The Gold Springs project that straddles
the Nevada Utah border is owned 82% by HDG and 18% by Pilot Gold Inc. ("PGI"),
with HDG as the managing partner. The Company initiated the 2013 drill
program at Gold Springs on April 17. The program anticipates that
approximately 100 reverse circulation holes will be drilled at Gold Springs
through the end of the year. The initial 4 to 8 drill holes will be located
in the Jumbo Zone in Utah while road and drill pad construction is taking
place at Grey Eagle. These holes will look to extend the gold mineralization
to the west and south of the inferred resource reported at the end of Q1 of this
year. Once these holes are completed the drill will move to the Grey Eagle
Zone in Nevada where this season's drilling will be designed to follow up
the high grade intersections reported last year, 21.4 metres of 6.18 gpt
AuEq* (5.69 g/t Au and 32.4 g/t Ag) within 62.5 metres of 2.39 gpt AuEq*
(2.1 g/t Au and 16.4 g/t Ag)(see HDG PR12-14, August 16,
2012).
The goal of the 2013 drill program is to expand the resource
at Gold Springs beyond the recently announced 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 Inferred Resource:
Gold
Silver
Gold Equivalent
AuEq*
Cut-off Grade (AuEq* g/t)
Tonnes
Grade (g/t)
Troy Ounces
Grade (g/t)
Troy Ounces
Grade (g/t)
Troy 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
The Qualified Person for the March 2013 resource estimate at
Gold Springs is Dr. A. Armitage, PGeol, of GeoVector Management Inc. Dr.
Armitage is independent of the Company and prepared the technical
information regarding the resource estimate.
Highlights:
The newly defined inferred resource of 415,254 oz. AuEq*averaging 0.67
g/t AuEq* is based on an AuEq* cutoff of 0.3 g/t. If the cutoff is increased
to 0.6 g/t AuEq* then the resource grade increases to 1.06 g/t AuEq for a
total of 253,119 oz. AuEq*. The gold-silver mineralization at both the
Jumbo and Grey Eagle Zones are believed to continue laterally and to
depth as the drilling to date has typically only penetrated the top 150 metres vertically below the surface.
The mineralization typically projects to the surface. There is little
or no cover in the majority of the resource area.
Metallurgy has shown average gold recoveries of 92% by cyanidation of
200 mesh material. (PR13-01, January 28, 2013)
Metallurgical testing at Jumbo shows that up to 57.2 % of the gold is
recoverable by gravity means. (PR10-17, October 18, 2010)
The ZTEM geophysical survey, completed in 2011, indicates that the
gold-silver bearing geological/geophysical setting that has been drilled
at the Jumbo may continue for approximately 8 kilometres along strike,
much of which remains untested. (PR12-14, August 16, 2012)
The highlights of the 2012 drilling program included the following results
from the Grey Eagle Zone which included the following intercepts:
GE12-002: 21.4 metres of 5.60 Au g/t
and 32.4 Ag g/t within
62.5 metres of 2.10 Au g/t and 16.4
Ag g/t
GE12-001: 3.1 metres of 4.7 Au g/t
and 24.6 Ag g/t within
33.5 metres of 0.80 Au g/t and 8.9 Ag
g/t
A summary of the drill results from the two holes at
Grey Eagle is shown in the following table:
Drill Hole
From Metres
To
Metres
Length
Metres
Gold gpt
Silver gpt
AuEq* gpt
GE-12-001
0
33.5
33.5
0.8
8.9
0.92
inc
0
24.4
24.4
1.0
10.5
1.17
inc
13.7
16.8
3.1
4.7
24.6
5.17
GE-12-002
0
62.5
62.5
2.1
16.4
2.39
inc
27.4
48.8
21.4
5.6
32.4
6.18
inc
30.5
32.0
1.5
13.1
34.2
13.65
and
44.2
47.2
3.0
11.9
31.0
12.46
*Gold equivalent (AuEq) calculations reflect gross metal
content using metal prices of $1,600/oz gold (Au), and $28/oz silver (Ag),
and have not been adjusted for metallurgical recoveries.
The true width of these intercepts is not known; however, it
is estimated to be between 42% and 100% of the widths listed.
The reverse circulation drill holes,
GE12-001 and 002, were collared on the same drill pad and drilled in
opposite easterly-westerly directions, thus if the mineralized zone
represented by these two drill holes is vertical then the drill intercepts
represent a mineralized zone which has 40.6 metres true width @ 1.6 g/t Au and 14.0 g/t Ag.
These holes are located approximately
150 metres south of the hole drilled in 2011; hole GE-11-08 which intercepted 12.2 metres @ 1.2 g/t
Au and 10.9 g/t Ag. The historic Keno Mine, which is located within the
same mineralized zone, is located 250 metres to the south of the holes
reported above. The previously reported ZTEM geophysical survey also outlined
a strong resistivity high that coincides with the Grey Eagle mineralized
zone in a similar manner to that seen in the Jumbo zone for which the
Company has reported an inferred resource.
Click on image to enlarge
Location Map
Target Areas
Jumbo Block
Model
Grey
Eagle/Homestead ZTEM 463
(See Press Release PR13-05)
