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Highgold Mining Inc
Symbol HIGH
Shares Issued 73,320,210
Close 2022-11-29 C$ 0.79
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Highgold drills 120.5m of 18.76 g/t Au at Johnson Tract

2022-11-29 09:54 ET - News Release

Mr. Darwin Green reports


Highgold Mining Inc. has released assay results from four resource infill and expansion drill holes completed at the company's JT deposit (1.05 million ounces (Moz) at 9.4 grams per tonne (g/t) gold equivalent (AuEq) indicated with a three g/t AuEq cut-off grade) on the Johnson Tract project (JT) in south-central Alaska, United States. Drilling at the JT deposit focused on gaps between inferred resource domains and stepouts at depth. The company also completed one drill hole (JT22-152) oriented perpendicular to the existing drilling pattern and parallel to the long axis of the JT deposit, to test for vein orientations that may have been under-represented in previous drilling and to also test for a potential bounding cross-fault.

Drill hole JT22-152 has delivered the best intersection drilled to date at the JT deposit. The intersection demonstrates exceptional continuity of very-high-grade mineralization, with gold grades locally exceeding the resource block model that it intersects. The results from the other holes reported today demonstrate potential additions to the mineral resource between the known inferred resources (holes JT22-148 and 149) and the continuation of the mineralizing system at depth (hole JT22-150). Details on significant intersections can be found in the table entitled "Significant intersections for JT deposit infill and expansion drilling."

JT deposit infill and expansion highlights:

  • 120.5 metres at 18.76 g/t gold (Au), 0.55 per cent copper (Cu), 3.86 per cent zinc (Zn), 0.93 per cent lead (Pb) and six g/t silver (Ag) (22.1 g/t AuEq) in hole JT22-152, including:
    • 10 m at 39.79 g/t Au, 1.06 per cent Cu, 17.02 per cent Zn, 2.54 per cent Pb and 18 g/t Ag (52.2 g/t AuEq); and
    • 19.1 m at 43.87 g/t Au, 0.27 per cent Cu, 2.2 per cent Zn, 0.69 per cent Pb and six g/t Ag (43.3 g/t AuEq).
  • 13.5 m at 0.48 per cent Cu and 1.26 per cent Zn (1.56 g/t AuEq) in footwall copper zone, in hole JT22-152;
  • 9.3 m at 7.18 g/t Au, 0.22 per cent Cu and 5.57 per cent Zn (10.9 g/t AuEq), in hole JT22-148, including:
    • 6.6 m at 10.02 g/t Au, 0.29 per cent Cu and 7.3 per cent Zn (14.85 g/t AuEq).
  • 30.4 m at 0.48 per cent Cu and 0.92 per cent Zn (1.33 g/t AuEq) in footwall copper zone, in hole JT22-148;
  • 5.3 m at 0.65 g/t Au, 20 g/t Ag, 1.72 per cent Cu and 0.57 per cent Zn (3.2 g/t AuEq), in hole JT22-149.

"The exceptional results of drill hole JT22-152 underscore the highly attractive combination of large intervals of high-grade mineralization that characterize the JT deposit, which consists of a thick, oblate body of stockwork veining and breccia," commented president and chief executive officer Darwin Green. "The area of the mineral deposit that was tested by this hole would be the first area accessed in a conceptual underground mining scenario involving horizontal ramp access from a valley floor adit. In addition to documenting higher-grade gold, the northeast orientation of drill hole JT22-152 has also allowed Highgold to test -- and confirm -- that the southern edge of the JT deposit is bounded by a cross-fault. This opens up the potential for additional displaced mineralization to continue further to the south than previously thought. We are also very pleased with the success of infill drilling of gaps in the mineral resource with drill holes that were designed to connect the main body of the mineral resource with isolated bodies of inferred resource located down-plunge."

Please see the company's website for additional commentary by CEO Mr. Green.

Discussion of JT deposit and drill results

The 2022 Johnson Tract drill program commenced early July and concluded mid-October with the completion of 55 drill holes totalling 10,346 metres. Of this total, five holes totalling 2,738 m were completed as part of an infill and expansion program on the JT deposit. The objective was to build on the updated mineral resource announced in July (see company news release dated July 12, 2022). The program strived to infill key gaps between the main inferred resource blocks to the northeast and target areas down-plunge of the current resource, and add to the indicated resources. The program also included an infill drill hole (JT22-152) into the lower southwest portion of the indicated resource to gain a better understanding of the structural and geological controls on mineralization.

Hole JT22-152 was collared off the southwest end of the JT deposit and drilled at 60 degrees azimuth, as opposed to the existing 130-degree/310-degree azimuth drill pattern. This orientation is parallel to the long axis of the deposit, targeting an area in which the true thickness (as measured across the short axis of the deposit) is approximately 50 m to 60 m. The hole was drilled at this orientation to test both the theory that the southern edge of the JT deposit may be bounded by an east-west cross fault, possibly offsetting the JT deposit in this area, and to test for high-grade vein orientations within the JT deposit that may have been missed or under-represented in previous drilling.

Hole JT22-152 did encounter a narrow (approximately two m) fault zone marking the southern edge of the JT deposit before intersecting a significant mineralized zone from 207.6 m to 321.1 m with local visible gold, which returned 120.5 m at 18.76 g/t Au, 3.86 per cent Zn, 0.93 per cent Pb, 0.55 per cent Cu and six g/t Ag (22.1 g/t AuEq), including 10 m at 39.79 g/t Au, 17.02 per cent Zn, 2.54 per cent Pb, 1.06 per cent Cu and 18 g/t Ag (52.2 g/t AuEq), and 19.1 m at 41.35 g/t Au, 2.2 per cent Zn, 0.69 per cent Pb, 0.27 per cent Cu and six g/t Ag (43.3 g/t AuEq). Drill hole JT22-152 is expected to have a positive impact on the mineral resource intersecting much higher-grade gold mineralization than the indicated resource grade of 9.4 g/t AuEq, increasing confidence in the geological model, and locally outperforming the block model where it was intersected. Twenty-five separate one-metre drill core samples exceeded 30 g/t Au, with a high of 225 g/t Au at 318.1 m to 319.1 m. Applying the same top cap as that used for the mineral resource drops the average gold grade over the 120.5 m interval from 18.76 g/t to 17.53 g/t, equal to a 7-per-cent reduction.

Holes JT22-148 and JT22-149 were drilled in a 50 m to 100 m gap between modelled inferred resource area and successfully intersected high-grade JT-style mineralization including 9.3 m at 7.18 g/t Au, 0.22 per cent Cu and 5.57 per cent Zn (10.9 g/t AuEq) in hole JT22-148, and 5.3 m at 0.65 g/t Au, 20 g/t Ag, 1.72 per cent Cu and 0.57 per cent Zn (3.2 g/t AuEq) in hole JT22-149. Hole JT22-150 was drilled at depth approximately 100 m down-plunge to the northeast of the mineral resources, and below holes JT21-130 and JT21-133 which returned 5.8 m at five g/t AuEq and eight m at four g/t AuEq, respectively, in 2021 (see company news release dated Dec. 21, 2021). Hole JT22-150 returned 9.5 m at 0.32 g/t Au, 0.23 per cent Cu and 0.72 per cent Zn marking the continuation of the JT mineralizing system. These holes are expected to incrementally expand the JT deposit resource.

Assays results for hole JT22-151, drilled 100 m northeast of the inferred resource, are still pending.

The Au-Cu-Zn-Ag-Pb mineralization associated with the JT deposit has been defined over a total strike length of 600 m and remains open along strike to the northeast and southwest, and at depth. The true thickness of the JT deposit typically ranges from 20 m to 50 m, with the indicated resource averaging 40 m.

To date, assay results have been released for 19 of the 55 drill holes completed during the 2022 program. Remaining assay results will be released in batches on an continuing basis, pending review and meeting company quality assurance/quality control protocols. The company is currently focusing on environmental baseline and engineering studies to support the continued advancement of the project.

About the Johnson Tract gold project

Johnson Tract is a polymetallic (gold, copper, zinc, silver and lead) project located near tidewater, 125 miles (200 kilometres) southwest of Anchorage, Alask, United States. The 21,000-acre property includes the high-grade JT deposit and at least nine other mineral prospects over a 12 km 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 intermediate volcaniclastic rocks and is characterized as epithermal-type with submarine volcanogenic attributes. The JT deposit is a thick, steeply dipping silicified body averaging 40 m 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 JT deposit hosts an indicated resource of 3,489,000 tonnes (Mt) grading 9.39 g/t AuEq composed of 5.33 g/t Au, six g/t Ag, 0.56 per cent Cu, 0.67 per cent Pb and 5.21 per cent Zn. The inferred resource of 0.706 Mt grading 4.76 g/t AuEq is composed of 1.36 g/t Au, 9.1 g/t Ag, 0.59 per cent Cu, 0.30 per cent Pb and 4.18 per cent Zn. For additional details see the National Instrument 43-101 technical report titled "Updated mineral resource estimate and NI 43-101 technical report for the Johnson Tract project, Alaska," dated Aug. 25, 2022 (effective date of July 12, 2022), authored by Ray C. Brown, James N. Gray, PGeo, and Lyn Jones, PEng. Gold equivalent is based on assumed metal prices and payable metal recoveries of 97 per cent for Au, 85 per cent for Ag, 85 per cent Cu, 72 per cent Pb and 92 per cent Zn from metallurgical testwork completed in 2022. Assumed metal prices for the resource are $1,650 (U.S.)/ounce (oz) for Au, $20 (U.S.)/oz for Ag, $3.50 (U.S.)/pound (lb) for Cu, $1.00 (U.S.)/lb for Pb, and $1.50 (U.S.)/lb for Zn.

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-zinc-copper project located in accessible south-central Alaska, U.S. The company also controls one of the largest junior gold miner land positions in the Timmins, Ont., gold camp. This includes the Munro-Croesus gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Timmins South properties. Highgold also has 100-per-cent ownership of a group of properties in Yukon's emerging new Selwyn basin reduced intrusive related gold district. 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, senior vice-president of 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:

Starting azimuth, dip and final length (azimuth/dip/length) for the five drill holes reported today are noted as follows: JT22-148 (130 degrees/57 degrees/516.9 m), JT22-149 (130 degrees/61 degrees/532.5 m), JT22-150 (125 degrees/59 degrees/598.5 m), JT22-151 (310 degrees/77 degrees/531.1 m) and JT22-152 (60 degrees/46 degrees/493 m).

Samples of drill core were cut by a diamond blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and the remaining half of the cut core placed back in the original core box for permanent storage, on site. Sample lengths range from a minimum 0.5 m to a maximum two m interval, with an average sample length of one m to 1.5 m.

The half-cut core samples are then dried for one to two days at 50 degrees to 60 degrees Celsius, crushed to two millimetres (more than 70 per cent) and pulverized to 75 microns (more than 85 per cent) at the company's new on-site sample preparation facility. The preparation facility was designed under the guidance of expert third party consultant, Dr. Barry Smee, PGeo. Sample pulps are individually packaged in paper envelopes and weigh approximately 250 grams each, the sample pulps are then placed inside security-strapped plastic totes in batches of 80 to 100 samples per tote, with each tote weighing about 22 kilograms to 23 kg. The samples are then shipped by air freight directly to ALS geochemistry analytical lab facility in North Vancouver, B.C., for analysis.

Gold is determined by fire assay fusion of a 50 g subsample with atomic absorption spectroscopy (AAS). Samples that return values over 10 parts per million (ppm) 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 (AES), following multiacid digestion. The elements copper, lead and zinc are determined by ore-grade assay for samples that return values over 10,000 ppm by ICP analysis. Silver is determined by ore-grade assay for samples that return over 100 ppm. ALS Geochemistry meets all requirements of international standards ISO/IEC 17025:2017 and ISO 9001:2015. ALS Global operates according to the guidelines set out in ISO/IEC Guide 25.

The company maintains a robust QA/QC program that includes the collection and analysis of duplicate samples, and the insertion of blanks and standards (certified reference material). The company's database and QA/QC data have been audited by two independent, external experts; Chris Brown of Oriented Target Solutions LLC and Mr. Smee of Smee and Associated Consulting Ltd.

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