Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 25, 2011) – High Desert Gold Corporation (TSX VENTURE:HDG)(OTCQX:HDGCF) (“HDG” or the “Company”) is continuing to advance its activities at the Gold Springs gold-silver project that straddles the Nevada/Utah border through follow-up surface exploration work and further land acquisition in the area. The Gold Springs project is a joint venture between HDG (60%) and Pilot Gold Inc. (40%) with HDG as the managing partner. Following the successful ZTEM airborne geophysical survey completed in June with final results received in July (see HDG PR11-11, July 12, 2011), the Company has been staking new areas that coincide with the 10 targets that were identified in the ZTEM survey. As previously reported, this survey included magneto-telluric and magnetic measurements to outline the potential extensions to the known outcropping, gold-bearing siliceous structures under the thin gravel cover. The gravel cover blankets over two-thirds of the 38 sq. km. property.
The Company has been staking new lands over the past two months. The first 122 claims registered with the US Bureau of Land Management (the “BLM”) comprise 975 hectares and have been added to the Company’s land position that now totals 3,649 hectares. A total of 789 ha of the newly staked claims lie within the area of interest of the HDG/Pilot Gold joint-venture and the remainder outside the area of interest.
The ZTEM resistivity results showed an excellent correlation with known gold mineralization. Follow-up investigations of the ZTEM resistivity anomalies have discovered surface gold mineralization in several new areas which are covered by the new claim blocks. Sampling in the ZTEM target areas has identified linier traces of vein material in float. These traces are along the same orientations as the mineralized structures in the main part of the district. Vein fragments range in size from a few tens of centimetres across to more than two metres. HDG believes that the vein fragments are weathering in place and have not been transported significant distances, thus representing new target areas outside of those thus far identified. The Company will continue to follow up on the new ZTEM resistivity targets with the expectation that new drill targets will emerge.
Examples of results from recent sampling in the new areas are shown in the following table:
| Sample Number | Description | Gold (ppm) | Silver (ppm) | |||
| 33224 | Dump | 1.62 | 6.0 | |||
| 33225 | Dump | 1.424 | 10.0 | |||
| 33345 | Float | 3.363 | 3.4 | |||
| 33348 | Float | 5.386 | 31.3 | |||
| 33354 | Float | 1.573 | 7.0 | |||
| 33377 | Float | 1.917 | 16.8 | |||
| 33398 | Float | 16.555 | 41.2 | |||
| 33450 | Float | 2.061 | 12.8 | |||
| 33451 | Float | 2.35 | 13.6 | |||
| 33455 | Float | 8.975 | 78.7 |
The Company is continuing to work with the BLM in seeking permits for the next phase of drilling at Gold Springs. The Company has completed its next phase drill permit in Utah and is progressing with the permitting process in Nevada. Drilling is planned for the spring of 2012.
Highvista Gold Inc. (TSX VENTURE:HVV) (“Highvista”) recently completed its qualifying transaction under the policies of the TSX Venture Exchange, following which the Company holds 34.8% of the Highvista common shares and is Highvista’s largest single shareholder. Based on the November 22, 2011 closing price on the TSXV of $0.63 for Highvista’s common shares, HDG’s approximately 10.7 million shares are valued at approximately $6.7 million. Highvista is currently drilling on its Canasta Dorada gold project in Sonora, Mexico and results are expected to be released in the near future.
Ralph Fitch, President and CEO of the Company stated “Now that Highvista Gold Inc. is a public company, it is easier to see the true value of our original Canasta Dorada property. Our share of Highvista, now valued at approximately $6.7 million, adds significant value to the Company and allows HDG to benefit from the success of Highvista.”
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 AA finish. Gold was analyzed by the Au-AA23 method, with values >3 g/t re-assayed using Au- GRA21. All other elements were analyzed by the ME-MS41 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 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 34.8% 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 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 “believes”, “target”, “continue”, “expectation”, “progressing”, “planned”, “expected” and similar expressions. These statements include, but are not limited to, statements regarding the continued advancement of the Gold Springs property. 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, the effect of capital market conditions and other factors on capital availability; 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 and other risks more fully described in the Company’s Management Discussion & Analysis of Financial Position and Results of Operations, which is available on SEDAR atwww.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press 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.
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.
