In the early mixed traffic environment, connected and automated vehicles (CAVs) tend to follow simple control rules for the sake of traffic safety and stability. Comprehensive analysis of overall mixed traffic performance and vehicle to vehicle interactions around highway on-ramp bottleneck is a basis for further traffic management and control. And yet CAVs in existing researches are mainly in the form of cooperative vehicular platoon, and mixed traffic scenarios within simulation software are not applicable for in-depth investigation. The purpose of this paper is to develop a microscopic simulation model to study in detail lane-based mixed traffic performance around the highway on-ramp. This model firstly considers vehicle characteristics of individual human vehicles (HVs) and CAVs by combining different microscopic traffic models. After the hypothetical on-ramp bottleneck structure is constructed, various simulation scenarios are developed under varying traffic volumes and changing market penetration rates (MPRs) of CAVs. Simulation results show that mixed traffic flow is improved in terms of congestion patterns and traffic capacity. For oscillating and nearly homogeneous congested traffic, congestion degrees are greatly reduced when CAV MPR above 30 % and 50 % respectively. Mixed traffic capacity is increased by 19.3 % when a smaller desired time gap set for CAVs, while it shows no significant change in a larger value. In the HV-HV interactions, traffic conflicts are slightly influenced by CAVs. Comparatively, conflict situations in HV-CAV interactions get worse, the proportion of time to collision (TTC) greater than 2 s monotonically declining with the rise in CAV MPR. It is concluded that traffic characteristics overall show a good momentum when MPR of CAV and the desired time gap of CAVs in mixed traffic are appropriate.