Nighthawk Enters Into Option Agreement to Acquire Kim and Cass Properties in Northwest Territories
December 18 2013 - 3:47PM
Marketwired Canada
Nighthawk Gold Corp. ("Nighthawk") (TSX VENTURE:NHK) is pleased to announce it
has entered into a binding option agreement, with Geomark Exploration Ltd.
("Geomark"), a wholly owned subsidiary of Pine Cliff Energy Ltd., to acquire 4
contiguous mining leases adjacent to Nighthawk's existing property in the
Northwest Territories ("NWT") (Figure 1).
HIGHLIGHTS:
-- Agreement encompasses the Kim and Cass gold deposits (Figure 2) as well
as multiple other prospects within the Indin Lake Greenstone Belt;
-- Kim and Cass represent the final strategic properties to be incorporated
into Nighthawk's Indin Lake Gold Project;
-- Nighthawk's land package will increase in size by 7,588 acres to 229,791
acres total;
-- Over 32,000 metres of reported historic drilling completed with much of
the core remaining intact. Drilling highlights from the Cass Zone
include intercepts of:
-- 81.55 metres of 4.50 grams per tonne ("g/t") gold from hole C87-35;
-- 52.00 metres of 5.10 g/t gold from hole C95-06;
-- 64.40 metres of 4.08 g/t gold from hole C87-23; and
-- Prior to the implementation of NI 43-101, previous work conducted on the
properties defined historic gold resource estimates of significant grade
and continuity that have yet to be fully evaluated.
Nighthawk President & CEO, David Wiley, commented, "In this challenging market
environment, we remain committed to adding value for our shareholders. We are
fortunate to have a healthy balance sheet, a low cash burn rate and now the
final strategic pieces of what we believe is a world class gold camp. These
leases contain the Kim and Cass deposits plus numerous drill ready targets where
previous owners have already completed a significant amount of work. We believe
the historical data may be sufficient to apply towards our next resource
estimate update and we will be working with the author of our technical report
to incorporate this new information."
Figure 1. - Location Map of Leases Optioned from Geomark
To view Figure 1, please visit this link:
http://media3.marketwire.com/docs/NHK1.jpg.
Figure 2. - Showings and Geology Map of Leases Optioned from Geomark
To view Figure 2a and 2b, please visit this link:
http://media3.marketwire.com/docs/NHK%202.jpg.
Option Agreement with Geomark
Under the agreement with Geomark, Nighthawk has optioned 4 contiguous mining
leases which include the Kim and Cass gold deposits and other gold showings.
On signing the agreement, Nighthawk granted Geomark a 2.5% net smelter royalty
on the 4 leases (of which 1.5% can be repurchased for $1,500,000) and paid
$250,000, one-half of which is to be satisfied through the issuance of 1,768,345
common shares of Nighthawk. Subsequent option payments totalling $1,300,000 are
staged in tranches over the next three years as follows:
----------------------------------------------------------------------------
Due Date Payment
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on or before December 31, 2014 $ 300,000
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on or before December 31, 2015 $ 450,000
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on or before December 31, 2016 $ 550,000
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Nighthawk has the right to satisfy one-half of each of the option payments in
common shares, subject to receipt of requisite approval including the approval
of the TSX Venture Exchange should Nighthawk elect to issue common shares. Upon
making the final payment, Nighthawk will own 100% of the mining leases.
Property Highlights
Historical Resource Estimates
The Kim Main Zone, hosted by mafic volcanic rocks, and the Cass Zone, hosted by
gabbro, represent significant underexplored gold deposits within the Indin Lake
Gold Camp. Several historical resource estimates that pre-date the
implementation of NI 43-101, were calculated for each of the deposits. The most
recent of these was compiled in 1995 by 1Royal Oak Mines Inc. ("Royal Oak"), the
previous operator of the Colomac Gold Mine. They reported a possible geological
resource based upon relatively shallow drilling (150 metres) for the Cass and
Kim Zones presented in Table 1 below.
Table 1. Historical Resource Estimate for Cass and Kim Zones
Zone Cutoff (g/t) Tonnes Grade (g/t) Ounces Au
----------------------------------------------------------------------------
Cass 1.00 1,919,518 2.43 150,228
Kim (Main) 1.50 937,575 3.15 95,082
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Total 2,857,093 2.66 245,311
A qualified person has not done sufficient work to classify any of the
historical estimates as current mineral resources or mineral reserves as defined
by NI 43-101; consequently, they should not be relied upon. The Company is not
treating the historical estimates as current mineral resources or reserves as
defined by NI 43-101.
Cass Zone
The Cass Zone is located approximately 20 kilometres southwest of Colomac,
hosted within a northeast trending gabbro sill. Mineralization is characterized
by a stockwork of quartz-carbonate veins with minor pyrite, pyrrhotite and
arsenopyrite. In excess of 13,500 metres of historic drilling into the zone has
defined mineralization over a strike length of 360 metres and to a depth of 210
metres.
Royal Oak intended to place the Cass Zone into production and process the ore at
the Colomac Mill, but the company closed the Colomac operation before production
from the Cass Zone began.
Select drill intercepts from the Cass Zone are reported in Table 1 below. These
are historical in nature and Nighthawk has not independently verified the
results; consequently, these results should not be relied upon.
Table 2. Historical Drill Intercepts from the Cass Zone
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Hole ID From (m) To (m) Length(i) (m) Au g/t
----------------------------------------------------------------------------
C87-23 112.10 176.50 64.40 4.08
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C87-25 170.60 223.90 53.30 4.17
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C87-35 105.35 186.90 81.55 4.50
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C95-05 122.00 170.00 48.00 4.15
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C95-06 153.00 205.00 52.00 5.10
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C95.09 82.00 119.00 37.00 4.83
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(i) Lengths are reported as core lengths. True widths are unknown at this time.
Kim Main Zone
The Kim Main Zone, located approximately 15 kilometres southwest of Nighthawk's
past producing Colomac Gold Mine, lies within a sequence of northerly striking,
steeply dipping, mafic to intermediate volcanic rocks. Mineralization is hosted
by intercalated, massive and pillowed mafic volcanics and has been traced over a
strike length of 650 metres and to depths of up to 150 metres vertically. Near
surface mineralization is offset by a north-south trending, 45 degree late
reverse fault, but historical drilling is reported to have intersected
mineralization below the fault and the zone remains open at depth. Over 18,000
metres of historic drilling is documented for the Kim Main Zone.
19th Hole Zone and Albatross Zone
Two occurrences, the 19th Hole Zone, located 300 metres to the southwest of the
Cass Zone, and the Albatross Zone, located 500 metres further to the southwest,
appear to be extensions of the Cass Zone. Both the Albatross Zone and the 19th
Hole Zone are defined by an area of extensive quartz-carbonate veining in gabbro
with associated pyrite, pyrrhotite and arsenopyrite identical to that of the
Cass Zone.
19th Hole Zone
Historic surface trench samples collected from the 19th Hole showing assayed
15.9 g/t gold and 11.58 g/t gold over widths greater than 1 metre. Two other
samples had values of 5.5 g/t gold over similar widths.
Albatross Zone
The Albatross occurrence is located entirely within Nighthawk ground and appears
to represent a continuance of the Cass Deposit mineralization. Historical
channel samples from a trench across the zone returned assay results up to 9.7
g/t gold over 1 metre.
1 Archibald, D.L., and Kulas, J. P., 1995. Geological Resource Estimate, Cass
Zone and Main Zone Kim Project, N.T. Internal Royal Oak Mines Inc. report.
About Nighthawk Gold Corp.
Nighthawk is a Canadian-based exploration company focused on acquiring and
developing gold mineral properties in the Northwest Territories. Its primary
land position covers 229,791 acres or 900 square kilometres in the Indin Lake
Gold Camp and includes an Inferred Mineral Resource estimate of 39.815 million
tonnes with an average grade of 1.64 g/t gold for 2.101 million ounces gold
using a cut-off grade of 0.6 g/t gold.
The technical aspects of this press release have been reviewed by Michael Byron,
Ph.D., P.Geo., Chief Geologist and Director for Nighthawk, who is the "Qualified
Person" as defined by NI 43-101 for this project.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking
statements that involve substantial known and unknown risks and uncertainties,
including, but not limited to, the timing of future drilling, the expansion of
the mineralization, and the remediation of historic reclamation sites. These
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond the control of Nighthawk, including, but not limited
to, the impact of general economic conditions, industry conditions, volatility
of commodity prices, risks associated with the uncertainty of exploration
results and estimates, currency fluctuations, dependency upon regulatory
approvals, the uncertainty of obtaining additional financing and exploration
risk. Readers are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements. This press release is not, and is not to be
construed in any way as, an offer to buy or sell securities in the United
States.
FOR FURTHER INFORMATION PLEASE CONTACT:
Nighthawk Gold Corp.
David Wiley
President and CEO
(647) 260-1247
(416) 363-4567 (FAX)
dwiley@nighthawkgold.com
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