RE:RE:Next steps for 2023?Well, management released a letter to shareholders that covers a couple of the points outlined in my prior post.
Seems to me like they will spin the Yukon and Ontario properties into NEWCO; HIGH shareholders to be paid in newco shares. Yukon assets will likely see the majority of drilling this year, given Snowline's major discovery. It's their best shot at hitting something akin to SGD's HG gold, and raisig cash for this shouldn’t be an issue – very exciting development.
This is a positive for our Alaska project, as I'm certain it's what got a couple of those institutions to unload HIGH Q3-Q4, as they were spreading too much cash around and not advancing JT/ALASKA, which is already challenged by its seasonality.
They also have big plans for Alaska, and it seems to me like they’re going to reinvent themselves as an early production/explorer jr. This will likely attract a host of other candidates/institutions that cannot invest in pure exploration plays so this should be very supportive to share price. That infrastructure they’re looking to permit suggests a strategic investor is in the cards, not for shares, but perhaps through a convertible debenture; so they participate in the upside that the cash will provide. As it sits, their 1.2M ounces at 9.45G/EQUIV, is likely understated give their last incredible infill hole, so it’s my belief that in ‘23 we likely get a dozen other holes in that direction early in the game, to re-rate the deposit higher while they continue to delineate JT and the other satellites around it. So to sum, JT is likely to be a 2M ounce deposit at higher grade than currently understood, possibly much higher (15-20Grams).
This ore body can be mined at 200K a year and shipped to nearby milling facilities, for circa all in cash costs of $500 per ounce (per prior Youtube discussions by Darwin). This tremendous margin potential is NOT yet at all reflected in the current share price, and gold running higher makes this an exponentially more interesting prospect/proposition. There aren’t many small producers that can mine that many ounces at that grade, so I think this we’re about to get cashed up in a major way by some “strategic investor” who wants JT’s rock. This infrastructure will allow HIGH to become a year-round drilling play, remove it’s seasonality, and expand the number of drills that hit JT and other zones. This too in imho, isn’t yet reflected in the stock, and I expect when it is, the stock will quickly re-rate to $1.5 - $2 before the cash investment. So hold onto to your hats, cause the wind is now officially in our sails.
I really believe HIGH will be a 5-10X in the next 12-24 months, and a much higher gold price will just ignite this unfolding story that much more quickly.
Best of luck to all, I’m long 40,000 shares!
https://highgoldmining.com/news/2023/letter-to-shareholders/