HighGold Mining Intersects 21.7 g/t Gold over 11.9 Meters at DC Prospect, Johnson Tract Project, Alaska

Rhea-AI Summary

HighGold Mining announced promising results from the Difficult Creek Prospect in Alaska, with drill hole DC22-043 revealing 11.9m at 21.68 g/t Au and including a high-grade subinterval of 3.9m at 54.2 g/t Au. The ongoing drilling program aims to explore the newly identified Ellis Zone, which has shown multi-ounce grade mineralization. The company has completed 3,017 meters in 25 holes so far in 2022 and continues to refine targets for future drilling while aiming for an overall completion of 10,000 to 11,000 meters this season.

Positive

• High-grade drill results from the Difficult Creek Prospect, with significant intersections including 3.9m at 54.2 g/t Au.
• Discovery of the new Ellis Zone, indicating potential for a significant mineralized system.
• Planned extensive follow-up drilling to further explore and expand the mineralization.

Negative

• Potential reduction in total meterage to be drilled this season, estimated at 10,000 to 11,000 meters, due to late start from snowpack.

Including 54.2 g/t Gold, 71 g/t Silver, 1.26% Copper and 8.29% Zinc over 3.9 meters

VANCOUVER, British Columbia--(BUSINESS WIRE)-- HighGold Mining Inc. (TSX-V:HIGH, OTCQX:HGGOF) (“HighGold” or the “Company”) is pleased to announce the first drill results of the 2022 field season from the Difficult Creek Prospect (“DC”), located four (4) km northeast of the Company’s 1.05 Moz indicated at 9.4 g/t gold equivalent (“AuEq”) JT Deposit (3.0 g/t AuEq cut-off grade). Difficult Creek is one of several district-scale prospects being explored by HighGold on the Johnson Tract project (“Johnson Tract”, “JT” or the “Project”) in Southcentral Alaska, USA.

Figure 1. Johnson Tract Project – DC Prospect – Ellis Zone Plan Map with 2022 Drill Hole Locations (Graphic: Business Wire)

Initial diamond drilling in 2022 has focused on the Difficult Creek prospect and the long-awaited follow-up to the exceptional grade intersection returned in hole DC21-010 drilled late last season which included 577.9 g/t Au and 2,023 g/t Ag over 6.40 meters (See HighGold news release dated October 6, 2021). New drilling in 2022 has been completed along strike to the east, west and down-dip from hole DC22-010 in fans of short, shallow step-out holes. Results to date are very encouraging and highlights from the first eight (8) holes for which assays have been received are detailed below (true thicknesses 70-90% of reported intersection length).

Drill Highlights of the Ellis Zone, DC Prospect

• 11.9m @ 21.68 g/t Au, 30 g/t Ag, 0.61% Cu, 4.20% Zn (25.3 g/t AuEq), in hole DC22-043, including
  • 3.9m @ 54.20 g/t Au, 71 g/t Ag, 1.26% Cu, 8.29% Zn (61.6 g/t AuEq), including
  • 1.4m @ 92.75 g/t Au, 138 g/t Ag, 2.22% Cu, 19.80% Zn (109 g/t AuEq)
• 42.8m @ 3.4 g/t Au, 23 g/t Ag, 0.21% Cu, 2.06% Zn (5.4 g/t AuEq), in hole DC22-036, including
  • 18.4m @ 7.29 g/t Au, 50 g/t Ag, 0.44% Cu, 3.92% Zn (11.2 g/t AuEq) including
  • 3.7m @ 18.00 g/t Au, 87 g/t Ag, 0.91% Cu, 4.05% Zn (22.9 g/t AuEq)
• 14.7m @ 4.0 g/t Au, 18 g/t Ag, 0.27% Cu, 4.18% Zn (7.3 g/t AuEq), in hole DC22-034, including
  • 5.6m @ 7.8 g/t Au, 36 g/t Ag, 0.49% Cu, 9.17% Zn (14.6 g/t AuEq)

“A priority of our 2022 drill program was to follow up on last year’s late season discovery at the DC Prospect to determine if the mineralization continued to depth and laterally along strike. This has been confirmed in our initial step-outs which have returned multiple intersections of high-grade mineralization, including subintervals of multi-ounce grade,” commented Darwin Green, CEO. “This emerging new zone of high-grade mineralization has been named the Ellis Zone in honor of the late Bill T. Ellis, who played a key role in the initial discovery and advancement of the Johnson Tract project and was a major force in the Alaska exploration community. We look forward to receiving the balance of the assays from the initial 25-hole detailed grid drilling program and completing additional larger step-outs along strike and to depth. We anticipate drilling through to the end of October as we continue to grow, what is shaping up to be, a potentially significant new zone at the Johnson Tract project.”

Discussion of DC Prospect and Ellis Zone Drill Results

The DC Prospect is located four (4) kilometers northeast of the JT Deposit and is characterized by a series of large gossan alteration zones similar in style to the +1Moz AuEq JT Deposit that collectively extend over a 1.5 km x 3.0 km area in a broad northeasterly trend. Gold mineralization and pervasive clay/anhydrite alteration are preferentially developed within dacitic to rhyolitic fragmental rocks that are capped by a shallowly-dipping sequence of lesser altered andesite volcanics that are host to a gold- and silver-rich epithermal vein field at higher elevations. The widespread extent of mineralization exposed in erosional windows through the capping andesite supports potential for a large and partially blind mineralized system linking the various DC Prospect zones together over a strike length of 3 km.

Drilling in late 2021 resulted in the discovery of near-surface bonanza-grade mineralization, which returned 577.9 g/t Au and 2,023 g/t Ag over 6.40 meters in hole DC21-010. Subsequent geological modeling during the off-season inferred an east-west striking, steeply north-dipping trend to the mineralization that became the focus for the initial 2022 drill program at what is now referred to as the 'Ellis Zone’.

Two (2) drill rigs have been targeting the Ellis Zone at the Difficult Creek prospect since the beginning of July with 3,017 meters completed in 25 drill holes to date. Drill hole lengths typically range from 75 to 150 meters and have been completed as fans of holes in a close-spaced 12.5 to 25-meter grid pattern with the objective of further refining the geometry, geological controls, and grade distribution of this promising new mineralized zone. The drilling has now successively delineated an east-west striking zone of quartz-carbonate-sulfide veining and brecciation at shallow depths (<100m vertical) over core intervals up to 25 meters in length, with local narrow intervals of coarse-grained semi-massive to massive sphalerite, galena, chalcopyrite, and pyrite. Surrounding alteration consists of silicification and a widespread zone of semi-massive to massive pervasive nodular anhydrite and anhydrite veining. The veining and alteration are visually similar to that intersected at the main JT Deposit, located four (4) km to the southwest. To date, drilling has defined Ellis Zone mineralization over a strike length of approximately 100 meters and from surface to a depth of 100 meters. The Ellis Zone remains open along strike and at depth.

Details of the locations of 2022 drill holes completed to date can be found in Figures 1 and 2 with key assay intersections displayed in Table 1.

Next Steps for the DC Prospect

The bonanza-grade gold and silver assays from the DC Prospect remain a very important driver for the Company and a second round of drilling is planned for September/October to continue chasing the newly defined mineralization at depth and along strike. One drill rig will remain dedicated to continuing to expand the Ellis Zone for the rest of the drill season while the other drill rig will test important resource growth targets at the main JT Deposit, one of the other core priorities for the 2022 drill season.

2022 Summer Exploration Activities

Two (2) diamond drill rigs are currently operating on the Project along with regional geological mapping, geochemical sampling, airborne drone-magnetic geophysical surveying, and preliminary environmental and engineering baseline studies. Approximately 65% of the planned 13,000-meter drill program is dedicated to DC prospect area with 25% for infill and step-out holes on the JT Deposit and the remaining 10% on regional prospects. A late start to the season (due to larger than normal snowpack) may reduce the total meterage completed in the 2022 field season to between 10,000 to 11,000 meters by the end of October.

To August 31^st, a total of 5,397 meters have been completed in 36 holes (28 at the DC prospect, six (6) at the Milkbone prospect, one (1) at the Kona prospect, and one at the JT Deposit area). Assays results will be released on an ongoing basis pending review and meeting Company quality assurance-quality control protocols.

For information on Bill Ellis and his trail of discoveries in Alaska visit www.MiningNewsNorth.com

Table 1. Johnson Tract Project – DC Prospect - Ellis Zone - Significant Assay Intersections

Drill Hole	From	To	Length	Au	Ag	Cu	Pb	Zn	AuEq
	(meters)	(meters)	(meters)	(g/t)	(g/t)	%	%	%	(g/t)
DC22-027	35.7	38.7	3.0	1.33	20.6	0.14	0.53	2.60	3.4
DC22-028	33.8	35.3	1.5	1.15	19.2	0.25	0.68	1.38	2.7
And	48.9	50.2	1.3	1.00	7.7	0.18	0.59	2.13	2.7
DC22-030	54.2	62.0	7.8	2.1	11.2	0.07	0.18	0.93	2.9
Incl	54.2	55.3	1.1	9.9	32.3	0.09	0.08	0.50	10.7
DC22-033	62.0	82.4	20.4	1.26	8.1	0.15	0.28	1.24	2.4
Incl	70.9	76.4	5.5	2.87	6.7	0.11	0.15	0.79	3.6
DC22-034	34.8	49.5	14.7	4.04	17.7	0.27	0.75	4.18	7.3
Incl	41.4	47.0	5.6	7.77	36.0	0.49	1.45	9.17	14.6
DC22-036	41.0	83.8	42.8	3.44	23.3	0.21	0.83	2.06	5.4
Incl	42.0	60.4	18.4	7.29	49.9	0.44	1.78	3.92	11.2
Incl	47.0	50.7	3.7	18.00	86.8	0.91	1.62	4.05	22.9
DC22-038	74.6	82.8	8.2	4.39	8.7	0.34	0.03	0.28	5.1
Incl	74.6	80.1	5.5	5.95	11.9	0.50	0.01	0.21	6.8
DC22-043	37.1	49.0	11.9	21.68	30.1	0.61	0.38	4.20	25.3
Incl	37.1	43.7	6.6	38.31	48.8	0.89	0.37	5.48	43.3
Incl	37.1	41.0	3.9	54.20	71.1	1.26	0.48	8.29	61.6
Incl	37.1	38.5	1.4	92.75	138.1	2.22	0.95	19.80	108.9

True thickness for the reported intersections estimated at 70% to 90% of reported width. Gold Equivalent (“AuEq”) based on assumed metal prices of US$1650/oz for Au, US$20/oz for Ag, US$3.50/lb for Cu, US$1.00/lb for Pb and US$1.50/lb for Zn and payable metal recoveries of 97% for Au, 85% for Ag, 85% Cu, 72% Pb and 92% Zn.

About the Johnson Tract Gold Project

Johnson Tract is a polymetallic (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 intermediate volcaniclastic rocks and is characterized as epithermal-type with submarine volcanogenic attributes. The JT Deposit is a thick, steeply dipping silicified body averaging 40m 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 3.489 Mt grading 9.39 g/t gold equivalent (“AuEq”) comprised of 5.33 g/t Au, 6.0 g/t Ag, 0.56% Cu, 0.67% Pb and 5.21% Zn. The Inferred Resource of 0.706 Mt grading 4.76 g/t AuEq is comprised of 1.36 g/t Au, 9.1 g/t Ag, 0.59% Cu, 0.30% Pb, and 4.18% Zn (see Company news release dated July 12, 2022). The updated NI 43-101 Technical Report will be released within 45 days or before August 26, 2022. Gold Equivalent (“AuEq”) is based on assumed metal prices and payable metal recoveries of 97% for Au, 85% for Ag, 85% Cu, 72% Pb and 92% Zn from metallurgical testwork completed in 2022. Assumed metal prices for the Resource are US$1650/oz for gold (Au), US$20/oz for silver (Ag), US$3.50/lb for copper (Cu), US$1.00/lb for lead (Pb), and US$1.50/lb for zinc (Zn).

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

Additional Notes :

Starting azimuth, dip and final length (Azimuth/-Dip/Length) for the eight drill holes reported today are noted as follows: DC22-027 (180/69/86.7m), DC22-028 (180/78/101.5m), DC22-030 (180/84/104.8m), DC22-033 (180/84/98.4m), DC22-034 (180/68/73.9m), DC22-036 (180/78/104.0m), DC22-038 (180/85/113.0m), and DC22-043 (180/72/100.2m).

Samples of drill core were cut by a diamond blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and the remaining half of the cut core placed back in the original core box for permanent storage, on site. Sample lengths range from a minimum 0.5-meter to a maximum 2.0-meter interval, with an average sample length of 1.0 to 1.5 meter.

The half-cut core samples are then dried for 1-2 days at 50-60 degrees Celsius, crushed to 2mm (>70%) and pulverized to 75 microns (>85%) at the Company’s new onsite sample preparation facility. The preparation facility was designed under the guidance of expert third party consultant, Dr. Barry Smee, P.Geo. Sample pulps are individually packaged in paper envelopes and weigh approximately 250 grams each, the sample pulps are then placed inside security-strapped plastic totes in batches of 80-100 samples per tote with each tote weighing about 22-23 kilograms. The samples are then shipped by air freight directly to ALS Geochemistry Analytical Lab facility in North Vancouver, BC for analysis.

Gold is determined by fire-assay fusion of a 50-gram sub-sample with atomic absorption spectroscopy (AAS). Samples that return values >10 ppm gold from fire assay and AAS are determined by using fire assay and a gravimetric finish. Various metals including silver, gold, copper, lead and zinc are analyzed by inductively-coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion. The elements copper, lead and zinc are determined by ore grade assay for samples that return values >10,000 ppm by ICP analysis. Silver is determined by ore grade assay for samples that return >100 ppm. ALS Geochemistry meets all requirements of International Standards ISO/IEC 17025:2017 and ISO 9001:2015. ALS Global operates according to the guidelines set out in ISO/IEC Guide 25.

The Company maintains a robust QAQC program that includes the collection and analysis of duplicate samples and the insertion of blanks and standards (certified reference material). The Company’s database and QAQC data have been audited by two independent, external experts, Chris Brown of Oriented Target Solutions LLC and Barry Smee of Smee and Associated Consulting Ltd

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 further 2022 drill plans and future results at the Johnson Tract Project 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/20220912005393/en/

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

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 were the highlights of HighGold Mining's drill results at Difficult Creek Prospect?

HighGold Mining reported 11.9m at 21.68 g/t Au, with a subinterval of 3.9m at 54.20 g/t Au in drill hole DC22-043.

What is the significance of the Ellis Zone for HighGold Mining?

The Ellis Zone has shown multiple intersections of high-grade mineralization, suggesting a potentially significant new mineralized system.

How much drilling has been completed by HighGold Mining in 2022?

HighGold Mining has completed 3,017 meters in 25 drill holes as of the latest updates.

What impact does snowpack have on HighGold Mining's drilling program?

A larger than normal snowpack has delayed the start of the drilling season, possibly reducing total drilling meterage to 10,000 to 11,000 meters.

What is the expected timeline for HighGold Mining's drilling program?

The drilling program is expected to continue through to the end of October 2022.