Acquisition will give four contiguous mining leases located immediately east to the firm’s Albatross target in Northwest Territories, Canada
Nighthawk Gold has signed a binding option agreement to acquire the Kim and Cass property, located immediately adjacent to its Indin Lake Gold property in Canada, from Geomark Exploration.
The acquisition gives the Canadian gold exploration company four contiguous mining leases spanning 31km2 that hold the historic Kim and Cass zones. The property is located in Northwest Territories.
As per the terms of the agreement, Nighthawk Gold will pay Geomark Exploration CAD1.1m ($0.87m) and grant the latter a 2.5% net smelter return (NSR) royalty.
Additionally, the company will have the right to buy up to 100% of the NSR of Pine Cliff Energy’s subsidiary for up to CAD$2.5m ($1.97m).
According to Nighthawk Gold, the Kim & Cass Property is an integral part of its consolidation strategy. The company said that the asset gives contiguity to the main claim group with the Albatross claim block.
The company expects the Kim and Cass zones and the Albatross trend to improve the chances of identifying near-surface mineralisation within 15km of the Colomac Main Deposit within the Indin Lake Gold Property.
Nighthawk Gold had originally optioned the Kim & Cass Property in December 2013, and in 2014. However, owing to limited capital resources, the company could not pursue acquisition of the property.
The gold exploration firm said that the property’s historic non-compliant resource outlined 2,857,093 tonnes at an average grade of 2.66 g/t Au for 245,311 ounces of gold.
Nighthawk Gold president and CEO Keyvan Salehi said: “We are encouraged by the high-grade nature encountered by historic drilling at both Kim and Cass, especially given that drilling was constrained mainly within 75 metres of surface, leaving significant room for expansion at depth.
“The zones are immediately east of our Albatross target which has returned surface values of up to 20.6 g/t Au over a 4km strike length. Together, they represent quality targets that fit our immediate strategy of looking for near-surface, higher-grade opportunities proximal to Colomac.”