Map: Nighthawk

Map: Nighthawk Gold

Nighthawk Gold (NHK.TSXV) management beleive they are developing Canada's next gold camp at the Indin Lake property 200 km north of Yellowknife in the North West Territories. The Indin Lake camp already has an inferred resource of 2.1 million ounces of 1.64 g/t gold over a large land package. The team at Nighthawk put in a $7.5 million dollar summer work program with the hopes of increasing the resource.

Drill results released this morning show high grade intercepts and the extension of mineralization. The 2014 drill program is now complete and remaining assay results are expected shortly.

Highlights include:

  • Mineralization extended over 100 metres to the west;
  • Hole CM14-02 intersected 51.00 metres of 2.25 g/t gold, including 9.00 metres of 4.72 g/t gold;
  • Hole CM14-04, intersected 4.40 metres of 38.90 g/t gold;
  • Hole CM14-06, intersected 26.00 metres of 2.86 g/t gold, including 13.00 metres of 4.17 g/t gold and including 4.50 metres of 9.64 g/t gold, and 5.00 metres of 8.19 g/t gold; and
  • Hole CM14-06B, intersected 36.20 metres of 2.89 g/t gold, including 22.00 metres of 4.24 g/t gold and including 5.00 metres of 7.90 g/t gold.

David Wiley, president and chief executive officer of Nighthawk, commented: "The drilling at Cass has demonstrated substantial mineralized intersections with a favourable proximity to surface; adding to the significance is that these results were produced from a step-out of over 100 metres to the west of previous drilling. We also report additional results from Goldcrest and Colomac that continue to demonstrate broad zones of mineralization. We have now reported 8,068 metres of drilling from our 2014 program, and we expect to release additional results from the remaining 5,579 metres in the coming weeks."

nighthawkchart

There has been very low volume in Nighthawk stock all year and there's not a lot happening in the company's market this morning. Just 5000 shares traded at $0.40 (down 2.4%) in the first 2 hours of trading today.

Management deserves credit, however, for successfully raising $8 million at 40 cents per share in May. This financing is one of the largest this year for a junior mining company. This money is pretty much all spent though, as the 2014 work program was budgeted at ~$7.5 million.

Nighthawk Gold illustrates that gold is getting harder and harder to find, forcing junior mining companies to explore in remote areas. Drilling in remote areas is very expensive:   Nighthawk drilled 13,647 metres at a cost of ~$7.5 million this year!

Another company to watch in the area is Terrax Minerals (TXR.TSXV), which is exploring the northern extension of the historic Giant mine in Yellowknife. Management have been able to attract Andrew Gaumond's Virginia Mines as a major shareholder, along with Haywood Securities chairman John Tognetti. Gaumond and Tognetti are among the most respected natural resource investors in Canada. Terrax just raised $2.8 million for a winter program.

Symbol: NHK.V

Share price: $0.40

Shares outstanding: 57.99 M

Market cap: $23.2 M

Read: Nighthawk Drills 4.40 Metres of 38.90 g/t Gold and 51.00 Metres of 2.25 g/t Gold; Extends Mineralization Over 100 Metres at Cass

I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.