We fired our questions at Richard Doran, Executive Vice President of High Desert Gold (HDG.V).
The company’s flagship is the Gold Springs project in Nevada and Utah. It is 82% owned by HDG and 18% by Pilot Gold Inc. (“PGI”), with HDG as the managing partner. The Company began the 2012 drill program at Gold Springs on April 25th.
The Gold Springs Project is on the border of Nevada and Utah – two mining-friendly states – and will be a heap leach operation in the future. The mineralization starts at surface, so we don’t expect high capital expenditures.
High Desert Gold is gearing up for their 2013 exploration program which will consist of approximately 100 drill holes and should result into an updated resource estimate early next year. If you keep in mind the current resource estimate was based on 70 drill holes, we think the company should be able to have 750koz AuEq+ in the next resource estimate after drilling an additional 100 holes.
- What are your exploration plans for this year?
- We are planning on drilling approximately 100 reverse circulation drill holes at Gold Springs with the focus on expanding the resource by year end beyond the 415,000 AuEq inferred resource we recently announced. The drilling will focus on the Jumbo and the Grey Eagle targets and a possible other zone to be selected from the remaining 16 targets.
- As you’ll drill an additional 100 holes, would it be fair to assume you’re targeting 750koz AuEq in the next resource update?
- We can’t say that officially at this point but that is probably a reasonably conservative resource target at this point.
- Can you tell us more about infrastructure at the project?
- There are no towns immediately that will be disturbed by developing Gold Springs. Cedar City in Utah is the closest large city 50 km to the east. Cedar City has a population of approximately 25,000. There is an active rail line nearby and electric power is only 15 km away. There is water available at the project.
- The Gold Springs project spreads out over two states (Nevada and Utah), does this cause administrative difficulties? How will environmental studies and mining permits be decided?
- We currently work with two Federal Bureau of Land Management offices in both states and receive our drilling permits from each of these offices separately. Eventually, for mine development purposes, one of these offices will be designated as the lead agency and will handle the permitting issues.
- Will you do any work at San Antonio this year, or will you focus on Gold Springs?
- We are fully focused on Gold Springs and will not be doing any work at San Antonio. There is interest from other companies in San Antonio and we are currently showing it to a number of companies.
- Will you maintain your 30% interest in Highvista Gold?
- That is our current plan but we are opportunistic and we may sell some shares at an appropriate time and price level as a means of raising necessary money which will be non-dilutive to our shareholders.
- What’s your current cash position?
- We will be announcing official numbers shortly but we have between US$4-4.5 million in the treasury.
- Can you tell us something more about the management team and their achievements in the past?
- The two senior geologists and I have over 100 collective years of experience in the mining industry. Here is some background on the two senior geologists with the Company:
Ralph Fitch: President and CEO;
- Graduate of Imperial College, University of London
- Founder and former CEO of General Minerals Corporation (now Sprott Resource Corp.) TSX: SCP
- Founder of South American Silver Corp. TSX: SAC
- Founder of High Desert Gold Corporation TSX.V: HDG
- Former Chief Geologist for Chevron’s minerals division with over 40 years experience in minerals exploration
- Key role in Collahuasi copper porphyry discovery in Chile whilst with Chevron: the world’s third largest copper mine.
- The Malku Khota silver-indium discovery (SAC) now nationalized by Bolivian Government: Indicated resource of 230.3 million ozs silver, 1,481 tonnes of indium and 1,082 tonnes of gallium and an Inferred resource of 140 million ozs silver, 935 tonnes indium and 1,001 tonnes gallium.
- The Escalones Porphyry Copper deposit (SAC): Inferred resource of 3.8 billion lbs of copper and 610,000 oz of gold and 16.8 million ozs silver.
- Former VP Exploration for General Minerals
- Former senior geologist for Cambior, St. Joe, Duval and Noranda
- Associated with gold discoveries at Bullfrog, NV and Livengood, Alaska (plus 5M oz gold)
Randall Moore: Executive VP of Exploration;
- Why should investors invest in High Desert Gold?
- The Company is well financed and is planning a 100 drill hole program this year and there is a high probability that the resource at Gold Springs will grow significantly. There will be a steady stream of news between now and the end of the year from the drill results. Investors should note that the greatest shareholder gains are frequently associated at the time of discovery. The Company management firmly believes that we are on the cusp of discovering a new gold district at Gold Springs.
Disclosure: High Desert Gold Corp. is a sponsoring company. Please see our disclaimer for current positions.