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Highgold Mining Inc
Symbol HIGH
Shares Issued 59,573,504
Close 2021-09-13 C$ 1.30
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Highgold drills 4.3 m of 20 g/t AuEq at Johnson

2021-09-14 06:16 ET - News Release

Mr. Darwin Green reports


Highgold Mining Inc. has released assay results for the first drill hole of the 2021 field season from expansion drilling at its flagship 750,000-ounce 10.9-gram-per-tonne-gold-equivalent Johnson Tract polymetallic gold project in south-central Alaska.

Drill hole JT21-123 was designed to test along strike and down plunge from the JT deposit as a nominal 100-metre stepout from the past year's expansion drilling on the northeast side of the deposit. High-grade mineralization was successfully intersected in hole JT21-123, building on the success of the 2020 drill program and extending the total strike length to 600 metres.

Drill highlights -- JT deposit expansion (JT21-123):

  • 13.1 grams per tonne gold, 200 g/t silver, 4.92 per cent zinc, 2.04 per cent lead and 0.35 per cent copper (20 g/t gold equivalent) over 4.3 m, including:
    • 19.0 g/t Au, 242 g/t Ag, 7.10 per cent Zn, 2.91 per cent Pb and 0.50 per cent Cu (28 g/t AuEq) over 2.8 m.

"This is a great start to the 2021 drill program," commented president and chief executive officer Darwin Green. "Our first drill hole of the season has intersected strong precious and base metal mineralization in a large stepout from last year's drilling, expanding the total strike length of JT deposit mineralization by 15 to 20 per cent to 600 metres. In addition to the excellent gold grades, the intersection includes some of the highest silver grades documented to date at the JT deposit and is developed within a mudstone host -- features often found in gold-rich VMS deposits. We are already designing follow-up holes and are excited to see how this new variation in the mineralization style at the JT deposit develops as we continue to test at depth and along strike."

Discussion of current JT deposit expansion results

Assay results reported today include an intersection from expansion drilling at the JT deposit from hole JT21-123 -- the first drill hole completed from the 20,000-metre Johnson Tract drill program. The mineralization encountered in hole JT21-123 is hosted within a fine-grained mudstone unit (379.7 to 384.0 metres) and is similar to the VMS-style (volcanogenic massive sulphide) mineralization reported in the past season in hole JT20-114 (7.8 metres at 9.8 per cent zinc equivalent) located 600 metres northeast of the JT deposit (see company press release dated April 3, 2021). The mineralization in hole JT21-123 is characterized by fine-grained disseminated sphalerite-galena-chalcopyrite-pyrite within a mudstone stratigraphically overlying strong anhydrite-altered dacite lapilli tuff, which is characteristic of the main JT deposit. This development continues to highlight the overall exploration potential for the project.

The location of the stepout hole in relation to the JT deposit is presented on a longitudinal section in an image on the company's website. The Au-Cu-Zn-Ag-Pb mineralization associated with the JT deposit has now been defined over a total strike length of 600 metres and remains open along strike to the northeast and southwest and at depth.

AuEq is calculated using nominal current spot metal prices of $1,780/ounce gold, $24/oz silver, $4.25/pound copper, $1.35/lb zinc and $1.05/lb lead and assumed recovery of 90 per cent for all metals. True thickness for the intersection in hole JT21-123 is not well established, with a best estimate of 70 per cent to 80 per cent of drilled width.

Current initiatives and 2021 program update

Three diamond drill rigs are currently operating on the project in conjunction with a regional geological mapping and geochemical sampling program, ground-based induced polarization (DCIP) geophysical surveying, and a phase 1 metallurgical sampling program. Assays results will be released on a continuing basis pending review and meeting company quality assurance/quality control protocols. An updated mineral resource estimate is planned for the JT deposit in early 2022, following the completion and receipt of all assays from the 2021 drill program. The new resource estimate will incorporate new drilling completed in 2020 and 2021.

Over 10,000 metres of a planned 20,000 metres have been drilled to date. This includes 11 holes at JT deposit area targets and 15 holes at DC prospect targets, one of several regional prospects that define a 12-kilometre-long mineralized trend at Johnson Tract. The JT deposit expansion program includes 100-metre nominal stepouts from the known extent of mineralization along strike to the northeast and southwest, down plunge, and within the recently defined Footwall copper zone. For additional detail on 2021 drill targets please see company press release dated June 23, 2021. DCIP geophysical surveying, designed to detect sulphide mineralization, is continuing and has to date completed approximately 28 line kilometres of a planned 40 line km survey. Drilling at Johnson Tract is scheduled to continue through the end of October. The ability to complete the full 20,000 metres this season is contingent on weather and drilling conditions. Upon completion of the Johnson Tract program, drilling is expected to commence at Highgold's Ontario gold projects.

About the Johnson Tract gold project

Johnson Tract is a polymetallic (gold, copper, zinc, silver, lead) project located near tidewater, 125 miles (200 kilometres) southwest of Anchorage, Alaska, United States. The 21,000-acre property includes the high-grade Johnson Tract deposit and at least nine other mineral prospects over a 12-kilometre strike length. Highgold acquired the project through a lease agreement with Cook Inlet Region Inc. (CIRI), one of 12 land-based Alaska native regional corporations created by the Alaska Native Claims Settlement Act of 1971. CIRI is owned by more than 9,100 shareholders who are primarily of Alaska native descent.

Mineralization at Johnson Tract occurs in Jurassic-age intermediate volcaniclastic rocks and is characterized as epithermal-type with submarine volcanogenic attributes. The JT deposit is a thick, steeply dipping silicified body (20 m to 50 m average true thickness) that contains a stockwork of quartz-sulphide veinlets and brecciation, cutting through and surrounded by a widespread zone of anhydrite alteration. The Footwall copper zone is located structurally and stratigraphically below JT deposit, and is characterized by copper-silver-rich mineralization. The Au-Cu-Zn-Ag-Pb mineralization associated with the JT deposit has now been defined over a total strike length of 600 metres and to a depth of 350 metres and remains open along strike to the northeast and southwest and at depth.

The JT deposit hosts an indicated resource of 2.14 million tonnes grading 10.93 g/t AuEq comprising 6.07 g/t Au, 5.8 g/t Ag, 0.57 per cent Cu, 0.80 per cent Pb and 5.85 per cent Zn. The inferred resource of 580,000 tonnes grading 7.16 g/t AuEq comprises 2.05 g/t Au, 8.7 g/t Ag, 0.54 per cent Cu, 0.33 per cent Pb and 6.67 per cent Zn. For additional details see National Instrument 43-101 technical report titled "Initial Mineral Resource Estimate for the Johnson Tract project, Alaska," dated June 15, 2020, authored by James N. Gray, PGeo, of Advantage Geoservices Ltd., and Brodie A. Sutherland, PGeo. Gold equivalent is based on assumed metal prices and 100-per-cent recovery and payabilities for Au, Ag, Cu, Pb and Zn. Assumed metal prices for the Resource are $1,350 (U.S.)/ounce for gold, $16 (U.S.)/oz for silver, $2.80 (U.S.)/pound for copper, $1 (U.S.)/lb for lead and $1.20 (U.S.)/lb for zinc, and are based on nominal three-year trailing averages as of April 1, 2020. Historical metallurgical testing on drill core samples has indicated that good gold and base metal recoveries, and marketable concentrates can be expected.

Prior to Highgold, the project was last explored in the mid-1990s by a mid-tier mining company that evaluated direct shipping material from Johnson to the Premier mill near Stewart, B.C.

About Highgold Mining Inc.

Highgold is a mineral exploration company focused on high-grade gold projects located in North America. Highgold's flagship asset is the high-grade Johnson Tract gold (Zn-Cu) project located in accessible south-central Alaska, United States. The company also controls one of the largest junior gold miner land positions in the Timmins, Ont., gold camp that includes the Munro-Croesus gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Golden Perimeter properties. Highgold's experienced board and senior management team are committed to creating shareholder value through the discovery process, careful allocation of capital and environmentally/socially responsible mineral exploration.

Ian Cunningham-Dunlop, PEng, vice-president, exploration, for Highgold Mining and a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.

Additional notes

The starting azimuth and dip for drill hole JT21-123 are 130 degrees and minus 62 degrees. Samples of drill core were cut by a diamond blade rock saw, with half of the cut core placed in individually sealed polyurethane bags and half placed back in the original core box for permanent storage. Sample lengths typically vary from a minimum 0.5-metre interval to a maximum 2.0-metre interval, with an average 1.0- to 1.5-metre sample length. Drill core samples are shipped by air and transport truck in sealed woven plastic bags to ALS sample preparation facility in Reno, Nev., for sample preparation and analysis. ALS operates according to the guidelines set out in International Organization for Standardization/International Electrotechnical Commission Guide 25. Gold is determined by fire assay fusion of a 50 g subsample with atomic absorption spectroscopy (AAS). Samples that return values greater than 10 parts per million gold from fire assay and AAS are determined by using fire assay and a gravimetric finish. Various metals including silver, gold, copper, lead and zinc are analyzed by inductively coupled plasma (ICP) atomic emission spectroscopy, following multiacid digestion. The elements copper, lead and zinc are determined by ore-grade assay for samples that return values greater than 10,000 ppm by inductively coupled plasma analysis. Silver is determined by ore-grade assay for samples that return greater than 100 ppm.

The company has a robust quality assurance/quality control program that includes the insertion of blanks, standards and duplicates.

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