Hongguo International Holdings Ltd. USD SHS HGGOF

RE:RE:RE:RE:Hey goldenrivet

[goldenrivit]

:Highgold results according too Gwen Preston

// Highgold Mining (TSXV: HIGH; USOTC: HGGOF)
//
//Highgold reported another six holes from Difficult Creek (“DC”) including a few drilled down
//dip of the uber high-grade hit reported in October. HIGH did not manage a repeat of that hot
//hit and so traders were disappointed, though that’s not really fair.
//HIGH drilled the program they had planned at the DC prospect and did not modify it to focus
//in around Hole 10. They couldn’t have if they’d wanted to because labs are so slow that they
//were done drilling before they saw the Hole 10 numbers! It’s also not fair in that it’s almost
//impossible to follow up a hit like Hole 10 with anything that impresses.
//Two holes were down dip of Hole 10. They returned good, if not stellar, numbers: 11.4 g/t
//gold, 25 g.t silver, 1.46% zinc, and 0.54% copper over 2.3 metres and 0.67 g/t gold and 12.9%
//zinc over 2.1 metres.
//I spoke to CEO Darwin Green at some length about these results. Rather than focusing on the
//details of intercepts right around hole 10, Green thought it more important to lay out the
//setting they think they now understand in this area. It helps that HIGH has learned a lot about
//the rocks at Johnson Tract from the known JT deposit. That deposit sits at the contact between
//andesite and dacite rock units. At JT, the contact has been turned on side and cut by faults.
//At DC, mineralization sits at the same contact but the rocks have not been overturned. Instead, the contact still sits flat.
//The contact is down dropped a bit just southwest of the reported holes, but HIGH believes it
//continues under the ridge and pops out the other side at Milkbone. Above, along the ridge,
//there’s a trend of 1+ g/t gold samples – Green says that while the andesites aren’t the main
//gold host, gold on surface is like bubbles rising to the surface above a scuba diver. The bubbles
//let you know the diver is down below.
//So there is lots of andesite-dacite contact to test! Be prepared, though, that the holes for
//which results are yet to come do not march along that contact. Like I said before, HIGH didn’t
//have the luxury of knowing it hit a boomer in Hole 10 until the program was done. Instead, the
//rest of the program in this area tested the Upper DC target, which is a vein field to the
//southeast and uphill. Because the veins offer good grade on surface and for what the results
//will explain about the bigger picture, it will be interesting to see what those holes return.
//The stock sold off hard on the results. I get that traders wanted more splash, especially with six
//holes right around Hole 10. I do think the selloff was overdone: HIGH still has results from
//another 30 holes at JT and other targets pending after which they will update the JT resource
//(expect a notable bump).
//They are also drilling in Ontario at a secondary project that could certainly generate some
//splash. And they have $26 million in the bank so they will not need to finance next year, even
//to hit Johnson Tract hard.
//It’s a project with a lot going for it – known resources, high grades, abundance of targets, and
//multiple areas deserving follow up – and I think this selloff only positions HIGH as a good Christmas time buy.
//
//