High Desert Gold Reports First 2013 Drilling Results from the Gold Springs Project
Including 26 Metres Averaging 1.8 g/t Gold Equivalent (1.0 g/t Gold and 45 g/t Silver) from a New Portion of the Jumbo Trend
VANCOOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/05/13 -- High Desert Gold Corporation ( TSX VENTURE: HDG)(OTCQX: HDGCF) ("HDG" or the "Company") has now completed 22 reverse circulation drill holes in the 2013 Gold Springs drill program, which began on April 17, 2013. The first 12 holes were drilled in the Jumbo Trend on the Utah side of the project. Nine of these holes are reported here.
Two important developments were achieved during this first drill period. Firstly, hole J-13-007 indicated that mineralization continues beyond the eastern margin of the Jumbo resource block of 341,683 gold equivalent ounces ("AuEq") reported in PR13-07 (March 28, 2013) and secondly, that a new zone of strong mineralization has been found south of the Jumbo resource area in the Shark's Mouth target, which is located within the larger "Jumbo Trend" that now stretches for approximately 10 km in a north-south direction. This mineralization included an interval within J-13-005 averaging 1.8 g/t AuEq(i) over 26 metres. The hole was lost while still in mineralization due to intersecting a void. J-13-005 (inclination -45 degrees ) was drilled from the same drill pad as J-13-006 (inclination -65 degrees ) which included similar mineralization within a wider 57 metre intersection averaging 0.9 g/t AuEq(i). The Shark's Mouth area is of considerable importance because it is located near the intersection of the north-south Jumbo Trend with the east-west structures and veins of the Shark's Mouth Zone. Further drilling will be carried out here once the initial 2013 phase of drilling is completed at Grey Eagle.
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from to length gold silver AuEq(i)
Drill Hole Azimuth Dip (m) (m) (m) (g/t) (g/t) (g/t)
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J-13-005 lost in an open void at 57.9 metres
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J-13-005 335 -45 32 57.9 25.9 0.97 45.2 1.76
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J-13-005 and 006 were drilled from the same pad
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J-13-006 335 -65 56.4 67.1 10.7 1.1 36.4 1.74
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J-13-006 32 67.1 35.1 0.65 30 1.18
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J-13-006 32 89.9 57.9 0.5 22.6 0.89
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Ralph Fitch, President and CEO of the Company, stated, "This new developing Shark's Mouth Zone shows that the Jumbo Trend can host similar high grades to those found previously in the Grey Eagle target. This high grade, near surface mineralization will significantly enhance the potential economic viability of Jumbo which is expected to continue to expand as more drilling is completed. We have now completed a total of 22 holes this year with 12 from Jumbo and 10 from Grey Eagle. Current plans call for the completion of a 100 drill hole program for 2013 and there will be a steady news flow that will track our progress this year."
Highlights from the latest drill results at Jumbo include the following:
Jumbo Trend
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from to length gold silver AuEq(i)
Drill Hole Azimuth Dip (m) (m) (m) (g/t) (g/t) (g/t)
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J-13-001 270 -45 50.3 56.4 6.1 0.56 10.2 0.74
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J-13-001 36.6 56.4 19.8 0.26 4.2 0.33
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J-13-001 18.3 56.4 38.1 0.19 3.9 0.26
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J-13-001 18.3 111.3 93 0.13 3.6 0.2
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J-13-001 and 002 were drilled from the same pad
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J-13-002 270 -65 21.3 32 10.7 0.22 8.9 0.38
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J-13-002 57.9 62.5 4.6 0.31 13.3 0.55
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J-13-002 21.3 93 71.6 0.13 4.4 0.2
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J-13-003 270 -45 29 35.1 6.1 0.38 15.1 0.65
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J-13-003 0 35.1 35.1 0.2 5.6 0.3
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J-13-003 0 129.5 129.5 0.14 3.3 0.2
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J-13-003 and 004 were drilled from the same pad
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J-13-004 270 -65 36.6 41.1 4.5 0.58 21 0.95
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J-13-004 36.6 61 24.4 0.31 8 0.45
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J-13-004 4.6 61 56.4 0.27 6 0.38
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J-13-004 0 68.6 68.6 0.25 5.5 0.35
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J-13-005 lost in an open void at 57.9 metres
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J-13-005 335 -45 32 57.9 25.9 0.97 45.2 1.76
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J-13-005 and 006 were drilled from the same pad
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J-13-006 335 -65 56.4 67.1 10.7 1.1 36.4 1.74
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J-13-006 32 67.1 35.1 0.65 30 1.18
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J-13-006 32 89.9 57.9 0.5 22.6 0.89
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J-13-007 94 -45 47.2 67.1 19.9 0.48 35.9 1.11
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J-13-007 10.7 67.1 56.4 0.38 18.5 0.7
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J-13-007 10.7 83.8 73.1 0.35 17.3 0.65
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J-13-007 0 140.2 140.2 0.28 13.4 0.52
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J-13-007 0 158.5 158.5 0.28 12.4 0.49
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J-13-007 0 172.2 172.2 0.26 11.6 0.47
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J-13-007 114.3 172.2 57.9 0.27 9.81 0.44
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J-13-008 90 -45 12.2 19.8 7.6 0.45 22.1 0.84
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J-13-008 42.7 59.4 16.7 0.69 19.7 1.03
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J-13-008 89.9 111.3 21.4 0.59 19.1 0.92
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J-13-008 0 117.3 117.3 0.29 9.3 0.45
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J-13-009 hole collapsed and did not reach main target
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J-13-009 90 -45 19.8 33.5 13.7 0.13 4.5 0.21
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(The true width of these intercepts is not known.)
(i)(AuEq) calculations reflect gross metal content using a metal price ratio
of 57.14 Au/Ag and have not been adjusted for metallurgical recoveries.
The Company has also completed 10 drill holes in the Grey Eagle Zone on the Nevada side of the Project. Samples from all these holes are currently in the lab for analysis.
Gold Springs is an 82/18 Joint Venture with Pilot Gold Inc. in which HDG holds an 82% interest and is the operator of the Joint Venture.
Detailed maps of the target areas in both Utah and Nevada can be found on the Company's website at http://www.hdggold.com/goldsprings.html.
The total inferred resource recently reported at Gold Springs is 415,254 AuEq(i). This is a combination of resources estimated at both the Jumbo and Grey Eagle targets as shown in the following tables:
The Gold Springs Inferred Resource Estimate as of March 28, 2013(ii):
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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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Jumbo Target Inferred Resource Estimate
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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 16,473,441 0.45 239,275 11.0 5,843,533 0.65 341,683
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0.6 g/t 6,334,657 0.74 151,118 15.0 3,058,804 1.01 204,713
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Grey Eagle Target Inferred Resource Estimate
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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 2,899,643 0.67 62,482 6.8 632,617 0.79 73,570
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0.6 g/t 1,066,359 1.23 42,027 10.6 364,092 1.41 48,406
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Source: (HDG PR13-07, March 28, 2013)
(i)(AuEq) calculations reflect gross metal content using a metal price ratio
of 57.14 Au/Ag and have not been adjusted for metallurgical recoveries.
(ii) The qualified person who prepared the technical information regarding the resource estimate was 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.
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 ICP finish. All other elements were analyzed by the 50-4A-UT method.
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 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 "indicated", "will", "can", "target", "expected", "potential", "plans" and similar expressions. Information concerning mineral resource estimates and the interpretation of drill 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 June 5, 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) 584-0608
(303) 758-2063 (FAX)
