High Desert Gold Continues to Discover Extensions to Grey Eagle and Jumbo Gold Mineralization at Gold Springs
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/15/13 -- High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE: HDG)(OTCQX: HDGCF) has now received final results from the last 11 holes of the 53 drill hole program completed in 2012. Results expand the potential strike length of the gold mineralization previously reported at Grey Eagle in Nevada where several intercepts of plus 6 g/t gold have been located and previously reported (see HDG PR12-14, Aug. 16, 2012). RC hole GE-12-10 is particularly important in that it suggests that the known gold mineralization extends under cover to the SW of previous holes for approximately 100 metres. Drilling has now outlined the Grey Eagle zone for a total of approximately 500 metres of strike. Also, at the Jumbo target in Utah, drilling to the west of the resource block indicates that the resource may extend in that direction.
Ralph Fitch, President and CEO, stated "An important conclusion can be drawn from the 2012 drill results. Drilling at Grey Eagle has located a significant new zone of mineralization which is likely to develop into our second resource area. So, the first of our 18 areas with outcropping gold mineralization we drilled, "Jumbo", developed into a resource and now Grey Eagle, the second area in which we have drilled sufficient holes, is also likely to develop into a resource area. As we have said before this leaves us with 16 more outcropping gold targets to drill at Gold Springs."
The Grey Eagle RC Hole GE-12-10 was drilled to the southwest of known mineralization under shallow cover. The purpose of this hole was to determine if gold mineralization exists under the covered area within the high resistivity geophysical target located to the SW of RC holes GE-12-02 and GE-12-15 which included the high grade results. Importantly, results from GE-12-10 indicate that a good thickness of mineralization exists under the covered area within the high resistivity geophysical target.
The 2013 drill program, due to start in April, will initially follow the high grade Grey Eagle mineralization seen in the previously reported holes, GE- 12-02 and GE-12-015 (21.4m@6.2 g/t AuEq(i) and 7.6m@6.7g/t AuEq(i)) (see HDG PR12-14, Aug. 16, 2012 and HDG PR12-22, Dec. 22, 2012, respectively) to the southwest into the area where the new hole GE-12-10 located gold mineralization. The Company will then further extend drilling to the southwest within the strong high resistivity geophysical target which continues for an additional 500 metres to the southwest. The high resistivity target associated with the gold mineralization measures approximately 1,000 metres E-W and 800 metres N-S and is the center of the radiating veins seen at both the Homestead (hole HS-11-03 intersected 9.1m of 1.68 g/t AuEq(i), including 1.5 metres of 4.7 g/t AuEq(i)) and the Grey Eagle.
The Grey Eagle hole GE-12-10 included the following intervals:
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m m m g/t g/t g/t
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Drill Hole from to Thickness Av Au Av Ag Av AuEq(i)
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GE-12-010 97.5 204.2 106.7 0.27 2.8 0.32
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including 115.8 155.4 39.6 0.43 3.5 0.49
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including 96.0 99.0 3.0 1.00 6.9 1.10
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including 125.0 129.5 4.5 0.92 4.6 1.00
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including 150.9 155.4 4.5 0.91 6.17 1.02
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(The true width of these intercepts is not known.)
Six other test holes were drilled to the NNE of the central high-grade area at Grey Eagle. These holes typically intersected broad zones of modest grade mineralization which include narrower zones of greater than 1g/t, such as GE-12-016 which included 67 metres of 0.32 g/t AuEq(i) including 10.7 m of 1.06 g/t AuEq(i). Further drilling will be carried out in these areas to better understand the geology.
At the Jumbo target on the Utah side of the property, four additional holes have indicated the potential to expand the resource area to the west of the present resource block. J-12-006 intersected 22.9 m of 0.81 g/t AuEq(i) including a 3 metre wide vein averaging 3.49 g/t AuEq(i) at a down-hole depth of 61 metres. This vein can be seen in outcrop in an area of numerous small historic pits.
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m m m g/t g/t g/t
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Drill Hole from to Thickness Av Au Av Ag Av AuEq(i)
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J-12-006 45.7 68.6 22.9 0.58 13.2 0.81
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including 57.9 64.0 6.1 1.51 35.6 2.14
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including 61.0 64.0 3.0 2.46 58.8 3.49
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(The true width of these intercepts is not known; however, it is
estimated to be between 70% and 100% of the widths listed).
High grade drill hole intercepts and sample results within and around historic adits may have more importance to the project than previously recognized and could add to the economics of any bulk tonnage heap leach scenario. For example, the Company has opened two historic workings in the Grey Eagle area. Preliminary sampling within these tunnels, which was designed to help identify the high-grade structures, has yielded gold values in selected vein samples of up to 29.3 g/t gold and 72.55 g/t silver (76 samples within the tunnels ranged in value from 0.019 g/t to 29.3 g/t gold and 0.68 g/t to 72.55 g/t silver), located within a few tens' of metres from the historic adit portal. Pre 43-101 sampling in the same tunnel includes 3.05m @ 12g/t gold. Other examples of important higher-grade material would include veins at Silica Hill where HDG drilling intersected 1.5m@7.7g/t AuEq(i) in Thor-11-02 and also from historic workings which include assays such as 0.9 metres@10g/t AuEq(i) located a few tens' of metres from the portal. This style of high grade near surface mineralization may add to the value of the bulk tonnage mineralization as represented by say GE-12-15 at Grey Eagle which averaged 1.3g/t AuEq over 59 metres and at the Jumbo where J-10-04 intersected 0.6g/t AuEq(i) over 169 metres.
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.
(i)In this press release, all references to 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.
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 an 82% 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 30.5% 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", "expand", "suggests, "will", "could", "may", "potential", "believe" and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement and potential for resource expansion at the Gold Springs property. In addition, information concerning the interpretation of drilling and sampling 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 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 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 February 11, 2013.
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.
Contacts:
High Desert Gold Corporation
Richard Doran
Executive Vice President
(303) 584-0608
(303) 758-2063 (FAX)
