total resource at Gold Springs. Clearly developing a new area of gold mineralization in addition to the original Jumbo area starts to demonstrate the significant potential of the large Gold Springs District."
Several reverse circulation ("RC") holes reported here were drilled to intersect the N-S vein swarms in the SW portion of the Grey Eagle target.
Holes GE-12-005, GE-12-006 and GE-12-008 comprise a fan of holes drilled in an ENE direction with the drill holes inclined at -45, -65 and -75 degrees. The deeper intercept in hole GE-12-008 had the highest gold grade. Mineralization in each hole starts below approximately 16 metres of post mineral cover. These holes were designed to intersect N-S veins rather than the more dominant NNE-SSW veins seen in Holes GE-12-002 and GE-12-015 which included the high grade intercepts. Hole GE-12-007 is located approximately 40 metres to the north of GE-12-005, GE-12-006 and GE-12-008 and has a similar orientation with a -45 degree inclination.
From To Intercept Gold Silver AuEq*
Drill Hole Metres Metres Metres gpt gpt gpt
GE-12-008 38.1 45.7 7.6 1.78 12.00 1.99
within
GE-12-008 29.0 57.9 28.9 0.91 6.45 1.02
within
GE-12-008 16.8 73.2 56.4 0.54 4.24 0.62
GE-12-006 24.4 30.5 6.1 0.90 5.60 1.00
within
GE-12-006 24.4 42.7 18.3 0.55 4.98 0.63
within
GE-12-006 22.9 71.6 48.7 0.34 4.84 0.42
GE-12-005 19.8 35.1 15.3 0.53 4.77 0.61
within
GE-12-005 19.8 65.5 45.7 0.28 4.69 0.36
GE-12-007 19.8 25.9 6.1 1.74 14.93 2.00
within
GE-12-007 12.2 25.9 13.7 0.94 8.29 1.08
within
GE-12-007 12.2 85.3 73.1 0.27 3.49 0.33
*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 width of these intercepts is not known but is believed to be between 70-100% of the widths listed.
The following holes drilled a portion of the more dominant NNE-SSW mineralization under the area that includes the mineralization in the previously reported trench which averaged 1.5 g/t AuEq over 56 metres and mineralization in GE-12-002. The holes reported here include two holes in a fan orientated to the SE to intersect mineralization exposed in an old mine adit located 30 metres to the north of the trench. Hole GE-12-012 was inclined to -45 and GE-12-013 was inclined to -70. The mineralization was cut off at the bottom of the hole by a NNE-SSW fault that dips at approximately 60 degrees to the NW.
From To Intercept Gold Silver AuEq*
Drill Hole Metres Metres Metres gpt gpt gpt
GE-12-012 7.6 19.8 12.2 0.70 17.38 1.00
within
GE-12-012 0.0 29.0 29.0 0.46 10.63 0.65
GE-12-013 7.6 24.4 16.8 0.69 19.11 1.03
within
GE-12-013 0.0 27.4 27.4 0.53 14.03 0.77
(The true width of these intercepts is not known; however, it is estimated to be between 70% and 100% of the widths listed).
*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.
Hole GE-12-009, which is located approximately 140 metres south of GE 12-005 and is orientated to the east, did not intersect the main target and only included 6 metres of 0.44 g/t AuEq, due to a thicker than expected sequence of post-mineral cover.
Drilling, including all 21 holes, has now intersected the mineralized zone over 400 metres along the now presumed NNE-SSW orientation of the predominant vein system interpreted to be within a ring fracture of the collapsed volcanic caldera. The mineralization continues to be open in both directions and to depth as well as to the NW. These extensions will be permitted for next year's drill program.
In addition to the drilling HDG has opened two historic workings which show areas of past production and have initiated bottle roll (metallurgical) tests on samples from holes GE-12-001 and GE-12-002 and Jumbo holes J-12-001 and J-12-004 to test gold and silver recovery. The Company expects that these metallurgical test results will be reported later in the year or in early 2013 with the remaining drill hole results. Following the receipt of the results the Company will prepare an updated NI 43-101 technical report, including an updated Gold Springs resource.
Current plans are to complete four additional holes within the Jumbo zone on the Utah side of the Gold Springs project before ending the second phase drill program.
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.
Detailed maps of the target areas in both Utah and Nevada and the most recent Grey Eagle maps can be found on the Company's website at http://www.hdggold.com/goldsprings.html.
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. Field collection procedures were verified and Sample Tags checked against footage drilled. Standard samples with known assays were submitted with each batch of samples submitted to the laboratory as a check on laboratory accuracy.
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. All other elements were analyzed by the ICP-AES 30 element method with 4 acid digestion. RC sample ware collected every 5 feet of hole and the approximate average weight of each RC drill sample was 6.5 kg.
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 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 "indicates", "continue", "expansion", "plans, "developing", "estimate", "expected", "presumed", "interpreted" and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement of the Gold Springs property. In addition, information concerning the interpretation of drilling results 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. 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 timing for the return of assay results, 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, which is available on SEDAR at www.sedar.com. The material assumptions that were applied in developing the forward-looking statements include: the timely receipt of assay results; the availability of equipment and qualified personnel, and the timely receipt of permits, to advance the Gold Springs project; and the execution of the Company's existing plans and further exploration and development programs for Gold Springs, 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. 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. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of December 17, 2012.
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
High Desert Gold Corporation
Richard Doran, Executive Vice President
(303) 584-0608
(303) 758-2063 (FAX)
www.hdggold.com
