High Desert Gold Completes Earn-In for 60%-Interest in the Gold Springs Project, Provides an Update on Gold Springs
July 12 2011 - 7:30AM
Marketwired
High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:
HDG)(PINK SHEETS: HDGCF) announces the completion of its earn-in
option on the Gold Springs gold project that straddles the
Nevada-Utah border ("Gold Springs"). The Option and Earn-in
Agreement dated January 10, 2010 (the "Earn-in Agreement") called
for HDG to incur $US1 million in exploration expenditures and pay
$US160,000 to Pilot Gold Inc. (TSX: PLG) ("Pilot Gold"). These
obligations have been met and a notice of completion confirming the
Company's earn-in has been provided to, and acknowledged by Pilot
Gold. Pilot Gold has elected to participate at a 40% interest in a
newly established jointly-owned company called Gold Springs LLC. On
closing of the earn-in, and signing of an operating agreement, each
company's respective interests in Gold Springs will be conveyed to
Gold Springs LLC.
Ralph Fitch, President of HDG, stated, "We are very pleased to
have completed this earn-in partnership with Pilot Gold, a company
with a very experienced exploration team that will add to our
knowledge base at the property."
Pilot Gold was established earlier this year pursuant to a plan
of arrangement between Newmont Mining Corporation ("Newmont"), and
Fronteer Gold Inc. ("Fronteer Gold"). Pilot Gold is a gold
exploration company led by members of the former Fronteer Gold team
that discovered or advanced seven deposits since 2003, including
the development-stage Long Canyon gold project in Nevada, now owned
by Newmont.
The Company has now completed 16 RC holes totaling 1,569 metres
and two diamond drill holes totaling 276 metres, together with a
property-wide ZTEM geophysical survey at Gold Springs. Early assay
results from the RC drilling should be available by late July. HDG
now has the ZTEM results and has carried out follow-up work on new
targets derived from work to date.
One diamond drill hole was centered on the Thor vein system to
acquire orientated core to assess the directions of the
gold-bearing veins. The hole intersected two veins, one
approximately 4 ft wide averaging 1.8 g/t gold with 27.5 g/t
silver, and a second averaging 7.7 g/t gold (0.25 oz/t) and 52.5
g/t silver over 7.5 ft. (this intercept occurred in a zone of poor
core recovery). This area of the project contains high-grade veins,
without the wide zones of associated mineralization found at the
Jumbo Zone (see HDG PR10-14, August 19, 2010), and would more
likely lead to an underground rather than an open-pit mine, should
a mine be developed. Historic mines in this area typically produced
at grades of 0.4-0.5 oz/ton gold and + 2 oz/t silver ore by
underground means. This very encouraging intercept extends the Thor
vein beyond the historically developed area.
A second diamond drill hole was drilled on the Jumbo Zone to
both twin one of the Company's RC holes to confirm grade and to
acquire orientated core to assess the directions of gold-bearing
veins. Results have been received for a portion of the hole giving
similar results to the nearby RC hole GS10-4. The prominent
gold-bearing veins in the two holes typically strike NE or NW or
NS.
The ZTEM airborne geophysical survey was completed in June with
final results received in July. As previously reported (see HDG
PR11-05, April 12, 2011), this survey included magneto-telluric and
magnetic measurements to outline the potential extensions to the
known outcropping, gold-bearing siliceous structures under the thin
gravel cover. The gravel cover blankets over two-thirds of the 29
sq. km. property.
The ZTEM resistivity results show an excellent correlation with
known gold mineralization and have also outlined 10 new targets
that have very similar geophysical characteristics to the known
gold areas. Some of these new targets are within the HDG/Pilot Gold
joint-venture area, and some are outside and have been staked by
HDG. Recent surface samples of veins and breccias from follow-up
work following the survey include several samples with values
greater than 1 g/t gold with the two highest being 17 g/t and 19
g/t gold. The Company will continue to follow up on the new ZTEM
resistivity targets with the expectation that new drill targets
will emerge.
Mr. Fitch added, "At Gold Springs, the ZTEM geophysical survey
has successfully outlined the resistive, siliceous structures that
typically carry gold in both outcropping and partially covered
areas. This will significantly speed up our assessment of this
large land holding and has expanded the area with potential for
gold mineralization beyond the already delineated targets."
The Company is developing a jointly funded exploration program
and budget for the second half of 2011.
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 AA
finish. Gold was analyzed by the Au-AA23 method, with values
greater than 1 gpt re-assayed using Au- GRA21 All other elements
were analyzed by the ME-MS41 method.
There has been insufficient exploration to define a mineral
resource at Gold Springs and it is uncertain if further exploration
will result in the targets at the project being delineated as a
mineral resource.
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 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
"should", "likely", "would", "expectation", "targets", "potential",
"developing" and similar expressions. These statements include, but
are not limited to, statements regarding the mineralization at and
continued advancement of the Gold Springs project. In addition,
information concerning the interpretation of drilling and survey
results and of geology 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.
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
filed and publicly available on SEDAR at www.sedar.com. The
material assumptions that were applied in making the forward
looking statements in this MD&A include: execution of the
Company's existing plans or exploration programs for the Gold
Springs project, either of 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; and the accuracy of
current interpretation of drill and other exploration results.
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. 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.
Contacts: High Desert Gold Corporation Richard Doran Executive
Vice President (303) 584-0608 (303) 758-2063 (FAX)
rdoran@hdggold.com
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