Scoping Study and Drilling Results
19 December 2007 - 6:00PM
UK Regulatory
HIDEFIELD GOLD PLC
DON NICOL�S SCOPING STUDY
HIGH GRADE GOLD REPORTED IN
INITIAL PHASE III DRILLING RESULTS
Hidefield Gold Plc (AIM:HIF) ("Hidefield" or the "Company"), the gold company
with advanced projects in Argentina, Brazil and Alaska, is pleased to report on
the preliminary conclusions of the scoping study report for the Don Nicol�s
gold project in Santa Cruz Province, Argentina. In addition the Company is
pleased to report initial assay results from the first three core holes of the
ongoing Phase III drilling programme at the Don Nicol�s project which commenced
in late October 2007.
The initial drill results included an intercept of 11.71 grammes per tonne
("gpt") gold (10.74 gpt cut to 34.3 gpt) along 6.35 metres from S-D07-34 in the
Sulfuro deposit. Importantly, this intercept extends the gold mineralization in
the South oreshoot at Sulfuro a further 25 metres south of earlier drilling.
Scoping Study
The scoping study has confirmed the economic viability of the development of a
mine on the Sulfuro deposit, representing the most advanced of the deposits on
the Don Nicol�s project. The Sulfuro deposit currently represents approximately
65% of the resource identified on the Sulfuro and Martinetas sectors of the Don
Nicol�s project.
As announced on 29 August 2007, the Sulfuro deposit resource contains
approximately 195,500 ounces of gold within 729,950 tonnes of ore at a grade of
8.33 gpt gold. The scoping study has now confirmed that mining of this deposit,
whilst involving suboptimal operating parameters, would be profitable for the
development of an initial three year mining operation producing approximately
50,000 ounces of gold per year.
The conceptual design for the Don Nicol�s mine operation confirms that initial
production would be from an open pit followed by underground development and
processing in a conventional leaching plant. Metallurgical test work, carried
out by AMMTEC Laboratories in Perth, indicates excellent gravity plus leach
recoveries of 98+ per cent. for oxidised ores and acceptable leach recoveries
of 84+ per cent. for sulphide ores at a grind size of 75 microns. Reagent
consumption for all ore types was also confirmed as entirely satisfactory.
Key economic parameters for this design included an initial estimated capital
cost of approximately US$27.7 million for a mine development using a 250,000
tonnes per annum processing plant.
Management is very satisfied with positive outcome of the Don Nicol�s scoping
study which was conservatively assessed and based on only the Sulfuro resource
which remains open along strike and at depth and represents a very limited part
of the overall project potential. The study provides a sound basis for the
ongoing evaluation of the viability of the project and the timing of a
development decision. In the meantime the Company will continue to increase the
resource base through the current Phase III drilling programme and ongoing core
drilling programmes.
Drilling results
Assay results from the initial three core holes of the Phase III drilling
programme included an intercept of 11.71 gpt gold (10.74 gpt cut to 34.3 gpt)
along 6.35 metres from S-D07-34 in the Sulfuro deposit. Holes S-D07-34 to 36
all intercepted strong epithermal vein mineralization at up to a further 50
metres along strike to the south and 30 metres below the deepest level of
earlier drill holes. The Sulfuro vein has now been tested by drilling for a
strike length of 850 metres, through a vertical range of 190 metres and remains
open along strike and at depth.
Following is a summary of results.
Drill Hole From (m) To (m) Interval (m) gpt Au gpt Ag
S-D07-34 126.15 127.30 1.05 13.73 34.54
136.90 143.25 6.35 11.71 29.98
(10.74)
incl.
136.90 139.85 2.95 22.24 58.58
(20.15)
incl.
137.85 139.85 2.00 28.71 50.61
(25.63)
S-D07-35 211.20 215.15 3.95 2.83 22.57
inc.
2.12.10 214.65 2.55 3.70 30.13
219.20 223.50 4.30 2.06 30.18
incl.
220.80 222.90 2.10 3.00 49.09
S-D07-36 170.75 173.00 2.25 2.22 2.21
incl.
171.60 172.55 0.95 3.78 2.53
Notes: Values in brackets represent grades cut to 34.3 gpt.
True thickness equals 75-80% of core intervals.
The current Phase III drill programme has now stopped for the holiday break and
will resume on 7 January 2008. To date nineteen holes totaling 2,428 metres,
including S-D07-34 to 36 reported in this announcement, have been completed on
the Sulfuro deposit and another six holes totaling 461 metres, have been
completed 150 metres to the west of Sulfuro on the Rocio deposit which has not
been previously tested by drilling. Assay results of these holes are expected
to be received from the beginning of next month.
Drilling will continue at Sulfuro in the New Year with additional drilling also
planned for extensions of open oreshoots within the Coyote Norte, Coyote Sur
and Cerro Oro vein systems in the Martinetas sector of the project area and for
the Trofeo and Goleta veins in the Microondas area.
John Prochnau BSc (Mining Engineering), MSc (Geology), Hidefield's Chief
Executive Officer, has reviewed and approved the content of this announcement.
Commenting on these results, Kenneth Judge, Chairman said "We are pleased that
the preliminary conclusions of the scoping study have confirmed the parameters
for the initial design of an economically viable mine on this property and this
report will provide valuable information for our future mine development
planning. We are also very pleased that the Phase III programme has got off to
such a good start with the reporting of further high grade intercepts on this
new extension to the Sulfuro vein. We are optimistic that the continuation of
these excellent drill results will add important additional resources to the
Sulfuro deposit which was the principal focus of the scoping study."
ABOUT HIDEFIELD
Hidefield is a gold company with a focus on the acquisition and development of
highly prospective projects in North and South America. The Company has a
diverse portfolio of projects. In South America and Alaska the projects are
directly held by Hidefield, while those projects in Canada, Nevada and Arizona
are held in independent, self-funded associate companies.
Hidefield's substantial direct gold project interests are principally in
Argentina where the Company is actively exploring the advanced stage Don
Nicol�s gold project in Santa Cruz Province with a mineral resource estimate,
prepared in compliance with JORC reporting standards, of 1,214,000 tonnes at
7.7 gpt gold containing 301,600 ounces of gold using a high grade cut of 90 gpt
gold (383,400 ounces of gold at 9.8 gpt without high grade cut off).
The Company is exploring an extensive portfolio of gold exploration licences in
the Patagonian provinces of Santa Cruz and Chubut, Argentina while in Brazil
the Company's activities are focused on the evaluation of the advanced stage
Cata Preta gold project near the historic city of Ouro Preto in the productive
Quadrilatero Ferrifero region of Minas Gerais state.
In Alaska, Hidefield has a 60 per cent. interest in the Golden Zone and South
Estelle mineral projects and an option to earn up to 100 per cent. interest,
subject to a 2.5 per cent. NSR, by making a series of staged cash, share and
property expenditures. The Golden Zone property is located 240 km north of
Anchorage and contains a measured and indicated resource of approximately
253,000 ounces of gold, 1,180,000 ounces of silver and 6,114,000 pounds of
copper. The South Estelle property, now in a joint venture with International
Tower Hill Mines Ltd, is located approximately 175 km northwest of Anchorage
and 230 km southwest of the Golden Zone project and adjoins Kennecott's
Whistler copper-gold property.
For more information on Hidefield go to www.hidefieldgold.com
For further information on this release, please contact:
Hidefield Gold Plc + 44 773 300 1002
Ken Judge, Chairman + 44 20 7976 2889
Investor Relations
Paul Ensor
Hanson Westhouse Limited (Nomad) + 44 113 246 2610
Tim Feather / Matthew Johnson
Landsbanki Securities (UK) Ltd (Broker) + 44 20 7426 9000
Tom Hulme
END
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