HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF) has announced the expansion of the company's Timmins regional land holdings and provided an exploration update on the Timmins properties.
HighGold said recent claim staking and acquisition have expanded the company's commanding land position by 25% to 335 square kilometers (km).
"This acquisition builds on HighGold's vision of creating one of the most dominant land positions in the Timmins gold camp," said HighGold CEO Darwin Green in a statement.
"Our focus is underexplored portions of this world-class gold environment underpinned by high-potential geology. The Timmins assets provide shareholders with exposure to low-cost greenfield exploration in the shadow of headframes that is complimentary to the company's flagship Johnson Tract high-grade gold project, Alaska," he added.
READ: HighGold Mining says exploration well underway at Johnson Tract project in Alaska
The company said the new acquisition consists of 255 strategically located mining claims covering 56 square km (22 square miles) in the heart of the Timmins gold camp that ties onto the company's existing Timmins South mining claims and borders Newmont's Dome mine property situated 7 km to the northwest.
The Timmins South property includes several well-known high-grade gold occurrences. At the Bay Lake gold showing, a 12-meter (m) shaft was sunk in the 1930s on a 1.37m wide quartz vein which returned composite samples of 150.8 grams per ton (g/t) gold (Au), 43.2 g/t Au and 35.17 g/t Au and historical grab samples of 766.2 g/t Au and 229.7 g/t Au.
Additional mining claims have also been staked and acquired by the company that expand its Golden Mile and Munro-Croesus properties. The claim staking and acquisitions are part of HighGold's multi-year effort to consolidate large, underexplored sections of the greater Timmins gold camp with favourable geology for hosting gold mineralization.
HighGold, through its wholly-owned subsidiary, entered into an agreement of purchase and sale with an arm's length vendor to acquire the property. In consideration of the acquisition, and subject to TSX Venture Exchange (TSXV) acceptance, the company has agreed to make a cash payment of C$80,000 to the vendor and to issue 160,000 common shares with half the cash payment and consideration shares payable on signing and half payable on the first anniversary. Under the agreement, the acquired property is subject to a net smelter returns royalty (NSR) in favour of the vendor, a portion of which may be bought back by the company.
Timmins current exploration
HighGold said current exploration plans for the Timmins projects include low-cost field surveys designed to develop and refine drill targets. The company is taking a disciplined approach to capital allocation under the current market conditions, with the objective of meaningfully advancing the understanding of prospects in preparation for drilling at a future date.
Fieldwork has included geological mapping, prospecting, and rock sampling at the Munro-Croesus and Timmins South projects. Emphasis has been on prospects with known historical exploration shafts and prospective stratigraphy and the discoveries made during the winter Munro Croesus drilling program.
Modeling, inversion, and interpretation of data is ongoing for a 63-line kilometer (km) DCIP ground geophysical survey completed at Munro-Croesus during the winter. Preliminary results highlight multiple chargeability and resistivity anomalies that warrant follow-up work, including chargeability highs that are coincident with, and along trend from, the new Argus Zone.
At the company's Golden Mile project, an 85-line km overwater seismic survey was recently completed on Frederickhouse Lake to map the depth of the sediment and bedrock to aid drill planning and interpretation of bedrock geology and structures. Frederickhouse Lake is a large, shallow (2m-4m deep on average) man-made lake covering prospective geology at the intersection of the Pipestone Fault and the Timmins Mine trend. Drilling can be conducted by barge in summer or by ice in winter.
The 2022 Winter Drill Program at Munro-Croesus was completed in early April 2022, with a total of 7,401 meters drilled in 33 holes. Highlights include the discovery of near-surface bulk tonnage style gold mineralization at the new Argus Zone and the intersection of new high-grade quartz veins near the historic Croesus Gold Mine.
The company noted these discoveries are a 'proof of concept' of its geological and structural models which highlight the potential for the Croesus Vein system to continue to the northeast along a major regional structure, and also that the prospective Croesus Flow could host multiple analogues to the Croesus Vein along strike.
The company said it has received all final assay results from the remaining 19 holes from the 2022 Munro-Croesus Winter Drill Program with encouraging results from the first-pass drilling of four other prospects.
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.
Contact the author at jon.hopkins@proactiveinvestors.com