VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 2, 2013) -
Editors Note: There are 2 photos associated with this press release.
High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(HDGCF) is pleased to announce the completion of an updated inferred resource estimate for the Jumbo Zone and an initial inferred resource estimate for the Grey Eagle Zone at the Gold Springs gold-silver project that straddles the Nevada-Utah border.
The updated resource was estimated for the Jumbo Zone in Utah and the Grey Eagle Zone in Nevada, both of which are open to expansion. These two targets represent only two of the eighteen outcropping targets identified so far in the 74 sq. km Gold Springs District.
The Inferred Resource:
- The newly defined inferred resource of 415,254 oz. AuEq* averaging 0.67 g/t AuEq is based on an AuEq cutoff of 0.3 g/t. If the cutoff is increased to 0.6 g/t AuEq then the resource grade increases to 1.06 g/t AuEq for a total of 253,119 oz. AuEq*. 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 8 kilometres along strike, much of which remains untested. (PR12-14, August 16, 2012)
Ralph Fitch, President of High Desert Gold, stated, "We are very pleased with this updated resource estimate at Gold Springs which now includes the initial drilling at the Grey Eagle Zone and an updated resource at the Jumbo Zone. This resource of 415,254 oz. AuEq* is based on drilling in just a small portion of these two targets. There are 16 additional geologically similar targets with outcropping gold mineralization and many more buried targets defined by the ZTEM geophysical survey yet to be drilled. We are planning an aggressive 100 hole program for 2013, starting when the snow clears, usually in mid April. The first holes will be drilled at Grey Eagle following up the high grade mineralization we drilled in 2012, such as GE 12-002 which intersected 21 metres of 6.2 g/t AuEq. (See PR12-14, Aug. 16, 2012). The higher gold-only grades within the Grey Eagle resource indicate the potential for additional higher grade resource development in this target following this year's drill program."
|Total Gold Springs Inferred Resource Estimate|
|Jumbo Target Inferred Resource Estimate|
|Grey Eagle Target Inferred Resource Estimate|
|* 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.|
The Jumbo Zone mineral resource estimate is based on 39 RC (reverse circulation) drill holes totaling 5,516 metres and 3,458 assay values; the Grey Eagle resource estimate is based on 31 RC drill holes totaling 3,653 metres and 2,395 assay values. This included the data collected from the 35 RC drill holes (4,439 metres and 2,913 assays) completed during the 2012 drill program. Assay values were verified against drill logs and assay certificates. Drill hole collar locations were checked and verified. The mineral resource was estimated using 1.52-metre composites of the assay values, with zero grades inserted into intervals that were not sampled.
A geological model was constructed of the Au-Ag mineralized zone. This model was used to constrain the composite values chosen for interpolation and the blocks reported in the mineral resource. A total of 2,213 1.52-metre composites were used to interpolate the resource. 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 resource estimate is categorized as "inferred" as defined by the Canadian Institute of Mining guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into minable reserves once economic considerations are applied.
The inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Dr. A. Armitage, PGeol, of GeoVector Management Inc. GeoVector is an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment and project management. Dr. Armitage acted as the qualified person for the resource estimate, as defined in NI 43-101, is independent of the Company and has reviewed the technical information regarding the resource estimate in this release. A NI 43-101 compliant technical report on the resource will be finalized and filed on SEDAR within 45 days of the date of this news release.
The Gold Springs project is a joint venture between HDG (82%) and Pilot Gold Inc. (18%) with HDG as the managing partner.
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 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 at San Antonio and it is uncertain if further exploration will result in the targets at these two projects 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 "target", "expansion", "planning", "indicates", "potential", "will" 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; and the completion by the independent qualified person of a NI 43-101 compliant technical report on the resource within 45 days of the date of this news release.
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 March 28, 2013.
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.
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