The DC Prospect is located four (4) kilometers northeast of the JT Deposit and is characterized by a series of large gossan alteration zones that extends over a 1.5 km x 3.0 km area, focused along a northeast-striking structure, similar to the JT Deposit. Mineralization and pervasive clay/anhydrite alteration are preferentially developed within dacitic volcaniclastic rocks capped by a shallowly dipping sequence of lesser altered basaltic volcanic rocks that are host to a gold- and silver-rich epithermal vein field at higher elevations. The widespread extent of alteration and mineralization exposed in erosional windows through the capping basalt supports potential for a large and partially blind mineralized system linking the various DC Prospect zones together over a strike length of 3 km.

Drilling in 2021 resulted in the discovery of the “Ellis Zone” as near-surface bonanza-grade mineralization, which returned 577.9 g/t Au and 2,023 g/t Ag over 6.40 m in hole DC21-010. The Ellis Zone was expanded in 2022 and 2023, and mineralization has now been defined over a strike length of 125 meters and from surface to a depth of 225 meters with an average true thickness of 10 to 15m within the plunging core of the zone. Other significant intercepts include:

• 14.3 g/t AuEq over 14.8 m (DC22-046),
• 21.7 g/t AuEq over 11.9 m (DC22-043), and
• 5.4 g/t AuEq over 42.8 m (DC22-046).

The Ellis Zone shares many similarities with the JT Deposit, including high base and precious metal grades, steep geometry, coarse-grained base metal sulfides in stockwork veins and siliceous breccia, within anhydrite-altered dacitic fragment rocks. Anhydrite-chlorite alteration is zoned outboard to a widespread zone of pyrite-sericite (± clay) alteration.

The Ellis Zone remains open along trend and at depth. HighGold continues to grow the Ellis Zone with the objective of generating a resource estimate for the new discovery, while also testing the greater potential at the DC prospect.