Dear Harvest Gold Followers,

The Valley target has not been the focus of much of our Rosebud communications thus far. This two page piece is designed to help you better understand its importance and point out its potential to make the Rosebud Mine project a much bigger and more valuable asset for HVG.

The Valley target is blind, covered by thin alluvium, so understanding the geology has been very difficult for past explorers. We are just beginning to unravel the geology and it is clear that in many aspects it is similar to the Rosebud mine geology; and the Valley target sits along strike of one of the major structural controls in the district. Our improved understanding is based on past drilling, but, now we see the results of the application of our structural model for the district, and the results from our “new technology” soil geochemistry which is capable of “seeing through” the alluvium cover.

The dimensions of the Valley target are similar to those of the mine footprint, which is just 500 metres to the east. Anomalous to ore grade gold and silver intercepts have been drilled in nearly every one of the 20 historical holes in the target, with a high of 3 metres (10 ft) of 3.75 g Au/t in hole WW-1 drilled in 1994. And now our phase one drill program has produced the best intercept ever at the Valley target in hole HGR-10 (12.2 m of 1.81 g Au/t). The HGR-10 intercept is approximately 100 metres laterally from WW-1 and importantly is very shallow, only 20 metres (55 ft) below surface. The mineralized zone that is emerging is open in all directions and has plenty of room to grow into a large, shallow gold and silver resource. We believe it has the potential to contain a million ounces, or more, near surface.

IMAGE 1 - Geologic map showing Valley target and Mine Footprint.

IMAGE 2 - Cross section looking North through Valley target.


Finally, I’d like to be more specific about the important shallow intercept in Hole HGR-10. It intersected 12.2 metres of 1.81 g Au/t approximately 500 metres to the southwest of the mine footprint (originally reported August 25, 2010). Within this 12 metre gold intercept, there are several high grade 1.5 metre (5 ft) samples, the highest being 5.5 g Au/t and another sample containing 58.6 g Ag/t. A lower intercept is more silver rich, with silver values up to 124.5 g Ag/t within a 20 metre (55 ft) thick intercept grading 31.5 g Ag/t, 0.21 g Au/t (0.69 g AuEq/t). The table below shows the individual five foot sample results within the most significant intercepts. Mineralization begins approximately 55 feet below surface and includes high grade material, which is particularly encouraging because this suggests that high grade pods may be hiding at shallow depths.

HGR-10 most significant intercepts.

Next week, we will be describing the Unconformity target in greater detail and the following week we will revisit the Rosebud Mine footprint and the surrounding bulk tonnage halo after integrating the phase one drill program results.

Best Regards,

Greg Hill,

President, Harvest Gold, USA