Johnson Tract is a poly-metallic (gold, copper, zinc, silver, lead) project located near tidewater, 200 kilometres southwest of Anchorage. The 21,000-acre property includes the high-grade Johnson Tract Deposit and at least nine other mineral prospects over a 12-kilometre strike length.
Highgold acquired the project through a lease agreement with Cook Inlet Region Inc. (CIRI), one of 12 land-based Alaska Native regional corporations created by the Alaska Native Claims Settlement Act of 1971. CIRI is owned by more than 9,100 shareholders who are primarily of Alaska Native descent.
The JT Deposit hosts an indicated resource of 2.14 million tonnes, grading 10.93 g/t gold equivalent (AuEq), comprised of 6.07 g/t gold, 5.8 g/t silver, 0.57% copper, 0.80% lead and 5.85% zinc. On top of that is an inferred resource of 580,000 tonnes, grading 7.16 g/t AuEq, comprised of 2.05 g/t gold, 8.7 g/t silver, 0.54% copper, 0.33% lead and 6.67% zinc.
Prior to Highgold, the project was last explored in the mid-1990s by a mid-tier mining company that evaluated direct shipping material from Johnson to the Premier Mill, near Stewart, B.C.
On Tuesday, Highgold said an updated and expanded mineral resource for the JT Deposit is expected to be delivered before the end of the second quarter of 2022 and will incorporate 27,000 metres of drilling from the 2020 and 2021 drill programs.
Meanwhile, the company said a minimum of 13,000 metres of diamond drilling is planned for this yearâ€™s field season. Approximately 35% of that amount will focus on step-out and infill drilling on the mineral resource footprint, including follow-up on successful down-plunge and on strike expansion drill holes completed in 2021.
Another 35% will focus on the DC Prospect Discovery, featuring follow-up drilling of the exceptionally high grade, late-season discovery of 6.4 metres, grading 577.9 g/t gold and 2,2023 g/t silver that was reported in October, 2021.
Another 30$ will focus on the Milkbone Prospect target area and other district prospects, including Kona, Easy Creek and South Valley.
The company said it is commissioning an onsite sample preparation facility for crushing and pulverizing drill core samples, which will significantly reduce assay turn-around time and enable more efficient follow-up of positive results during the 2022 drill program.
â€œOur 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,â€™â€™ said Highgold President and CEO Darwin Green. â€œWith $19.5 million in working capital, Highgold is fully funded for the planned program,â€™â€™ he said.
On Tuesday, Highgold shares eased 3.66% or $0.03 to 79 cents and now trade in a 52-week range of $2.08 and 73 cents.