40% Increase in Indicated Gold Equivalent
(AuEq) ounces
HighGold Mining Inc. (TSX-V:HIGH, OTCQX:HGGOF)
(“HighGold” or the “Company”) is pleased to announce
an updated NI43-101 mineral resource estimate (“MRE”) for
the Johnson Tract Deposit (“JT Deposit”) at the Company’s
Johnson Tract polymetallic Gold Project (“Johnson Tract”,
“JT” or the “Project”) located in coastal
Southcentral Alaska, USA. The updated MRE (previous estimate
Q2-2020) is based on new diamond drilling completed by the Company
in the second half of 2020 and 2021 (Table 1 and Figure
1).
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the full release here:
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Figure 1. JT Deposit Long Section,
Johnson Tract Project, Alaska (Graphic: Business Wire)
JT Deposit Mineral Resource Highlights
- Updated Indicated Resource – 3.49 million tonnes (“Mt”)
grading 9.39 g/t gold equivalent (“AuEq”) for 1,053,000
oz AuEq
- Updated Inferred Resource – 0.71 Mt grading 4.76 g/t
AuEq for 108,000 oz AuEq
- Growth – 40% increase in Indicated AuEq ounces and
54% increase in total tonnes (+60% Ind and -19% Inf) over the
2020 MRE (See Company news release dated April 29, 2020)
- High Confidence – 91% of the total AuEq ounces in the
Indicated Resource Category
- Peer-Leading Thickness – Indicated resource averages
40-meter horizontal width, roughly 10 times the mineable
width of most high-grade (+5 g/t) underground gold deposits
- Ideal Geometry for Low-Cost Methods of Underground
Mining – thick, subvertical deposit with potential for lateral
development from the valley floor to access the deepest and
highest-grade portions of the deposit first and for
gravity-assisted, bottom-up mining
- Excellent Metallurgy – high metal recoveries, including
global gold recovery up to 97%, utilizing
conventional processing at a coarse grind size (See Company news
release dated June 22, 2022)
- Expansion Potential – open to expansion along
strike/down-dip/down-plunge with numerous high-priority
property-wide targets including the Difficult Creek (“DC”)
and Milkbone prospects
“We are delighted to establish a high-grade Indicated Resource
of more than 1 million ounces gold equivalent at Johnson Tract,”
commented CEO Darwin Green. “The JT Deposit stands well above the
crowd for grade, thickness, and a geometry which will enable
lower-cost mining. It also benefits from being close to tidewater
with CIRI Alaska Native Corporation land title and strategic energy
metal co-products. In concert with recent metallurgical results,
this new resource provides an excellent foundation for future
engineering and economic studies. Meanwhile, with drills back
turning on the Project, we look forward to continuing to expand the
JT Deposit and test several other targets in the extensive
exploration pipeline at Johnson Tract, including the exciting
high-grade DC and Milkbone prospects.” Please CLICK HERE to hear
additional commentary by CEO Darwin Green.
Table 1. JT Deposit Mineral Estimate
at 3.0 g/t AuEq Cut-off
(Effective date July 12, 2022)
Category
Tonnes
Au
Ag
Cu
Pb
Zn
AuEq
(000s)
(g/t)
(g/t)
(%)
(%)
(%)
(g/t)
Indicated
3,489
5.33
6.0
0.56
0.67
5.21
9.39
Inferred
706
1.36
9.1
0.59
0.30
4.18
4.76
Contained Metal
Category
Au
Ag
Cu
Pb
Zn
AuEq
(k oz)
(k oz)
(M lb)
(M lb)
(M lb)
(k oz)
Indicated
598
673
43.1
51.5
400.8
1,053
Inferred
31
207
9.2
4.7
65.1
108
Notes
- Includes all drill holes completed at JT Deposit, with drilling
completed between 1982 and as recently as October 2021
- Assumed metal prices are US$1650/oz for gold (Au), US$20/oz for
silver (Ag), US$3.50/lb copper (Cu), US$1/lb lead (Pb), and
US$1.50/lb for zinc (Zn)
- 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
- AuEq equals = Au g/t + Ag g/t × 0.01 + Cu% × 1.27 + Pb% × 0.31
+ Zn% × 0.59
- Average bulk density value of 2.84 used as determined by
conventional analytical methods for assay samples
- Capping was applied to assays to restrict the impact of
high-grade outliers, resulting in the removal of 8.4% Au, 10.1% Ag,
2.8% Cu, 6.2% Pb, and 1.3% Pb from the resource block model as
compared to an uncapped version
- The economic underground mining cut-off is estimated to be 2.5
g/t AuEq derived from assumed operating cost of $65/t for long hole
open stope mining, $35/t processing and $20/t G&A and
accounting for transport and smelter charges. HighGold elected to
report this mineral resource at a higher cut-off grade of 3.0 g/t
Au, given the high-grade nature of the deposit.
- Preliminary underground constraints were applied, including the
elimination of isolated or scattered blocks above cut-off grade to
define the “reasonable prospects of eventual economic extraction”
for the Mineral Resource Estimate
- Mineral resources as reported are undiluted
- Mineral resource tonnages have been rounded to reflect the
precision of the estimate
- Readers are cautioned that mineral resources that are not
mineral reserves do not have demonstrated economic viability
JT Deposit Geological Model
Mineralization at the JT Deposit forms a roughly tabular
silicified body that contains a stockwork of quartz-sulphide veins
and breccia surrounded by a widespread zone of anhydrite
alteration. The JT Deposit is hosted by andesite to dacite
volcaniclastic rocks. A robust geological model has been developed
for the JT Deposit based on 120 drill holes, detailed surface
mapping, a well archived and high-quality database, extensive
re-logging and re-sampling of historic drill core, and drilling by
HighGold since 2019. A total of 57 holes (26,364 meters) were
completed in the JT Deposit environment by HighGold since the
resource was reported in the second quarter of 2020, including 35
holes (15,128 meters) within the MRE.
The mineral resource block model is constrained by three
dimensional (3D) geologic wireframes, constructed by Nathan
Steeves, PhD, Chief Exploration Geologist, and reviewed by QP Ian
Cunningham-Dunlop, P.Eng., Senior Vice President, Exploration. The
domains are controlled primarily by geology to include significant
mineralized, silicified, and veined rock. In general, domain
extents are limited to material that can be correlated within
geologically continuous, definable zones. The majority of the
mineral resource is contained within the JT Deposit High Grade (HG)
domain. The JT Deposit HG domain is a steeply dipping, 25 to 70
meters thick, heavily veined and brecciated silicified zone
extending 125 to 200 meters along strike and 250 meters vertically,
with a moderate to steep plunge to the northeast, surrounded by the
lower grade silicified or anhydrite-altered JT Deposit LG domain. A
texturally and mineralogically distinct copper-rich zone underlies
these two domains and is composed of the FWCZ HG and FWCZ LG
domains. A fifth domain, JT EXT, captures silicified and
mineralized zones extending to the northeast along strike and
down-plunge in a sparsely drilled portion of the JT Deposit.
The southeastern margin of the JT Deposit is constrained by the
steeply southeast-dipping Dacite Fault zone. Where not constrained
by drilling or faulting, domains were extended approximately 25
meters from a drill hole, except where geology supports extension
between holes in the trend of mineralization.
JT Deposit Resource Model Estimate Background
The mineral resource estimate, prepared by James N. Gray of
Advantage Geoservices Ltd., is reported in accordance with Canadian
Securities Administrators' NI 43-101 and conforms to the Canadian
Institute of Mining "Estimation of Mineral Resources and Mineral
Reserves Best Practices" guidelines. A total of 120 NQ and HQ sized
diamond drill holes (42,575m) were used in generating the
geological model for the JT Deposit, 75 of which intersected the
interpreted mineralized zones in 7,633 meters of core with a total
5,078 assays inside the mineralized solids. Capping of outlier
assays for the different metals was completed by geological domain.
All assays within the mineralized zones were composited to
1.5-meter lengths. Metal grades were estimated by ordinary kriging
in the JT Deposit HG and LG domains and by inverse distance
weighting in the other mineralized zones. Greater than 85% of the
total reported resource is in the JT Deposit HG Domain. Block
dimensions are 6 x 6 x 6 meters.
Indicated Resources include the core of the JT Deposit, where
drill density and confidence in the geological model are highest.
Blocks were initially classified as Inferred Mineral Resource where
drill spacing was to a maximum of 100 meters or where within 30
meters of the closest sample. Indicated Resource blocks meet the
criteria of being drilled at a maximum hole spacing of 40 meters.
All indicated blocks have three holes within a maximum distance of
50 meters; 88% on inferred blocks have three holes within a maximum
distance of 75 meters.
The complete NI 43-101 Technical Report will be released within
45 days of this news release.
Qualified Persons
Ian Cunningham-Dunlop, P.Eng, Senior Vice President of
Exploration, is a Qualified Person as defined by NI 43-101 for the
Johnson Tract Project. James N. Gray, P.Geo of Advantage
Geoservices Ltd. is the Qualified Person as defined by NI 43-101
for the mineral resource estimate discussed above. They have
reviewed and approved the contents of this release.
Next Steps at Johnson Tract
The Company recently commenced a US$ 9M exploration program at
Johnson Tract with plans to complete 13,000m of diamond drilling
with two drill rigs currently on site. The focus of the 2022
drilling is two-fold: (1) to continue expanding the JT Deposit; and
(2), to explore high-priority property-wide targets, including the
high-grade DC and Milkbone prospects. Plans include commissioning
an onsite sample preparation facility for crushing and pulverizing
drill core samples, which is expected to significantly reduce assay
turn-around time and enable more efficient follow-up of positive
results during the 2022 drill program.
In addition to drilling, the Company plans to conduct
preliminary engineering and environmental baseline studies to
support Project planning and future economic evaluation work.
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 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.
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 well-funded 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 Southcentral Alaska, USA. The Company also controls a
portfolio of quality gold projects in the greater Timmins gold
camp, Ontario, Canada that includes the Munro-Croesus Gold
property, which is renowned for its high-grade mineralization, and
the large Golden Mile and Timmins South 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.
Qualified Person and Quality Assurance
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
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 2022 exploration plans and potential future
engineering and economic studies 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220712005547/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
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