High Desert Gold Provides Update on Next Series of Drill Results, Discovery of New Gold Zones and Increased Ownership on the Gold Springs Project

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/02/12)- High Desert Gold Corporation (HDG.V)(HDGCF) ("HDG" or the "Company") announces the results from the latest 10 holes drilled on the Company's Gold Springs project. This latest series of drill results comes from targets called the Shark's Mouth, Shark's Belly, Etna and North Jumbo, all located in Utah.

To date in 2012, 30 drill holes (16 in Utah and 14 in Nevada) have been completed of the approximately 50 drill-holes planned for 2012. The total metres drilled so far in the 2012 program are 4,127 metres. The 2012 drill program is designed to expand the previously reported resource in known drilled areas and to identify new areas of gold mineralization which will be subject to potential resource expansion drilling at a later date. Drilling has now stopped for approximately two months so that the Company can receive and interpret assays before moving into the resource expansion phase of drilling.

Highlights from the ten holes include the following new mineralized areas:

 

Etna - 9 metres of 1.7 g/t gold Eq within 40 metres of 0.6 g/t gold Eq
Including
1.5 metres of 5.2 gt gold Eq
And
Shark's Belly - 3 metres of 3.3 g/t gold Eq within 9 metres of 1.7 g/t gold
Eq
And
North Jumbo - 1.5 metres of 3.8 g/t gold Eq within 6 metres of 1.5 g/t gold
Eq

All mineralization reported to date at Gold Springs is thought to extend to the surface or be covered by a very thin (less than 10 metres) veneer of rock or gravel.

Previously reported metallurgical testing of 2010 RC drill chips (PR10-17, October 18, 2010) indicated that up to half the gold can be recovered by gravity means and much of the remainder by conventional cyanide extraction (average total recovery 97%).

These drill results, together with the gold and silver grades, are shown in the tables that follow. (The true width of these intercepts is not known; however, it is estimated to be between 70% and 100% of the widths listed).

Ralph Fitch President of the Company stated "These are the next series of holes from the 2012 program and again confirm our prediction that we would find new gold mineralization in undrilled areas below outcropping gold mineralization. As in the last press release I am pleased to be able to report that we have discovered 3 new areas of mineralization, the Shark's Belly, Etna and North Jumbo. Each of these areas has the potential to expand into new resource areas with further drilling later this season. The next series of holes to be reported will include drilling from Silica Hill, Tin Can, Pope, Fluorite and Grey Eagle." He further stated "I am very pleased to report HDG has increased its interest in Gold Springs to approximately 70%. Over the year we have added to our land package in the district and with increased ownership we can drive even greater value for our shareholders in an up-and-coming gold district."

The Shark's Belly, approximately 500 metres south of the Shark's Mouth, is a new area in which mineralized stock-works and veins appear in a number of separate, more subtle zones which have now been mapped and sampled at surface, with results from the surface sampling program expected in late August. This study has identified at least 5 stock-work vein zones ranging in exposed length from 300 to 600 metres. Strike extensions of these vein zones are covered in part by alluvium and post mineral tuff and andesite. Four of the zones strike northeasterly while one trends northwest. Existing surface samples from these zones include values such as 3 metres averaging 2.0 gpt gold, and other samples averaging 2.2, 2.5 and 1.2 gpt gold. The Company expects that the recent sampling program will lead to additional resource drilling targets later in the season. Drill hole intercepts from SS-12-002 at the Shark's Belly are shown in the following table:

 

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RC m m m g/t g/t g/t
-------------------------------------------------------------------------
Drill Hole from to cum Av Au Av Ag Av AuEq(i)
-------------------------------------------------------------------------
SS-12-002 9.1 12.2 3.1 3.16 8.1 3.31
-------------------------------------------------------------------------
SS-12-002 9.1 18.3 9.2 1.53 10.4 1.71
-------------------------------------------------------------------------

Etna is approximately 1.4 kilometres to the south of the Shark's Belly. At Etna a well-developed siliceous feature includes zones of stock-working and brecciation. One hole, E 12-001, intersected this well mineralized material within a 125 metre wide envelope of lower grade mineralization; the two other Etna holes appear to have been drilled too far east to intersect the same feature, although one did intersect a broad zone of low grade mineralization. Drill hole intercepts from E-12-001 at Etna are shown in the following table:

 

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RC m m m g/t g/t g/t
-------------------------------------------------------------------------
Drill Hole from to cum Av Au Av Ag Av AuEq(i)
-------------------------------------------------------------------------
E-12-001 91.4 100.6 9.2 1.55 9.9 1.72
-------------------------------------------------------------------------
E-12-001 61.0 100.6 39.6 0.57 4.2 0.64
-------------------------------------------------------------------------
E-12-001 4.6 129.5 124.9 0.29 3.3 0.35
-------------------------------------------------------------------------
E-12-001 91.4 93.0 1.6 4.86 17.1 5.16
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North Jumbo is a completely new zone located approximately 500 metres northwest of the Jumbo zone and was based on a ZTEM target. The mineralized interval was strong but it is in an area of less intense alteration and so the mineralized zone may not be as wide as the others mentioned above. Drill hole intercepts from NJB-12-001 at the North Jumbo are shown in the following table:

 

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RC m m m g/t g/t g/t
-------------------------------------------------------------------------
Drill Hole from to cum Av Au Av Ag Av AuEq(i)
-------------------------------------------------------------------------
NJB-12-001 88.4 89.9 1.5 2.25 89.6 3.82
-------------------------------------------------------------------------
NJB-12-001 88.4 94.5 6.1 0.95 28.7 1.45
-------------------------------------------------------------------------

A detailed map of the target areas in both Utah and Nevada can be found
on the Company's website at
http://www.highdesertgoldcorp.com/GS%20Geo%20with%20Target%20Areas%20Jan
2011.pdf.

The Gold Springs drill program this year is designed to drill potential extensions to the previously disclosed 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(ii) grading 0.77 g/t (see HDG PR11-18, December 22, 2011). Drilling will also test the additional high priority targets within Nevada and Utah.

The following lists the more important intercepts from all of the holes:

 

-------------------------------------------------------------------------
RC m m m g/t g/t g/t
-------------------------------------------------------------------------
Drill Hole from to cum Av Au Av Ag Av AuEq(i)
-------------------------------------------------------------------------
SM-12-004 167.6 176.8 9.1 0.43 4.6 0.51
-------------------------------------------------------------------------
SM-12-004 144.8 185.9 41.1 0.27 2.9 0.33
-------------------------------------------------------------------------

-------------------------------------------------------------------------
SM-12-005 10.7 15.2 4.6 0.18 20.5 0.54
-------------------------------------------------------------------------
SM-12-005 10.7 47.2 36.6 0.18 8.2 0.32
-------------------------------------------------------------------------

-------------------------------------------------------------------------

-------------------------------------------------------------------------
E-12-001 91.4 100.6 9.1 1.55 9.9 1.72
-------------------------------------------------------------------------
E-12-001 61.0 100.6 39.6 0.57 4.2 0.64
-------------------------------------------------------------------------
E-12-001 4.6 129.5 125.0 0.29 3.3 0.35
-------------------------------------------------------------------------
E-12-001 91.4 93.0 1.5 4.86 17.1 5.16
-------------------------------------------------------------------------

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E-12-002 15.2 33.5 18.3 0.23 3.8 0.30
-------------------------------------------------------------------------
E-12-002 4.6 103.6 99.1 0.17 2.4 0.21
-------------------------------------------------------------------------

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E-12-003 79.2 82.3 3.0 1.13 7.7 1.26
-------------------------------------------------------------------------
E-12-003 79.2 88.4 9.1 0.46 3.4 0.52
-------------------------------------------------------------------------

-------------------------------------------------------------------------
SS-12-001 47.2 50.3 3.0 0.89 0.5 0.89
-------------------------------------------------------------------------
SS-12-001 47.2 56.4 9.1 0.42 0.2 0.43
-------------------------------------------------------------------------
SS-12-001 193.6 202.7 9.1 0.43 2.0 0.46
-------------------------------------------------------------------------

-------------------------------------------------------------------------
SS-12-002 9.1 12.2 3.0 3.16 8.1 3.31
-------------------------------------------------------------------------
SS-12-002 9.1 18.3 9.1 1.53 10.4 1.71
-------------------------------------------------------------------------

-------------------------------------------------------------------------
SS-12-003 9.1 10.7 1.5 0.85 1.9 0.88
-------------------------------------------------------------------------
SS-12-003 59.4 61.0 1.5 0.73 0.0 0.73
-------------------------------------------------------------------------

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SS-12-004 112.8 117.3 4.6 0.79 2.4 0.83
-------------------------------------------------------------------------
SS-12-004 112.8 132.6 19.8 0.29 2.4 0.33
-------------------------------------------------------------------------

-------------------------------------------------------------------------
NJB-12-001 88.4 89.9 1.5 2.25 89.6 3.82
-------------------------------------------------------------------------
NJB-12-001 88.4 94.5 6.1 0.95 28.7 1.45
-------------------------------------------------------------------------

(i)Gold Equivalent is calculated using a price of $1,600/oz for gold
and $28/oz for silver and have not been adjusted for metallurgical
recoveries. This Gold Equivalent calculation has been used in
reporting results shown in the tables in this press release.

Gold Springs is a joint venture with Pilot Gold Inc. ("Pilot Gold") in which HDG now holds a 70% interest and is the operator pursuant to an Operating Agreement dated July 5, 2012 (the "JV Agreement"). The Company's increased exposure to Gold Springs arises from dilution pursuant to the JV Agreement.

If less than 90% of the planned 2012 budget for Gold Springs is expended by year end Pilot Gold will have the option to return to its previous 40% interest in the joint venture.

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 "may", "target", "likely", "next", "further", "later", "planned", "will", "potential", "expects" 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.

(ii) 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 2011.

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.

Contact:

High Desert Gold Corporation
Richard Doran
Executive Vice President
(303) 584-0608
(303) 758-2063 (FAX)

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