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Highgold Mining Inc
Symbol HIGH
Shares Issued 44,357,285
Close 2020-10-15 C$ 2.71
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Highgold drills 20.1 m of 11.5 g/t Au at Johnson

2020-10-15 08:00 ET - News Release

Mr. Darwin Green reports

HIGHGOLD DRILLS 11.5 G/T GOLD OVER 20.1 METERS IN STEP-OUT DRILLING AT JOHNSON TRACT PROJECT, SOUTHCENTRAL ALASKA, USA

Highgold Mining Inc. has released additional assay results from the 15,000-metre diamond drill program that is continuing at its flagship Johnson Tract gold project in Alaska. This press release includes results for four new drill holes, highlighted by wide intervals of high-grade gold and polymetallic mineralization.

JT deposit stepout highlights:

  • 20.1 metres at 11.5 grams per tonne gold, four g/t silver, 0.5 per cent copper and 3.1 per cent zinc (14.1 g/t gold equivalent) in hole JT20-096:
    • Includes 15 metres at 15.4 g/t Au (17.6 g/t AuEq);
    • Includes 4.0 metres at 43.7 g/t Au (45.2 g/t AuEq);
  • 41.0 metres at 1.8 g/t Au, six g/t Ag, 1.0 per cent Cu, 3.8 per cent Zn and 0.3 per cent Pb (5.9 g/t AuEq) in hole JT20-095:
    • Includes 4.2 metres at 10.4 g/t Au, five g/t Ag, 0.5 per cent Cu and 9.0 per cent Zn (16.6 g/t AuEq);
  • Both drill holes are stepouts to the 750,000-ounce AuEq (10.9 g/t AuEq) indicated resource.

Footwall copper zone highlights:

  • 14.2 metres at 2.7 per cent Cu, 1.0 per cent Zn and 34 g/t Ag in hole JT20-096:
    • Includes 7.1 metres at 4.4 per cent Cu, 1.9 per cent Zn and 59 g/t Ag;
  • 11.9 metres at 1.8 per cent Cu, 0.9 per cent Zn and 38 g/t Ag in hole JT20-096;
  • This is a 45-metre stepout from last year's discovery.

"Resource expansion drilling at the main JT deposit continues to deliver solid results of high-grade mineralization in these stepouts," commented president and chief executive officer Darwin Green. "We are equally pleased with the emergence of a significant thick zone of copper-silver-rich mineralization in the footwall to the JT deposit, in drilling done to follow up on last year's late season discovery. With only six holes reported so far for the 2020 program initial results reveal promising developments at each of the priority target areas, including at the earlier stage Northeast offset target. Three drills continue to test these targets in addition to surface crews advancing our regional exploration prospects."

Discussion of drill results

Approximately 14,500 metres in 28 drill holes have been completed to date with partial or complete assays now received and reported for six of the 28 holes. Given the encouraging results to date, the company has increased the scope of the program from 15,000 metres to 17,000 metres with three drill rigs currently active on site.

Results reported in this news release are for new drill holes at the main JT deposit, the deeper Footwall copper zone and the Northeast offset target. The results are described below by target area with a complete list of significant assays presented in the associated table including estimated true width (ETW) information.

JT deposit expansion

Drill holes JT20-095 and JT20-096 successfully intersected mineralization in stepouts designed to expand the northeast side of the JT deposit:

  • Drill hole JT20-095 intersected 41.0 metres at 5.9 g/t AuEq, including 4.2 metres at 16.6 g/t AuEq, approximately 50 metres northeast from previously released drill hole JT20-92 that returned 74.1 metres at 23.8 g/t AuEq (see company news release dated Sept. 9, 2020).
  • Drill hole JT20-096 intersected 20.1 metres at 14.1 g/t AuEq, including 4.0 metres at 45.2 g/t AuEq, approximately 65 metres vertically above previously released drill hole JT20-93 that intersected 43.5 metres at 9.9 g/t AuEq (see company news release dated Sept. 9, 2020).

The JT deposit is open to further expansion with assay results pending for eight additional stepout drill holes. Drilling is continuing at this target area.

Footwall copper zone

In addition to the high-grade gold mineralization intersected at the northeast margin of the JT deposit, drill hole JT20-096 also encountered high-grade copper-silver-rich mineralization in the footwall to the JT deposit. Two closely spaced intersections representing the Footwall copper zone mineralization were intersected in drill hole JT20-096 including:

  • 14.2 metres at 2.7 per cent Cu, 1.0 per cent Zn and 34 g/t Ag, including 7.1 metres at 4.4 per cent Cu, 1.9 per cent Zn and 59 g/t Ag;
  • 11.9 metres at 1.8 per cent Cu, 0.9 per cent Zn and 38 g/t Ag.

These intersections in drill hole JT20-096 are a 45-metre stepout to the northeast of last years discovery intersection of the Footwall copper zone of 20.7 metres at 2.4 per cent Cu, 4.9 per cent Zn and 32 g/t Ag in drill hole JT19-089. The mineralization consists of a stockwork of quartz-sulphide veins.

Northeast offset target

The Northeast offset target, located 500 to 800 metres northeast of the JT deposit, is a focus for one-third of planned drill metres for the program, with eight holes completed to date. Results have been received for the first two holes (JT20-091 and JT20-094) from the northernmost fan of drill holes, which intersected alteration and mineralization similar to that found in proximity to the JT deposit. This includes anhydrite alteration and deeper, footwall-style copper-silver-rich veins, both of which provide vectors for the subsequent drill holes. Drilling is continuing with holes testing the Northeast offset target on nominal 50- to 100-metre-spaced cross-sections. Significant assay results for drill hole JT20-094 include:

  • 1.2 metres at 15.2 per cent Cu, 173 g/t Ag and 0.8 g/t Au (24.5 g/t AuEq);
  • 4.3 metres at 0.2 g/t Au, seven g/t Ag, 1.2 per cent Cu and 0.4 per cent Zn (2.2 g/t AuEq);
  • 1.0 metres at 3.5 g/t Au, three g/t Ag, 1.2 per cent Cu and less than 0.1 per cent Zn (5.2 g/t AuEq).

Drill hole JT20-091, a shallower updip hole on the same section as JT20-094, did not return any significant assays.

Regional exploration update

A large-scale regional reconnaissance program has been carried out across the 8,513-hectare project, including geological mapping, prospecting, soil and rock sampling, and geophysical surveying. The objective of this work is to develop drill targets at other prospect areas for testing in 2021. These targets are separate to those present in the immediate JT deposit area.

To date, approximately 1,200 soil and silt samples and 600 rock samples have been collected with results currently pending. A total of 23 line kilometres of DC (direct current) induced polarization (DCIP) geophysical surveying was also completed over the Difficult Creek and Kona prospect areas. Preliminary geophysical results are encouraging, with additional data inversion and modelling work continuing.

About the Johnson Tract gold project

Johnson Tract is a polymetallic (gold, copper, zinc, silver and lead) project located near tidewater in south-central Alaska. The project includes the high-grade Johnson Tract deposit and at least nine other mineral prospects over a 12-kilometre strike length. Mineralization 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 JT deposit hosts an indicated resource of 2.14 million tonnes grading 10.93 g/t gold equivalent (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 technical report titled "Initial Mineral Resource Estimate for the Johnson Tract Project, Alaska," dated June 15, 2020. 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 are $1,350 (U.S.) per ounce for gold (Au), $16 (U.S.)/oz for silver (Ag), $2.80 (U.S.) per pound for copper (Cu), $1 (U.S.)/lb for lead (Pb) and $1.20 (U.S.)/lb for zinc (Zn) 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, with concentrates that are low in deleterious elements.

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, United States, that contains an indicated resource of 2.14 million tonnes grading 10.93 grams per tonne gold equivalent (AuEq) for 750,000 ounces AuEq, and an additional inferred resource of 580,000 tonnes grading 7.16 g/t gold equivalent for 134,000 ounces AuEq (see technical report titled "Initial Mineral Resource Estimate for the Johnson Tract Project, Alaska," dated June 15, 2020) along with excellent exploration potential indicated by several other prospects over a 12-kilometre strike length. The company also controls a portfolio of quality gold projects in the greater Timmins gold camp, Ontario, Canada, 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 (QP) as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.

              JOHNSON TRACT PROJECT -- SIGNIFICANT NEW DRILL INTERSECTIONS FROM 2020 PROGRAM

Drill hole          From         To      Length          ETW      Au      Ag      Cu    Zn      Pb    AuEq
                (metres)   (metres)    (metres)     (metres)   (g/t)   (g/t)     (%)   (%)     (%)   (g/t)

JT20-091                                                                             no significant values
                                                                                              less
                                                                                              than
JT20-094           463.3      467.6         4.3      unknown    0.17     7.4    1.20  0.36    0.01     2.2
                                                                                              less
                                                                                              than
JT20-094           492.2      493.2         1.0      unknown    3.52     3.3    1.16  0.02    0.01     5.2
JT20-094           794.3      795.5         1.2      Unknown    0.82     173   15.15  0.11    0.01    24.5
JT20-095           245.0      286.0        41.0         34.9    1.82     5.9    1.04  3.82    0.32     5.9
including          280.8      285.0         4.2          3.6   10.35     4.9    0.51  9.02    0.01    16.6
                                                                                              less
                                                                                              than
JT20-095           322.3      329.3         7.0      unknown    0.04    13.4    1.30  0.06    0.01     2.1
JT20-096           204.9      225.0        20.1         18.1   11.51     3.6    0.49   3.1    0.01    14.1
including          210.0      225.0        15.0         13.5   15.37     4.3    0.58  2.12    0.02    17.6
                                                                                              less
                                                                                              than
and                221.0      225.0         4.0          3.6   43.70     6.9    0.76  0.57    0.01    45.2
JT20-096           311.1      323.0        11.9      unknown    0.31    38.3    1.79   0.9    0.36     4.0
JT20-096           329.1      343.3        14.2      unknown    0.14    34.2    2.66  1.01    0.11     5.0
including          335.2      342.3         7.1      unknown    0.17    58.7    4.42  1.92    0.22     8.4

Holes JT20-092 and JT20-093 were reported previously (see company news release dated Sept. 9, 2020).

Notes

Estimated true width (ETW) is the width of the mineralized interval measured perpendicular to average dip of the zone on cross-section (where known). Length-weighted intervals are uncapped and calculated based on a two g/t gold equivalent cut-off. Gold equivalent (AuEq) is calculated by the same formula and assumptions used to report the JT deposit NI 43-101 resource (effective date April 29, 2020) with metal prices of $1,350/oz gold, $16/oz silver, $2.80/lb copper, $1.20/lb zinc and $1.00/lb lead and does not consider metal recoveries.

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