HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF) boosted its land package in Timmins by another 25% this week, earning accolades from analysts at Stifel GMP.
The junior exploration firm acquired another 56 square kilometers of additional claims – the majority of which are directly along the southern border of Newmont’s Dome mine and connect to HighGold’s existing Timmins South claims.
The new claims host a past developed 12-meter shaft on a 1.4 metre (m) quartz vein hosting gold mineralization with composite samples of 150 grams per tonne (g/t) and 43 g/t, plus grab samples of 760 g/t and 230 g/t.
READ: HighGold Mining announces expansion of its Timmins regional land holdings, provides exploration update
According to Stifel, the acquisition is “in line with HighGold’s strategy to develop under-explored properties within the Timmins gold camp that are located along trend of other major gold discoveries and present high geologic potential.”
Analysts at Stifel are ascribing an exploration value of $20 million, based on $0.27 per share or 10% of its total net asset value, for the entirety HighGold's Timmins area properties.
HighGold also received all final assay results from the remaining 19 holes from the 2022 Munro-Croesus winter drill program, with encouraging results from the first-pass drilling of four other prospects.
Results included 6 g/t over 0.6m at the Walhart prospect; 4.42 g/t over 0.7m within 2.42 g/t over 1.4m in the Brown-Munro vein; 2.12 g/t over 1.5m at the JM prospect, and 2.23 g/t over 0.5m within a broader 0.69 g/t over 11m interval in the #4 Shaft vein extension.
“The remaining winter drill program assay's highlighted in today's release are from first pass drilling of targets and while the hits are modest in terms of grade-thickness they showcase the exploration team’s ability to successfully locate prospective zones across their Timmins holdings,” Stifel wrote.
“We remain encouraged by the prospectivity of the Timmins area properties and see these results as a step in the right direction to defining higher grade targets.”
Stifel is maintaining its 'Buy' rating and C$0.91 price target on the stock, which is currently trading at C$0.90 in Toronto.
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