|
|||||||
|
The Gold Springs project that straddles the Nevada Utah border is owned 100% by HDG. The Company initiated the 2013 drill program at Gold Springs on April 17. Forty-three have been drilled as of mid-August. The initial twelve holes where located in the Jumbo Zone in Utah while road and drill pad construction was completed at Grey Eagle on the Nevada side. These holes at the Jumbo Zone extended the gold mineralization to the east and south of the inferred resource reported at the end of Q1 of this year. The drill is now located at the Grey Eagle Zone in Nevada where this season's drilling is 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). This drilling has successfully expanded the mineralized zones.
The goal of the 2013 drill program is to expand the resource at Gold Springs beyond the announced 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).
On August 7th, The Company announced that it had closed the agreement to purchase Pilot Gold Inc.’s remaining interests in the Gold Springs Property. The Company now holds a 100% interest in the 74 square kilometre Gold Springs project, its flagship property.
On June 5, 2013 the Company reported results that included 26 metres that averaged 1.8 g/t gold equivalent (AuEq*) in drill hole J-13-005 from a new portion of the Jumbo Trend to the south of the present resource block called "Shark’s Mouth". The hole was lost while still in mineralization due to intersecting a void. J-13-005 (inclination -45o) was drilled from the same drill pad as J-13-006 (inclination -65o) which included similar mineralization within a wider 57 metre intersection averaging 0.9 g/t AuEq*. The Shark’s Mouth area is of considerable importance because it is located near the intersection of the north-south Jumbo Trend with the east-west structures and veins of the Shark’s Mouth Zone. Nine holes were reported in all. Highlights from these holes are shown below:
Jumbo Trend
|
Drill Hole
|
Azimuth
|
Dip
|
from (m)
|
to (m)
|
length (m)
|
gold (g/t)
|
silver (g/t)
|
AuEq* (g/t)
|
|
|
||||||||
|
J-13-001
|
270
|
-45
|
50.3
|
56.4
|
6.1
|
0.56
|
10.2
|
0.74
|
|
J-13-001
|
|
|
36.6
|
56.4
|
19.8
|
0.26
|
4.2
|
0.33
|
|
J-13-001
|
|
|
18.3
|
56.4
|
38.1
|
0.19
|
3.9
|
0.26
|
|
J-13-001
|
|
|
18.3
|
111.3
|
93
|
0.13
|
3.6
|
0.2
|
|
J-13-001 and 002 were drilled from the same pad
|
||||||||
|
J-13-002
|
270
|
-65
|
21.3
|
32
|
10.7
|
0.22
|
8.9
|
0.38
|
|
J-13-002
|
|
|
57.9
|
62.5
|
4.6
|
0.31
|
13.3
|
0.55
|
|
J-13-002
|
|
|
21.3
|
93
|
71.6
|
0.13
|
4.4
|
0.2
|
|
|
||||||||
|
J-13-003
|
270
|
-45
|
29
|
35.1
|
6.1
|
0.38
|
15.1
|
0.65
|
|
J-13-003
|
|
|
0
|
35.1
|
35.1
|
0.2
|
5.6
|
0.3
|
|
J-13-003
|
|
|
0
|
129.5
|
129.5
|
0.14
|
3.3
|
0.2
|
|
J-13-003 and 004 were drilled from the same pad
|
||||||||
|
J-13-004
|
270
|
-65
|
36.6
|
41.1
|
4.5
|
0.58
|
21
|
0.95
|
|
J-13-004
|
|
|
36.6
|
61
|
24.4
|
0.31
|
8
|
0.45
|
|
J-13-004
|
|
|
4.6
|
61
|
56.4
|
0.27
|
6
|
0.38
|
|
J-13-004
|
|
|
0
|
68.6
|
68.6
|
0.25
|
5.5
|
0.35
|
|
J-13-005 lost in an open void at 57.9 metres
|
||||||||
|
J-13-005
|
335
|
-45
|
32
|
57.9
|
25.9
|
0.97
|
45.2
|
1.76
|
|
J-13-005 and 006 were drilled from the same pad
|
||||||||
|
J-13-006
|
335
|
-65
|
56.4
|
67.1
|
10.7
|
1.1
|
36.4
|
1.74
|
|
J-13-006
|
|
|
32
|
67.1
|
35.1
|
0.65
|
30
|
1.18
|
|
J-13-006
|
|
|
32
|
89.9
|
57.9
|
0.5
|
22.6
|
0.89
|
|
|
||||||||
|
J-13-007
|
94
|
-45
|
47.2
|
67.1
|
19.9
|
0.48
|
35.9
|
1.11
|
|
J-13-007
|
|
|
10.7
|
67.1
|
56.4
|
0.38
|
18.5
|
0.7
|
|
J-13-007
|
|
|
10.7
|
83.8
|
73.1
|
0.35
|
17.3
|
0.65
|
|
J-13-007
|
|
|
0
|
140.2
|
140.2
|
0.28
|
13.4
|
0.52
|
|
J-13-007
|
|
|
0
|
158.5
|
158.5
|
0.28
|
12.4
|
0.49
|
|
J-13-007
|
|
|
0
|
172.2
|
172.2
|
0.26
|
11.6
|
0.47
|
|
J-13-007
|
|
|
114.3
|
172.2
|
57.9
|
0.27
|
9.81
|
0.44
|
|
|
||||||||
|
J-13-008
|
90
|
-45
|
12.2
|
19.8
|
7.6
|
0.45
|
22.1
|
0.84
|
|
J-13-008
|
|
|
42.7
|
59.4
|
16.7
|
0.69
|
19.7
|
1.03
|
|
J-13-008
|
|
|
89.9
|
111.3
|
21.4
|
0.59
|
19.1
|
0.92
|
|
J-13-008
|
|
|
0
|
117.3
|
117.3
|
0.29
|
9.3
|
0.45
|
|
J-13-009 hole collapsed and did not reach main target
|
||||||||
|
J-13-009
|
90
|
-45
|
19.8
|
33.5
|
13.7
|
0.13
|
4.5
|
0.21
|
(The true width of these intercepts is not known.)
*(AuEq) calculations reflect gross metal content using a metal price ratio of 57.14 Au/Ag and have not been adjusted for metallurgical recoveries.
In addition to the discovery of new mineralization in the Shark’s Mouth area described above in drill hole J-13-005, drill hole J-13-007, located within the Jumbo resource area itself, intersected mineralization to the east of the present known resource, expanding the mineralized zone in this area.
Following the drilling at Jumbo, the program shifted to the Grey Eagle zone in Nevada. The best results reported to date were obtained from GE13-05, the hole drilled furthest to the SW:
20 metres averaging 2.84 g/t AuEq*
within
61 metres averaging 1.07 g/t AuEq*
(hole ends in mineralization)
*(AuEq) calculations reflect gross metal content using a metal price ratio of 57.14 Au/Ag and have not been adjusted for metallurgical recoveries.
The holes reported from Grey Eagle were drilled along the 200 metre NE-SW block between GE-12-02 where the Company intersected 21 m of 5.6 g/t gold and 32.4 g/t silver in 2012 (See HDG-PR 12-14 dated August 16, 2012) and GE-13-05 described above. Since this hole is the furthest to the SW the mineralized zone continues to be open to potential expansion in this direction. Additional holes are planned to test this.
The following table lists results from the first six holes drilled this year in the Grey Eagle Zone and demonstrates the continuing expansion of mineralization in this resource area:
2013 Grey Eagle Drill Results
|
Drill Hole
|
Azimuth
|
Dip
|
from (m)
|
to (m)
|
length (m)
|
gold (g/t)
|
silver (g/t)
|
AuEq* (g/t)
|
|
|
GE-13-01
|
120
|
-45
|
80.8
|
82.3
|
1.5
|
2.32
|
13.90
|
2.56
|
highest 1.5m interval
|
|
GE-13-01
|
76.2
|
93.0
|
16.8
|
0.85
|
13.49
|
1.17
|
|||
|
GE-13-01
|
44.2
|
93.0
|
48.8
|
0.42
|
6.45
|
0.53
|
|||
|
GE-13-01 and GE-13-02 are from the same collar
|
|||||||||
|
GE-13-02
|
120
|
-65
|
59.4
|
61.0
|
1.5
|
2.26
|
15.40
|
2.53
|
highest 1.5m interval
|
|
GE-13-02
|
41.1
|
99.1
|
57.9
|
0.81
|
10.18
|
0.99
|
|||
|
GE-13-02
|
30.5
|
102.1
|
71.6
|
0.68
|
8.50
|
0.83
|
|||
|
GE-13-03
|
120
|
-45
|
71.6
|
73.2
|
1.5
|
3.01
|
20.10
|
3.36
|
highest 1.5m interval
|
|
GE-13-03
|
57.9
|
76.2
|
18.3
|
0.89
|
6.68
|
1.01
|
|||
|
GE-13-03
|
57.9
|
79.2
|
21.3
|
0.84
|
6.59
|
0.96
|
|||
|
GE-13-03
|
57.9
|
106.7
|
48.8
|
0.67
|
7.59
|
0.80
|
|||
|
GE-13-03
|
54.9
|
112.8
|
57.9
|
0.59
|
6.83
|
0.71
|
|||
|
GE-13-03 and GE-13-04 are from the same collar
|
|||||||||
| GE-13-04 |
120
|
-65
|
56.4
|
57.9
|
1.5
|
2.28
|
7.30
|
2.41
|
highest 1.5m interval
|
|
GE-13-04
|
47.2
|
64.0
|
16.8
|
0.84
|
5.24
|
0.93
|
|||
|
GE-13-04
|
44.2
|
68.6
|
24.4
|
0.63
|
4.11
|
0.70
|
|||
|
GE-13-04
|
44.2
|
123.4
|
79.2
|
0.31
|
4.49
|
0.38
|
|||
|
GE-13-05
|
120
|
-45
|
138.7
|
140.2
|
1.5
|
8.57
|
23.00
|
8.98
|
highest 1.5m interval
|
|
GE-13-05
|
132.6
|
144.8
|
12.2
|
3.64
|
27.53
|
4.12
|
|||
|
GE-13-05
|
129.5
|
149.4
|
19.8
|
2.49
|
19.78
|
2.84
|
|||
|
GE-13-05
|
88.4
|
149.4
|
61.0
|
0.92
|
8.67
|
1.07
|
Hole ended in mineralization
|
||
|
GE-13-05 and GE-13-06 are from the same collar
|
|||||||||
|
GE-13-06
|
120
|
-65
|
135.6
|
137.1 nbsp; |
1.5
|
4.98
|
24.40
|
5.40
|
highest 1.5m interval
|
|
GE-13-06
|
128.0
|
140.2
|
12.2
|
1.74
|
21.64
|
2.12
|
|||
|
GE-13-06
|
125.0
|
153.9
|
29.0
|
0.91
|
12.81
|
1.13
|
|||
|
GE-13-06
|
102.1
|
153.9
|
51.8
|
0.58
|
8.28
|
0.73
|
|||
|
GE-13-06
|
102.1
|
175.3
|
73.2
|
0.43
|
6.45
|
0.55
|
|||
(The true width of these intercepts is not known but is believed to be between 80-95 % of the length.)
*(AuEq) calculations reflect gross metal content using a metal price ratio of 57.14 Au/Ag and have not been adjusted for metallurgical recoveries.
As reported earlier (see HDG PR13-07, March 28, 2013), the total inferred resource reported at Gold Springs is 415,254 AuEq*. This is a combination of resources estimated at the Jumbo and Grey Eagle targets as shown in the following tables:
The Gold Springs Inferred Resource Estimate as of March 28, 2013**
|
Gold
|
Silver
|
(AuEq*)
|
|||||
|
Cut-off Grade (AuEq* g/t)
|
Tonnes
|
Grade
|
Troy Ounces
|
Grade
|
Troy Ounces
|
Grade
|
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
|
Jumbo Target Inferred Resource Estimate
| Cut-off Grade (AuEq* g/t) | Gold | Silver | (AuEq*) | ||||
| Tonnes | Grade (g/t) |
Troy Ounces | Grade (g/t) |
Troy Ounces | Grade (g/t) |
Troy Ounces | |
| 0.3 g/t | 16,473,441 | 0.45 | 239,275 | 11.0 | 5,843,533 | 0.65 | 341,683 |
| 0.6 g/t | 6,334,657 | 0.74 | 151,118 | 15.0 | 3,058,804 | 1.01 | 204,713 |
Grey Eagle Target Inferred Resource Estimate
|
Cut-off Grade (AuEq* g/t)
|
Gold
|
Silver
|
(AuEq*)
|
||||
|
Tonnes
|
Grade
|
Troy Ounces
|
Grade
|
Troy Ounces
|
Grade
|
Troy Ounces
|
|
|
0.3 g/t
|
2,899,643
|
0.67
|
62,482
|
6.8
|
632,617
|
0.79
|
73,570
|
|
0.6 g/t
|
1,066,359
|
1.23
|
42,027
|
10.6
|
364,092
|
1.41
|
48,406
|
Source: (HDG PR13-07, March 28, 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.
** The qualified person who prepared the technical information regarding the resource estimate was Dr. A. Armitage, PGeol of GeoVector Management Inc., who is independent of the Company. Mineral resources that are not mineral reserves do not have to demonstrate economic viability, A block model was constructed using 5-metre by 10-metre by 10-metre blocks in the x, y and z directions respectively. Grades for gold and silver were interpolated into the blocks by the inverse distance squared method using a minimum of two and maximum of 10 composites to generate block grades. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political or other issues which would materially affect the resource estimate. For more details regarding this resource estimation, please see the Technical Report filed on SEDAR on May 9, 2013 and on the Gold Springs page at www.hdggold.com.
| Click on image to enlarge | |||
|
|
|
|
|
|
Location Map |
Target Areas |
Jumbo Block Model |
Grey Eagle/Homestead ZTEM 463 |
 |
 |
 |
 |
| Jumbo Area 3D Drill Holes | Grey Eagle Block Model | Jumbo Drill Holes Locations (see 6-5-2013 press release) |
Jumbo Cross Section A-A' |
 |
 |
 |
Gold Springs NI-43-101 Report May 1, 2013 Amended September 26, 2013 |
|
Jumbo Cross Section B-B' |
Grey Eagle Trench Photo One | Photo of Gold Springs up to 100 g/t gold outcrop |
|
 |
 |
 |
 |
| Grey Eagle Drill Holes Locations (see 9-10-13 press release) |
Grey Eagle Cross Section Five (see 9-10-13 press release) |
Grey Eagle Cross Section Six (see 9-10-13 press release) |
Grey Eagle Cross Section Eight (see 9-10-13 press release) |
 |
 |
 |
 |
|
Grey Eagle Surface Geology |
Grey Eagle Crosss Section Three (see 11-11-13 press release) |
Grey Eagle Crosss Section Four (see 11-11-13 press release) |
Grey Eagle Crosss Section Six (see 11-11-13 press release) |
