VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct 4, 2012) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(OTCQX:HDGCF) has now completed a total of 34 holes in the first phase drill program at Gold Springs and will start the second phase which is expected to include 10 to 15 holes, on October 5, 2012. This phase of the exploration program will also include trenching in the area of the high grade intercept at Grey Eagle, where GE 12-002 intersected 62.5 metres of 2.39 g/t goldEq* (62.5m @ 2.1 g/t gold and 16.4 g/t silver). This program is designed to expand the previously reported Jumbo resource and potentially develop an initial resource on the Grey Eagle target.
The Company also announces the results from the last four holes of the first phase drill program at Gold Springs, two from the Jumbo Zone and two from the Shark''s Belly target, both located in Utah.
Highlights from the latest drill results include the following:
|(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.|
The two drill holes in the Jumbo area were located to check the continuity of the higher grade mineralization in the hanging wall part of the mineralized system. Both holes showed good continuity with the higher grade mineralization seen in nearby holes. The holes ended in mineralization since they were designed to just test the upper part of the system.
The two drill holes at the Shark''s Belly intersected low-grade, geochemically anomalous gold mineralization. More geological work will be needed in this area prior to further drilling.
The second phase drill program will start by cutting two trenches, one approximately 20 metres to the north and one approximately 70 metres to the south of GE 12-001 and GE 12-002, the area of the high-grade intercepts at Grey Eagle. If these trenches reach bedrock it is hoped that they will give both assay information and the orientation of the high grade mineralization so that the Phase 2 drill holes can be placed in the best locations to drill the extensions to the high-grade mineralized zone. An initial, approximately 6 holes, will be drilled at Grey Eagle then the drill will be moved to Jumbo. Once results have been received from the initial Grey Eagle holes, the drill will be returned to that location.
Ralph Fitch, President of the Company, stated, "This upcoming Phase 2 drill program will be important in the near term for the Company in that we will be drilling an area in which we have intersected near surface high grade mineralization in two earlier holes. It will also be important in that it will include resource expansion drilling at the Jumbo where we have already demonstrated an open ended inferred resource of 233,000 gold equivalent** ounces."
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 can be found on the Company''s website at www.hdggold.com/goldsprings.html.
The Gold Springs Phase 2 drill program is designed to drill potential extensions to the previously issued inferred resource of 9.4 million tonnes grading 0.57 g/t gold and 12.9 g/t silver for a total of 173,000 oz. of gold and 3.88 M oz. of silver. This equates to 233,000 ounces AuEq** grading 0.77 g/t (see HDG PR11-18, December 22, 2011).
|**Gold equivalent (AuEq) calculations reflect gross metal content using metal prices of $1,020.00/oz gold (Au), and $15.80/oz silver (Ag), and have not been adjusted for metallurgical recoveries. This Gold Equivalent calculation was used when reporting the initial resource at Gold Springs that was reported in December 2012.|
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 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 "will", "expected", "expand", "potentially" and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement of the Gold Springs property. 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 effect of capital market conditions and other factors on capital availability; 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. 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.
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 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.
Executive Vice President