HighGold reports best intersection drilled at JT deposit in Alaska; stock rises

Staff Writer | November 29, 2022 | 8:17 am Exploration Markets Canada Copper Gold Lead Silver Zinc

Johnson Tract deposit – surface expression. Credit: HighGold Mining

HighGold Mining (TSXV: HIGH) has reported assay results from four infill and expansion drill holes completed at the JT deposit, part of the company’s Johnson Tract polymetallic project in south-central Alaska that holds a mineral resource of 1.05 million oz. indicated at 9.4 g/t gold-equivalent (AuEq).

The latest drilling focused on gaps between inferred resource domains and step-outs at depth. Drill hole JT22-152 delivered the best intersection drilled to date at the JT deposit, returning 120.5 metres at 18.76 g/t gold, 0.55% copper, 3.86% zinc, 0.93% lead and 6 g/t silver (for 22.1 g/t AuEq). This intersection demonstrates exceptional continuity of very high-grade mineralization, with gold grades locally exceeding the resource block model that it intersects.

In addition to documenting higher grade gold, the northeast orientation of drill hole JT22-152 has also allowed HighGold to test – and confirm – that the southern edge of the JT deposit is bounded by a cross-fault. This opens-up the potential for additional displaced mineralization to continue further to the south than previously thought.

“The exceptional results of drill hole JT22-152 underscore the highly attractive combination of large intervals of high-grade mineralization that characterize the JT deposit, which consists of a thick, oblate body of stockwork veining and breccia,” HighGold CEO Darwin Green said in a news release.

Results from the other holes including JT22-148, which intersected 9.3 metres at 7.18 g/t gold, 0.22% copper and 5.57% zinc (10.9 g/t AuEq), also demonstrate potential additions to the mineral resource between the known inferred resources.

The JT deposit currently hosts inferred resources of 706,000 tonnes grading 4.76 g/t AuEq (1.36 g/t gold, 9.1 g/t silver, 0.59% copper, 0.30% lead and 4.18% zinc). The larger indicated resource is estimated at 3.5 million tonnes grading 9.39 g/t AuEq (5.33 g/t gold, 6.0 g/t silver, 0.56% copper, 0.67% lead and 5.21% zinc).

HighGold is focused on both expanding the JT deposit and generating new discoveries along the 12-kilometre strike length of the Johnson Tract project.

Shares of HighGold surged 23.2% by 11:00 a.m. ET following the new drilling results, pushing its market capitalization to C$62.3 million ($45.8m).