High Desert Gold Reports Continued Drilling Success from the 100% Owned Gold Springs Project at the Grey Eagle Zone in Nevada/Utah
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 20, 2013) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(HDGCF)(7HD.F) is pleased to report that it has now completed 43 reverse circulation drill holes in the 2013 drill program on its 100% owned Gold Springs project. Thirty-one of these holes were drilled in the Grey Eagle Zone on the Nevada side of the project and 12 holes, drilled earlier this year, were located in the Jumbo Trend on the Utah side of the project.
Ralph Fitch President and CEO, stated "Again, results from the five holes drilled along the Grey Eagle Trend continue to expand the mineralized zone both to depth and to the southwest along the Grey Eagle Trend. This bodes well for future drill results and potential resource expansion. I encourage you to visit our web-site (http://www.hdggold.com/goldsprings.html) and view the drill sections that demonstrate the growing importance and size of the Grey Eagle Zone which starts at surface in the east and dips at approximately 50 degrees to the northwest. Mineralization at Grey Eagle has now been drilled over a strike length of 670 metres, including the North, Main and South Zones and the indications are that it is continuing strongly to the southwest."
The best results were obtained from three holes in the centre of the Main Zone at Grey Eagle located approximately 150 metres southwest of the original discovery holes, GE-12-001 and 002, which included the near surface intersection of 21 m of 5.6 g/t gold within 63 m of 2.1 g/t gold (see HDG PR12-14, August 16, 2012). These new holes, GE-13-008, GE-13-009 and GE-13-021, expand the mineralized zone down dip and further to the northwest of previously reported holes GE-13-003 and 004 (see HDG PR 13-16, July 10, 2013). Importantly, the holes in this area show excellent continuity of good grade from near surface to a depth of 140 metres (see tables below). GE-13-021, a near vertical hole, located northwest of the GE-13-009 drill intercept, intersected a vertical column of 111 metres grading 0.6 g/t AuEq* starting 36 metres below the surface. All of these holes were drilled on Grey Eagle Drill Section 5 (see web page http://www.hdggold.com/goldsprings.html). The mineralized zone on this Section is expected to be extended further to the northwest by two additional holes, GE-13-028 and GE-13-029, for which the Company does not yet have assays. These holes, designed to test the down-dip projection of the mineralization, exhibit similar veining and total vein thicknesses to that seen in GE-12-021. Samples from both holes (GE-13-028 and GE-13-029) are in the laboratory for analysis with assays pending.
This type of continuity is seen throughout the Main Zone at Grey Eagle which is approximately 300 metres long and open to expansion. A second Drill Section, Section 6, showing similar continuity and showing the geology of holes with assays pending, is also shown on the webpage.
New drill pads are being located on these drill sections to continue the drilling to the NW with the purpose of further expanding the mineralized zone.
A summary of these drill results is shown in the following table:
Drill Hole | Length** (m) | AuEq* (g/t) |
GE-13-008 | 38.1 | 0.9 |
65.5 | 0.7 | |
GE-13-009 | 22.9 | 2.1 |
39.6 | 1.5 | |
77.7 | 0.9 | |
GE-13-021 | 19.8 | 1.0 |
111.3 | 0.6 |
Approximately 150 metres further south-west from holes 008 and 009 on Drill Section 3, hole GE-13-023 exhibits one of the better one g/t gold intercepts that the Company has reported and this is the Company's most south-westerly hole to date, indicating that the system remains strong and open to further expansion:
Drill Hole | Length** (m) | AuEq* (g/t) |
GE-13-023 | 54.9 | 1.1 |
71.6 | 0.9 |
The mineralization in GE-13-023 was intersected at approximately 100 metres below surface and represents the down-dip extension of the mineralized zone. Hole GE-13-024 on the same Drill Section intersected 3.1 g/t AuEq* over 7.6m within 50 metres of 0.6 g/t AuEq*. The hole ended in mineralization.
Drill Hole | Length** (m) | AuEq* (g/t) |
GE-13-024 | 7.6 | 3.1 |
50.3 | 0.6 |
Future holes will test for the up-dip projection of the mineralization seen in holes GE-13-023 and GE-13-024.
The following table lists results from the holes reported in this press release:
Grey Eagle
Drill Hole | Azimuth | Dip | from | to | Length | gold (g/t) | silver | AuEq | ||
GE-13-008 | 90 | -45 | 89.9 | 91.4 | 1.5 | 4.6 | 25.3 | 5.0 | highest grade 1.5m interval | |
GE-13-008 | 59.4 | 97.5 | 38.1 | 0.8 | 6.6 | 0.9 | ||||
GE-13-008 | 59.4 | 125.0 | 65.5 | 0.6 | 5.9 | 0.7 | ||||
GE-13-009 | 90 | -65 | 73.2 | 74.7 | 1.5 | 5.7 | 40.1 | 6.4 | highest grade 1.5m interval | |
GE-13-009 | 71.6 | 94.5 | 22.9 | 1.9 | 14.5 | 2.1 | ||||
GE-13-009 | 54.9 | 94.5 | 39.6 | 1.3 | 11.5 | 1.5 | ||||
GE-13-009 | 54.9 | 132.6 | 77.7 | 0.8 | 7.6 | 0.9 | ||||
GE-13-021 | 125 | -85 | 123.4 | 125.0 | 1.5 | 3.2 | 16.2 | 3.5 | highest grade 1.5m interval | |
GE-13-021 | 121.9 | 141.7 | 19.8 | 0.9 | 9.1 | 1.0 | ||||
GE-13-021 | 36.6 | 147.8 | 111.3 | 0.5 | 6.4 | 0.6 | ||||
GE-13-023 | 120 | -45 | 155.4 | 157.0 | 1.5 | 2.6 | 22.6 | 3.0 | highest grade 1.5m interval | |
137.2 | 192.0 | 54.9 | 0.9 | 11.4 | 1.1 | |||||
120.4 | 192.0 | 71.6 | 0.7 | 9.4 | 0.9 | |||||
GE-13-024 | 120 | -65 | 153.9 | 155.4 | 1.5 | 11.4 | 18.0 | 11.8 | highest grade 1.5m interval | |
153.9 | 161.5 | 7.6 | 2.9 | 14.5 | 3.1 | |||||
153.9 | 204.2 | 50.3 | 0.5 | 4.2 | 0.6 | |||||
**(The true width of these intercepts is not known but is believed to be between 80-95 % of the length.) | ||||||||||
*(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 remaining twelve off-trend exploratory holes produced short intervals of mineralization or poor results. GE-13-010 and 011 intersected a short interval of mineralization which was cut off by post-mineral cover; holes 012 and 013 were exploratory holes in the footwall of the red-andesite fault; holes 014 and 015 were drilled under the Keno adit; hole 016 was drilled to the northwest from the Keno and intersected part of up-dip portion of the mineralized system seen in hole GE-13-021; holes 017 through 020 were drilled on the southern projection of the Iris vein which was interpreted as the faulted upper part of Grey Eagle; hole 022 was drilled to check for veining striking northwest-southeast rather than the more typical northeast-southwest.
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 total inferred resource at Gold Springs reported on March 28, 2013, prior to the 2013 drill program is 415,254 AuEq*. This is a combination of resources estimated at the Jumbo and Grey Eagle targets as shown in the following tables:
The Gold Springs Inferred Resource Estimate as of March 28, 2013**: | |||||||
Gold | Silver | (AuEq*) | |||||
Cut-off Grade (AuEq* g/t) | Tonnes | Grade | Troy Ounces | Grade | Troy Ounces | Grade | Troy Ounces |
0.3 g/t | 19,373,085 | 0.48 | 301,756 | 10.4 | 6,476,149 | 0.67 | 415,254 |
0.6 g/t | 7,401,016 | 0.81 | 193,145 | 14.4 | 3,422,896 | 1.06 | 253,119 |
Jumbo Target Inferred Resource Estimate | |||||||
Cut-off Grade (AuEq* g/t) | Gold | Silver | (AuEq*) | ||||
Tonnes | Grade | Troy Ounces | Grade | Troy Ounces | Grade | Troy Ounces | |
0.3 g/t | 16,473,441 | 0.45 | 239,275 | 11.0 | 5,843,533 | 0.65 | 341,683 |
0.6 g/t | 6,334,657 | 0.74 | 151,118 | 15.0 | 3,058,804 | 1.01 | 204,713 |
Grey Eagle Target Inferred Resource Estimate | |||||||
Cut-off Grade (AuEq* g/t) | Gold | Silver | (AuEq*) | ||||
Tonnes | Grade | Troy Ounces | Grade | Troy Ounces | Grade | Troy Ounces | |
0.3 g/t | 2,899,643 | 0.67 | 62,482 | 6.8 | 632,617 | 0.79 | 73,570 |
0.6 g/t | 1,066,359 | 1.23 | 42,027 | 10.6 | 364,092 | 1.41 | 48,406 |
Source: (HDG PR13-07, March 28, 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.
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 major properties held by HDG are the 100% owned 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 26.8% equity interest in Highvista Gold Inc that owns the Canasta Dorada property in Sonora, Mexico. 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.
Forward-looking Statements
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", "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, 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.
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 20, 2013.
Inferred Resources
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 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.
