London, 29th September, 2008: Hidefield ("Hidefield" or
the "Company"), the gold company with advanced projects in
Argentina, Brazil and Alaska, including the Don Nicolas gold project in
Santa Cruz Province, Argentina announces its unaudited interim results for
the six months ended 30 June 2008.
HIGHLIGHTS
- Additional
drill results from Phase III drill programme confirmed impressive gold
mineralisation on Sulfuro and Reyna veins in the LaPaloma sector,
Coyote vein systems in the Martinetas sector and Trofeo vein in the
Microondas sector of the Don Nicolas gold project.
- Sale
of residual Groundhog/Trefi coal interest for C$250,000.
- �1,000,000
convertible loan facility
arranged.
- Joint
venture negotiations near to finalisation on Cata Preta gold project,
Brazil.
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 Nicolas 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% interest in the Golden Zone and South
Estelle mineral projects and an option to earn up to 100% interest, subject
to a 2.5% 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 joint venture, 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
Ken Judge, Chairman: + 44 773 300 1002
Investor Relations
Paul Ensor (London): + 44 20 79762889
Jon Bey (North America): + 1 800 689 2599
Hanson Westhouse Limited (Nomad)
Tim Feather / Matthew Johnson: + 44 113 246 2610
Landsbanki Securities (UK) Ltd (Broker)
Tom Hulme: + 44 20 7426 9000
Executive Chairman's Statement
I am pleased to report to you on the progress your Company made
during 2008 to date and provide the unaudited interim results for the six
months ended on 30 June, which have neither been audited nor reviewed
pursuant to guidelines issued by the Auditing Practices Board.
While the Board is pleased with the considerable progress we have
made with our exploration activities in Argentina and the business
development of our associate companies, this progress comes at a time of considerable
turmoil in the world's capital markets.
This progress has created significant value in our own projects,
especially in Patagonia and in the investments we hold in associate
companies. Although this value does not seem to be reflected by an increasingly
risk averse investment market, this value is recognised by other companies
operating in the resources sector. As a consequence, we have seen a rise in
expressions of interest in the establishment of joint ventures on projects
owned by the Group and its associate companies. While the turmoil in the
world's capital markets continues it is likely the Group will need to seek
additional financing through joint ventures or other tie ups with industry
partners if we are to continue pressing ahead with our exploration
activities.
Argentina
During the first half of 2008 we continued to focus our attention on
drilling and exploration activities designed to advance the Don Nicolas
gold project towards a decision on the possible future development of a
gold mine on our extensive licence position in East Santa Cruz Province,
Patagonia, Argentina.
The Don Nicolas gold project initially comprises the "La Paloma" and
"Martinetas" sectors of our extensive property. These areas have
been the focus of all of our drilling activity to date which has provided
us with the basis for the completion of an independently assessed initial
Resource Statement for the project. This confirmed a mineral resource of
1,214,000 tonnes at 7.7
grammes per tonne ("gpt") gold for 301,600 ounces
of gold estimated using a high grade cut of 90 gpt gold (9.82 gpt gold and 383,400 ounces
gold if no high grade cut was applied). The mineral resource estimate was
prepared by Resource Evaluations Pty. Ltd. of Perth, Australia, an
independent consultant engaged for the purpose of completing the report,
and was prepared in compliance with the Australasian Code for Reporting of
Mineral Resources by the Joint Ore Reserves Committee ("JORC").
Our Phase III drill programme was concluded during the first half of
2008 with drill results published during the first half of 2008 providing
encouragement that we should expect a further expansion of the initial
resource estimate on the Don Nicolas gold project.
The Group's Scoping Study, completed just prior to the end of 2007,
was designed to assess the economic viability of the development of a mine
on the Sulfuro deposit, representing the most advanced of the gold deposits
and initially representing approximately 65% of the resource identified on
the Sulfuro and Martinetas sectors of the Don Nicolas gold project.
Encouragingly, the Scoping Study confirmed that the Group's Sulfuro
deposit was already of sufficient size to support the development of a
profitable mining operation and this conclusion is expected to have been
further enhanced by the results of the recently completed Phase III drill
programme.
Accordingly and while continuing to focus our exploration activities
on the Sulfuro and Marinetas sectors of the Don Nicolas gold project, we
have added to our already substantial licence position in the East Santa
Cruz Province, increasing our holdings to approximately 230,000 hectares.
We are now evaluating other high priority exploration target areas
identified across our extensive license portfolio which occupies a
substantial and central position in an area that has increasingly attracted
the exploration attention of a significant number of international gold
exploration and mining companies.
Brazil
We have also made excellent progress with discussions on a joint
venture for the Cata Preta project in Brazil and expect to be in a position
to shortly announce the successful completion of those discussions. The
Group's Sumidouro Dome project just north of the Cata Preta project remains
under the management of our joint venture partner which has been carrying
out field work to evaluate the exploration potential of that property.
North America
The Group continues to actively pursue discussions with potential
joint venture partners for the Golden Zone project in Alaska, and we remain
optimistic that we can successfully conclude a joint venture to continue
advancement on the exploration targets we have identified on this promising
property.
The Group successfully disposed of its remaining 5% interest in the
Groundhog/Trefi coal licenses for gross proceeds of �125,590.
Associate Companies
Columbus Gold Corporation (currently approximately 19% owned)
continued to expand its portfolio of prospective exploration projects in
Nevada, Arizona and Utah, increasing the portfolio to 34 projects as of the
date of this report of which 14 have now been joint ventured with suitably
qualified and committed industry participants, including several of the
world's largest gold mining companies.
Exploration activities by Alto Ventures Limited, the Company's other
significant associate company investment (currently approximately 14% owned
following a C$2.65 million capital raising in Autumn 2007, and the sale of
a portion of the Group's shareholding) has been focused on the now 100%
owned Despinassy gold project in the Abitibi greenstone belt, near Val
d'Or, Quebec and the Mud Lake, Cote-Archie Lake and Coldstream projects in
Ontario, Canada. Ongoing exploration on these projects confirmed the
excellent exploration potential within Alto Ventures' extensive exploration
portfolio including within the Beardmore-Geradlton camp which continues to
attract significant exploration and joint venture interest, including the
establishment of joint ventures on several of Alto's properties.
Interim Results
The unaudited results of our activities and transactions completed
during the period under review and ended 30 June 2008 reflect a moderate
decrease in the level of our exploration activities on our Don Nicolas gold
project in southern Argentina which resulted in a consequential reduction
in the loss before taxation of �423,214 (2007: �730,732).
Corporate Outlook
Your board is making every effort to ensure that the Group remains
funded to continue exploration activities on its priority projects, but
shareholders will understand that the pace of our progress with those
activities will ultimately be determined in large part by the availability
of finance. It is difficult to predict at this time how the present turmoil
in world capital markets will affect our efforts to secure the finance our
activities will require, but failure to secure this finance in a timely
fashion will undoubtedly adversely impact or disrupt the progress of our
exploration for some time and could result in the decision to sell some of
our properties and projects which in other circumstances, we would much
prefer to explore ourselves.
Despite the negative outlook on the world's capital markets my
colleagues on the Board and our talented associates in North and South
America have remained focussed on advancing our project and corporate
interests. We are assisted in this effort by John Prochnau, the Company's
founder, who retired from the Board after the recent Annual General Meeting
at the end of July but continues to act as the Group's principal geologic
consultant. Following John's retirement from the Board, we were pleased
that Sean McGrath, our CFO, accepted appointment to replace John on our
Board, and on behalf of my colleagues I welcome Sean to the Board.
On behalf of the Board I wish to thank my colleagues for their
continuing efforts and our shareholders for their support, and while the
outlook for the junior resources sector remains difficult, I look forward
to reporting to you on the progress of our activities during the remainder
of 2008.
Kenneth P Judge
Chairman
29 September 2008
For the latest Financial Statements,
visit the Hidefield website:
http://www.hidefieldgold.com/s/FinancialStatements.asp