VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 2, 2013) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(HDGCF)(7HD.F) is pleased to announce it has reached agreement with Pilot Gold Inc. (PLG.TO) ("Pilot") to purchase Pilot's remaining interest in the Gold Springs project. On closing, the Company will control 100% of the project, where a 2013 drill program is currently underway.
HDG is acquiring Pilot's interest in the Gold Springs project by purchasing the remaining membership interest in Gold Springs LLC, the company holding the Gold Springs project, for an aggregate purchase price of 6,058,667 common shares of HDG, representing 7.5% of the issued and outstanding shares of the Company.
"We are very pleased to have reached this agreement with Pilot to fully consolidate ownership of our 74 km2 flagship property," said Ralph Fitch, President and CEO of HDG. "Gold Springs is the anchor to an emerging and exciting new gold district in Nevada and Utah, two excellent mining jurisdictions. We have appreciated Pilot's participation in the project, especially their technical input, and welcome them as a key shareholder of our company."
"High Desert Gold has done a tremendous job advancing the Gold Springs project over the past three years," stated Matt Lennox-King, President and CEO, Pilot Gold. "We are driven to derive maximum value from our entire property portfolio, and believe that a strong equity position in High Desert Gold allows us to best participate in future growth and progress at Gold Springs."
About Gold Springs
The 7,368 hectares Gold Springs project straddles the Nevada and Utah state border and has a defined inferred resource** of 301,756 oz of gold averaging 0.48 g/t and 6,476,149 oz of silver averaging 10.4 g/t for a total of 415,254 oz. AuEq*averaging 0.67 g/t AuEq within 19,373,085 tonnes (see HDG PR13-07, March 28, 2013). The resource is delineated in two targets, Jumbo and Grey Eagle, with an additional 16 high priority targets. Drilling continues to expand these mineralized zones which comprise portions of a low sulphidation vein system. Excellent gold extractions have also been demonstrated in metallurgical tests (see HDG PR13-18, January 28, 2013)) and importantly, much of the drilled mineralization outcrops on the surface, making access to potential mining much cheaper.
Recent drill highlights include:
- 1.07 g/t AuEq* over 61 metres in GE-13-05, including
- 2.84 g/t AuEq* over 20 metres
- 0.73 g/t AuEq* over 51.8 metres in GE-13-06, including
- 2.12 g/t AuEq* over 12.2 metres
See press releases HDG PR13-15, June 5, 2013 and HDG PR13-16, July 10, 2013.
*(AuEq) calculations reflect gross metal content using a metal price ratio of 57.14 Au/Ag and have not been adjusted for metallurgical recoveries.
** The qualified person who prepared the technical information regarding the resource estimate was Dr. A. Armitage, PGeol of GeoVector Management Inc., who is independent of the Company. Mineral resources that are not mineral reserves do not have to demonstrate economic viability, 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 Company is not aware of any environmental, permitting, legal, title, taxation, socio-political or other issues which would materially affect the resource estimate. For more details regarding this resource estimation, please see the Technical Report filed on SEDAR on May 9, 2013 and on the Gold Springs page at www.hdggold.com.
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.
About High Desert Gold Corporation
HDG 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 and the San Antonio project in Sonora, Mexico. The Company also has a 26.8% interest in the Canasta Dorada property in Sonora, Mexico, through its equity interest in Highvista Gold Inc.
Statements concerning TSX Venture Exchange approval of the acquisition and the closing date constitute "forward-looking statements". In addition, information concerning mineral resource estimates and the interpretation of drilling and metallurgical testing results may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present and recoverable if and when a mining project at Gold Springs is actually developed. These forward- looking statements are based on current expectations and entail some risks and uncertainties. Factors that could cause expected events to differ from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, timely TSXV review and approval of HDG's filings; a delay in the delivery of closing documents required by the acquisition agreement; 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 review and approval of HDG's "expedited acquisition" filing with the TSXV within one business day; the ability of each of the parties to the acquisition agreement to obtain and deliver required documents on or prior to the expected closing date; 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 August 2, 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 a 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.
Neither 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.