News Column

High Desert Gold Reports Drilling Results from the Gold Springs Project at Grey Eagle, Including 20 Metres Averaging 2.8 g/t Gold Equivalent (AuEq(i))

Jul 10 2013 12:00AM



VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/10/13 -- High Desert Gold Corporation (TSX VENTURE: HDG)(OTCQX: HDGCF) ("HDG" or the "Company") is pleased to report that it has now completed 34 reverse circulation drill holes in the 2013 Gold Springs drill program. The latest series of 22 holes were drilled in the Grey Eagle Zone on the Nevada side of the project. The first 6 of this latest series of holes are reported here.

The best results were obtained from GE13-05, the hole furthest to the SW, drilling the extension to the Grey Eagle mineralized zone:

20 metres averaging 2.84 g/t AuEq(i) within 61 metres averaging 1.07 g/t AuEq(i) (hole ends in mineralization)

(i) (AuEq) calculations reflect gross metal content using a metal price ratio of 57.14 Au/Ag and have not been adjusted for metallurgical recoveries.

"This strong set of results continues to grow the mineralized zone at Grey Eagle and includes excellent grades. These results together with the earlier reported strong results from the Jumbo Zone in Utah continue to demonstrate that Gold Springs has the potential to host a significant gold deposit in two very mining friendly jurisdictions, Nevada and Utah," stated President and CEO, Ralph Fitch. "There are 18 areas of outcropping gold mineralization at Gold Springs, and to date we have demonstrated NI 43-101 Inferred resources at the two areas on which we have done substantial drilling. We are pleased that these mineralized zones continue to expand. We have also demonstrated excellent gold extractions in initial metallurgical tests and note that much of the drilled mineralization outcrops on the surface, making access to potential mining much cheaper."

The set of holes reported here were drilled along the 200 metre NE-SW block between GE-12-02 where the Company intersected 21 m of 5.6 g/t gold and 32.4 g/t silver in 2012 (See HDG-PR 12-14 dated August 16, 2012). Since the best hole in this set of results, GE-13-05, is the hole drilled furthest to the SW the mineralized zone is open to potential expansion in this direction.

The following table lists results from the first six holes from the latest series of holes in the 2013 drill program and demonstrates the importance of this developing zone.

Grey Eagle

---------------------------------------------------------------------------- len- sil- AuDrill Azi- from to gth gold ver Eq(i)Hole muth Dip (m) (m) (m)(g/t) (g/t)(g/t)--------------------------------------------------------------------------------------------------------------------------------------------------------GE-13-01 120 -45 80.8 82.3 1.5 2.32 13.90 2.56 highest 1.5m interval----------------------------------------------------------------------------GE-13-01 76.2 93.0 16.8 0.85 13.49 1.17----------------------------------------------------------------------------GE-13-01 44.2 93.0 48.8 0.42 6.45 0.53----------------------------------------------------------------------------GE-13-01 and GE-13-02 are from the same collar----------------------------------------------------------------------------GE-13-02 120 -65 59.4 61.0 1.5 2.26 15.40 2.53 highest 1.5m interval----------------------------------------------------------------------------GE-13-02 41.1 99.1 57.9 0.81 10.18 0.99----------------------------------------------------------------------------GE-13-02 30.5 102.1 71.6 0.68 8.50 0.83--------------------------------------------------------------------------------------------------------------------------------------------------------GE-13-03 120 -45 71.6 73.2 1.5 3.01 20.10 3.36 highest 1.5m interval----------------------------------------------------------------------------GE-13-03 57.9 76.2 18.3 0.89 6.68 1.01----------------------------------------------------------------------------GE-13-03 57.9 79.2 21.3 0.84 6.59 0.96----------------------------------------------------------------------------GE-13-03 57.9 106.7 48.8 0.67 7.59 0.80----------------------------------------------------------------------------GE-13-03 54.9 112.8 57.9 0.59 6.83 0.71----------------------------------------------------------------------------GE-13-03 and GE-13-04 are from the same collar---------------------------------------------------------------------------- 120 -65 56.4 57.9 1.5 2.28 7.30 2.41 highest 1.5m interval----------------------------------------------------------------------------GE-13-04 47.2 64.0 16.8 0.84 5.24 0.93----------------------------------------------------------------------------GE-13-04 44.2 68.6 24.4 0.63 4.11 0.70----------------------------------------------------------------------------GE-13-04 44.2 123.4 79.2 0.31 4.49 0.38--------------------------------------------------------------------------------------------------------------------------------------------------------GE-13-05 120 -45 138.7 140.2 1.5 8.57 23.00 8.98 highest 1.5m interval----------------------------------------------------------------------------GE-13-05 132.6 144.8 12.2 3.64 27.53 4.12----------------------------------------------------------------------------GE-13-05 129.5 149.4 19.8 2.49 19.78 2.84----------------------------------------------------------------------------GE-13-05 88.4 149.4 61.0 0.92 8.67 1.07 Hole ended in mineralization----------------------------------------------------------------------------GE-13-05 and GE-13-06 are from the same collar--------------------------------------------------------------------------------------------------------------------------------------------------------GE-13-06 120 -65 135.6 137.1 1.5 4.98 24.40 5.40 highest 1.5m interval----------------------------------------------------------------------------GE-13-06 128.0 140.2 12.2 1.74 21.64 2.12----------------------------------------------------------------------------GE-13-06 125.0 153.9 29.0 0.91 12.81 1.13----------------------------------------------------------------------------GE-13-06 102.1 153.9 51.8 0.58 8.28 0.73----------------------------------------------------------------------------GE-13-06 102.1 175.3 73.2 0.43 6.45 0.55----------------------------------------------------------------------------

(The true width of these intercepts is not known but is believed to be between 80-95% of the length.)

(i) (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 first 12 holes of the 2013 drilling program were drilled in the Jumbo Trend on the Utah side of the project. Nine of those holes are reported in the Company's press release dated June 5, 2013 (See HDG PR13-15).

Gold Springs is an 82/18 Joint Venture with Pilot Gold Inc. in which HDG holds an 82% interest and is the operator of the Joint Venture.

Detailed maps of the target areas in both Utah and Nevada can be found on the Company's website at

The total inferred resource recently reported at Gold Springs is 415,254 AuEq(i). 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(ii):

--------------------------------------------------------------------------- Gold Silver (AuEq(i))------------------------------- ------------- --------------- -------------Cut-off Grade Grade Troy Grade Troy Grade Troy(AuEq(i) g/t) Tonnes (g/t) Ounces (g/t) Ounces (g/t) 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(i) g/t) Gold Silver (AuEq(i))------------------------------- ------------- --------------- ------------- Grade Troy Grade Troy Grade Troy Tonnes (g/t) Ounces (g/t) Ounces (g/t) 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(i) g/t) Gold Silver (AuEq(i))------------------------------- ------------- --------------- ------------- Grade Troy Grade Troy Grade Troy Tonnes (g/t) Ounces (g/t) Ounces (g/t) 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)

(i) (AuEq) 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 qualified person who prepared the technical information regarding the resource estimate was Dr. A. Armitage, P.Geol., 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

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.


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 where it is the managing partner with an 82% controlling interest and the San Antonio project in Sonora, Mexico. The Company also has an interest in the Canasta Dorada property in Sonora, Mexico, through its 26.8% 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 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", "grow", "demonstrate", "expand", "appears", "believed", "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 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 July 10, 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.

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

Source: Marketwire

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters