VANCOUVER, British Columbia / Jul 28, 2022 / Business Wire / HighGold Mining Inc. (TSX-V:HIGH, OTCQX:HGGOF) (“HighGold” or the “Company”) is pleased to provide an update on the Company’s US$9 million 2022 exploration program at the Johnson Tract polymetallic Gold Project (“Johnson Tract”, “JT” or the “Project”) in Southcentral Alaska, USA. The Project hosts the high-grade 1.05 Moz indicated at 9.4 g/t gold equivalent (“AuEq”) JT Deposit with an average true thickness of 40 meters.
“Our 2022 Johnson Tract drill program is in full swing, and we are very pleased with the early visual results from veined and brecciated intercepts at the Difficult Creek (“DC”) prospect and the potential opportunity to grow a second JT-style deposit on the property,” commented Darwin Green, CEO. “With the addition of the new on-site sample prep lab built this year, we hope to be receiving new assay results during our drilling season which will allow us to react immediately with follow-up holes.”
2022 Exploration Program Update
- Exploration is well underway with two drill rigs active at the DC prospect as a follow-up to the late 2021 near surface, bonanza-grade drill discovery of 6.40m grading 577.9 g/t Au and 2,023 g/t Ag in hole DC21-010 (See HighGold news release dated October 6, 2021). The first rig commenced drilling on July 4th and was joined by a second rig on July 14th. Initial drilling is being completed on a close-spaced grid pattern with the objective of determining the geometry, geological controls, and grade distribution of this promising new mineralized zone.
- Fifteen (15) drill holes, ranging from 50 to 150 meters in length, have been completed to date. Upon completion of the initial phase of close-spaced drilling, one drill rig will move to larger step-outs along trend and the other rig will move one km southwest to the Milkbone prospect to test a high-grade gold-in-soil anomaly interpreted to occur within the same key host rocks and potentially be an extension of the same mineralizing system as the DC prospect.
- Veining and alteration documented in the recently completed drill holes at DC is visually similar to that intersected at the main JT Deposit, located four km to the southwest. Drilling has delineated zones of structurally-controlled quartz-carbonate-sulfide veining and brecciation over core intervals 2 to15 meters or more in length, with local narrow intervals of coarse-grained semi-massive to massive sphalerite, galena, chalcopyrite, and pyrite. Surrounding alteration consists of silicification and a widespread zone of semi-massive to massive pervasive nodular anhydrite and anhydrite veining. Readers are cautioned that the significance of the visual observations of veining and sulphide mineralization will not be known until assays are received.
- An on-site sample preparation facility has been installed at the JT Camp and is now fully operational with the first batch of prepared sample material shipped out recently for analysis. Sample preparation has been a major bottleneck for North American assay laboratories, and the on-site, professional grade, drying, crushing and pulverizing facility, built under the guidance of expert third party consultant, Dr. Barry Smee, P.Geo., is anticipated to significantly reduce turn-around times for analytical results and enable follow-up of positive results during the current drill program.
- In addition to the high-priority exploration targets at DC and Milkbone, the 2022 program includes priority planned step-out and infill drilling on the JT Deposit mineral resource, including new targets identified following the recently completed mineral resource update.
- Other Johnson District targets that may be tested during the 2022 drill program include the Kona, Easy Creek and South Valley prospects.
About the Johnson Tract Gold Project
Johnson Tract is a polymetallic (gold, copper, zinc, silver, lead) project located near tidewater, 125 miles (200 kilometers) southwest of Anchorage, Alaska, USA. The 21,000-acre property includes the high-grade Johnson Tract Deposit (“JT Deposit”) and at least nine (9) other mineral prospects over a 12-kilometer 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 40m 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 Mt grading 9.39 g/t gold equivalent (“AuEq”) comprised of 5.33 g/t Au, 6.0 g/t Ag, 0.56% Cu, 0.67% Pb and 5.21% Zn. The Inferred Resource of 0.706 Mt grading 4.76 g/t AuEq is comprised of 1.36 g/t Au, 9.1 g/t Ag, 0.59% Cu, 0.30% Pb, and 4.18% Zn (see Company news release dated July 12, 2022). The updated NI 43-101 Technical Report will be released within 45 days or before August 26, 2022. Gold Equivalent (“AuEq”) is based on assumed metal prices and payable metal recoveries of 97% for Au, 85% for Ag, 85% Cu, 72% Pb and 92% Zn from metallurgical testwork completed in 2022. Assumed metal prices for the Resource are US$1650/oz for gold (Au), US$20/oz for silver (Ag), US$3.50/lb for copper (Cu), US$1.00/lb for lead (Pb), and US$1.50/lb for zinc (Zn).
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, British Columbia.
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 Southcentral Alaska, USA. The Company also controls one of the largest junior gold miner land positions in the Timmins, Ontario gold camp. This 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, P.Eng., Senior VP Exploration for HighGold Mining Inc. and a qualified person (“QP“) as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.
On Behalf of HighGold Mining Inc.
President & CEO
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Forward looking statements: This news release includes certain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively “forward looking statements”). Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Company’s planned drill program and potential significance of visual results are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company’s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.