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HighGold Mining Intersects 190.5 g/t Gold over 0.5 meters at Munro-Croesus Project, Timmins

Dec 23, 2020

HighGold Mining is pleased to report the first round of assay results from the 2020 Fall Drill Program (the "Program") at its Munro-Croesus project (the "Project") located in the Timmins gold camp, Ontario, Canada. The Program evaluated targets in the immediate vicinity of the historic Croesus Gold Mine as well as new targets identified in recent trench sample results elsewhere on the property. A total of 31 holes were completed totalling 2,645 meters. Assays have been received for nine (9) holes with significant results reported below and in Table 1.

Highlight Drill Intersections 

  • 190.5 g/t Au over 0.5 meters (MC20-43) at Croesus Mine target
    • includes 311.0 g/t Au over 0.3 meters 
  • 8.25 g/t Au over 0.4 meters (MC20-42) at Croesus Mine target
  • 11.01 g/t Au over 1.1 meters (MC20-46) at #4 Shaft target
    • within a broad alteration & vein zone grading 3.16 g/t Au over 4.2 meters.

"The successful near-surface intersection of a high-grade vein structure overlying the historic Croesus Gold Mine workings highlights the opportunity for additional discoveries in an established bonanza grade gold environment," commented President and CEO Darwin Green. "Equally significant is the intersection of high-grade gold approximately one kilometre away at the #4 Shaft target, which brings into focus the greater potential of HighGold's recently consolidated and surprisingly underexplored Munro-Croesus property package."

"While the Alaska Johnson Tract project remains HighGold's flagship, with an allocation of up to 80 percent of the company's annual exploration budget, the Timmins Munro-Croesus project is clearly emerging as an exciting second pillar for the Company and opportunity for creating additional shareholder value. Munros-Croesus is a project that can be effectively explored year-round and is complimentary to Johnson Tract in sharing the key attributes of high gold grades in a top North American mining jurisdiction. The Company has a large number of assay results yet to report for its 2020 drill programs from both Johnson Tract and Munro Croesus. We are currently experiencing faster assay turnaround for Ontario than Alaska, as are our contemporaries, and look forward to providing additional assay result updates for both projects in the coming weeks as data is received."

Munro-Croesus Drill Program Details 

The 2020 Fall Drill program at Munro-Croesus was designed as a first pass orientation program that included targets adjacent to underground workings and at new prospects in outlying areas to the historic mine site. At the outlying prospects, drilling primarily consisted of short holes drilled beneath recently opened historic trenches with the objective of better understanding the geometry, continuity, and geological characteristics of prospects that have seen no work for many decades. In many cases these prospects appear to have not been previously drilled.

Croesus Gold Mine Area

The Company completed eight (8) short holes totalling 288 meters on two drill cross-sections in the immediate vicinity of the historic Croesus inclined shaft to evaluate the shallow hanging wall and footwall lithologic sequences to the historically mined Croesus vein. The last three (3) holes of the Program on the southern of the two cross-sections intersected promising quartz-carbonate veining with associated pyrite and arsenopyrite with highlights listed below:

  • 2.3 grams per tonne gold ("g/t Au") over 2 meters, in hole MC20-41
  • 8.25 g/t Au over 0.4 meters, in hole MC20-42
  • 190.5 g/t Au over 0.5 meters, including 311.0 g/t Au over 0.3 meters, in hole MC20-43

The high-grade intercept in hole MC20-43 is developed within the upper sulphidic pillow breccia phase of the Croesus basalt flow with 25-40% pyrite and trace arsenian pyrite along pillow selvedges and 15-25% quartz-carbonate veining. The intercept lies approximately 5 meters above the old underground workingsand may represent a new vein, or a splay of the historic Croesus vein that tracked up into the hanging wall sequence and was missed in previous mining operations.

The former Croesus Gold Mine is renowned for having produced some of the highest-grade gold mined in Canada. Total historical Croesus mine gold production from milled ore as reported by the Ontario Department of Mines (Reference Ontario Department of Mines Vol. LX, Part VIII, 1951) was 14,854 ounces gold from 5,333 short tons milled for an average grade of 2.78 oz gold per short ton (95.3 g/tonne). Research by a previous owner suggests that the above-reported milled ore production did not include the very high-grade direct shipping gold ore which was shipped directly to the Canadian Mint for processing. Five (5) gold samples purchased by the Ontario Bureau of Mines for exhibition purposes and now in possession of the Royal Ontario Museum in Toronto, Ontario weigh 85 pounds collectively and contain 480.7 ounces of gold or 11,310 oz gold per short ton (387,727 g/tonne).

#4 Shaft Area

The #4 Shaft area is located one kilometer from the Croesus Gold Mine area and represents one of the new targets being evaluated by the Company on the greater Munro-Croesus property. The Company recently completed a prospecting and mapping program followed by mechanical stripping, power washing and channel sampling of gold-bearing quartz vein systems in September 2020 (See HighGold Mining press release dated September 22, 2020). One of the new quartz vein prospects, the #4 Shaft Area, returned promising surface channel samples including 11.24 g/t Au over 1.85 meters, 17.05 g/t Au over 0.8 meters, and 8.42 g/t Au over 1.5 meters.

The Company conducted follow-up diamond drilling in October 2020 with the first hole, MC20-46, returning encouraging values a short distance underneath the exposed quartz veining, including:

  • 3.16 g/t Au over 4.2 meters, including 11.01 g/t Au over 1.1 meters, in hole MC20-46

The historic #4 Shaft area was developed during the 1916-1919 era with an inclined shaft to a reported depth of 100 feet. The quartz vein structure is exposed in a single trench and test pit and historic channel sampling from 1929 returned 5.14 g/t Au over 4.78 meters, including 10.62 g/t Au over 1.12 meters.

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