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HighGold Mining launching new high grade gold explorer at 'exciting' time for the precious metal

Snapshot

The group has two wholly-owned projects in the well-established mining jurisdictions of Alaska, USA and Ontario, Canada

HighGold -

Quick facts: HighGold

Price: 2.83 CAD

TSX-V:HIGH
Market: TSX-V
Market Cap: $138.95 m
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  • Striving to be a Top Tier gold explorer
  • Two high grade North American projects
  • Johnson Tract asset is akin to an advanced-stage discovery

What the company does:

HighGold Mining Inc (CVE:HIGH) is a spin-out of the gold assets of Constantine Metal Resources Ltd (CVE:CEM) (OTCMKTS:CNSNF) and its shares began trading on Toronto's venture exchange on September 23 this year.

It has two wholly-owned projects which are found in the well-established mining jurisdictions of Alaska and Timmins, Ontario, and the company says its management team has a track record of finding, growing and advancing mineral resources.

The group's flagship property is the high-grade polymetallic Johnson Tract gold project in southcentral Alaska, which the firm says has 'tremendous' exploration upside potential. It was acquired as part of a lease agreement with CIRI, a native Alaskan firm. HighGold is targeting a potential multi-million ounce, multi-deposit system at the property..

Under the lease deal, HighGold must pay US$10 million over 10 years with a minimum of USS$7.5 million payable in the first six years. Upon completing a feasibility study and a positive decision to construct a mine, CIRI has a one time back-in right to a 25% participating interest.

Elsewhere, in the Timmins gold camp in Canada, the group has a strategic footprint of  200 sq km in an area along the Porcupine-Destor Fault, which has generated over 110 million ounces.

HighGold says the aim is to apply new exploration ideas to a mature district.

The main Munro Croesus property in Timmins spans 355 hectares and includes the past producing Croesus mine that yielded some of the highest grade gold mined in Ontario, while the Golden Mile property covers 8,600 hectares on the Pipestone Fault System, and the Golden Perimeter property covers around 12,000 hectares and has played host to around 10,000 meters (m) of past drilling in the 1980s.

How is it doing:

At the time it listed, the company had closed a C$7.65 million financing to fund exploration and for working capital. The firm's stated aim for Johnson Tract is to generate a first NI43-101 resource and the company started a drill program in August to define and expand the deposit.

The Johnson Tract discovery, which is part of the project, was uncovered by Anaconda Minerals in 1982 which reported 102.6 meters grading 10.94 grammes per tonne (g/t) of gold, 8.01% zinc, 0.75% copper, 2.13% lead and 8.5 g/t silver.

A total of 88 holes for 26,840m were completed at the property between 1982 and 1995 but no work has been completed there for 25 years. Other assay highlights include 8.9m at 88.5 g/t gold, 22.1% zinc, 5.6% copper, 0.1% lead and 9.2 g/t silver.

There are also several other prospects over a 12 kilometer (km) strike length, and the site enjoys excellent access near tidewater in south-central Alaska.

Meanwhile, at the firm's Timmins assets, HighGold aims to consolidate land in the area and test extremely high grade gold targets at the Munro-Croesus project.

It is also looking for joint ventures on large land packages in Ontario that require sustained systematic exploration, and/or explore and advance 100% with modest budgets to further enhance value.

Inflection points:

  • Drilling program completion and forthcoming results
  • Resource estimate for Johnson Tract in Alaska
  • Exploration newsflow

What the boss says:

In a statement about the firm's trading debut on September 23 and its upcoming work, HighGold president and CEO Darwin Green said: "This is an exciting time to be launching a new gold exploration company that focuses specifically on high grade mineralization as the energy returns to the gold industry.

"We intend to complete the current drill program on the Johnson project in the next few weeks and to be reporting assay results over the next two months. The information gained will be used to produce a NI43-101 compliant mineral resource estimate to be completed in the first quarter of 2020. Following the close of the Alaska field season at Johnson, we plan to become active with our gold projects in the greater Timmins gold camp, Ontario that includes the Munro-Croesus, Golden Perimeter and Golden Mile projects.

"While the historic Croesus Mine last produced in the 1930s, it yielded some of the highest-grade gold mined to date in Ontario and warrants systematic modern exploration. We anticipate HighGold’s news flow will be continuous well into 2020 and our investor marketing program will include reaching out to current and potential investors in Canada, the United States and Europe over the next eight months."

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HighGold Mining hits high grade mineralization on first two drill holes at...

HighGold Mining (CVE: HIGH-OTCQX: HGGOF) CEO Darwin Green joined Steve Darling from Proactive Vancouver with news the company has released details of the first two holes from drilling on their Johnson Tract project in Alaska. Green telling Proactive these two holes came from the JT deposit...

2 weeks, 1 day ago

4 min read