Mr. Darwin Green reports
HIGHGOLD COMMENCES DRILL PROGRAM AT MUNRO-CROESUS PROJECT, TIMMINS AREA, ONTARIO AND ACQUIRES ADDITIONAL TIE-ON CLAIMS
Highgold Mining Inc. has started a phase 1 3,000-metre drill program at its Munro-Croesus project located in the Timmins gold camp, Ontario, Canada. The program will follow up on encouraging results at vein targets identified peripheral to the historic Croesus gold mine. Drilling is expected to continue into mid-December. Planning is also under way for a larger, phase 2 drill program that will commence January, 2022.
"Following nearly two years of land consolidation and targeting work by Highgold, we are excited to commence what is anticipated to be a significant and sustained exploration campaign at the Munro-Croesus project," commented president and chief executive officer Darwin Green. "The Munro-Croesus project is the jewel in our Ontario portfolio with its location in the plus-100-million-ounce Timmins gold camp, proximity to major gold-bearing breaks and neighboring multimillion-ounce gold deposits, and an average grade of 95.3 g/t Au from the historic Croesus gold mine. Most of the project area has gone unexplored since the 1930s due to a legacy of fragmented mining claims, which, until now, had never been unified under single ownership."
The Munro-Croesus project
The Munro-Croesus project is located along Highway 101 in the heart of the Abitibi greenstone belt, Canada's premier gold mining jurisdiction. The project covers 36 square kilometres (14 square miles) of highly prospective geology situated between the Black Fox mine complex operated by McEwen Mining Inc. and the Fenn-Gib project being developed by Mayfair Gold Corp.Recent consolidation has been part of a continuing strategy by the company to tie up the patchwork of patented and unpatented mining claims surrounding the historic Croesus gold mine into one contiguous package and enhance the exploration potential of the project.
2021 exploration work to date
The company has taken a systematic approach to exploration at the project following its land consolidation efforts in order to:
Better understand the regional setting in the context of the Porcupine-Destor, Pipestone and Munro faults;Refine and prioritize drill targets;Develop new conceptual models for controls on the historic bonanza-grade gold mineralization.
This work has included:
Property-wide airborne magnetic and electromagnetic (VTEM) survey and lidar;Geological, geochemical and historic diamond drill hole data compilation;Detailed structural study on fault and vein kinematics by SRK Consulting Inc.;Geological mapping, sampling and mechanical trenching of known quartz vein prospects and identification of other potential target types and host environments including shear-hosted gold in variolitic basalts, ultramafic rocks (green carbonate zones) and sediments, and intrusive-hosted gold adjacent to the major faults.
2021 fall drill program
The program is designed to systematically test the strike and downdip/down-plunge potential of two vein structures, the No. 2 vein and No. 4 vein targets, which yielded encouraging results from surface sampling and reconnaissance drilling completed in the fall of 2020.
The No. 2 vein target is a northeast-trending vein structure that has been traced by surface mapping for several hundred metres along strike to the southwest of the historic Croesus gold mine. Surface channel sampling by the company in 2020 returned values up to 8.4 grams per tonne gold over 0.9 metre.
The No. 4 vein target area is located one kilometre west-southwest from the Croesus gold mine and was developed during the 1916 to 1919 era with an inclined shaft (No. 4 shaft) to a reported depth of 100 feet. Channel sampling by the company in 2020 returned 11.24 g/t Au over 1.85 metres, 17.05 g/t Au over 0.8 metre, and 8.42 g/t Au over 1.5 metres (see company press release dated Sept. 22, 2020). Drilling in the fall of 2020 returned values up to 3.16 g/t Au over 4.2 metres, including 11.01 g/t Au over 1.10 metres in drill hole MC20-46 (see company press release dated Dec. 22, 2020).
Additional planned 2021 fall programs include ground DCIP (direct current induced polarization) geophysical surveys.
Property acquisition
Highgold, through its wholly owned subsidiary, has entered an agreement with arm's-length vendors to acquire an aggregate of 10 single-cell mining claims and 14 boundary cell mining claims totalling approximately 2.7 square kilometres (269 hectares) in the Timmins region, Ontario, that are contiguous with the company's existing Munro-Croesus property package. In consideration of the acquisition and subject to TSX Venture Exchange acceptance, as applicable, the company has made, or has agreed to make, a cash payment in the amount of $50,000 and will issue 100,000 common shares of the company to the vendors. Pursuant to the agreements, the acquired properties are subject to certain net smelter returns royalties, a portion of which royalties may be purchased back by the company.
About Highgold's Timmins properties
Highgold owns 100 per cent of each of its three Timmins properties. The Munro-Croesus gold project is located approximately 75 kilometres (47 miles) east of Timmins, proximal to the Porcupine-Destor and Pipestone faults. Mining occurred intermittently at Munro-Croesus between 1915 and 1936. The Golden Mile 89.5-square-kilometre (34.5 square miles) property is located nine kilometres (5.6 miles) northeast of Newmont's multimillion-ounce Hoyle Pond deposit in Timmins. The Golden Perimeter 118-square-kilometre (46 square miles) property is located to the south and southeast of Timmins.
About Highgold Mining Inc.
Highgold Mining is a mineral exploration company focused on high-grade gold projects located in North America. Highgold's flagship asset is the high-grade Johnson Tract gold project, located in accessible south-central Alaska, United States. The company also controls a portfolio of quality gold projects in the greater Timmins gold camp, Ont., Canada, that includes the Munro-Croesus gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Golden Perimeter 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.
Qualified person and quality assurance
Ian Cunningham-Dunlop, PEng, vice-president, exploration, for Highgold Mining and a qualified person (QP) as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.
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