VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 11, 2013) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(HDGCF)(7HD.F) has completed 43 reverse circulation drill holes during the 2013 Grey Eagle drill program on the Nevada side of the Gold Springs project. An additional 12 drill holes were completed on the Jumbo target area on the Utah side earlier in the year. Both targets are part of HDG's 100% owned Gold Springs project that straddles the Nevada-Utah border.
Ralph Fitch, President and CEO, stated, "The continuing success of the Grey Eagle drilling has been exciting and has expanded the mineralization to beyond the boundaries used in the March 28, 2013 resource estimate. Results continue to show encouragement with mineralization extending further to the west within the Main Zone at Grey Eagle and also up-dip to near the surface in the east. We ask you to visit our web-site (http://www.hdggold.com/goldsprings.html) and view the drill sections that show the growing areas of gold mineralization at Gold Springs."
Drill hole GE-13-036 was an infill hole on Drill Section 3 on which only one prior hole had been drilled. The results continue to demonstrate the continuity between the drill sections as shown in the following table:
|Drill Hole||Length |
|(ii) The true width of these intercepts is not known.|
The last ten drill holes are reported in this release which completes the Grey Eagle program for the 2013 season. Drilling has demonstrated that mineralization extends for over 670 metres of strike in a NNE-SSW direction between the Northern, Main and Southern zones and remains open to expansion. The mineralization has been drilled up to 200 metres to the WNW from approximate sub-crop locations in the east, within the Main zone. Future drilling will test for additional resources within the Grey Eagle area along strike to the SSW, towards the NW following down-dip projections of the vein systems and to the SE where known mineralization is projected up-dip to areas with thin post-mineral cover. Drill pads in these areas will be permitted within the "Plan of Operations" ("POO") which is expected to be completed early next year in time for the 2014 drilling season. The POO is a formal document that is submitted to the US Bureau of Land Management, the lead Federal agency in this case, that describes the overall plan for the Gold Springs project in Nevada starting in 2014 going forward. The document includes an Environmental Assessment covering the areas of proposed work.
Holes GE-13-036, 037 and 038 were drilled on Drill Section 3 and extended the gold-silver intercepts that were reported in PR 13-24 (which reported holes located on Drill Sections 5, 6 and 8) further to the south. Holes GE-13-034 and 035 are located on Section 9 (further to the north) and tested the westward dip projection of the mineralization in this area. These holes were successful in intersecting very shallow gold and silver mineralization indicating a flattening of the vein system. Holes GE-13-040, 041 and 042 all were designed to test the western down-dip projections of mineralization within the main zone. However, these holes intersected a set of east-northeast trending structures that cut off the mineralization. Interpretation of these structures suggests that the mineralization may continue to the west of these faults within the up-thrown block.
The latest holes continue to expand the mineralization at Grey Eagle and improve the understanding of the structural setting. With these results, new targets have developed across what was previously thought to be bounding faults opening-up areas of additional potential for resource expansion.
As seen in the table below, the results continue to be very positive within this thick zone of quartz-calcite and stockwork veining:
|Drill Hole||Azimuth||Dip||from |
|Section 7||Fault offset|
|GE-13-040||No significant |
|GE-13-042||No significant |
|GE-13-043***||No significant |
|(i) (AuEq(i)) 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 true width of these intercepts is not known.|
|(iii) This drill hole was an exploration hole drilled approximately 300 metres north of the Main Zone.|
|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 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 either a 15 or 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 Company entered into an agreement on October 21, 2013 (HDG PR13-25) to be acquired by well financed South American Silver Corp.("SAC") (SAC.TO) pursuant to a plan of arrangement (the "Arrangement"). Under the Arrangement, HDG shareholders will receive 0.275 SAC Class A shares for each HDG share. The combined entity will hold a 100% interest in Gold Springs, 100% control of the Escalones copper-gold porphyry in Chile, a 26.8% equity interest in Highvista Gold Inc. that owns the Canasta Dorada property in Sonora, Mexico and retain 15% of the net cash value of any award resulting from the ongoing international arbitration dispute regarding the expropriation of the Malku Khota silver-indium deposit in Bolivia not allocated to Class B shareholders of South American Silver Corp. 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.
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 "continue", "future", "demonstrate", growing", "expand", "pending", "further", "will", "target", "expected", "potential" 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, failure to obtain the requisite shareholder, court and stock exchange approvals for the Arrangement or other conditions of the Arrangement not being met or waived, including the continuance of HDG and SAC under British Columbia corporate law; the receipt by the Company of a competing or superior proposal for an alternative transaction;
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; uncertainties associated with the arbitration proceeding against Bolivia, including the quantum of damages to be obtained and the realization or collection of the value of any award or settlement, 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: receipt of all necessary approvals (including shareholder, court and stock exchange approvals) for the Arrangement and satisfaction or waiver of all conditions required by the Arrangement, including the continuance of HDG and SAC under British Columbia corporate law; 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 November 11, 2013.
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.