HighGold Mining Inc. (TSX-V:HIGH, OTCQX:HGGOF) (“HighGold” or the “Company”) announces the acquisition (the “Acquisition”) of mining claims located adjacent to the Company’s Munro-Croesus gold property, Timmins region Ontario. The acquired ground totals approximately 320 acres and includes two parcels of fee simple lands consisting of 8 patented mining claims (the “Acquired Property”). Government reports document underground exploration and small-scale gold mining operations on the claims prior to 1916, focused on two narrow quartz veins that could be traced for hundreds of feet. The Acquired Property was held privately for many decades with no work reported on the claims since the early 1930s.
HighGold, through its wholly-owned subsidiary, entered into an agreement of purchase and sale (the “Agreement”) with an arm's length vendor (the “Vendor”) to acquire the Acquired Property. In consideration of the Acquisition and subject to TSX Venture Exchange (the “TSXV”) acceptance, the Company has agreed to make a cash payment of C$150,000 to the Vendor and to issue that number of common shares (the “Consideration Shares”) having an aggregate cash value equal to C$200,000, calculated on the 20-day volume weighted average trading price per share of the Company’s common shares on the TSXV for the 20 consecutive trading days ending on the date of receipt of conditional approval for the issuance of the Consideration Shares. Pursuant to the Agreement, the Acquired Property is subject to a net smelter returns royalty in favour of the Vendor, which may be bought back by the Company.
Updated Technical Report
HighGold also announces that it has filed an updated National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report for the Johnson Tract polymetallic Gold Project (“Johnson Tract” or the “Project”) in Southcentral Alaska, USA.
The technical report (the “Updated Technical Report”) titled “Updated Technical Report for the Johnson Tract Project, Alaska” is dated August 9, 2021 and dated effective June 1, 2021, and was prepared by Ray C. Brown, CPG, and James N. Gray, P.Geo. The Updated Technical Report is available on the Company’s SEDAR profile at www.sedar.com and on the Company’s website at www.highgoldmining.com.
The Updated Technical Report updates and replaces the previous technical report dated June 15, 2020 and incorporates new exploration completed since the effective date of the June 15, 2020 report up to and including June 1, 2021, and presents updated recommendations. The Company is intending to follow the Updated Technical Report’s recommendations in designing and carrying out continued exploration of Johnson Tract.
Johnson Tract Exploration Program Update
The Company also announces an update to its planned 20,000-meter drill program, which was initiated at the Johnson Tract project in late June (see news release dated June 23, 2021). Three drill rigs are active on site with approximately 10,000 meters of drilling completed to date. A first set of assay results is expected shortly and will be reported in a subsequent news release pending their receipt.
About the Johnson Tract Gold Project
Johnson Tract is a poly-metallic (gold, copper, zinc, silver, lead) project located near tidewater, 125 miles (200 kilometers) southwest of Anchorage, Alaska, USA. The 21,000-acre property includes the high-grade Johnson Tract Deposit (“JT Deposit”) and at least 9 other mineral prospects over a 12-kilometer strike length. HighGold acquired the Project through a lease agreement with Cook Inlet Region, Inc. (“CIRI”), one of 12 land-based Alaska Native regional corporations created by the Alaska Native Claims Settlement Act of 1971. CIRI is owned by more than 9,100 shareholders who are primarily of Alaska Native descent.
Mineralization at Johnson Tract occurs in Jurassic-age intermediate volcaniclastic rocks and is characterized as epithermal-type with submarine volcanogenic attributes. The JT Deposit is a thick, steeply dipping silicified body (20m to 50m average true thickness) that contains a stockwork of quartz-sulphide veinlets and brecciation, cutting through and surrounded by a widespread zone of anhydrite alteration. The Footwall Copper Zone is located structurally and stratigraphically below JT Deposit and is characterized by copper-silver rich mineralization.
The JT Deposit hosts an Indicated Resource of 2.14 Mt grading 10.93 g/t gold equivalent (“AuEq”) comprised of 6.07 g/t Au, 5.8 g/t Ag, 0.57% Cu, 0.80% Pb and 5.85% Zn. The Inferred Resource of 0.58 Mt grading 7.16 g/t AuEq is comprised of 2.05 g/t Au, 8.7 g/t Ag, 0.54% Cu, 0.33% Pb, and 6.67% Zn. For additional details see the Updated Technical Report. Gold Equivalent is based on assumed metal prices and 90% recovery and payabilities for Au, Ag, Cu, Pb, and Zn. Assumed metal prices for the Resource are US$1350/oz for gold (Au), US$16/oz for silver (Ag), US$2.80/lb for copper (Cu), US$1.00/lb for lead (Pb), and US$1.20/lb for zinc (Zn) and are based on nominal 3-year trailing averages as of April 1, 2020. Historical metallurgical testing on drill core samples has indicated that good gold and base metal recoveries and marketable concentrates can be expected.
Prior to HighGold, the Project was last explored in the mid-1990s by a mid-tier mining company that evaluated direct shipping material from Johnson to the Premier Mill near Stewart, British Columbia.
HighGold is a mineral exploration company focused on high-grade gold projects located in North America. HighGold’s flagship asset is the high-grade Johnson Tract Gold (Zn-Cu) Project located in accessible Southcentral Alaska, USA. The Company also controls one of the largest junior gold miner land positions in the Timmins, Ontario gold camp that includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Golden Perimeter properties. HighGold’s experienced Board and senior management team, are committed to creating shareholder value through the discovery process, careful allocation of capital, and environmentally/socially responsible mineral exploration.
Ian Cunningham-Dunlop, P.Eng., VP Exploration for HighGold Mining Inc. and a qualified person as defined by NI 43-101, has reviewed and approved the technical information contained in this release.
On Behalf of HighGold Mining Inc.
President & CEO
For further information, please visit the HighGold Mining Inc. website at www.highgoldmining.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward looking statements: This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, the Acquisition, the timing of receipt of assay results and future plans for exploration on Johnson Tract and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "will", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that there will be investor interest in future financings, market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration and development of the Company's projects in a timely manner, the availability of financing on suitable terms for the exploration and development of the Company's projects and the Company's ability to comply with environmental, health and safety laws.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the inability of the Company to obtain the necessary financing required to conduct its business and affairs, capital expenditures, requirements for additional capital, future prices of precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in future financings, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, risks relating to epidemics or pandemics such as COVID–19, including the impact of COVID–19 on the Company's business, financial condition and results of operations, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations, including by the TSXV for the Acquisition, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company's latest Management's Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.