Johnson Tract Project

Exceptional high-grade gold asset with no modern exploration since the mid 1990s

The Johnson Tract Project is an advanced stage poly-metallic (gold, copper, zinc, silver, lead) project located near tidewater in Southcentral Alaska with excellent exploration potential over a 12-kilometre strike length.

The Johnson Tract drill discovery, made by Anaconda Minerals in 1982, reported 108.6 meters grading 10.39 g/t gold, 7.64% zinc, 0.71% copper, 2.01% lead and 8.1 g/t silver, including 48 meters grading 21.1 g/t gold, 9.93% zinc, 0.88% copper, 2.86% lead and 12.3 g/t silver.

HighGold holds a Lease Agreement with the Cook Inlet Region, Inc. (CIRI), an Alaska Native Corporation, for the lease rights to 8,475 hectares (20,942 acres), which includes the Johnson Tract deposit. For more detailed information on the Johnson Tract Agreement, see ‘Agreement with Cook Region Inlet, Inc.’ below.

SNAPSHOT

Location

Southcentral Alaska, USA

Ownership

Highgold Mining Lease agreement for 100% subject to certain back-in rights by CIRI.

Status

Active - Exploration program underway

Deposit Type

Epithermal to Volcanogenic Massive Sulphide

Property Size

8,475 hectares (20,942 acres)

Host Rock

Volcaniclastic

Age

Jurassic; similar age as Eskay Creek Au-Ag-Cu-Pb-Zn Mine

Main Economic Elements

Gold and Zinc, with Copper, Lead and Silver credits

Approximate Geometry

Quartz vein stockwork

Mineral Resource

Non-compliant historic resource

Potential Mine Method

Underground

Location Map

Agreement with CIRI

HighGold’s lease agreement with Cook Inlet Region, Inc. (“CIRI”) includes an “Initial Term” of 10-years, followed by a 5-year “Development Term” to achieve a mine construction decision, and then a “Production Term” that will continue for so long as operations and commercial production are maintained.  Principal commercial terms include:

  • exploration expenditures and annual lease payments
  • CIRI to maintain certain back-in and NSR royalty rights

About CIRI

CIRI is one of 12 land-based Alaska Native Regional Corporations created by the Alaska Native Claims Settlement Act of 1971. CIRI’s mission is to promote the economic and social well-being and Alaska Native heritage of its shareholders, now and into the future, through prudent stewardship of the company’s resources, while furthering self-sufficiency among CIRI shareholders and their families. Headquartered in Anchorage and Southcentral Alaska’s largest private landowner, CIRI prioritizes striking a balance between sustainably developing resources while protecting the land for future generations. CIRI is currently owned by approximately 9,000 shareholders of Alaska Native descent. Learn more at www.CIRI.com.

 

November 2019 Drill Program Results

Significant drill hole intersections for a range of gold equivalent (AUEq) cut-offs.

Drill Hole

Cut-Off

From

To

Width*

Au

Ag

Cu

Zn

Pb

AuEq

(AuEq g/t)

(meters)

(meters)

(meters)

(g/t)

(g/t)

%

%

%

(g/t)

JT19-082

2

153.2

261

107.8

12.42

8.9

0.88

7.11

1.64

19.55

5

153.2

238

84.8

15.49

10.9

1.07

8.26

2.08

23.98

10

153.2

217.2

64

19.30

13.1

1.27

9.51

2.66

29.29

20

154.7

205

50.3

23.86

14.7

1.33

8.95

2.92

33.74

Incl.

156.2

184.6

28.4

35.15

17.0

1.40

7.45

3.13

44.30

And

182.6

184.6

2.0

233.50

30.4

1.56

4.15

3.34

241.01

JT19-083

5

1.5

10.5

9.0

5.00

9.4

0.28

11.28

3.22

14.77

JT19-083

2

75.9

106.6

30.7

2.75

8.8

0.29

5.47

3.00

8.59

5

81.2

106.6

25.4

2.87

10.1

0.32

6.54

3.63

10.09

10

87.2

103.5

16.3

3.44

12.7

0.32

7.72

5.29

15.73

*Drill intercepts reported as core lengths. True width of JT19-082 is approximately 50% of reported width. True width of JT19-083 is approximately 75% of reported width. See cross section below.

* For complete list of sample results for drill hole JT19-82 intersections of 84.4 meters grading 15.49 g/t gold, 10.9 g/t silver, 1.07% copper, 8.26% zinc, 2.08% lead (based on 5g/t AuEq cut-off) see HighGold Mining press release dated November 5, 2019. 

Significant intersections - Historic

Overview

  • Large property position totaling approximately 8,475 hectares (20,942 acres) consists of two parts:
    1. a 11,342-acre (4,590 hectares) fee simple land package (South Tract) that hosts the known deposit, and
    2. the 9,600-acre (3,885 hectares) North Tract consisting of mineral rights only with several known high-grade prospects.
  • The Johnson Tract project is an inholding in Lake Clark National Park and was conveyed to CIRI under the terms of the Alaskan Native Claims Settlement Act (ANSCA) and the Cook Inlet Land Exchange. Ratified by an act of Congress and approved by the Alaska Legislature in 1976, CIRI is entitled to mutually agreed upon transportation and port easements through Park lands for mineral extraction.
  • Property includes the very high-grade Johnson Tract Au-Ag-Zn-Cu-Pb deposit along with excellent exploration potential indicated by several other prospects over a 12 km strike length.
  • Excellent access - located near tidewater in Southcentral Alaska.

Updated Johnson Tract Technical Report

An updated technical report titled “NI 43-101 Technical Report for the Johnson Tract Project” dated June 27, 2019 was completed by Brodie Sutherland, P.Geo, who is an independent “qualified person” under National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The report was prepared for HighGold Mining. Click here to view the entire report.

The report summarizes historic work and presents new assay results from a drill core re-sampling program completed in late 2018. The objective of the program was to confirm the location and grades of historic mineralization documented in drilling completed between 1982 and 1993. The data show a strong correlation between the historic and 2018 duplicates, for all the precious and base metals of interest.

The technical report concludes that the potential for discovery of additional mineralization at the Johnson Tract Project is considered very good. The most immediate opportunity is the Northeast Offset Target, interpreted as the fault displaced extension of the deposit. Limited historic drilling at this target has documented alteration and mineralization that shares the same characteristics of the main Johnson Tract deposit. Additional exploration drilling is clearly warranted.

Multi-deposit, district-scale potential is supported by the presence of other mineral prospects, most notably the Difficult Creek prospect where similar tenor mineralization to the Johnson Tract deposit is documented. A total of 1,344 meters of drilling were completed at Difficult Creek by a former operator in 1983, outlining a large alteration system and up to 36.6 meters of 3.57 g/t gold, 1.8% zinc, 0.2% copper, 0.4% lead and 15.5 g/t silver in drill hole DC83-002. Additional drilling is recommended. Other prospects such as Easy Creek, Kona and South Valley show promising surface results and require further field work to establish drill targets.

History

  • The Johnson Tract drill discovery made by Anaconda in 1982 reported 102.6 meters grading 10.39 g/t gold, 7.64% zinc, 0.71% copper, 2.01% lead and 8.1 g/t silver, including 48 meters grading 21.1 g/t gold, 9.93% zinc, 0.88% copper, 2.86% lead and 12.3 g/t silver.
  • Past work includes eighty-eight (88) drill holes for a total of 26,840 meters, and major engineering and mining related studies by Westmin Resources Ltd. that evaluated direct shipping ore to their Premier mill in Stewart BC*. The Project reverted to CIRI in the late 1990s and has seen no work to date since that time.
  • Metallurgical testing on drill core samples has generally indicated that good gold and base metal recoveries and marketable concentrates can be expected.

*Property Prefeasibility Technical Report, Johnson River Project, Alaska USA, March 1994. Internal company report prepared by Westmin Resources Ltd.

Geology

  • The Johnson Tract deposit is a gold and base metal-rich quartz vein stockwork in Jurassic-aged volcaniclastic rocks. Mineralization is interpreted as having formed in a sub-sea floor setting contemporaneous with the host stratigraphy – a similar environment to the well-known precious and base metal-rich Eskay Creek deposit.
  • There are at least nine other prospect areas of alteration and mineralization to the southeast and north of the Johnson Tract deposit over an approximate 12-kilometer strike length, most of which have seen little or no drilling.
  • Best known is the Difficult Creek prospect area that consists of several surface showings about 4.5 kilometers northeast of the Johnson Tract deposit. One of the Difficult Creek prospects that was drill tested returned significant values in two holes: DC-001 returned 3 meters of 7.54 g/t gold, 3.72% zinc, 0.11% copper, 1.15% lead and 27.4 g/t silver; DC-02 returned 13.0 meters of 8.57 g/t gold, 4.7% zinc, 0.5% copper, 0.9% lead and 37.7 g/t silver.

Technical Report

NI 43-101 Technical Report for the Johnson Tract Project

Photo Gallery

Click here to view the photo gallery

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