The Gold Springs Project, located in eastern Lincoln County, Nevada and
Western Iron County, Utah, consists of 297 unpatented lode claims covering
approximately 6,000 acres (2,428 ha). Gold mineralization is hosted by
complex sheeted veins, breccias and stockwork veins which consist of quartz,
adularia, and bladed calcite with minor sulfides (<2%) representing low
sulfidation, epithermal gold-silver vein systems. Trace element geochemistry
for As (arsenic) and Sb (antimony) show relatively low values similar to
other quartz-adularia epithermal vein systems such as the K-2 deposit
(>2,000,000 ounces gold) in Washington and the Midas deposit (>3,000,000
ounces gold ) in northern Nevada.
Surface
mapping and rock chip sampling have identified at least fourteen discreet
gold-silver bearing targets described as large, wide, structural zones,
often extending for kilometres along strike. These zones have rock chip
geochemistry commonly containing gold values greater than 1.0gpt with high
grade values of up to 99.5 gpt. Most of the elevated gold geochemistry is
associated with banded epithermal veins, stockwork veins, sheeted veins, and
silica cemented breccia. There are also a few occurrences of gold associated
with fluorite and silica in structural and breccia zones and with altered
tuffs. Most of the areas exhibiting + 1.0 gpt geochemistry have not been
drill-tested with drilling having only been conducted on the Jumbo and Etna
vein systems.
High Desert Gold Corporation recently completed the Phase I drill program at
the Gold Springs Project. The program was successful in extending the known
gold mineralization within the main Jumbo Zone and also intersected a
second, deeper zone in one drill hole that has the potential to further
extend the mineralization. The Company completed a total of 11
reverse-circulation drill holes for a total of 5,980 feet or 1,822.7 metres.
The Jumbo Zone is a large tabular body of mineralization presently about 800
metres long dipping at approximately 70 degrees to the east that has been
identified from surface to depths of a couple of hundred metres.
Mineralization is contained within a wide envelope with samples averaging
0.3 to 0.5 g/t gold with a higher grade central portion averaging greater
than 0.6 g/t gold and bands exceeding one gram per tonne.
Substantial widths of mineralization were intersected in several holes
including the following:
|
DH |
|
Length (m) |
Gold Equiv. g/t |
|
GT m |
|
J-10-3 |
|
97.5 |
0.63 |
|
61 |
|
J-10-4 |
|
169.16 |
0.60 |
|
101 |
Gold eq based on $1,000/oz Au and $16/oz Ag
Intercepts represent approximate true thicknesses
GT= grade x thickness
These
intervals include smaller (5-20m) intercepts of greater than one gram/tonne
as demonstrated in the table below. Nine holes were located within the Jumbo
system and two were located on the Midnight target. A summary of the drill
hole results is listed below:
|
Drill |
Interval* with |
From |
To |
Cumulative |
Average
Gold |
Average
Silver |
Gold
Equivalent |
Grade x
Thickness |
|
Hole |
Gold Eq > value
shown |
|
|
Thickness |
|
|
“Gold Eq” |
“GT” |
| |
gpt Gold |
m |
m |
m |
gpt |
gpt |
gpt |
m |
| |
|
|
|
|
|
|
|
|
|
J-10-1 |
Mineralized
Envelope |
6.1 |
89.9 |
83.8 |
0.25 |
5.7 |
0.34 |
29 |
|
J-10-1 |
>0.6gpt |
10.7 |
33.5 |
22.9 |
0.56 |
11.5 |
0.74 |
17 |
|
J-10-1 |
>1gpt |
10.7 |
24.4 |
13.7 |
0.78 |
14.9 |
1.02 |
14 |
| |
|
|
|
|
|
|
|
|
|
J-10-2 |
Mineralized
Envelope |
1.5 |
56.4 |
54.9 |
0.40 |
6.5 |
0.50 |
28 |
|
J-10-2 |
>.6 gpt |
4.6 |
47.2 |
42.7 |
0.49 |
7.7 |
0.61 |
26 |
|
J-10-2 |
>1 gpt |
4.6 |
12.2 |
7.6 |
0.80 |
12.7 |
1.01 |
8 |
|
J-10-2 |
>1 gpt |
44.2 |
50.3 |
6.1 |
1.03 |
8.2 |
1.16 |
7 |
| |
|
|
|
|
|
|
|
|
|
J-10-2 |
Mineralized
Envelope |
109.7 |
190.5 |
80.8 |
0.31 |
5.7 |
0.40 |
32 |
|
J-10-2 |
>.6 gpt |
157.0 |
178.3 |
21.3 |
0.54 |
4.8 |
0.61 |
13 |
| |
|
|
|
|
|
|
|
|
|
J-10-3 |
Mineralized
Envelope |
0.0 |
184.4 |
184.4 |
0.31 |
9.2 |
0.46 |
84 |
|
J-10-3 |
>.6 gpt |
12.2 |
109.7 |
97.5 |
0.44 |
11.5 |
0.63 |
61 |
|
J-10-3 |
>1 gpt |
12.2 |
30.5 |
18.3 |
0.84 |
12.2 |
1.03 |
19 |
|
J-10-3 |
>1 gpt |
45.7 |
59.4 |
13.7 |
0.76 |
15.9 |
1.02 |
14 |
|
J-10-3 |
>1 gpt |
70.1 |
82.3 |
12.2 |
0.64 |
23.3 |
1.01 |
12 |
|
J-10-3 |
>1 gpt |
176.8 |
181.4 |
4.6 |
0.87 |
20.2 |
1.19 |
5 |
| |
|
|
|
|
|
|
|
|
|
J-10-4 |
Mineralized
Envelope |
3.1 |
182.9 |
179.8 |
0.39 |
11.7 |
0.58 |
104 |
|
J-10-4 |
>.6 gpt |
3.1 |
172.2 |
169.2 |
0.41 |
12.1 |
0.60 |
101 |
|
J-10-4 |
>1 gpt |
27.4 |
48.8 |
21.3 |
0.75 |
16.4 |
1.02 |
22 |
|
J-10-4 |
>1 gpt |
64.0 |
73.2 |
9.1 |
0.78 |
18.3 |
1.07 |
10 |
|
J-10-4 |
>1 gpt |
129.5 |
134.1 |
4.6 |
0.63 |
41.8 |
1.30 |
6 |
|
J-10-4 |
>1 gpt |
147.8 |
157.0 |
9.1 |
0.51 |
35.9 |
1.09 |
10 |
|
J-10-4 |
>1 gpt |
161.5 |
166.1 |
4.6 |
0.98 |
3.3 |
1.04 |
5 |
| |
|
|
|
|
|
|
|
|
|
J-10-5 |
Mineralized
Envelope |
12.2 |
134.1 |
121.9 |
0.33 |
8.2 |
0.46 |
56 |
|
J-10-5 |
>.6 gpt |
13.7 |
22.9 |
9.1 |
0.60 |
7.9 |
0.73 |
7 |
| |
|
|
|
|
|
|
|
|
|
J-10-5 |
>.6 gpt |
53.3 |
80.8 |
27.4 |
0.55 |
10.1 |
0.71 |
19 |
| |
|
|
|
|
|
|
|
|
|
J-10-5 |
>1 gpt |
13.7 |
19.8 |
6.1 |
0.84 |
10.2 |
1.00 |
6 |
|
J-10-5 |
>1 gpt |
53.3 |
65.5 |
12.2 |
0.84 |
12.2 |
1.04 |
13 |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
J-10-6 |
Mineralized
Envelope |
56.4 |
125.0 |
68.6 |
0.27 |
9.1 |
0.41 |
28 |
|
J-10-6 |
>.6 gpt |
76.2 |
108.2 |
32.0 |
0.39 |
13.7 |
0.61 |
20 |
|
J-10-6 |
>1 gpt |
80.8 |
91.4 |
10.7 |
0.62 |
24.9 |
1.02 |
11 |
| |
|
|
|
|
|
|
|
|
|
J-10-6 |
Mineralized
Envelope |
207.3 |
268.2 |
61.0 |
0.22 |
6.6 |
0.33 |
20 |
|
J-10-6 |
>.6 gpt |
227.1 |
243.8 |
16.8 |
0.47 |
10.7 |
0.64 |
11 |
|
J-10-6 |
>1 gpt |
227.1 |
234.7 |
7.6 |
0.80 |
18.5 |
1.10 |
8 |
| |
|
|
|
|
|
|
|
|
|
J-10-7 |
Mineralized
Envelope |
30.5 |
91.4 |
61.0 |
0.22 |
6.6 |
0.33 |
20 |
|
J-10-7 |
>.6 gpt |
50.3 |
65.5 |
15.2 |
0.51 |
11.6 |
0.69 |
11 |
|
J-10-7 |
>1 gpt |
50.3 |
57.9 |
7.6 |
0.80 |
18.5 |
1.10 |
8 |
| |
|
|
|
|
|
|
|
|
|
J-10-8 |
Mineralized
Envelope |
6.1 |
19.8 |
13.7 |
0.27 |
8.4 |
0.40 |
6 |
|
J-10-8 |
>. gpt 6 |
6.1 |
13.7 |
7.6 |
0.42 |
12.5 |
0.62 |
5 |
|
J-10-8 |
>1 gpt |
6.1 |
9.1 |
3.1 |
0.85 |
25.1 |
1.25 |
4 |
| |
|
|
|
|
|
|
|
|
|
J-10-9 |
Mineralized
Envelope |
33.5 |
102.1 |
68.6 |
0.25 |
4.4 |
0.32 |
22 |
|
J-10-9 |
>.6 gpt |
39.6 |
57.9 |
18.3 |
0.49 |
8.0 |
0.62 |
11 |
| |
>1 gpt |
47.2 |
53.3 |
6.1 |
0.88 |
10.5 |
1.05 |
6 |
*Interval is
developed using a 0.1 gpt Au Eq cut-off
Gold eq based on $1,000/oz Au and $16/oz Ag
Intercepts represent approximate true thicknesses
Reverse Circulation drill hole J-10-02
intersected a second zone of mineralization within the footwall which could
add significantly to the potential of the Jumbo system. This drill hole was
still within the second mineralized envelope when it was terminated at 190.5
meters. Two holes were also drilled on the Midnight target in Nevada. Only
minor mineralization was encountered.
These latest drill results expand on, and
confirm, previous drilling prior to the Company’s involvement with Gold
Springs.
Previous drilling on the Jumbo target area by Energex (1988) and Astral
Mining Corporation (“Astral”) (2006) returned significant gold and silver
intercepts over a strike length of 850 metres with the zone being open in
both directions along strike. Examples of the drill results obtained from
Energex and Astral are shown in the following table: The J88 series drill
hole results were obtained from the Energex drill hole sections. The
GS-06-01 data were obtained from the data base provided by Gryphon Gold
Corporation, the company that HDG signed the original option agreement on
Gold Springs with in 2009.
|
Drill Hole |
Target |
From (metres) |
To (metres) |
Interval (metres) |
Au gpt |
Ag gpt |
Au Eq. Grade |
|
Northern
Section 280M North |
|
J88-6 |
Jumbo |
50.3 |
103.6* |
53.3 |
0.35 |
12.0 |
0.54 |
|
|
including |
82.3 |
103.6 |
21.3 |
0.54 |
20.7 |
0.87 |
|
|
|
|
|
|
|
|
|
|
GS-06-1 |
Jumbo
|
24.4 |
149.4 |
125.0 |
0.657 |
6.8 |
0.765 |
|
|
including |
24.4 |
74.7 |
50.3 |
1.401 |
10.1 |
1.564 |
|
|
including |
24.4 |
54.9 |
30.5 |
2.027 |
12.3 |
2.224 |
|
|
including |
24.4 |
32.0 |
7.6 |
6.715 |
25.6 |
7.125 |
|
Middle
Section 180m North |
|
J88-4 |
Jumbo |
13.7 |
71.6* |
57.9 |
1.28 |
13.9 |
1.50 |
|
|
including |
13.7 |
16.8 |
3.1 |
17.07 |
42.0 |
17.75 |
|
J-88-5 |
Jumbo |
16.8 |
91.4 |
74.6 |
0.80 |
15.4 |
1.05 |
|
|
including |
19.8 |
21.3 |
1.5 |
12.48 |
31.0 |
12.98 |
|
|
and |
77.7 |
79.2 |
1.5 |
8.68 |
53.0 |
9.53 |
|
South
Section |
|
J88-1 |
Jumbo |
21.3 |
61.0* |
39.7 |
1.68 |
12.7 |
1.88 |
|
Including |
|
36.6 |
51.8 |
15.2 |
3.00 |
16.6 |
3.27 |
|
J88-2 |
Jumbo |
27.4 |
83.8* |
56.4 |
1.27 |
12.7 |
1.47 |
|
1ncluding |
|
57.9 |
70.1 |
12.2 |
3.16 |
20.7 |
3.49 |
|
J88-8 |
Jumbo |
80.8 |
118.9 |
38.1 |
0.58 |
15.8 |
0.83 |
|
including |
|
96.0 |
106.7 |
10.7 |
1.36 |
35.5 |
1.93 |
*
J88-1, J88-2, J88-4 and J88-6 end in mineralization of 1.54, 0.33, 0.5 and
0.41gpt gold respectively.
-
Gold
Equivalent grade was obtained using the following prices: gold US$1,000/oz
and silver US$16/oz.
-
True
width: The structural zone has irregular boundaries so true width is
difficult to determine accurately, however, it is approximately ¾ of the
down-hole length.
High Desert
Gold plans to continue the work on the Jumbo target to expand the
mineralization along strike and to test other targets that are similar in
size, geochemistry and geology to the Jumbo system and have yet to be
drilled.
Besides the
“bulk tonnage” potential, there is an excellent chance of discovering more
high-grade mineralization similar to that found in the old mines. For
example, drill hole J88-4 intersected three metres averaging approximately a
half oz. gold (17.07 gpt) and drill hole GS-06-01 intersected three metres
averaging 11.93 gpt of gold in the Jumbo zone.
Ralph Fitch, President and CEO of
the Company stated “We are very excited to have the opportunity to explore
this very large gold system which has never been subjected to a thorough
exploration program. With only 22.9 million HDG shares outstanding, we feel
that this type of gold project with its excellent demonstrated potential
will be very positive for our company and for our shareholders. We have
already identified at least fourteen excellent targets, similar to the Jumbo
zone, most of which have never been drilled. This is a classic hydrothermal
gold system with lots of silicification and hydrothermal gold bearing
breccias, a great place to explore for gold. ” |
