HighGold (TSX-V:HIGH, OTCQX:HGGOF) Mining Inc has unveiled plans for a US$9 million exploration program this year at its Johnson Tract polymetallic gold project in Alaska, which includes follow-up drilling at the high-grade DC prospect discovery.
One hole from the prospect was ranked as the third-best in 2021 amongst TSX listed companies by Australian mining database Opaxe.
An updated resource for the JT deposit at the property is expected before the end of the second quarter this year, which will include 27,000 metres (m) of drilling from last year and 2020.
"After drilling one of the best drill intersections globally in 2021, we are poised to have drills turning to follow-up on our exciting new high-grade discovery at the DC prospect," Darwin Green, the CEO of HighGold told investors in a statement.
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"Our priority objectives and allocation of capital for the 2022 drill program are: i) continued expansion of the JT Deposit; ii) definition of one or more new deposits within the DC-Milkbone prospect area; and iii) make a further discovery on one of the regional targets. We are particularly excited about getting back to the new DC discovery with additional drilling and to the Milkbone prospect where we had the highest gold grade in soil samples anywhere on the property to date. With C$19.5 million in working capital, HighGold Mining is fully funded for the planned program," he added.
The plan is to open the JT camp in mid-June with drilling starting shortly afterwards. The work will start with two rigs and there are plans to add a third if one becomes available.
HighGold also aims to commission an onsite sample facility for crushing and pulverizing drill samples, which will significantly reduce assay turn-around time, it noted.
A minimum of 13,000m of diamond drilling is planned, with around 35% of metres allocated on step-out and infill drilling at the JT deposit. Approximately 35% of metres is planned at the DC prospect and around 20% at the Milkbone prospect. Around 10% of metres is earmarked for other Johnson district prospects.
HighGold is focused high-grade gold projects located in North America. The flagship asset is the high-grade Johnson Tract gold (zinc, copper) project in Alaska, which hosts the high-grade JT deposit with a 0.75 million ounce (moz) indicated resource at 10.9 grams per ton (g/t) gold-equivalent (AuEq).
The company also controls one of the largest junior gold miner land positions in the Timmins, Ontario gold camp.
Contact the author at giles@proactiveinvestors.com