HighGold Mining Inc (CVE:HIGH) (OTCQX:HGGOF) has unveiled encouraging first drill assays from this year's Fall drill program at the Munro-Croesus project in the Timmins camp, Ontario.
The firm said 31 holes were sunk for 2,645 metres (m) to assess targets immediately near the historic Croesus gold mine, as well as new ones identified in recent trench sample results elsewhere. Results from nine holes have been returned.
READ: HighGold Mining unveils C$3M financing to advance Timmins gold projects
"The successful near-surface intersection of a high-grade vein structure overlying the historic Croesus Gold Mine workings highlights the opportunity for additional discoveries in an established bonanza grade gold environment," said CEO Darwin Green in a statement on Tuesday.
"Equally significant is the intersection of high-grade gold approximately one kilometre away at the #4 Shaft target, which brings into focus the greater potential of HighGold's recently consolidated and surprisingly underexplored Munro-Croesus property package."
Earlier this month, HighGold reported that it had increased the size of the Munro-Croesus asset by 40% and said it planned to drill there again in February next year.
The company acquired, with cash and shares, three new properties from various arm's length vendors, consolidating its ground into one contiguous property with an area of 28 square kilometres (sq km).
Drill highlights reported today included 190.5 grams per ton (g/t) gold over 0.5 metres (m) at the Croesus Mine target in one hole, including 311.0 g/t of the yellow metal over 0.3 meters
Also reported in another hole was 11.01 g/t gold over 1.1 meters at No. 4 Shaft target within a broad alteration and vein zone grading 3.16 g/t gold over 4.2 meters.
HighGold also said that in connection with its recently announced C$3 million private placing, it expects to issue a further 350,000 flow-through company shares (participation shares) after an existing shareholder chose to exercise its participation right granted under an agreement.
The participation shares will be issued at C$2 per participation share for additional gross proceeds of C$700,000, giving aggregate gross proceeds of C$3.7 million
Following the completion of the financing, it is anticipated that HighGold will have more than C$18 million in working capital.
The company is focused on high-grade gold projects located in North America and the flagship is the high-grade Johnson Tract Gold (Zn-Cu) project in Southcentral Alaska, USA. The company also controls a portfolio of quality gold projects in the greater Timmins gold camp, Ontario,
Contact the author at giles@proactiveinvestors.com
