High Desert Gold Corporation Files an Updated NI 43-101 Technical Report on the Gold Springs Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/09/13 -- High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE: HDG)(OTCQX: HDGCF) reports that it has filed an updated NI 43-101 Technical Report on the Gold Springs project that straddles the Nevada-Utah border. The focus of the Report is the updated inferred resource estimate that was recently announced (see HDG PR13-07, March 28, 2013). The key portions of the report focused on the updated inferred resource from the Jumbo Zone in Utah and from the Grey Eagle Zone in Nevada.
The Inferred Resource(ii):
(HDG PR13-07, March 28, 2013)
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Gold Equivalent
Gold Silver AuEq(i)
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Cut-off Grade Grade Troy Grade Troy Grade Troy
(AuEq(i) g/t) Tonnes (g/t) Ounces (g/t) Ounces (g/t) Ounces
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0.3 g/t 19,373,085 0.48 301,756 10.4 6,476,149 0.67 415,254
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0.6 g/t 7,401,016 0.81 193,145 14.4 3,422,896 1.06 253,119
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(ii)Please see specifics at the end of this press release
Ralph Fitch, President and CEO, stated "The mineralization in both of these zones is open along strike and to depth and the intent of the drilling this season is to expand both of these resource areas. These two targets represent only two of the eighteen outcropping gold targets identified so far. In addition to these eighteen targets, there are many buried geophysical targets that represent extensions to the eighteen outcropping targets in the 74 sq. km. Gold Springs District."
Highlights:
-- The newly defined inferred resource of 415,254 oz. AuEq(i) averaging
0.67 g/t AuEq(i) is based on an AuEq(i) cutoff of 0.3 g/t. If the cutoff
is increased to 0.6 g/t AuEq(i) then the resource grade increases to
1.06 g/t AuEq(i) for a total of 253,119 oz. AuEq(i). The gold-silver
mineralization at both the Jumbo and Grey Eagle Zones remains open to
expansion laterally and to depth as the drilling to date has typically
only penetrated the top 150 metres vertically below the surface.
-- The mineralization typically projects to the surface. There is little or
no cover in the majority of the resource area.
-- Metallurgy has shown average gold recoveries of 92% by cyanidation of
200 mesh material. (PR13-01, January 28, 2013)
-- Metallurgical testing at Jumbo shows that up to 57.2 % of the gold is
recoverable by gravity means. (PR10-17, October 18, 2010)
-- The ZTEM geophysical survey, completed in 2011, indicates that the gold-
silver bearing geological/geophysical setting that has been drilled at
the Jumbo may continue for approximately 10 kilometres along strike,
much of which remains untested. (PR12-14, August 16, 2012)
(i) Gold equivalent (AuEq) calculations reflect gross metal content using the following metal prices of $1600/oz gold (Au), and $28/oz silver (Ag), and have not been adjusted for metallurgical recoveries.
(ii) The qualified person who prepared the technical information regarding the resource estimate is Dr. A. Armitage, PGeol of GeoVector Management Inc., who is independent of the Company. Mineral resources that are not mineral reserves do not have to demonstrate economic viability, 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 10 composites to generate block grades. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political or other issues which would materially affect the resource estimate. For more details regarding this resource estimation, please see the Technical Report filed on SEDAR on May 9, 2013 and on the Gold Springs page at www.hdggold.com.
Copies of the NI 43-101 Technical Report can be found on SEDAR at www.sedar.com and on the Company's webpage, www.hdggold.com.
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 where it is the managing partner with an 82% controlling interest situated along the border between Utah and Nevada and the San Antonio project in Sonora, Mexico. 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 targets at Gold Springs being delineated as a mineral resource.
Forward-looking Statements
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 "intent", "target", "expansion", "potential", "possible" and similar expressions. Information concerning mineral resource estimates and the interpretation of drill, metallurgical testing and other exploration 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 mining 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. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the availability of equipment and qualified personnel to advance the Gold Springs project; 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 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. Unless otherwise indicated, forward-looking statements in this news release describe the Company's expectations as of May 9, 2013.
Inferred Resources
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 a 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.
Contacts:
High Desert Gold Corporation
Richard Doran
Executive Vice President
(303) 584-0606
(303) 758-2063 (FAX)
rdoran@hdggold.com
www.hdggold.com
