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Harvest Gold Summarizes Rosebud Mine N.I.
43-101 Technical Report;
Report Posted on SEDAR
September 11, 2008
Harvest Gold Corporation (HVG –
TSX.V) September 11, 2008 (the “Company”) has received and posted on SEDAR, a NI
43-101 Technical Report on its Rosebud Mine property in Pershing County, Nevada
USA.
http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00023051
The report is authored by
independent geologist Robert G. Cuffney, a Certified Professional Geologist and
Qualified Person as defined by Canadian National Instrument 43-101. Mr. Cuffney
has recognized expertise in low-sulfidation epithermal gold deposits such as
Rosebud that he developed over 33 years of exploration with a focus on
epithermal and Carlin-type precious metals deposits in Nevada and other parts of
the world.
The report represents a major
step forward for the Company in cataloguing and understanding the body of
information produced by more than ten exploration and mining companies over a
period of more than 20 years. The Rosebud deposit produced 396,842 ounces gold
and 2,309,876 ounces silver from high grade ores between 1997 and 2000. The
43-101 report describes exploration and mining activities at Rosebud from
pre-discovery in 1988 until now and provides favorable evaluations of
exploration targets developed by the Company. In late 2000, following closure
of the Rosebud Mine, at a time when gold prices had reached US$252/oz Au, Hecla
reported an historical remaining Measured and Indicated Global Resource of
6,816,021 tons grading 0.036 oz Au/t and 0.31 oz Ag/t at a 0.01 oz Au/t cut-off,
containing 242,857 gold ounces and 2,129,750 silver ounces (Hecla Mining
Company, 2000). This historical estimate was made prior to the implementation of
NI 43-101, may not comply with current CIM standards, and is presented for
purposes of historical reference only. The Company is not treating the estimate
as a National Instrument 43-101 defined resource, and the historical estimate
should not be relied upon. The Company believes that there is very good
potential to discover additional high grade zones within and adjacent to the
bulk tonnage envelope and to expand the size of this envelope.
Some highlights of the report
are:
The discovery and development
potential at Rosebud merits an aggressive drilling campaign. Mr. Cuffney
recommends a two-phase drill program totaling 36,800 ft (11,215 m) in 32 holes.
This program has several objectives: (i) to discover additional high grade
mineralized zones, (ii) to increase the average grade and extend the limits of
the bulk tonnage envelope, and (iii) to accurately define the gold-mineralized
envelope. The combination of geologic mapping, review and evaluation of the
volume of data produced by prior operators, and additional soil geochemical
surveys has resulted in the definition of several new high-quality targets
within the bulk tonnage envelope. The data gathering, review, and evaluation
process has also strengthened our understanding of previously-defined targets.
An important outcome of the
process is the recognition of a key feature of the mined body called the
“chimney”. This zone graded greater than 1.0 oz Au/t and contained
approximately 40% of the pre-mining resource within an area measuring
approximately 130 ft (40 m) long by 220 ft (60 m) high. A lower-grade, 0.10-1.0
oz Au/t (3.4-7.2 g/t) stockwork and disseminated zone of mineralization
surrounded the chimney. The Company feels that there are very good
opportunities to discover additional high-grade zones and is placing high
priority on discovering additional zones similar to the chimney. Potential
exists for discovering additional high-grade Au zones in all of the targets
described below. The most significant targets are highlighted below. Detailed
descriptions of these can be found in the 43-101 report.
Nym Fault Targets/Southern Extension
A previously unrecognized
fault, now named the “Nym” fault, has been located through mapping and
reinterpretation of geology in the district. This new fault is exposed in
trenches on Dozer Hill above the Rosebud ore system, and to the south of the
property in Rosebud Canyon. The fault may have served as a magmatic feeder for
rhyolite flows that host much of the mineralization at Rosebud and is
interpreted to have been an important conduit for mineralizing fluids. It is
the Company’s interpretation that the Nym fault is a key structural feature that
was necessary to form the chimney zone and that this fault was not recognized or
well understood previously. Several targets with high-grade potential and of
similar or larger size have been identified along the Nym fault approximately
1000 feet to the south of the mined ore bodies. These are being refined and
prioritized in preparation for drilling. Evidence of high-grade mineralization
is provided by an underground drill hole, DRSU-453A, which intersected 2 ft @
0.224 oz Au/t (0.6 m @ 7.7 g/t) and 0.6 ft @ 0.542 oz Au/t (0.18 m @ 18.6 g/t)
near the periphery of one of the Nym fault targets. This underground drill hole
is subhorizontal and sub-parallel to the Nym fault, and did not drill into the
target but may have grazed its margin.
Basement Targets
High-grade gold vein and
stockwork targets are present within the basement Triassic to Jurassic Auld Lang
Syne Group sedimentary rocks. The Auld Lang Syne Group has never been
adequately drill-tested despite the presence of significant gold mineralization
intersected by historic exploration. The contact between the Tertiary volcanic
rocks and basement rocks is a favored locus for high-grade precious-metals
mineralization in several low-sulfidation, adularia-sericite systems. Drilling
beneath the East and North Ore Zones encountered significant gold mineralization
in the Auld Lang Syne basement rocks in the footwall of the South Ridge fault.
As an example, beneath the East Ore Zone, core hole RL-106C drilled 200 feet (61
m) of Auld Lang Syne argillite and quartzite and intersected four gold intervals
grading in excess of 0.02 oz Au/t (0.7 g/t), including 20 ft @ 0.085 oz Au/t
(6.1 m @ 2.9 g/t) and 50 ft @ 0.064 oz Au/t (15.2 m @ 2.2 g/t). The hole
terminated in 15 ft @ 0.109 oz Au/t (4.6 m @ 3.7 g/t) mineralization at 1202
feet (366.4 m).
Far East Zone Target
Several high-grade drill
intercepts, including 60 ft @ 0.25 oz Au/t (18.3 m @ 8.6 g/t) and 10 ft @ 1.0 oz
Au/t (3.0 m @ 34.3 g/t) are present. The mineralization lies on strike with the
East Ore Zone and occurs within the same structural and stratigraphic setting as
the East deposit. Drilling of the Far East Zone was limited to a few holes due
to higher-priority targets in the mine area.
Northeast Target
The Northeast target is in a
structural and stratigraphic setting similar to the Rosebud ore bodies. It is
adjacent to, and south of, the Rosebud Shear in an area of structural
intersection. A northwest-trending, 2000 ft (610 m) by 600 ft (180 m) zone of
argillic and silicic alteration and hydrothermal breccia is present within
rhyolite flows. This alteration zone coincides with a larger enzyme leach soil
geochemical anomaly and lies within a magnetic embayment that is similar to the
magnetic response associated with the Rosebud ore bodies.
Northwest Corridor Target
Numerous drill intercepts have
been encountered to the northwest of the Rosebud mine in the Northwest
Corridor. Drill intercepts include 10 ft @ 0.357 oz Au/t (3.0 m @ 12.2 g/t) in
hole 96-356. Two follow-up holes drilled from underground workings encountered
multiple high-grade intervals (six intercepts of >0.25 oz/t (>8.6 g/t) in hole
D345-99, including 5.6 ft @ 0.888 oz Au/t (1.7 m @ 30.4 g/t); and two high-grade
intercepts in hole D365-99, located 400 ft (122 m) from hole RSD 345-99. These
intercepts were followed up with a 17 hole underground drill program in 2000 as
the mine life was coming to an end and gold prices were depressed.
Mineralization was encountered during this program but an underground resource
has yet to be defined. The high grades intersected in the Northwest Corridor
target are indicative of strong gold mineralization along one of the dominant
structural and alteration trends in the mine area. The target is viable both
for high-grade stockwork mineralization localized at structural intersections
and/or inflections in the low-angle controlling fault, and for bulk-tonnage gold
mineralization in the hanging wall of the structure.
East Zone Targets
This area, along with the South
and North Ore Zones, contains much of the nearly 250,000 oz Au post-mining
historic global resource calculated by Hecla. Specific high-grade targets are
being developed within the East Zone.
Valley Target
The Valley target occurs along
the Rosebud Shear and along strike to the southwest of the Rosebud mine. An IP
chargeability anomaly has been tested by several wide-spaced drill holes that
were drilled blind due to alluvial cover. Stockwork mineralization was
encountered in several holes, including 15 ft @ 0.032 oz Au/t (4.6 m @ 1.1 g/t)
in RL-77 and 50 ft @ 0.014 oz Au/t (15.2 m @ 0.5 g/t) in RL-56. The spacing of
drill holes in this large (3500 ft x 1000 ft; 1070 m x 300 m) area is wide and
potential remains good for discovery of both high-grade tabular deposits and
bulk-tonnage deposits along splays of the Rosebud Shear. A north-northwest
trending enzyme leach gold anomaly has been found in geochemical data just
received by the Company. This new gold anomaly is approximately 2100 ft (650 m)
long by 1000 ft (300 m) wide and contains a north-northwest trending
high-response center. This is part of a broader enzyme leach gold response that
roughly coincides with the IP chargeability anomaly and contains the drill
intercepts described above. Drill holes are being planned to test this new gold
anomaly.
HISTORICAL OVERVIEW
Lac Minerals and Equinox
Resources discovered and developed Rosebud in the late 1980s and early 1990s.
Hecla acquired Rosebud by way of its merger with Equinox. In 1996, information
published in Hecla Mining Company’s 1995 annual report quotes a Rosebud resource
of 1,276,634 tons grading 0.392 ounces gold and 2.70 ounces silver per ton
containing 500,441 ounces of gold and 3,446,912 ounces of silver at a cut-off
grade of 0.18-ounce gold per ton.
A Hecla-Newmont joint venture
mined the underground deposit between 1997 and 2000 producing a total of 396,842
ounces gold and 2,309,876 ounces silver. The joint venture milled 953,119 tons
of ore, which was processed in a conventional carbon-in-leach circuit at Santa
Fe’s Twin Creeks Pinion mill. The product was a high-quality gold-silver dore.
Reported recoveries for gold were in the 95% range and 58% for silver.
It should be noted that the
historical resource estimates by Hecla were made by a source believed to be
reliable. However, the Company has not yet independently verified the estimate
according to CIM standards. The resource estimate is presented for historical
purposes only. Therefore, the Company is not treating the estimate as a National
Instrument 43-101 defined resource, and the historical estimate should not be
relied upon.
The technical information
contained in this press release has been reviewed by Greg Hill, Certified
Professional Geologist, and a Qualified Person as defined by NI 43-101. The
Qualified Person has not classified historic estimates as current under NI
43-101. The historic estimates contained herein should not be relied upon. The
issuer is not treating them as current and historical estimates should not be
relied upon.
Harvest Gold Corporation is a
mineral exploration company working in Nevada, USA and Manitoba, Canada. In
Nevada, the Company is exploring the 100% optioned Rosebud Mine property, a
generative gold property at Garcia Flats in the South Carlin Trend and an
advanced property with a gold-silver resource at the Longstreet Mine, in
Northern Nye County. In Manitoba, Harvest is exploring three groups of claims in
the Rice Lake Gold Belt of south eastern Manitoba and at Assean Lake, Manitoba.
On behalf of the Board of Directors,
John Roozendaal, B.Sc.
President,
Harvest Gold Corporation
For More Information please
contact :
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Keith Patey
Director of Communications
Telephone: (604) 986-2020
Toll Free: 1-866-816-0118 |
Dan Boase,
First Canadian
Capital Corp.
dboase@firstcanadiancapital.com
Telephone: (416)
742-5600 ext. 232
Toll Free:
1-866-580-8891 |
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