HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF) should trade at a premium compared to its gold mining peers on its high-grade bulk tonnage style of mineralization and the prospective nature of its larger land package in Alaska, according to Stifel GMP analysts.
In a note to clients, the analysts said the recently announced final assays from 2022 drilling at the Ellis Zone at the Difficult Creek prospect at HighGold's flagship Johnson Tract project in Alaska, USA, continued to expand the project’s high-grade footprint.
They estimate that the about 5,000 metres of drilling at Ellis have defined 100,000 ounces with about 10 grams per tonne gold equivalent (AuEq), with the target showing similar characteristics to the company’s Johnson Tract Main deposit.
READ: HighGold Mining says latest drill results from DC prospect at Johnson Tract underscore property's district-scale potential
“This could potentially grow quickly to a second future ore production center on the Johnson Tract property, in addition to the 1.16Moz AuEq at JT Main,” the analysts said.
They noted that HighGold's stock currently trades in line with its peers, with an EV (enterprise value) of $14 an ounce and a spot P/NAV (price/net asset value) of 0.19 times, but said they believe a premium is warranted.
The analysts maintained their ‘Buy’ rating for the stock and price target of C$2.75. HighGold’s Toronto-listed shares are currently trading at about C$0.70.
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