Value of HIGH - based on original N143-101...... NI43-101 Technical Report for the Johnson Tract Project.
The 121 page report by Brodie Sutherland, (SEDAR June 27,2019), shows the value of this project by documenting results of the historic 27,317 meters of drilling performed from 1981 - 1997 at an estimated cost of $12,290,000.
In section 6 of the report the metal content of the Johnson Tract Project is reported:
Anaconda (1981-1985) came up with a mineral resource of 1,413,862 tons grading 0.278oz/t gold + 5.85% Zn, 0.7% Cu, and 0.62% Pb. Gold = 1,413,862 X 0.278 = 393,054 oz.
Westmin Resources (1993-1997) had a mineral resource of 1,035 million tons at 10.05g/t au, + 7.63g/t Ag, 8.83% Zn, 0.75% Cu, and 1.13% Pb. Gold = 1,035 X 10.05 = 10,400,000g = 366,843oz.
So 393,054 + 366,843 = 759,897 oz gold were contained in the mineral resource defined by Anaconda and Westmin, and this does not include the gold found in 11,414meters of drilling by Hunt, Ware, and Proffett from 1985-1993. To be sure a "mineral resource" is not as exact as an NI 43-101, as Sutherland says: "The mineral resource is reported as historical information only. It was prepared prior to establishment of NI 43-101 guidelines and reporting standards, has not been independently verified, and should not be relied upon as accurate or representative." This is precisely why Constantine re-analyzed 426 drill core samples that were used to calculate the early mineral resources. No significant differences were found between the assay results of the re-sampled drill cores compared to the original material (NR. June 28,2019). This re-sampling procedure gives HighGold the means to generate an NI 43-101 for the Johnson Tract Project both RAPIDLY AND COST EFFECTIVELY.
In his Executive Summary Sutherland estimates the cost of achieving this critical milestone at a modest $1.8M: "This drilling would be completed in support of generating the first NI43-101 compliant resource estimate for the deposit. There is also significant potential to discover additional mineralized zones within the greater Johnson Tract Project. The recommended work plan includes an initial Phase 1 budget totalling $1.8M USD, consisting of 1500m of drilling, environmental, metallurgical, and geophysical studies as well as resource estimation work and technical report preparation." HighGold, following Sutherland's recommendation started a program with 2,000m drilling last month.
The above technical report provides a means of estimating the most conservative value for HIGH, which does not include the value of silver, zinc, copper and lead found in the mineral resource, does not include the metal value of the 11,414 meters of drilling by Hunt et al., from 1985-93, or the 2,000 meters of drilling currently underway by HighGold on the Johnson Tract Project. The value of gold-in-the-ground has been calculated to be $160/oz:
From this a minimal value for HIGH is 759,897 X $160 = $121,583,520/43,000,000 (fully diluted shares) = $2.83/share.
HIGH stock is still trading for less than 1/2 its intrinsic value. Slide # 22 in the Sept 25 Investor Presentation on the HighGold web site notes that "High-Grade North American Gold Projects Command a Premium". The NI43-101 compliant updated resource, expected by EOY, is one of the catalysts that will likely ignite investor interest in HIGH, its roster of heavy hitting investors including Rob McEwen, Sprott, Tognetti, Tom Kaplan, (Electrum), and a senior North American gold producer and start moving the stock from a discount to a premium.