PRECIOUS METALS

Nighthawk drilling 'reinforces belief' in Colomac

Nighthawk Gold president and CEO Dr Michael Byron said the latest assay results were “reinforcing our beliefs in the future potential” of its Colomac gold project.

Staff reporter
 Activity at Nighthawk Gold’s Indin Lake project in Canada’s NWT

Activity at Nighthawk Gold’s Indin Lake project in Canada’s NWT

Among the highlights, Nighthawk reported a 252.13m intercept grading 1.84g/t gold, which included 200.45m at 2.01g/t and higher-grade intercepts including 16m at 4.91g/t.

Nighthawk said the above result from Zone 2 was the "best continuous downhole mineralisation encountered to-date (280m) with visible gold observed in 79 individual assay samples, extending a broad band of mineralisation to new depths where it remains open".

Colomac is part of the company's Indin Lake project in Canada's Northwest Territories.

Nighthawk shares had tanked in July, plunging by almost a third, on a Colomac resource update which investors questioned the value of.

The company then raised C$12 million in August, priced at $1.70 per unit, $2.38 per premium flow-through unit and $1.90 per flow-through share, towards resource expansion opportunities and to enlarge its planned 2021 drilling programme. 

"The fifth drill has arrived on site, and camp expansion is nearing completion in preparation for the expanded 2021 programme which will advance a number of regional assets that have high-grade potential," Byron said yesterday.

Colomac currently has an indicated 1.67 million ounces of gold and an inferred 0.37Moz, both grading about 2g/t.

Nighthawk shares (TSX: NHK) have tumbled from about $2.70 in July to below $1.30 last week.

They closed up 7.8% to $1.38 yesterday to value it about $70 million (US$53 million).

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