The Canadian mineral exploration company has two wholly owned projects, which are found in the well-established mining jurisdictions of Alaska and Timmins, Ontario, and the analysts said its “strong management team” has a track record of finding, growing, and advancing mineral resources.
“HighGold offers investors exposure to a portfolio of top-tier, high-grade exploration projects in North America. At its flagship Johnson Tract Project in south-central Alaska (close to tidewater), HighGold generated some of the industry’s best drill intercepts in in 2019 (example 19.55 g/t AuEq over 107.8 m),” said Cormark analysts Brock Colterjohn and Cameron Magee.
“HighGold also has an extensive portfolio of quality gold projects in the greater Timmins gold camp, including the Munro-Croesus property, which is renowned for its exceptionally high-grade mineralization.”
Johnson Tract ready to shine
Johnson Tract has been inactive for almost 25 years prior to its acquisition by HighGold Mining in 2019 but is now ready to shine.
“Having missed out on multiple gold-cycles, the timing for Johnson Tract to see its first modern exploration program is highly fortuitous given the substantial increase in the gold price and the current demand for high-quality development projects in North America,” said the analysts.
A Hod Maden look-alike
The analysts were also struck by the fact that Johnson Tract shares many of its key features with the renowned Hod Maden project in Turkey ($1.1 billion NPV & 51% after-tax IRR), highlighting the deposit’s world-class potential as it advances its first modern exploration program.
“Johnson Tract has the right type of rocks, mineralization, thickness and favourable subvertical geometry (ideal for low-cost bulk mining), making this analog particularly compelling,” said the analysts.
Expanded drill program to build critical mass
The analysts pointed out that HighGold will average 5,800 meteres of drilling per month, testing multiple high-priority drill targets within close proximity to the main Johnson Tract deposit.
“We believe the scale of this program, combined with management’s sound exploration thesis, will have the ability to move the needle and will likely lead to a significant re-rating in the company’s share price,” said the analysts.
“We also believe that HighGold’s tight share structure (around 50.3 million issued and outstanding), blue-chip shareholder registry, strong management team and attractive valuation make it a premier investment within the junior mining space.”
HighGold Mining is a spin-out of the gold assets of Constantine Metal Resources and started trading Toronto's Venture Exchange in September 2019.
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