North of 60 Mining News - The mining newspaper for Alaska and Canada's North

HighGold Mining Inc. Dec. 10 reports that assay results from the nine-hole drill program completed this year at Johnson Tract continue to confirm the robust gold-silver-copper-zinc-lead mineralization this Southcentral Alaska project in known for.

This batch of results is from five holes aimed at upgrading and expanding the JT deposit, which is also referred to as Johnson Tract Main deposit.

Based on 88 holes drilled prior to 1995, JT deposit hosts 1.04 million metric tons of resource averaging 10.05 grams per metric ton gold, 7.63 g/t silver, 8.32 percent zinc and 1.13 percent lead.

Resampling of core from the past drilling returned grades and widths that strongly correlate with the drill results that formed the basis of this resource calculation.

In order to further confirm the previous work and to build an industry compliant NI 43-101 resource, this year's drill program twinned historical holes, as well as filled large gaps in the drilling.

JT19-085, which was drilled as a twin of historic hole JT87-031, cut similar zones of mineralization but significantly higher grades than its counterpart.

JT19-085 cut 59.2 meters (31.4 meters true-width) averaging 8.16 g/t gold, 5.9 g/t silver, 0.39 percent copper, 8.8 percent zinc and 0.72 percent lead from 67.8 meters; including 10.9 meters (5.8 meters true-width) averaging 33.06 g/t gold, 9.7 g/t silver, 0.57 percent copper, 6.37 percent zinc and 0.02 percent lead from 68.6 meters.

On a gold-equivalent basis, which includes all the metals in terms of their gold value, the grade of this 59.2-meter intercept was 15.06 g/t gold-equivalent, which is about 37 percent higher than the historical hole it twinned.

A hole reported by HighGold in November also cut grades significantly higher than the hole it twinned. This hole, JT19-082, cut 107.8 meters (about 53.9 meters true-width) averaging 12.42 grams per metric ton gold, 8.9 g/t silver, 0.88 percent copper, 7.11 percent zinc and 1.64 percent lead – or 19.55 g/t gold-equivalent.

The 2019 program drilled larger diameter HQ core than historical holes, which provides for a 78 percent larger and more representative sample.

While the grades were higher, HighGold said the the 2019 twin drill holes generally demonstrate very good correlation with the original historical holes and support the use of past drill data in future resource estimation work.

Three additional holes – JT19-086, JT19-087 and JT19-088 – filled large gaps in the previous drilling. Highlights from these holes include:

• 47.6 meters (33.7 meters true-width) of 2.36 g/t gold, 4.8 g/t silver, 0.4 percent copper, 9.68 percent zinc and 0.13 percent lead (9.52 g/t gold-equivalent) from a depth of 48.1 meters in JT19-086; and

• 97.5 meters (48.8 meters true-width) averaging 5.93 g/t gold, 4.2 g/t silver, 0.46 percent copper, 3.86 percent zinc and 0.62 percent lead (9.62 g/t gold-equivalent) from a depth of 128 meters in JT19-088.

Another hole drilled, JT19-084, tested near-surface mineralization identified 50 meters west of the JT deposit. This hole cut two meters of 18.76 g/t gold, 0.1 g/t silver, 0.79 percent copper, 4.95 percent zinc and 1.48 percent lead (26.1 g/t gold-equivalent).

Assay results from two additional holes drilled this year are pending.

"Drilling at Johnson continues to deliver impressive intersections and confirms the presence of a very robust mineralized zone," said HighGold Mining President and CEO, Darwin Green. "The widely spaced drill holes tested the JT deposit over a vertical extent of 250 meters with excellent widths of high-grade mineralization intersected throughout. In addition to incremental expansion of the mineralized zone, the new data helps refine lateral and vertical zonation of precious and base metals, in which both gold grade and zone thickness increase with depth. This bodes well for future exploration at the Northeast Offset target approximately 700 meters to the north, which we believe to be the off-set depth extension of the deposit."

More exploration funded

A C$9.3 million financing that closed on Dec. 5 provides HighGold with the funds needed to test expansion targets at Johnson Tract, as well as explore the other high-grade gold properties in its portfolio.

HighGold Mining Inc.

A high-grade gold sample from the historic Croesus Mine on display at the Royal Ontario Museum in Toronto.

"With a recently completed $9.3 million financing, HighGold is well funded to test the exceptional exploration upside at Johnson," said Green. "The company's 2020 exploration strategy will be drill intensive, targeting JT deposit expansion, the Northeast Offset and other exploration targets on the district scale property."

This financing included C$2.3 million raised from the sale of 1.28 million flow-through shares at C$1.80 per share; and C$7 million from the sale of 5.6 million common shares at C$1.25 per share.

Under a provision of Canada's Income Tax Act, flow-through financings allow exploration companies to transfer expenses from exploration on mineral projects in Canada to individual investors that purchase the flow-through shares. The flow-through investor, in turn, can apply his portion of the exploration expense to reduce or eliminate his tax liability.

HighGold's portfolio of gold exploration properties in Canada includes the Munro-Croesus, Golden Mile and Golden Perimeter projects in Ontario's Timmins Gold Camp; and a Yukon joint venture project.