Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Shares of Nighthawk Gold (TSX: NHK) soared 21% to 44¢ in mid-morning trading following news of drill results at the junior’s Colomac project in the Northwest Territories. The company has a C$76.5 million market capitalization.
The first assay results from its 2019 drill program returned 56 metres of 13.49 grams gold per tonne, including 31 metres of 22.12 grams gold from 238 metres downhole in C19-08, and 111 metres of 2 grams gold, including 24 metres of 3.74 grams gold from 276 metres downhole in C19-02.
The company recently completed 16 drill holes (5,329 metres) across Zones 1.5, 2.0, 2.5 and 3.0, and all of the holes intercepted mineralization.
The drill program was testing specific high-grade targets within the central three-kilometre portion of the nine-kilometre host Colomac Main sill.
Nighthawk has increased its drill program to 35,000 metres for the year, up from the previously forecast 25,000 metres, which makes it the largest drill program in the explorer’s history.
Drilling with three rigs began in March and is expected to run until late-September. The program is focused on the expansion of known high-grade gold zones, advancing the search for similar prospects within the Colomac area sills, and regional exploration at some of Nighthawk’s high priority targets throughout its Indin Lake gold property.
Earlier this month, the company increased the size of a bought deal financing to C$11 million. The deal is expected to close on June 6.
The Colomac project is 200 km north of Yellowknife and lies within the Indin Lake Greenstone Belt. It has an inferred resource of 50.3 million tonnes averaging 1.62 grams gold for 2.6 million contained oz. gold.
(This article first appeared in The Northern Miner)
