The first two holes of an expanded 15,000 metre (m) drill program have encountered wide intervals of high-grade mineralization, including 74.1m at 17.89 grams per ton (g/t) gold and 7.1 g/t silver in one. The same hole, which tested an area below the last hole of the 2019 season, also threw up 0.48% copper, 7.28% zinc and 1.31% lead.
Shares added nearly 14% in Toronto on the day to C$2.71 each.
READ: Cormark Securities initiates coverage on HighGold Mining with “Buy” rating and C$3.50 price target
"HighGold's 2020 drill program has started right where we left off last season with the intersection of exceptional widths of high-grade mineralization," CEO Darwin Green told investors in a statement on Wednesday. "These intersections continue to confirm and expand the mineralized zone and, more importantly, include higher-grade mineralization than the closest neighboring drill holes."
Green noted that the assays also support the firm's exploration model which suggests that the lower part of the known JT Deposit, the thickest and highest-grade portion, was open to be expanded.
"One drill rig continues to systematically test this resource expansion target, while two other drill rigs remain focused on surrounding targets including the high-priority NE Offset area," he said.
So far, 8,000m for 15 holes have been sunk out of the planned minimum 15,000m drill campaign at the project.
This has included eight drill holes at the JT Deposit expansion targets, four drill holes at the NE Offset target, and three drill holes at the North Trend target. Assay results are pending for all except the first two holes reported today.
Other highlight intercepts reported on Wednesday include 14m (from a depth of 317.5m) with an estimated true width (ETW) of 7m, at a grade of 53.22 g/t gold, 8.1 g/t silver, 0.19% copper, 2.34% zinc and 0.59% lead.
HighGold’s exploration program is the first major drill campaign in a quarter of a century at the Johnson Tract asset, which already hosts an indicated resource of 750,000 ounces of gold equivalent at a grade of 10.93 g/t gold equivalent.
The firm noted that assay turnaround times are currently "significantly" longer than normal due to a large increase in sample volumes due to the rapid resurgence of exploration, further compounded by issues surrounding the pandemic. The group said it is working with its commercial laboratory contractors to shorten turn-around times.
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