Nighthawk Provides a Review of its Indin Lake Exploration Activities and Outlook for 2019
TORONTO, March 4, 2019 /CNW/ - Nighthawk Gold Corp. ("Nighthawk" or the "Company") (TSX: NHK; OTCQX: MIMZF) is pleased to provide a summary of exploration work completed to date within its Indin Lake Gold Property, including its flagship Colomac Gold Project ("Colomac"), and provide an outlook for 2019 milestones.
Dr. Michael Byron, President and CEO commented, "The consolidation of the Indin Lake Gold Property and the acquisition of Colomac, were the two key milestones that enabled us to deliver on the vast potential of this undeveloped camp. We are fortunate to have had the resources necessary to continue the process that we started in 2009 into 2019. Each year of activity has delivered new and exciting successes that we have built upon.
"We've advanced Colomac from a small little-known former producer, to a multi-million-ounce deposit with a new high-grade storyline, with the potential to deliver much more. We firmly believe that as Colomac grows so will the credibility of the gold camp that it resides in, and we are strategically positioned to reap the benefits. 2019 will again see us expand on all exploration fronts, committed to delivering on our vision for developing Canada's next gold camp."
NIGHTHAWK VALUE PROPOSITION:
- Tier 1 Jurisdiction – Progressive Northwest Territorial government committed to infrastructure development to support the resource industry, alongside invested and pro-mining First Nations governments. The Fraser Institute ranked the Northwest Territories #10 in the world for most attractive jurisdictions for mining investment, up from #21 in 2017.
- District Scale Land Position – Consolidation of a vastly underexplored Archean gold camp with numerous deposits and showings, centred around a growing multi-million-ounce gold project.
- 2.6 Million Ounces and Growing – Colomac is a large mineralized system, with current inferred resources of 50.31 Mt at an average grade of 1.62 grams per tonne gold ("gpt", "Au"). Approximately 50% of the sill has been explored to date leaving room for additional resource expansion opportunities.
- Important High-grade Discovery at Zone 1.5 – With the discovery of distinct high-grade domains at Colomac, the Company has effectively changed the dynamics of the deposit as it could lead to more favourable economics and allow exploitation deeper into the system. The exploration and delineation of additional high-grade zones remains an important focus going forward.
- Regional Targets Provide Upside for the Camp – There are at least seven priority satellite prospects that have the potential to provide high-grade feed opportunities to augment any future production scenario at Colomac. While these near-surface targets require more drilling, they are prime examples of the robust nature of the camp, as most host good grades and widths.
- Proven Leadership – Dr. Michael Byron is a founding member of Aurora Platinum (acquired by FNX Mining Company Inc.), Lakeshore Gold Corp (acquired by Tahoe Resources), and Falco Resources. The senior management team and Board of Directors offer a diversity of experience within the industry over a collective 30-year span.
- Fully Funded – Company has a strong cash balance of $16.4 million (as at September 30, 2018), and is funded to complete its goals and objectives for the next 12 months.
- Supportive Shareholders and Strategic Partnerships – The Company is supported by a shareholder base that have experienced success in previous supportive placements such as FNX Mining Company Inc., Gold Eagle Mines Ltd., and Queenston Resources Inc. Our long-term shareholders including Robert Cudney and Northfield Capital Corporation have continuously supported the Company and are committed to helping Nighthawk achieve its stated goals and objectives. As well, the strategic partners, Kinross Gold Corp. and Osisko Gold Royalties Ltd., have provided tremendous support.
2019 and Beyond
Nighthawk has received its land use permits and water licences approving its exploration activities over the next 5 years, expiring in February 2024, and which are extendible up to February 2026. The permits cover all claims and mining leases within the Company's 100% owned Indin Lake Gold Property. Exploration activities are expected to commence mid-March, with a minimum 25,000 metre drill program split relatively evenly between Colomac and its high-level regional targets.
Nighthawk's goals and objectives moving forward include:
- Target of +3Mozs of resources with the completion of the 2019 drill program
- Domaining of high-grade zones for subsequent resource estimates and elevating them to the indicated resource category
- Metallurgical test-work on additional areas within the sill to assess potential variabilities and overall expected recoveries as well as generate a sound statistical framework for the heap leach opportunity
- Complete an internal scoping study to assist with future exploration activities, and provide the base work for any future PEA
- Maiden resource estimate for the Damoti Lake Gold Deposit
- Drill high-priority regional targets to advance them up the value chain
- Continue regional exploration and prospecting work to identify new targets and prioritize existing targets to drill-ready status
Summary of Exploration Activities to Date
In addition to 85,178 metres of historical drilling, the Company drilled a total of 56,216 metres between 2012 and 2017 resulting in the June 2018, NI 43-101 updated resource estimate outlining 50.31 million tonnes at an average grade of 1.62 gpt Au for a total of 2.6 million ounces of inferred resources (see press release dated June 13, 2018).
Growth Opportunities and Upside Potential (see website Colomac)
- Colomac is a large mineralized system and given that Nighthawk's drilling success rate is greater than 97%, the opportunity to continue to grow resources with additional drilling is considered exceptional.
- The Company believes that with every 30,000 to 40,000 metres of drilling, a meaningful resource update can be achieved.
- With the discovery of high-grade Zone 1.5, and additional potential high-grade zones within the sill, the prospects to explore deeper within the system exists, which should positively impact project economics going forward (see press releases dated December 3, 2014, October 16, 2016, August 24, 2017, November 28, 2017, and September 11, 2018).
- Excellent metallurgical recoveries of between 96.5% up to 98.0% using conventional recovery methods. As well, initial heap leach testing returned encouraging results (up to 81.8%), however additional testing is required to get a more representative set of sample results (see press releases dated April 19, 2017 and May 22, 2018).
District-scale Land Position with Numerous Gold Deposits and Showings
Within the extensive Indin Lake Gold Property (899 km2), Nighthawk has identified several high-grade showings and deposits with widespread mineralization in a range of styles that are largely hosted in brittle regimes, typomorphic of many productive high-profile Archean gold camps. The continued exploration success from the satellite targets supports Nighthawk's conviction that the Colomac deposit is not the only multi-million-ounce opportunity capable of hosting high-grade mineralization. The many prospective regional targets provide a remarkable opportunity for growth and collectively strengthen the Company's 100% controlled regional play centered on Colomac, a growing, multi-million-ounce gold deposit.
The following table summarizes some of the more prospective regional targets and showings within the Indin Lake Gold Property, including the work completed to date by Nighthawk. Most are at an early exploration stage and require additional work to realize their ultimate potential. For more information on the Company's regional targets, please visit the Regional Exploration section of the website.
MOST RECENT HIGHLIGHTS
Damoti Lake Gold Deposit
Banded Iron Formation
6.95 m of 10.12 gpt Au, including 4.20 m of 15.81 gpt Au; 23.50 m of 13.91 gpt Au, including 9.60 m of 20.95 gpt Au; and 22.50 m of 5.81 gpt Au, including 10.25 m of 10.53 gpt Au
Located 28 kilometres south of Colomac, Damoti is an important satellite deposit that also has a ramp developed into its core, which could provide possible high-grade feed for any future development opportunity at the Company's flagship asset, Colomac.
Leta Arm Mineralized Corridor
Diversified drilling which intersected 17.50 mof 5.81 gpt Au, including 9.25 m of 9.65 gpt Au, and 4.75 m of 18.12 gpt Au
North Inca drilling which intersected 25.50 m (13.00 m true width) of 2.68 gpt Au, including 9.95 m of 4.90 gpt Au, and 4.60 m of 6.60 gpt Au
Located 15 kilometres southwest of Colomac along the Leta Arm Fault Zone ("LAFZ"), a well mineralized deformation zone up to 10 kilometres long and 500 metres wide which hosts several gold deposits and showings, with 4 initial prospects (North Inca and Diversified deposits, and the #3 and Lexindin showings).
Deposits and showings lie within a highly altered shear zone up to 500 metres wide hosting both parallel and extension quartz vein systems open in all dimensions.
Treasure Island Gold Project
46.25 m of 3.31 gpt Au, including 21.75 m of 6.23 gpt Au, and 7.75 m of 14.20 gpt Au; and 18.50 m of 7.37 gpt Au, including 8.00 m of 16.14 gpt Au, and 5.25 m of 22.00 gpt Au.
Located 11km north of Colomac, Treasure Island is the northern most project within Nighthawk's Indin Lake Property, located along the eastern end of a 7 km long underexplored mineralized corridor "Treasure Island-Laurie Lake Mineralized Corridor" that hosts several high-priority gold showings. Drilling to date by Nighthawk has established the gold system to be upwards of 200 metres wide, 700 metres long, and open in all dimensions (see press release dated October 22, 2018).
Nice Lake Sill
Recent grab samples of 38.90 gpt Au and 41.90 gpt Au highlight the grade potential of the sill
Discovered in 2016 while prospecting a large linear anomaly 1.5 km east of Colomac that shows similarities in magnetic intensity and anomaly shape and composition to both the Colomac and Goldcrest sills.
Andy Lake Gold Project
Intrusion Related Gold System Quartz Veins
Recent grab samples from new showing range from 0.50 gpt Au to 42.10 gpt Au
Located 20 km south of Colomac within the Gamey Lake Volcanic Panel, a N-S trending volcanic rock package bordered by metasedimentary rocks to the east and west.
Surface grab and channel samples up to 43.60 gpt Au, along with 2018 drilling which has established that surface mineralization continues to depth.
Located 6 km northwest of Colomac in association with a large deformation zone and intense iron-carbonate alteration. A broad area of anomalous gold is associated with the showing and has a minimum footprint of 1.6 km by 1.0 km.
Fishhook Gold Project
Banded Iron Formation
2018 fieldwork highlighted by a grab sample taken from a medium grained, intensely iron oxide altered banded iron formation that assayed 174.50 gpt Au
Fishhook consists of several historical gold showings spanning an area 6 km by 1.5 km, 40 km southwest of Colomac. Showings are hosted by complex folded amphibolitic oxide-silicate iron formation within a sequence of metasedimentary rocks, an environment similar to the Damoti Lake Gold Deposit
Laurie Lake Showing
Elevated gold values distributed over an area of 1.3 km by 1.7 km; 2018 grab samples ranged from 1.05 gpt Au to 22.50 gpt Au
The Laurie Lake showings lie 8.5 km northwest of Colomac along the western extent of the Treasure Island-Laurie Lake Mineralized Corridor. Regional geology consists of alternating mafic metavolcanic and turbiditic metasedimentary units. The area of interest is dominantly underlain by mafic metavolcanic rocks consisting of gabbro, porphyry intrusions and pillowed volcanic flows.
Mineralization straddles gossanous metavolcanic and metasedimentary rock contacts transected by quartz veins; surface grab samples from 1.24 gpt Au to 7.02 gpt Au
Located 2.5 kilometres northeast of Laurie Lake within the northern boundary of the Treasure Island-Laurie Lake Mineralized Corridor. Local stratigraphy is dominated by mafic to intermediate metavolcanic rocks, gabbro, and porphyry intrusions, with metasedimentary rocks sandwiched between volcanic sequences.
Surface sampling along a 3km section of iron formation assayed up to 12.1 gpt Au confirming historic sampling of up to 15.63 gpt Au
Located 10 kilometers north of Colomac and 500 metres east of Treasure Island.
Grab sample from a quartz carbonate vein in altered mafic meta-volcanic rock assayed 23.60 gpt Au
Located 27 kilometres south-southwest of Colomac. Additional work is needed to further delineate the extent of mineralized quartz veining associated with this showing.
For detailed overview of recent field work on these targets, see press release dated February 19, 2019.
Nighthawk has implemented a quality-control program to comply with best practices in the sampling and analysis of drill core. Drill core samples were transported in security-sealed bags for analyses at ALS Global Assay Laboratory in Vancouver, BC ("ALS Global"). ALS Global is an ISO/IEC 17025 accredited laboratory. Pulp and metallics assaying for gold was conducted on the entire pulverized sample.
As part of its QA/QC program, Nighthawk inserts external gold standards (low to high-grade) and blanks every 20 samples in addition to the standards, blanks, and pulp duplicates inserted by ALS Global.
Nighthawk is a Canadian-based gold exploration company with 100% ownership of a district-scale land position within the Indin Lake Greenstone Belt, located approximately 200 km north of Yellowknife, Northwest Territories, Canada. Nighthawk is focused on advancing the Colomac Gold Project with a current inferred resource of 2.6 million ounces of gold (50.3 million tonnes at an average grade of 1.62 grams per tonne gold), as well as advancing its other regional gold deposits and showings within this largely underexplored Archean gold camp.
The Company has an experienced and dedicated team and is well funded to complete its goals and objectives over the next 12 months.
Dr. Michael J. Byron, Ph.D., P.Geo., President & Chief Executive Officer of Nighthawk, who is the "Qualified Person" as defined by NI 43-101 for this project, has reviewed and approved of the technical disclosure contained in this news release. Please refer to NI 43-101 technical report "Technical Report and mineral resource estimate update on the Colomac Property of the Indin Lake Project", dated June 13, 2018, as filed under the company's profile on www.sedar.com.
Neither the Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company's continued exploration programs (including size and budget) and the ability to advance targets and conduct enough drilling to produce NI 43-101 compliant resource estimates, and the timing and results thereof; the ability to grow resources at Colomac and breach the 3 million ounce level of resources and the timing thereof, as well as the ability to calculate indicated resources for zones 1.5 and 3.5, and the timing and results thereof; the ability to conduct additional metallurgical test-work and the timing and results thereof; preparing an internal scoping study and utilizing its findings as a basis for any future preliminary economic assessment and the timing surrounding such a project; the ability to raise the necessary capital on acceptable terms in order to conduct exploration programs including mapping, prospecting and drilling activities and identify new targets in future years, as well as any intention to expand these programs in the future). Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Nighthawk to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Nighthawk's annual information form for the year ended December 31, 2017, available on www.sedar.com. Although Nighthawk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Nighthawk does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Nighthawk Gold Corp.