High Desert Gold Corporation ("HDG" or the "Company") is pleased to announce it has reached agreement with Pilot Gold Inc. ("Pilot") to purchase Pilot's remaining interest in the Gold Springs project. On closing, the Company will control 100% of the project, where a 2013 drill program is currently underway.
HDG is acquiring Pilot's interest in the Gold Springs project by purchasing the remaining membership interest in Gold Springs LLC, the company holding the Gold Springs project, for an aggregate purchase price of 6,058,667 common shares of HDG, representing 7.5% of the issued and outstanding shares of the Company.
"We are very pleased to have reached this agreement with Pilot to fully consolidate ownership of our 74 km2 flagship property," said Ralph Fitch, President and CEO of HDG. "Gold Springs is the anchor to an emerging and exciting new gold district in Nevada and Utah, two excellent mining jurisdictions. We have appreciated Pilot's participation in the project, especially their technical input, and welcome them as a key shareholder of our company."
"High Desert Gold has done a tremendous job advancing the Gold Springs project over the past three years," stated Matt Lennox-King, President and CEO, Pilot Gold. "We are driven to derive maximum value from our entire property portfolio, and believe that a strong equity position in High Desert Gold allows us to best participate in future growth and progress at Gold Springs."
About Gold Springs
The 7,368 hectares Gold Springs project straddles the Nevada and Utah state border and has a defined inferred resource** of 301,756 oz of gold averaging 0.48 g/t and 6,476,149 oz of silver averaging 10.4 g/t for a total of 415,254 oz. AuEq*averaging 0.67 g/t AuEq within 19,373,085 tonnes (see HDG PR13-07, March 28, 2013). The resource is delineated in two targets, Jumbo and Grey Eagle, with an additional 16 high priority targets. Drilling continues to expand these mineralized zones which comprise portions of a low sulphidation vein system. Excellent gold extractions have also been demonstrated in metallurgical tests (see HDG PR13-18, January 28, 2013)) and importantly, much of the drilled mineralization outcrops on the surface, making access to potential mining much cheaper.
Recent drill highlights include:
- 1.07 g/t AuEq* over 61 metres in GE-13-05, including
- 2.84 g/t AuEq* over 20 metres
- 0.73 g/t AuEq* over 51.8 metres in GE-13-06, including
- 2.12 g/t AuEq* over 12.2 metres
See press releases HDG PR13-15, June 5, 2013 and HDG PR13-16, July 10, 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.
Source: http://www.highdesertgoldcorp.com/