HVG - TSX.V: 0.07  +0.00

Harvest Gold E-News, Receive corporate updates. Register Now!

Vancouver, British Columbia – March 30, 2020Harvest Gold Corporation (“Harvest Gold” or the “Company”) (TSXV: HVG), announces that its option agreement (the “Agreement”) on the Cerro Cascaron project in southwestern Chihuahua, Mexico (the “Cerro Cascaron Project”) entered into with Evrim Resources Corp. (“Evrim”) has been terminated.

Cerro Cascaron Project Overview

The Cerro Cascaron Project is a 69 square kilometre early stage exploration property prospective for epithermal gold-silver deposits situated in Mexico's highly productive Sierra Madre Occidental. The acquisition of Cerro Cascaron is a key addition to Evrim's portfolio in Mexico that was identified and staked as part of the Company's generative programs that focus on well mineralized assets with significant upside:

  • Located in a geologically highly prospective region;the Sierra Madre Occidental, a metallogenic volcanic province that contains significant precious metal deposits and producing mines
  • A large land package with a geological and structural setting comparable to that of the significant deposits and mines in the district
  • The property hosts numerous high-grade gold-silver showings; eight of which have been identified to date
  • No modern systematic exploration has been carried out
  • Claims owned 100% ownership by Evrim or under option to earn 100%

The Cerro Cascaron property is located along the unconformable contact between Lower Volcanic Sequence andesites and Upper Volcanic Sequence rhyolites of the Sierra Madre Occidental. This unconformable contact is a key to localizing structures that host the most important epithermal gold-silver deposits in the district. Cerro Cascaron is well located with respect to these deposits, including:

  • Goldcorp's past-producing El Sauzal mine (1.75 Moz gold produced), 55 kilometres to the northwest
  • Minera Frisco SAB's Ocampo mine (2.5 Moz gold and 118 Moz silver in total reserves and resources), 192 kilometres to the northwest
  • Alamos Gold Inc.'s Mulatos mine (4.7 Moz gold in total reserves and resources), 254 kilometres to the northwest and
  • Couer Mining Inc.'s Palmarejo mine (1.25 Moz gold and 82 Moz silver in total reserves and resources), 119 kilometres to the northwest.

A 20 kilometre access road reaches the northeast corner of the property which is located in a mountainous region of Chihuahua. The project area was explored during Colonial times but only artisanal mining activities are known to have taken place since this time; no drilling or modern exploration has taken place. Limited work completed to date by Evrim on the Cerro Cascaron project has identified several gold-silver vein systems representative of Sierra Madre Occidental style epithermal gold silver deposits and that have returned high gold and silver grades. Evrim's plan for the project in 2016 is to better define the extents of, and controls on, mineralization identified to date and to explore for additional systems on the underexplored property. The Cerro Cascaron project is an excellent opportunity for the Company to make a new discovery in this proven district.

The core claims that encompass a large portion of the Serpiente Dorada zone were staked by the Company in late 2015, and three surrounding claims were acquired under two separate agreements with a third party. Under the terms of each agreement, the Company will pay CDN$140,000 over a five year period to acquire a 100% interest. Each agreement is also subject to a 2% Net Smelter Royalty of which 1% can be purchased for US$1.25 million.

The content of this page has been reviewed by Stewart Harris, P.Geo., Vice President, Technical Services for Evrim Resources. Mr. Harris is a Qualified Person as defined under the terms of National Instrument 43-101