Today, we announced the results of holes 1 through 5 of our just completed 12 hole drill program, on our 100% owned Rosebud Mine property. This is the first drilling undertaken by Harvest Gold.
The results of the first five holes demonstrate that significant mineralization remains to be found on this property, and importantly, that the mineralization is of at least two different types: a) near surface bulk tonnage mineralization; and, b) deeper high grade mineralization. These represent 2 of the 4 types of mineralization the property is prospective for and these first results are from only a few of the target areas known to exist on the property.
The Company will now begin the search for a qualified independent engineering firm to calculate a NI 43-101 resource estimate. Much gold was left behind at Rosebud after the years 1997-2000, when the mine was in operation, because it was selling for less than $300 an ounce. Today's drill results begin the process of adding to that total.
Rosebud is located 5 miles (8km) south of the large Hycroft deposit being mined by Allied Nevada (ANV:TSX ; ANV: AMEX). The mineralization being produced there is from a bulk tonnage mine with near surface gold mineralization, similar to that in the intersection announced today of 114 m grading 0.5 gram per tonne gold.
The higher grade silver mineralization, discovered at depth, occurs where two large rock masses come into contact called an unconformity. This is particularly interesting as this geological setting has the potential of hosting large volumes of high grade mineralized rock which our intersection of 12 m silver, with a gold equivalent of over 10 grams per tonne, seems to support.
We knew historical operators left a lot of gold in the ground due to the very low gold price at the time. These first holes support this claim and also indicate that new high grade mineralization exists at depths below the former mine.
Please contact us if you wish to discuss the Rosebud project.