Harvest Gold drills eight holes at Lesavage North

2008-03-20 15:47 ET - News Release

Mr. Keith Patey reports

HARVEST GOLD NEARS COMPLETION OF DRILLING AT LESAVAGE NORTH PROPERTY, RICE LAKE GOLD BELT, MANITOBA; EXPLORATION AGREEMENT WITH WILDCAT EXPLORATION

Harvest Gold Corp.'s winter exploration program at the Lesavage North project is nearing completion. Eight of a planned nine holes are finished and the ninth hole is under way. In total, the program will include approximately 2,000 metres of drilling. The Lesavage North property is located in the Rice Lake gold belt, approximately 20 kilometres east of the mining community of Bissett, Man.

One drill hole has tested the eastward extension of the mineralization encountered in zone 3 discovered during the 2006 drill program. Two holes tested the mineralization intersected in the Red Hill zone in 2005 and six holes were drilled on geochemical and IP and magnetic survey geophysical targets within the swampy area both south and east of the Red Hill zone.

The core will be logged in detail and sampled in April and assay results released when the processing is completed in May.

The Red Hill gold zone was discovered in 2005 and previous drilling has resulted in intercepts of up to 7.5 grams per tonne (g/t) over two metres and several other intervals as high as 3.4 g/t gold in adjacent holes (see news in Stockwatch on Jan. 18, 2006).

The Wanipigow fault zone, present in a large swamp south of Red Hill, is the major structural feature in the region and can be traced eastward for several hundred kilometres where it passes through both the Red Lake gold camp and smaller Pickle Lake gold camp in Ontario. It contains an extensive zone of strong resistivity and underlies the swamp where the property vendor and the company have identified strong geochemical gold anomalies. Gold drill targets, which are only accessible in winter when the swamp is frozen, were one focus of this program.

The gold discovered at Red Hill is associated with very fine-grained pyrite and arsenopyrite within a zone of ankerite (iron-magnesium carbonate) and silica alteration, which is a common type of alteration found in association with many gold deposits. Other occurrences of the same type of alteration are located in a large fold structure and the regional shear zone that runs the entire length of the property.

The company controls a large segment of rocks that have been interpreted by company and government geologists to be equivalent to the Balmer sequence at Red Lake, which hosts much of the gold in the Red Lake gold camp. In addition, the major crustal break on the property extends to the Red Lake gold camp about 80 km to the east.

Joint exploration agreement with Wildcat Exploration Ltd.

A letter of intent has been negotiated with Wildcat Exploration, which will allow joint exploration of the Morore and Gudroc claims which are within the Lesavage North property and are located along the north claim boundary which borders Wildcat's Jeep property.

The rocks that host the Jeep gold deposit on the neighbouring Jeep claims have been mapped onto the company's Lesavage North property. Exploration by Wildcat Exploration has identified the rock unit as being prospective not only for gold mineralization, but also for nickel-copper-platinum group element mineralization.

The company has negotiated terms for jointly exploring the Morore and Gudroc claims which cover 405 hectares of the total 1,912-hectare, 12-claim Lesavage North property.

According to Wildcat Explorations news release earlier today:

The company and its geophysical consultants interpret that the location and extent of the IP anomalies are controlled by two previously unrecognized shear zone trends that crosscut the 110-degree-striking shear zones that dominate this area. The intersections of these shear zones are excellent drilling targets for sulphides in the gabbroic host rock which may contain gold and Cu-Ni-PGE as demonstrated in the company's 2007 drilling (see Wildcat news in Stockwatch on April 3, 2007, and July 12, 2007). Analysis and modelling of the geophysical results indicate the existence of a number of near-surface targets and additional targets at depth.

Projection of the survey results, together with a recently completed airborne Dighem and mag survey over the company's property, indicates a potential for additional intersecting shear zones on certain properties immediately south of the company's claims. As a result Wildcat and Harvest Gold signed a letter of intent allowing Wildcat to earn an interest in these properties. Under the terms of the letter the company may earn up to one-half of the interest held by Harvest Gold in the Morore and Gudroc claims which cover 405 hectares adjacent to the company's current Jeep claims. The subject claims are part of a larger claim group in which Harvest Gold is earning a 50-per-cent interest from a private individual. Wildcat will earn its interest in the subject claims by completing linecutting and an IP survey at its cost and by financing 50 per cent of the first $250,000 of drilling on the optioned claims.

The contents of this press release have been reviewed by the company's vice-president of exploration, Dr. George Gale, who is a qualified person as defined by National Instrument 43-101.