Our Great Sprott Analyst Today...
Sprott Research Today:15 November 2022 Ticker: NHK CN Cash: C$23m Project: Indin Lake Project Market cap: C$45m Price: C$0.37/sh Country: Canada, NWT REC. (unc): BUY TARGET (unc): C$1.10/sh RISK RATING (unc): SPECULATIVE Todays satellite drilling from Cass is good follow on to last weeks results from Kim (i.e 17.6m @ 7.3g/t), with useful additions (i) along strike to the SW ~150m (i.e 0.5m @ 125g/t + 12.3m @ 2.2g/t) pointing to further extensions, and (ii) below the US$1,600/oz pit shell (2m @ 232g/t) that could pull the pit deeper or improve UG grade (180koz @ 2.4g/t OP + 24.1koz @ 2.2g/t UG). Digging in, todays 39 holes, hit 33 pierce points >5gms averaging an impressive 9.1m @ 4.6g/t, with other highlights including broader 33.5m @ 2.7g/t, 24m @ 3.1g/t, and 34m @ 1.6g/t, showing a great mix of bulk mineable zones and high- grade veins just-under the MRE. We think Kim and Cass should lift above existing ~352koz as drilling continues, albeit more key than ultimate size is the high-grade near-surface, which should help IRR in a big way. Stepping back, with all results in for CY22 (40,000m), the 1Q23 MRE update remains the next major catalyst and in our view should see iterative improvements over the last. For now, we maintain our BUY rating and C$1.10/sh PT based on 0.25xNAV5%-1700 from 1Q22 OP MRE of 2.7Moz @ 1.5g/t (4Moz @ 1.6g/t including UG) with C$23m (US$10/oz) for the 2.3Moz outside our inventory. Nighthawk remains in a good position with a strong balance sheet, drill season completed, and all assays received to feed the 1Q23 MRE update. Following the MRE, the company can advance engineering / permitting while concurrent exploration looks to build on this years data. Figure 1. Cass Deposit (A) plan view, (B) cross-section showing todays drilling and (C) isometric view Source: Nighthawk Gold Cass drilling returns high grade outside pitshell; 2m @ 232g/t & 13.5m @ 2.8g/t ahead of 1Q23 MRE Nighthawk reported results from 39 holes drilled at the Cass satellite located 2km from the Kim Deposit, with highlights of 2m @ 232g/t (inc. 0.5m @ 916g/t), 0.5m @ 125.5g/t, 33.5m @ 2.7g/t (inc. 1.5m @ 38.6g/t), 24m @ 2.7g/t (inc. 2m @ 21.1g/t), 34.5m @ 1.6g/t, 14m @ 3.9g/t, 15.5m @ 3.2g/t and 13.5m @ 2.8g/t mostly outside the existing MRE. Drilling has extended mineralization 150m along strike to the southwest (towards the Albatross exploration target) and approximately 26 of the 39 holes drilled intercepted coarse, visible gold. The 40km drill database is complete and disclosed ahead of the early 2023 MRE update. Why we like Nighthawk Gold Control of >900km2 of underexplored Archean greenstone belt 200,000m drilling took 1Moz pittable to SCPe 1.7Moz quickly New management team and expedited timeline adds greenfield optionality UG resource has extremely high-grade sub-sets to be evaluated Maiden PEA in coming 12M to define strip, scheduling and stockpiling potential...