On September 28, HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF) announced additional ultra-high grade assays from the Ellis zone at its Johnson Tract property in Alaska, and analysts at Stifel GMP have taken notice.
In a flash note published the same day, analysts called the batch of six holes a “strong step.”
“Today’s results have expanded the strike to 60 [meters] and to a depth of 75 m, all less than 100 m below surface,” the analysts wrote. “At an average drilled width of 12.9 m and length weighted average of 23 g/t [gold equivalent], we estimate the company has already defined close to 100koz [thousand ounces gold equivalent] with additional excellent expansion potential both along strike and at depth.”
All told, the firm values the entire Difficult Creek Prospect area (including Ellis) at $15 million but expects that valuation to increase as the Ellis zone becomes a “major, high-grade mineralized center.”
“We expect the stock to outperform today, clearly demonstrating a high grade endowment of scale at Ellis,” analysts wrote. Stifel GMP has a buy rating and C$2.75 price target for HighGold. The stock traded at $C0.67 on September 29.
So far, 36 holes for 4,935m have been completed at the Ellis Zone since the start of the summer season and assays from 14 holes have been released. Drilling has so far defined the Ellis Zone mineralization over a strike length of around 125m and from surface to a depth of 100m.
HighGold's 2022 drilling and exploration program in Alaska includes two diamond drill rigs, geological mapping, airborne geophysical surveying, preliminary environmental and engineering baseline studies, and general JT camp improvements.
Drilling is expected to wrap up in mid to late October with a total of between 10,000m and 11,000m completed.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel