- Results of the preliminary economic assessment1 (“PEA”)
for the Colomac Gold Project (the “Project”) suggest the
potential for a C$1.2 billion after-tax net present value @ 5%
discount rate (“NPV5%”) and 35% after-tax internal rate of
return (“IRR”) @ US$1,600/ ounce (“oz”) gold
(“Au”) price (Base Case assumption)
- C$2.0 billion after-tax NPV5% and 56% after-tax IRR @
US$2,000/oz Au (Upside Case)
- Estimated average annual potential gold production of 290,000oz
over an 11.2-year mine life (“LOM”), with peak production of
340,000 oz (Year 2)
- Estimated Initial capital expenditures (“Capex”) of
C$654 million (“M”), resulting in NAV5%/Initial Capex Ratio
of 1.8 : 1
- Estimated LOM all in sustaining costs2 (“AISC”) of
US$828/oz
- 60% of the project infrastructure powered by renewable sources
of energy (wind and solar); Carbon intensity of 0.48t CO2e/oz Au
produced (0.18t and 0.30t CO2e/oz Au for fixed plants and mining,
respectively)
- Potential North American large-scale gold project located in
the mining-friendly Northwest Territories (“NWT”), Canada
with the immense upside for additional mineral resource expansion
and improved economics
- 100%-owned 930 km2 District Scale Property emerging as Canada’s
next “Greenstone Gold Camp”
- The PEA is preliminary in nature and includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the PEA will be realized
Nighthawk Gold Corp. (“Nighthawk”, “NHK”, or the
“Company”) (TSX: NHK; OTCQX: MIMZF) is pleased to report its
maiden PEA1 for the Colomac Gold Project, located 200 kilometres
(“km”) north of Yellowknife, NWT, Canada. Please refer to
Tables 1 and 2 for a summary of the Project PEA economics and
Conceptual LOM plan, respectively.
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the full release here:
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Figure 1 – The Colomac Gold Project
within the District Scale Property - Map (Graphic: Business
Wire)
Table 1: Project PEA1 Economics*
Potential Economics
Gold Price (US$/oz)
US$1,300
Downside
US$1,600
Base Case
US$1,672
Long-term Consensus3
US$2,000
Upside Case
Pre-tax IRR (%)
22.5%
42.4%
47.1%
68.1%
After-tax IRR (%)
18.4%
34.6%
38.5%
56.2%
Pre-tax NPV5% (C$M)
$824
$1,800
$2,034
$3,101
After-tax NPV5% (C$M)
$532
$1,170
$1,322
$2,016
After-tax LOM free cash flow
(“FCF”)4,
Net of Initial Capex
(“C$M”)
$958
$1,802
$2,005
$2,927
FX rate assumption (US$/C$)
0.74
0.74
0.74
0.74
Pre-taxNPV5%/Initial Capex
ratio
1.3x
2.8x
3.1x
4.7x
After-taxNPV5%/Initial Capex
ratio
0.8x
1.8x
2.0x
3.1x
Pre-tax Payback period
(years)
4.1
2.1
1.9
1.5
After-tax Payback period
(years)
4.9
2.1
1.9
1.5
*Numbers may not add up due to
rounding
Table 2: Conceptual LOM Plan, Capex, Cost, and ESG Summary*
Metrics
LOM Total
Average
or Per Unit
Conceptual
Production
Conceptual mine life (“LOM”)
11.2 years
-
Waste material - Open Pit (“OP”)(M
tonnes (“t”))
554.1 Mt
49.5 Mt/year
Mineralized material OP + Underground
(“UG”)(Mt)
67.2 Mt
6.0 Mt/year
OP strip ratio (Waste : Mineralized
Material)
9.0
Mill head grade - grams per tonne gold
(“g/t Au”)
1.57 g/t Au
-
Mill recovery rate (%)
96.3%
-
Potential LOM payable gold production
(Koz)
3,256 Koz
290Koz/year
OP production
UG Production
2,503Koz
753Koz
223Koz/year
67Koz/year
Peak potential payable gold production –
Year 2
340Koz
-
Potential payable gold production – Years
1-4
1,254Koz
313Koz/year
Capex and
Operating Costs (“Opex”)
Initial Capex (including contingency)
C$654M
-
Sustaining Capex
C$665M
C$59M/year
Total Cash Costs
C$2,960M
US$673/oz
AISC2
C$3,643M
US$828/oz
AIC2
C$4,297M
US$977/oz
ESG
Sustainable energy dependency (wind +
solar)
60%
Carbon intensity
0.48t CO2e/oz
Mill and site
0.18t CO2e/oz
Mining fleet
0.30t CO2e/oz
*Numbers may not add up due to
rounding
The PEA1 is preliminary in nature and includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the PEA will be realized. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Nighthawk President and CEO Keyvan Salehi, P.Eng.
commented: “The results of our PEA demonstrate that the Colomac
Gold Project has the potential to be a phenomenal asset, and the
PEA is a monumental milestone for our Company. The PEA gives us a
snapshot of the free-cash-flow-generating potential of the Project.
We believe that the Colomac Gold Project is a top-tier North
American mining project that could deliver significant value to our
shareholders and has the potential to meaningfully contribute to
the NWT economy. Only a handful of gold projects in the world (that
are owned by junior gold companies) have similar favourable
economics with the potential to deliver approximately 300,000 oz of
annual gold production over a 10 year mine life and achieve an
NPV5% to Initial Capex ratio close to 2.0. As such, we believe our
Project belongs to this rare class of global gold assets and that
there is runway for the Project to continue to grow as we start
exploring for other meaningful deposits across our massive
greenstone Property.”
“All our deposits remain wide open along strike and at depth
with the potential for further expansion of the existing mineral
resources. Furthermore, we’ve only scratched the surface on the
immense exploration upside of our 930 km2 District Scale Property;
our Property has more than 27 historical gold occurrences that
warrant follow-up exploration. We strongly believe that this
Project PEA is the cornerstone of what could be a major gold
camp.”
“We have an exciting rest of the year ahead of us. In the near
term, we are expecting assay results from the highly prospective
Leta Arm Zone. We are also planning to further drill the Cass,
24/27, and Damoti deposits, which we believe have the potential to
expand mineralization beyond what has been outlined in the PEA. We
look forward to updating the markets with our progress.”
Conceptual Mine Development and Mine Plan
Conceptual Mine Development
The Project envisions the extraction of mineralized material
predominantly by OP mining, with a small portion of the overall
mineralized material to be extracted via UG. Mineralized material
will be mined from the following deposits:
- Colomac Centre Area: Colomac Main (OP & UG), 24/27
(OP), Grizzly Bear (OP), and Goldcrest (OP) deposits
- Satellite Deposits: Cass (OP & UG), Kim (OP), Damoti
(OP & UG) and Treasure Island (UG)
See Figure 1 for the District Scale Property Regional Map
displaying the location of the Project Deposits.
The main components of the PEA development plan include: a
phased approach to pit development (minimal pre-stripping) of the
OP deposits, the construction of haul roads to access the Satellite
Deposits, and the development of ramp systems from surface to
access the UG mineralized material. Construction is managed by EPCM
then transitioned to owner-operator upon commencement of initial
gold production. Conceptual mine development is expected to be
completed over 24 months, with some mineralized material stockpiled
ahead of the completion of the processing plant.
Conceptual Mine Plan
The PEA conceptual mine plan envisions a “hub-and-spoke” model.
The main infrastructure and processing facilities are located
within the Colomac Centre Area and mineralized material from the
Satellite Deposits are trucked to the Colomac Centre Area via haul
roads. The conceptual mine plan envisions a phased approach to
mining the deposits and scheduling prioritizes the extraction of
higher-grade (above 1.5 g/t Au gold grade) OP mineralization to
maximize after-tax NPV5% and IRR.
The conceptual OP mining of the near-surface mineralized
material envisions a conventional drill/blast/load/haul method
within the 5-metre-high benches of the pit. The Colomac Main
deposit contains the largest amount of OP mineralization and
comprises 6 pit pushbacks (over a strike length of roughly 6 km)
that are phased throughout the LOM. All Satellite Deposits are
mined as one phase from top to bottom.
Conceptual UG mining utilizes mechanized cut-and-fill methods.
UG mineralization will be accessed via portal and ramp system from
surface. The average size of planned UG stopes is 20 metres
(“m”) (height) x 20 m (depth) x 3 m (width).
The Conceptual mine plan covers a period of 11.2 years, followed
by reclamation. Overall LOM average annual throughput is expected
to reach a maximum capacity of 6.1 Mt per annum (“Mtpa”).
The conceptual mine plan estimates an average overall OP strip
ratio of 9.0, however the strip ratio varies depending on the
deposit. The OP mill feed grades average 1.32 g/t Au over the LOM,
and UG mill feed grades average 4.12 g/t Au over the LOM.
Assuming a 96.3% mill recovery (See “Processing” section
for further details), the Project LOM potential payable gold
production is 3.256 Moz for an average potential production profile
of 290,000oz per year; for the first four years, average annual
potential payable gold production 313,000oz per year.
See Figures 2-5 for the conceptual pit shells and surrounding
infrastructure for the Colomac Centre (Colomac Main, Grizzly Bear,
and Goldcrest), Kim and Cass, Damoti, and 24/27 Deposits,
respectively. See Figure 6 for the Project PEA LOM potential
production, capex and cost profile.
Project Powered by Sustainable Energy
The Project PEA contemplates the construction of wind turbines
and solar panels to provide up to 60% of the year-round power
requirements for the processing plant and camp operation. Wind and
solar energy have been primary sources of power generation for a
couple of NWT diamond mines for more than a decade. The remaining
40% power requirement would come from diesel generation. Initial
and sustaining capex of the sustainable power supply amounts to
C$103 million and C$10 million, respectively.
Processing
The Project PEA contemplates the processing of mineralized
material through a conventional milling, gravity, and leach
recovery circuit. The milling circuit consists of a primary
crusher, secondary crusher, followed by a semi-autogenous grinding
(“SAG”) mill, gravity circuit and ball mill before entering
the leaching circuit (See Figure 7 for the Planned Mill Circuit
Flow Sheet). The average estimated gold recovery is 96.3%, which is
supported by the metallurgical testing5 completed by the Company.
The mill processing circuit has an operating capacity of up to
17,000t per day (“tpd”), or 6.1Mtpa.
Tailings Storage Facility (“TSF”), Water Management and
Permitting
TSF
The PEA contemplates the phased construction of conventional
tailings storage facilities. There is ample TSF capacity to handle
the LOM waste material generated by the Project PEA. The TSF
locations are proximal to the deposits. Please see Figures 2-5 for
more information on the TSF locations.
Water Management
The conceptual OP mine plan requires the diversion of shallow
bodies of water that are adjacent to some of the deposits. The
largest body of water that requires diversion is Baton Lake,
located on the eastside of the Colomac Main Deposit.
Permitting and Closure
Permitting requires a minimum of 2 years of environmental
baseline studies to be completed as part of the Environmental
Assessment (“EA”). The EA is reviewed and approved by the
NWT Mackenzie Valley Environmental Review Board (which includes all
relevant Federal agencies as parties to the process). Upon EA
approval, the Mackenzie Valley Land and Water Board will then
process applications for a Water License and Land Use Permit
through a public process. Closure and reclamation costs at the end
of the mine life are estimated to be C$50 million.
Other Site Infrastructure
In addition to the mill, TMF, and sustainable power components,
other site infrastructure includes a truck shop and other
maintenance buildings, haul roads, 300-person camp, wastewater
treatment plant, airstrip upgrade to accommodate cargo planes and
ditching and sedimentation ponds for water management.
Capex and Opex
Please refer to Tables 3 and 4 for the Project PEA capex and
opex, respectively.
Table 3 – Summary of the Project PEA Capex*
Capex item
Initial
(C$M)
Sustaining
(C$M)
Total
(C$M)
Mining6
$161
$547
$708
Processing (including the
mill)
$160
-
$160
TSF
$34
$23
$57
Sustainable power supply (wind
and solar)
$103
$10
$113
Other Site Infrastructure
(including access roads and
expanded airstrip)
$42
$53
$95
Total Directs:
$499
$633
$1,133
Total Indirects7
$59
-
$59
Closure (net of salvage)
-
$18
$18
Contingency (17%8)
$96
$32
$127
Kim & Cass NSR Buyback
-
$3
$3
Total Capex
$654
$686
$1,340
*Numbers may not add up due to
rounding
Table 4 – Summary of the Project Opex*
Cost Item
LOM
(C$ millions)
Per Mineralized Tonne
(C$/t)
Per Production Ounce
(US$/oz)
Total Mining (OP+UG)
$2,183
$3.5/t mined
$496
OP mining
$1,504
$2.5/t mined
$342
UG mining
$680
$115.0/t mined
$154
Processing
$600
$8.9/t milled
$136
G&A
$168
$2.5/t milled
$38
Total operating cost
$2,952
$43.9/t
$671
Refining, transport,
royalties
$8
-
$2
Total Cash Costs
$2,960
$44.0/t
$673
Total AISC
$3,643
-
$828
Total AIC
$4,297
-
$977
*Numbers may not add up due to
rounding
Taxes, Royalties, and Other Production Taxes
Corporate Taxable Income for entities located in the Northwest
Territories are subject to a combined (federal and territorial)
income tax rate of 26.5%. Furthermore, the Northwest Territories
Mining Regulations require the payment of royalty taxes based on a
“sliding scale” between 5-14% based on the output of the mine –
mine output of C$10,000 triggers 5% in royalty taxes and C$45
million (and above) qualifies for the maximum 14% royalty tax
rate.
There is a minor 2.5% net smelter royalty (“NSR”) on the
Kim and Cass Properties. The NSR agreement gives NHK the right to
buy back 100% of the NSR for C$2.5 million, which the Company
intends to execute before the commencement of potential commercial
production.
Nighthawk intends to engage with the local First Nation
communities as part of an impact benefits agreement (“IBA”)
or cooperation agreement.
Economics
Using a Base Case of US$1,600/oz Au, the Project generates C$1.2
billion of after-tax NPV5% and 35% after-tax IRR. At an Upside Case
of US$2,000/oz Au, Project PEA generates C$2.0 billion after-tax
NPV5% and 56% after-tax IRR. Below are select sensitivity
tables:
Tables 5 (after-tax NPV5%) and 6 (after-tax IRR): Gold Price vs.
US$/C$ Exchange Rate
Table 5
Table 6
After-Tax NPV5% (C$M)
Sensitivity To Gold Price and FX Rate
After-Tax IRR% Sensitivity To
Gold Price and FX Rate
FX Rate (US$/C$)
Gold Price (US$/oz)
FX Rate (US$/C$)
Gold Price (US$/oz)
$1,300
$1,600
$1,672
$2,000
$1,300
$1,600
$1,672
$2,000
0.80
$321
$915
$1,057
$1,700
0.80
13.0%
28.2%
31.7%
48.3%
0.77
$422
$1,038
$1,184
$1,852
0.77
15.6%
31.3%
35.0%
52.1%
0.74
$532
$1,170
$1,322
$2,016
0.74
18.4%
34.6%
38.5%
56.2%
0.72
$609
$1,264
$1,421
$2,133
0.72
20.4%
37.0%
41.0%
59.2%
0.70
$691
$1,363
$1,525
$2,257
0.70
22.5%
39.5%
43.7%
62.3%
Tables 7 (after-tax NPV5%) and 8 (after-tax IRR): Capex vs.
Opex
Table 7
Table 8
After-Tax NPV5% (C$M)
Sensitivity To Capex and Opex Change
After-Tax IRR% Sensitivity To
Capex and Opex Change
Total Capex Change
Total Capex Change
Opex Change
(20.0%)
(10.0%)
Base Case
10.0%
20.0%
Opex Change
(20.0%)
(10.0%)
Base Case
10.0%
20.0%
(20.0%)
$1,621
$1,540
$1,457
$1,374
$1,292
(20.0%)
56.6%
48.5%
41.8%
36.5%
32.2%
(10.0%)
$1,479
$1,396
$1,313
$1,231
$1,148
(10.0%)
52.3%
44.4%
38.2%
33.3%
29.2%
Base Case
$1,335
$1,252
$1,170
$1,087
$1,004
Base Case
47.7%
40.3%
34.6%
30.0%
26.2%
10.0%
$1,191
$1,109
$1,026
$943
$860
10.0%
43.0%
36.2%
31.0%
26.7%
23.2%
20.0%
$1,048
$965
$882
$799
$716
20.0%
38.3%
32.2%
27.3%
23.4%
20.1%
Tables 9 (after-tax NPV5%) and 10 (after-tax IRR): Mill Head
Grade vs. Mill Recoveries
Table 9
Table 10
After-Tax NPV5% (C$M)
Sensitivity To Head Grade and Recovery Change
After-Tax IRR% Sensitivity To
Head Grade and Recovery Change
Head Grade Change
Head Grade Change
Mill Recovery
(10.0%)
(5.0%)
Base Case
5.0%
10.0%
Mill Recovery
(10.0%)
(5.0%)
Base Case
5.0%
10.0%
98.0%
$883
$1,056
$1,228
$1,400
$1,573
98.0%
27.3%
31.6%
36.0%
40.4%
44.9%
Base Case
$821
$995
$1,170
$1,343
$1,516
Base Case
25.8%
30.2%
34.6%
39.0%
43.5%
95.0%
$788
$956
$1,123
$1,289
$1,456
95.0%
24.9%
29.1%
33.3%
37.5%
41.8%
92.5%
$709
$872
$1,035
$1,197
$1,360
92.5%
22.9%
27.0%
31.1%
35.2%
39.3%
The PEA is preliminary in nature and includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the PEA will be realized. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Recommendations
The Company is evaluating a series of recommendations to further
advance and de-risk the Project:
- Continue to optimize the mining sequence, pit slopes and
equipment sizing
- Complete prefeasibility study (“PFS”) variability
testwork to refine gold recovery model and process equipment
sizing
- Complete additional logistics studies to refine storage of
fuel, consumables as well as camp operation
- Complete site field activities (geotechnical hydrogeology, to
support PFS level engineering)
- Infill drilling the inferred mineral resources with the goal of
upgrading to at least the indicated category
- Targeted geotechnical drilling for each deposit's planned open
pit walls, and within underground ramp/stope host rock
- Lidar surveys of topography along all planned roads to
satellite deposits
- Conduct cost/benefit analysis of an airstrip extension
2023 Mineral Resource Estimate (“2023 MRE”)9
The 2023 MRE provides the basis for the PEA conceptual mine
plan, please refer to Table 11 for the summary.
Table 11 – 2023 MRE9 Summary
Indicated Mineral
Resource
Inferred Mineral
Resource
Potential
mining method
Tonnes
(000s)
Grade
(g/t Au)
Contained
gold ounces
Tonnes
(000s)
Grade
(g/t Au)
Contained
gold ounces
Open Pit (OP)
59,945
1.45
2,804,000
11,070
2.33
830,000
Underground (UG)
10,486
1.73
583,000
13,364
2.03
872,000
Global (OP+UG)
70,432
1.50
3,387,000
24,434
2.17
1,702,000
There is no certainty that the 2023 MRE will be converted to
Proven and Probable Mineral Reserve categories or will be realized
in the future. Mineral Resource estimates that are not Mineral
Reserves do not have demonstrated economic viability. The 2023 MRE
may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant
risks, uncertainties and other factors, as more particularly
described in the Cautionary Statements at the end of this news
release.
Technical Report and Qualified Persons
A Technical Report prepared in accordance with NI 43-101 (as
defined below) in support of the PEA1 (“PEA Technical
Report”) will be filed on SEDAR (www.sedar.com) within 45 days.
Readers are encouraged to read the 2023 MRE9 and PEA Technical
Reports in its entirety, including all qualifications, assumptions
and exclusions that relate to the 2023 MRE and PEA. The PEA
Technical Report is intended to be read as a whole, and sections
should not be read or relied upon out of context.
Scientific and technical information related to the PEA1 and
2023 MRE10 contained in this news release has been reviewed and
verified by:
- Tommaso Roberto Raponi, P. Eng, Ausenco Engineering Canada
Inc., Metallurgy and Infrastructure
- Jonathan Cooper, P. Eng, Ausenco Engineering Canada Inc., Water
Resources
- James Millard, P.Geo, Ausenco Engineering Canada Inc.,
Environmental studies and Permitting
- Aleksander Spasojevic, P. Eng, Ausenco Engineering Canada Inc.
Project Infrastructure – Tailings Management Facility Design
- Marc Schulte, P. Eng, Moose Mountain Technical Services,
Conceptual Mine Planning
- Marina Iund, P. Geo, InnovExplo, 2023 MRE
These persons have the ability and authority to verify the
authenticity and validity of this data and are independent from the
Company.
John McBride, MSc., P.Geo., VP Exploration of Nighthawk, is a
“Qualified Person” as defined by NI 43-101 for this Project, has
reviewed and approved of the scientific and technical disclosure
contained in this news release.
About Nighthawk Gold Corp.
Nighthawk is a Canadian-based gold exploration company with 100%
ownership of more than 930 km2 District Scale Property within 200
km north of Yellowknife, Northwest Territories, Canada. The Colomac
Gold Project PEA1 demonstrates a potential large-scale gold
operation of 290,000oz/year per year over 11.2-year conceptual mine
life that generates a C$1.2 billion after-tax NPV5% and 35%
after-tax IRR based on a US$1,600/oz gold. Nighthawk’s experienced
management team, with a track record of successfully advancing
projects and operating mines, is working towards rapidly advancing
its assets towards a development decision.
Keyvan Salehi
President & CEO
Salvatore Curcio
CFO
Allan Candelario
VP, Investor Relations & Corporate
Development
Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
information with respect to the Company’s Mineral Resource
Estimates, PEA and the potential extractability of the OP and UG
mineralization, the potential expansion of Mineral Resource
Estimates, the potential for the economics of the Project to
improve, the potential for the Project to grow, the potential for
higher-grade assay results, the potential of the Project to be a
‘top-tier’ gold project in a safe mining jurisdiction, the
potential of the Project to be developed, the large-scale and
robust nature of the Project PEA, the advancement of the PEA
towards a higher-level economic study, the continued exploration
and drilling initiatives and having the necessary funding required
to complete these initiatives, the prospectivity of exploration
targets, the potential economic viability of the assets, and the
advancement of projects towards a development decision. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as “add” or “additional”,
“advancing”, “anticipates” or “does not anticipate”, “appears”,
“believes”, “can be”, “conceptual”, “confidence”, “continue”,
“convert” or “conversion”, “deliver”, “demonstrating”, “estimates”,
“encouraging”, “expand” or “expanding” or “expansion”, “expect” or
“expectations”, “forecasts”, “forward”, “goal”, “improves”,
“increase”, “intends”, “justification”, “plans”, “potential” or
“potentially”, “promise”, “prospective”, “prioritize”, “reflects”,
“scheduled”, “suggesting”, “support”, “updating”, “upside”, “will
be” or “will consider”, “work towards”, or variations of such words
and phrases or state that certain actions, events or results “may”,
“could”, “would”, “might”, or “will be taken”, “occur”, or “be
achieved”.
Forward-looking information is based on the opinions and
estimates of management at the date the information is made, and is
based on a number of assumptions and is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Nighthawk to be materially different from those expressed or
implied by such forward-looking information, including risks
associated with required regulatory approvals, the exploration,
development and mining such as economic factors as they effect
exploration, future commodity prices, changes in foreign exchange
and interest rates, actual results of current exploration
activities, government regulation, political or economic
developments, the ongoing wars and their effect on supply chains,
environmental risks, COVID-19 and other pandemic risks, permitting
timelines, capex, operating or technical difficulties in connection
with development activities, employee relations, the speculative
nature of gold exploration and development, including the risks of
diminishing quantities of grades of reserves, contests over title
to properties, and changes in project parameters as plans continue
to be refined as well as those risk factors discussed in
Nighthawk's annual information form for the year ended December 31,
2022, available on www.sedar.com. Although Nighthawk has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. Nighthawk does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
Cautionary Statement regarding Mineral Resource
Estimates
Until mineral deposits are actually mined and processed, Mineral
Resources must be considered as estimates only. Mineral Resource
estimates that are not Mineral Reserves and have not demonstrated
economic viability. The estimation of Mineral Resources is
inherently uncertain, involves subjective judgement about many
relevant factors and may be materially affected by, among other
things, environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant risks, uncertainties,
contingencies and other factors described in the Company’s public
disclosure available on SEDAR at www.sedar.com. The quantity and
grade of reported “Inferred” Mineral Resource estimates are
uncertain in nature and there has been insufficient exploration to
define “Inferred” Mineral Resource estimates as an “Indicated” or
“Measured” Mineral Resource and it is uncertain if further
exploration will result in upgrading “Inferred” Mineral Resource
estimates to an “Indicated” or “Measured” Mineral Resource
category. The accuracy of any Mineral Resource estimates is a
function of the quantity and quality of available data, and of the
assumptions made and judgments used in engineering and geological
interpretation, which may prove to be unreliable and depend, to a
certain extent, upon the analysis of drilling results and
statistical inferences that may ultimately prove to be inaccurate.
Mineral Resource estimates may have to be re-estimated based on,
among other things: (i) fluctuations in mineral prices; (ii)
results of drilling, and development; (iii) results of future test
mining and other testing; (iv) metallurgical testing and other
studies; (v) results of geological and structural modeling
including block model design; (vi) proposed mining operations,
including dilution; (vii) the evaluation of future mine plans
subsequent to the date of any estimates; and (viii) the possible
failure to receive required permits, licenses and other approvals.
It cannot be assumed that all or any part of a “Inferred” or
“Indicated” Mineral Resource estimate will ever be upgraded to a
higher category. The Mineral Resource estimates disclosed in this
news release were reported using Canadian Institute of Mining,
Metallurgy and Petroleum Definition Standards for Mineral Resources
and Mineral Reserves (the “CIM Standards”) in accordance
with National Instrument 43-101 Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators (“NI
43-101”).
Cautionary Statement regarding the PEA
The reader is advised that the PEA summarized in this press
release is only a conceptual study of the potential viability of
the Project's mineral resource estimates, and the economic and
technical viability of the Project and its estimated mineral
resources has not been demonstrated. The PEA is preliminary in
nature and provides only an initial, high-level review of the
Project's potential and design options; there is no certainty that
the PEA will be realized. The PEA conceptual LOM plan and economic
model include numerous assumptions and mineral resource estimates
including Inferred mineral resource estimates. Inferred mineral
resource estimates are considered to be too speculative
geologically to have any economic considerations applied to such
estimates. There is no guarantee that Inferred mineral resource
estimates will be converted to Indicated or Measured mineral
resources, or that Indicated or Measured resources can be converted
to mineral reserves. Mineral resources that are not mineral
reserves do not have demonstrated economic viability, and as such
there is no guarantee the Project economics described herein will
be achieved. Mineral resource estimates may be materially affected
by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant risks, uncertainties
and other factors, as more particularly described in the Cautionary
Statements at the end of this news release.
Cautionary Statement to U.S. Readers
This news release uses the terms “Mineral Resource”, “Indicated
Mineral Resource” and “Inferred Mineral Resource” as defined in the
CIM Standards in accordance with NI 43-101. While these terms are
recognized and required by the Canadian Securities Administrators
in accordance with Canadian securities laws, they may not be
recognized by the United States Securities and Exchange
Commission.
The Mineral Resource estimates and related information in this
news release may not be comparable to similar information made
public by U.S. companies subject to the reporting and disclosure
requirements under the United States federal securities laws and
the rules and regulations thereunder.
__________________________________ 1 Please review the
“Cautionary Statement regarding the PEA” at the end of the news
release 2 AISC and All-In Costs (“AIC”) are not standardized
financial measures under the financial reporting framework utilized
by the Company. AlSC includes cash costs plus sustaining capex,
closure cost and salvage value. AIC includes AISC plus initial
capex. The Company does not currently have operations, and
therefore does not have historical equivalent measures to compare
to and cannot perform a Reconciliation of this Non-GAAP Financial
Performance Measure. 3 Long-term analyst consensus data as of April
3, 2023. Source: Bloomberg 4 Undiscounted 5 Please refer to the
Nighthawk April 19, 2017 news release, which is available in the
Company’s profile in www.sedar.com. 6 Includes mine development,
operating fleet lease downpayment, and maintenance shop. The mining
equipment lease assumes a 15% downpayment and 7% lease interest
rates. 7 Includes EPCM, first fills/spares, general owner’s costs.
8 Blended rate: 10% contingency applied to civil works and 20%
applied to the remaining capex (except NSR buy back) 9 For more
information on the 2023 MRE, please refer to the NI 43-101
technical report titled “NI 43-101 Technical Report and Update of
the Mineral Resource Estimate for the Indin Lake Gold Property,
Northwest Territories, Canada” dated March 15, 2023 (“Technical
Report”) which is available on SEDAR (www.sedar.com) or the
Company’s website (www.nighthawkgold.com)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230425006224/en/
FOR FURTHER INFORMATION PLEASE CONTACT: NIGHTHAWK GOLD
CORP. Tel: 1-416-880-7090; Email: info@nighthawkgold.com Website:
www.nighthawkgold.com
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