Stifel GMP has repeated a 'Buy' rating on HighGold (TSX-V:HIGH, OTCQX:HGGOF) Mining Inc after the explorer reported regional surface sampling results from its flagship Johnson Tract property in Alaska.
As reported on January 25, 2022, the Vancouver-based company shared results for the Milkbone, greater Difficult Creek (DC), Easy Creek (EC) and Kona regional prospects that sit within the northern half of the project area and two-to-seven kilometers (km) on trend from its resource of 0.75 million ounces (Moz) indicated 10.9 grams per ton (g/t) gold equivalent (AuEq) at the JT deposit. The announcement also included scout drill results from the Central fault and Upper DC vein field targets.
"HighGold (TSX-V:HIGH, OTCQX:HGGOF)'s exploration prospects remain strong despite the disappointing drill results at the Central fault and Upper DC," the broker's analysts said in a note.
"The trend between (and including) Milkbone and Middle DC remains the most prospective target with Easy Creek and Kona filling out the exploration pipeline. From a regional exploration prospective, we look forward to the inaugural 2 holes from Kona. We are also looking forward to the first results from the company's 4,000m 2021 drill program at Croesus in Ontario," they added.
READ: HighGold Mining discovers new gold-bearing structure at Johnson Tract defining a prospective target corridor in Alaska
The analysts also noted that the firm trades at spot price to net asset value ratio (P/NAV) of just 0.27x using its 10% discount rate for a discounted cash flow (DCF) valuation for JT Main.
"We look forward to assays from the remaining 13 holes at JT Main, the results of lock cycle metallurgical test work on the main deposit in the next 6 weeks and an updated resource for JT Main near the end of Q1," said the analysts.
Stifel targets C$3 for HighGold (TSX-V:HIGH, OTCQX:HGGOF) shares, which are currently changing hands at C$1.37 each.
Contact the writer at giles@proactiveinvestors.com