HighGold Mining Announces US$9 million 2022 Exploration Program at Johnson Tract Project, Alaska

Rhea-AI Summary

HighGold Mining Inc. (TSX-V:HIGH, OTCQX:HGGOF) announces a US$9 million exploration program for the 2022 field season at the Johnson Tract polymetallic Gold Project in Alaska. The program includes a minimum of 13,000 meters of diamond drilling targeting high-grade deposits, with a focus on the JT Deposit and DC Prospect. An updated resource estimate is expected in Q2 2022, incorporating prior drilling results. HighGold is fully funded with C$19.5 million in working capital, aiming to expand its resource base and discover new deposits.

Positive

• US$9 million exploration program for 2022 to enhance resource potential.
• Planned drilling of 13,000 meters targeting high-grade deposits.
• Fully funded with C$19.5 million in working capital for planned activities.
• Expecting an updated resource estimate incorporating 27,000 meters of previous drilling.

Negative

• None.

VANCOUVER, British Columbia--(BUSINESS WIRE)-- HighGold Mining Inc. (TSX-V:HIGH, OTCQX:HGGOF) (“HighGold” or the “Company”) is pleased to announce plans for a US$9 million exploration program (the “Program”) for the 2022 field season at the Johnson Tract polymetallic Gold Project (“Johnson Tract”, “JT” or the “Project”) in Southcentral Alaska, USA. The Project hosts the high-grade JT Deposit with a 0.75moz indicated resource at 10.9 g/t gold equivalent (“AuEq”). An updated and expanded mineral resource for the JT Deposit is expected to be delivered before the end of the second quarter 2022 and will incorporate 27,000 meters of drilling from the 2020 and 2021 drill programs.

2022 Johnson Tract Exploration Program Strategy

• A minimum of 13,000 meters of diamond drilling allocated to test the following:
  • JT Deposit (Approx. 35% of meters) – focused step-out and infill drilling on the mineral resource footprint, including follow-up on successful down-plunge and on strike expansion drill holes completed in 2021 including. 4.3m grading 20.0 g/t AuEq (see Company press release dated September 14, 2022)
  • DC Prospect Discovery in 2022 (Approx. 35% of meters) – follow-up drilling of the exceptionally high-grade, late season drill discovery, of 6.4m grading 577.9 g/t Au and 2,023 g/t Ag (included 1.26m at 2,860 g/t Au and 9,990 g/t Ag plus 1.5m at 60.7 g/t Au and 220 g/t Ag; see Company press release dated October 6, 2021)
  • Milkbone Prospect, Priority Target (Approx. 20% of meters)– first time testing of high-grade soil geochemistry and boulder samples (up to 8.3 g/t Au and 184 g/t Au respectively) at the Milkbone Prospect and the 1.2 km long northeast trending mineralized corridor between the Milkbone and DC prospects
  • Other Johnson District prospects (Approx. 10% of meters) – including Kona, Easy Creek and South Valley.
• Preparations well underway to open camp mid-June with drilling to commence shortly thereafter
• Commissioning of an onsite sample preparation facility for crushing and pulverizing drill core samples, which will significantly reduce assay turn-around time and enable more efficient follow-up of positive results during the 2022 drill program
• Preliminary engineering and environmental baseline studies to support Project planning
• Geological mapping, prospecting, and soil & rock sampling programs to follow-up and expand on the positive results generated from the 2021 program and refine drill targets coupled with Drone-Magnetic airborne surveying

“After drilling one of the best drill intersections globally in 2021*, we are poised to have drills turning to follow-up on our exciting new high-grade discovery at the DC Prospect,” commented Darwin Green, President and CEO. “Our priority objectives and allocation of capital for the 2022 drill program are: i) continued expansion of the JT Deposit; ii) definition of one or more new deposits within the DC-Milkbone prospect area; and iii) make a further discovery on one of the regional targets. We are particularly excited about getting back to the new DC discovery with additional drilling and to the Milkbone prospect where we had the highest gold grade in soil samples anywhere on the property to date. With C$19.5 million in working capital, HighGold is fully funded for the planned program.” Click here for additional comments from CEO Darwin Green.

2022 Program Details

Preparations are underway to open the JT camp mid-June and to commence drilling shortly thereafter. The Program will start with two (2) drill rigs, with plans to add a third should another drill rig become available. The current drill plan contemplates approximately one-third of the total meters dedicated to expansion and infill of the JT Deposit and immediately surrounding targets, and two-thirds dedicated to the DC-Milkbone Corridor and other Johnson District prospects.

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 nine (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. Reported mineral resources are based on drill holes completed to the end of 2019. Approximately 27,000 meters of new drilling have subsequently been completed and a new resource estimate is anticipated Q2 2022. For additional details see NI 43-101 Technical Report titled “Updated Technical Report for the Johnson Tract Project, Alaska” dated August 9, 2021 authored by Ray C. Brown, CPG, and James N. Gray, P.Geo. Gold Equivalent is based on assumed metal prices and 90% recovery 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.

About HighGold

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. This 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., Senior VP Exploration for HighGold Mining Inc. and a qualified person ("QP") as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.

On Behalf of HighGold Mining Inc.

“Darwin Green”

President & CEO

For further information, please visit the HighGold Mining Inc. website at www.highgoldmining.com

*Drill hole DC21-010 from the DC Prospect was ranked as the third best drill hole in 2021 amongst TSX listed companies by Opaxe. Opaxe is an independent Australian mining database company that compiles the best drill intersections reported around the world and then ranks them based on gold equivalent grams per tonne using prevailing metal prices. Visit www.opaxe.com for additional information on AuEq parameters.

The Company has a robust QAQC program that includes the insertion of blanks, standards and duplicates.

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 includes certain “forward-looking information” within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively “forward looking statements”). Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Company’s planned drill program are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company’s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220531005321/en/

Darwin Green, President & CEO or Naomi Nemeth, VP Investor Relations

Phone: 1-604-629-1165 or North American toll-free 1-855-629-1165

Email: information@highgoldmining.com.

Website: www.highgoldmining.com

Twitter : @HighgoldMining

Source: HighGold Mining Inc.

FAQ

What is the focus of HighGold Mining's 2022 exploration program at Johnson Tract (HGGOF)?

HighGold Mining's 2022 exploration program at Johnson Tract focuses on an US$9 million investment aimed at drilling approximately 13,000 meters to test high-grade deposits, primarily at the JT Deposit and DC Prospect.

When is HighGold Mining expecting an updated resource estimate for Johnson Tract (HGGOF)?

HighGold Mining expects to deliver an updated resource estimate for the Johnson Tract by the end of Q2 2022.

How much working capital does HighGold Mining have for the exploration program (HGGOF)?

HighGold Mining has C$19.5 million in working capital designated for its 2022 exploration program at Johnson Tract.

What are the main prospects targeted in HighGold Mining's 2022 drilling program (HGGOF)?

The main prospects targeted in HighGold Mining's 2022 drilling program include the JT Deposit, DC Prospect, and Milkbone Prospect, among others.