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High Desert Gold Corporation announced on Tuesday the completion of its earn-in option on the Gold Springs gold project that straddles the Nevada-Utah border. The Option and Earn-in Agreement dated January 10, 2010 called for HDG to incur $US1 million in exploration expenditures and pay $US160,000 to Pilot Gold Inc.
These obligations have been met and a notice of completion confirming the Company’s earn-in has been provided to, and acknowledged by Pilot Gold. Pilot Gold has elected to participate at a 40% interest in a newly established jointly-owned company called Gold Springs LLC. On closing of the earn-in, and signing of an operating agreement, each company’s respective interests in Gold Springs will be conveyed to Gold Springs LLC.
Ralph Fitch, President of HDG, stated, “We are very pleased to have completed this earn-in partnership with Pilot Gold, a company with a very experienced exploration team that will add to our knowledge base at the property.”
Pilot Gold was established earlier this year pursuant to a plan of arrangement between Newmont Mining Corporation (“Newmont”), and Fronteer Gold Inc. (“Fronteer Gold”). Pilot Gold is a gold exploration company led by members of the former Fronteer Gold team that discovered or advanced seven deposits since 2003, including the development-stage Long Canyon gold project in Nevada, now owned by Newmont.
The Company has now completed 16 RC holes totaling 1,569 metres and two diamond drill holes totaling 276 metres, together with a property-wide ZTEM geophysical survey at Gold Springs. Early assay results from the RC drilling should be available by late July. HDG now has the ZTEM results and has carried out follow-up work on new targets derived from work to date.
One diamond drill hole was centered on the Thor vein system to acquire orientated core to assess the directions of the gold-bearing veins. The hole intersected two veins, one approximately 4 ft wide averaging 1.8 g/t gold with 27.5 g/t silver, and a second averaging 7.7 g/t gold (0.25 oz/t) and 52.5 g/t silver over 7.5 ft. (this intercept occurred in a zone of poor core recovery). This area of the project contains high-grade veins, without the wide zones of associated mineralization found at the Jumbo Zone (see HDG PR10-14, August 19, 2010), and would more likely lead to an underground rather than an open-pit mine, should a mine be developed. Historic mines in this area typically produced at grades of 0.4-0.5 oz/ton gold and + 2 oz/t silver ore by underground means. This very encouraging intercept extends the Thor vein beyond the historically developed area.
A second diamond drill hole was drilled on the Jumbo Zone to both twin one of the Company’s RC holes to confirm grade and to acquire orientated core to assess the directions of gold-bearing veins. Results have been received for a portion of the hole giving similar results to the nearby RC hole GS10-4. The prominent gold-bearing veins in the two holes typically strike NE or NW or NS.
The ZTEM airborne geophysical survey was completed in June with final results received in July. As previously reported (see HDG PR11-05, April 12, 2011), 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 29 sq. km. property.
The ZTEM resistivity results show an excellent correlation with known gold mineralization and have also outlined 10 new targets that have very similar geophysical characteristics to the known gold areas. Some of these new targets are within the HDG/Pilot Gold joint-venture area, and some are outside and have been staked by HDG. Recent surface samples of veins and breccias from follow-up work following the survey include several samples with values greater than 1 g/t gold with the two highest being 17 g/t and 19 g/t gold. The Company will continue to follow up on the new ZTEM resistivity targets with the expectation that new drill targets will emerge.
Mr. Fitch added, “At Gold Springs, the ZTEM geophysical survey has successfully outlined the resistive, siliceous structures that typically carry gold in both outcropping and partially covered areas. This will significantly speed up our assessment of this large land holding and has expanded the area with potential for gold mineralization beyond the already delineated targets.”
The Company is developing a jointly funded exploration program and budget for the second half of 2011.
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 >1 gpt re-assayed using Au- GRA21 All other elements were analyzed by the ME-MS41 method.
There has been insufficient exploration to define a mineral resource at Gold Springs and it is uncertain if further exploration will result in the targets at the project being delineated as a mineral resource.
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.
For the complete press release click here.
Image of drilling at Gold Springs Project is courtesy of the company.
Comments
W. Petty
Is there a potential for recreational panning somewhere below the lode?