Nighthawk Intersects 14.75 Metres of 6.91 gpt Gold (uncut), Including 4.25 Metres of 15.28 gpt Gold at its Damoti Lake Gold Project

TSX: NHK

TORONTO, Jan. 10, 2019 - Nighthawk Gold Corp. ("Nighthawk" or the "Company") (TSX: NHK; OTCQX: MIMZF) is pleased to report drill results from seventeen holes (5,140 metres) at its 100% owned Damoti Lake Gold Project ("Damoti"), Northwest Territories, Canada. Drilling focused on exploring outside of the main deposit (Figure 1), to test several new geological targets within the host Horseshoe and Red Mountain synclines. The program successfully infilled and extended mineralized zones in both areas, intersecting additional near surface as well as deeper mineralization, and highlighting new exploration opportunities within the northern portions of the synclines.

HIGHLIGHTS OF DRILLING:

Horseshoe Zone ("Horseshoe")       

• D18-02 intersected 6.95 metres of 10.12 grams per tonne gold ("gpt" "Au"), including 4.20 metres of 15.81 gpt Au; 2.50 metres of 8.97 gpt Au, including 1.00 metre of 19.36 gpt Au
• D18-02B intersected 9.35 metres of 4.34 gpt Au, including 2.60 metres of 11.59 gpt Au; 5.75 metres of 9.78 gpt Au, including 3.50 metres of 15.85 gpt Au
• D18-07 intersected 23.65 metres of 1.54 gpt Au, including 3.30 metres of 4.24 gpt Au, and 1.20 metres of 9.05 gpt Au; 11.25 metres of 2.18 gpt Au, including 3.00 metres of 4.55 gpt Au
• D18-07B intersected 14.75 metres of 6.91 gpt Au, including 4.25 metres of 15.28 gpt Au; 9.50 metres of 2.61 gpt Au, including 4.00 metres of 3.50 gpt Au

Red Mountain Zone ("Red Mountain")         

• D18-06 intersected 8.65 metres of 1.89 gpt Au, including 1.50 metres of 6.14 gpt Au
• D18-06B intersected 4.25 metres of 3.31 gpt Au, including 1.25 metres of 10.22 gpt Au; 5.25 metres of 2.46 gpt Au, including 1.25 metres of 7.94 gpt Au
• The D18-06 and D-18-06B intercepts represent a new discovery at Red Mountain that remains open in all dimensions

Highlights of the Damoti Lake Gold Deposit

• Small high-grade near-surface deposit with resource expansion potential
• Existing underground ramp developed into the high-grade core of Horseshoe
• High-grade satellite deposit that could augment future Colomac gold development scenario
• Damoti embodies the remarkable opportunities that Nighthawk's many other regional assets represent, and which collectively strengthen the Company's 100% controlled regional play centered on Colomac, a mutli-million-ounce deposit with significant growth possibilities.

Dr. Michael Byron, President and CEO commented, "While Nighthawk has not drilled Damoti since 2010, we were eager to resume activities as it represents a unique high-grade, near-surface deposit, one that we consider of great value as potential feed to augment possible future Colomac mine development. Damoti also supports our belief that similar high-grade opportunities exist throughout the Indin Lake Gold Camp. The consolidation of this camp, including all of its many deposits and showings, gives us control of its vast yet underexplored potential.

"Our 2009 and 2010 drill programs were mainly directed at validating and expanding the main deposit, while the 2018 drilling was aimed at testing geological exploration targets outside the main body, in search of new growth opportunities. Additional drilling and exploration work will be contingent upon the incorporation of all drill results to-date into an expanded geological model to assist in target generation and resource evaluation."

Damoti Lake Gold Deposit

The Damoti Lake deposit lies 28 kilometres south of the Colomac Gold Project ("Colomac"). Mineralization is hosted in folded Archean iron-formation associated with fold related fracturing and hydrothermal alteration where gold is preferentially located within fold noses and parasitic structures. Areas of significant gold mineralization occur in association with sulphide minerals, predominantly pyrrhotite and to a lesser extent pyrite replacing magnetite.

A small historical high-grade, near-surface deposit was previously defined showing excellent expansion potential (see press release dated, November 17, 2005, for Anaconda Gold Corp., "Anaconda"). In 2005 Anaconda commissioned an independent, National Instrument 43-101 compliant resource estimate on the deposit (Refer to report "Technical Report and Resource Estimate on the Damoti Lake Property, Northwest Territories, Canada", dated December 22, 2005, available under Anaconda's profile at www.sedar.com).  Using a cut-off grade of 8.00 gpt Au, the measured and indicated mineral resource estimate for the deposit totaled 40,600 tonnes grading 26.17 gpt Au, with a further inferred mineral resource estimate of 17,800 tonnes grading 16.38 gpt Au. Two pre-NI 43-101 resource estimates are referenced in the 2005 technical report, and summarized in Table 1, suggesting the potential for a larger lower-grade deposit (see press release dated April 9, 2009).

Nighthawk intends to expand on this potential as it considers Damoti an important satellite deposit that also has a ramp developed into its core, which could provide possible high-grade feed for any future development opportunity at the Company's flagship asset, Colomac.

Table 1. Damoti - Historic Resource Calculations

* These historical resource calculations are believed relevant but should not be relied upon until verified. These historical estimates did not use mineral resource categories as stipulated in NI 43-101.
** The 2005 resource was calculated using an 8.00 gpt Au cutoff in order to facilitate the evaluation of a small, high-grade mining operation restricted to the Horseshoe Zone.

Table 2. Damoti Drill Results (uncut)

*Lengths are reported as core lengths. True widths have not yet been calculated.

Summary of 2018 Drill Results

Horseshoe

Hole D18-01 was drilled 40 metres south of the Horseshoe Syncline fold nose, just south of the deposit's main body of mineralization (Figure 1). The hole tested for the presence of shear hosted mineralization emanating outwards from the deposit's high-grade core, a style of mineralization not uncommon to other Archean iron formation hosted gold deposits. Although high-grade mineralization was not encountered, several anomalous assays were recorded around 100 metres downhole depth (Table 2), placing them directly south of the high-grade Horseshoe. Perhaps an indication of proximal mineralization localized along shears radiating from the fold nose.

Holes D18-02 and 02B were collared at the southern end of the Horseshoe Syncline within the main body of Horseshoe (Figure 1). The holes were drilled northwest to explore the east limb of the syncline to depth as well as the trough of the fold down plunge and to the north. Hole D18-02 intersected the east limb and central core region of the fold before entering its west limb where it intersected 6.95 metres of 10.12 gpt Au, including 4.20 metres of 15.81 gpt Au, and a lower intercept of 2.50 metres of 8.97 gpt Au, including 1.00 metres of 19.36 gpt Au. The hole was drilled an additional 120 metres beyond the base of the fold in search of other mineralized iron formation below the Horseshoe Syncline and for evidence for repetition of mineralized stratigraphy to depth. The steeper hole, D18-02B, ran along the east limb of the syncline intersecting 9.35 metres of 4.34 gpt Au, including 2.60 metres of 11.59 gpt Au, with a lower intercept of 5.75 metres of 9.78 gpt Au, including 3.50 metres of 15.85 gpt Au, before exiting at depth into surrounding metasedimentary units (Figure 2).

D18-03 and 03B where drilled 100 metres below the southern fold nose of the Horseshoe Syncline. They were collared to explore directly below the core of Horseshoe, an area that had never been drilled to depth. If the host stratigraphy repeated to depth, and given that this region is overlain by the deposit's best mineralization, then it was important to test this area for stratigraphic repetition. Although mineralization was encountered, the holes did not intersect grades typical of the overlying deposit.

Hole D18-05 was drilled 70 metres north of the D12-02 holes (Figure 1) to test the lower west limb of the Horseshoe Syncline 130 metres to 200 metres below surface. The upper part of the hole intersected a near-surface portion of the east limb returning 7.85 metres of 1.82 gpt Au, including 2.85 metres of 3.53 gpt Au. The west limb was intersected at depth and returned 2.25 metres of 5.45 gpt Au, including 1.05 metres of 10.67 gpt Au (Table 2).

Holes D18-07 and 07B were collared 60 metres north of D18-05 along the east limb of the Horseshoe Syncline (Figure 1). The fold limb is known to be narrow in this area requiring the holes to be drilled steeply down the limb into the trough of the fold and its west limb at depth. The upper section of hole D18-07 traversed the top portion of the limb intersecting 23.65 metres of 1.54 gpt Au, including 3.30 metres of 4.24 gpt Au, and 1.20 metres of 9.05 gpt Au (Figure 3). To depth it passed through the trough of the syncline before exiting its western limb 220 metres below surface, intersecting 3.60 metres of 4.13 gpt Au, including 1.50 metres of 9.01 gpt Au; followed by a lower cut of 11.25 metres of 2.18 gpt Au, including 3.00 metres of 4.55 gpt Au. The steeper hole D18-07B stayed within the lower section of the limb before exiting the base of the fold at 230 metres vertical depth. The best intercept from hole D18-07B returned mineralization of 14.75 metres of 6.91 gpt Au, including 4.25 metres of 15.28 gpt Au (Table 2), was encountered within the fold limb around 80 metres depth, followed by lower intercepts at the base of the limb that returned 8.75 metres of 2.70 gpt Au, including 1.00 metres of 10.76 gpt Au, and within the fold trough of 13.75 metres of 1.71 gpt Au, including 9.50 metres of 2.34 gpt Au, and 1.50 metres of 8.14 gpt.

Two holes, D18-08 and D18-10, were drilled 450 metres north of the main body of Horseshoe (Figure 1) in an area that had never been drilled. The intention was to generate a continuous intersection, or drill fence, from the east limb of the syncline to its west limb, and to test an area in the central portion of the fold where two converging magnetic high features are located. The holes intersected their intended targets but did not encounter significant mineralization.

Holes D18-09 and 09B were collared 75 metres north of the D18-07 holes to test northern Horseshoe and to explore below the base of the syncline as historical drilling showed iron formation at depth in the area. Both holes were drilled steeply and parallel to the eastern fold limb. Hole D18-09 tested the base of the western fold limb 130 metres below surface intersecting 5.15 metres of 1.33 gpt Au, including 2.25 metres of 2.59 gpt Au, and a lower intersect of 1.25 metres of 8.06 gpt Au. Hole D18-09B returned a near-surface intercept of 3.85 metres of 2.18 gpt Au, including 1.70 metres of 4.72 gpt Au and some localized mineralization within the fold trough. The hole was drilled an additional 120 metres beyond the base of the Horseshoe Syncline and intercepted iron formation as was noted in the historical drilling, however significant mineralization was not encountered.

Holes D18-11 and 11B tested a pronounced flexure in the eastern limb of the Horseshoe Syncline 80 metres northeast of the D18-09 holes. Both holes intersected modest mineralization highlighted by a D18-011 intersection at depth within the base of the western fold limb of 2.25 metres of 7.43 gpt Au.

Red Mountain

Three holes were drilled from two setups within the north central portion of Red Mountain (Figure 1).  Hole D18-04 was drilled to infill a gap in previous drill coverage within the eastern limb of the Red Mountain Syncline. The hole intersected moderate mineralization throughout highlighted by 3.00 metres of 4.96 gpt Au. Holes D18-06 and 6B were collared 100 metres north, in an area that had never been drilled and would effectively, in collaboration with holes D18-07 and 07B located to the east, provide a drill fence across both major fold structures (Figure 1).  D18-06, the shallower hole, was drilled along the east limb of the fold and into the western limb at depth intersecting 8.65 metres of 1.89 gpt Au, including 1.50 metres of 6.14 gpt Au, before exiting the base of the fold where it continued to test the northern Runway Zone ("Runway"), intersecting moderate mineralization 190 metres from surface. Hole D18-06B intersected mineralization throughout the eastern fold limb highlighted by a near-surface cut of 4.25 metres of 3.31 gpt Au, including 1.25 metres of 10.22 gpt Au, and a deeper intersect of 5.25 metres of 2.46 gpt Au, including 1.25 metres of 7.94 gpt Au (Table 2). This drilling represents a new discovery of mineralization within this northern part of the Red Mountain Syncline, and one that remains open.

Drilling to date has confirmed Nighthawk's belief that given the relatively shallow nature and continuity of high-grade gold mineralization within the core of Damoti, that it constitutes a valuable asset to be considered in conjunction with any future plans to develop the Company's flagship asset, Colomac. Feed from such a shallow satellite deposit, that already has a ramp developed into its high-grade core, would be highly coveted by any mining operation. Based on recent drilling, Nighthawk is currently evaluating its options to generate a maiden resource estimate on Damoti, which would allow for better economic modelling regarding the impacts that such satellite deposits might have on Colomac, and on the ongoing evolution of its regional exploration programs. Additional drilling and exploration work will be contingent upon the incorporation of the present drill results into an expanded geological model to assist in target generation and evaluation.

Summary of 2009 and 2010 Drilling at Damoti

In 2009 and 2010 Nighthawk drilled 69 holes (13,647 metres) to test known zones and explore for new opportunities (Table 3).  The exploration programs were principally designed to expand the main deposit and consisted of historical data compilation, auditing of historical resource estimates, construction of a new three-dimensional deposit model, as well as defining and drill testing targets. A total of 7,390 metres were drilled at Horseshoe, the principal part of the deposit, successfully infilling priority areas within the historical resource and extending mineralized zones along strike and to depth. Drilling also focused along mineralized structures immediately west of Horseshoe within Red Mountain (2,341 metres), and Runway (400 metres). Results have shown excellent grade, widths, and continuity of gold mineralization. Areas of high-grade mineralization are developed along the keel of the fold and in association with parasitic folds along the limbs, and as discrete mineralized zones that crosscut the main unit. New gold zones were discovered within the lower west limb and keel areas of the Horseshoe and Red Mountain synclines that remain open.

The BIF Island Zone ("BIF Island"), an area of folded iron formation like Horseshoe, is located 3.5 kilometers along strike to the northeast. The Company completed 3,153 metres of drilling at BIF Island to extend known mineralization. Holes intersected broad zones of gold mineralization containing high-grade cores.  This area was not drilled during the 2018 program.

Damoti is an important piece of the Indin Lake Gold Property and was one of the main drivers to the consolidation of the camp. It illustrates the opportunity that the regional assets represent in terms of potential grade and contained gold ounces in strengthening Nighthawk's 100% controlled Indin Lake Gold Camp, centred around Colomac, a mutli-million-ounce deposit with demonstrated growth potential.

Table 3. 2009 - 2010 Damoti Drill Highlights (selected drill results)

Technical Information

Nighthawk has implemented a quality-control program to comply with best practices in the sampling and analysis of drill core.  Drill core samples were transported in security-sealed bags for analyses at ALS Global Assay Laboratory in Vancouver, BC ("ALS Global").  ALS Global is an ISO/IEC 17025 accredited laboratory. Pulp and metallics assaying for gold was conducted on the entire pulverized sample.

As part of its QA/QC program, Nighthawk inserts external gold standards (low to high grade) and blanks every 20 samples in addition to the standards, blanks, and pulp duplicates inserted by ALS Global.

About Nighthawk

Nighthawk is a Canadian-based gold exploration company with 100% ownership of a district-scale land position within the Indin Lake Greenstone Belt, located approximately 200 km north of Yellowknife, Northwest Territories, Canada. Nighthawk is focused on advancing the Colomac Gold Project with a current inferred resource of 2.6 million ounces of gold (50.3 million tonnes at an average grade of 1.62 grams per tonne gold), as well as advancing its other regional gold deposits and showings within this largely underexplored Archean gold camp.

The Company has an experienced and dedicated team and is well funded to complete its goals and objectives over the next 12-18 months.

Qualified Person

Dr. Michael J. Byron, Ph.D., P.Geo., President & Chief Executive Officer of Nighthawk, who is the "Qualified Person" as defined by NI 43-101 for this project, has reviewed and approved of the technical disclosure contained in this news release. Please refer to NI 43-101 technical report "Technical Report and mineral resource estimate update on the Colomac Property of the Indin Lake Project", dated June 13, 2018, as filed under the company's profile on www.sedar.com.

Neither the Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.

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 exploration plans at Damoit, including additional drilling programs and the timing and results thereof; the ability to produce a NI 43-101 resource estimate for Damoti, and the timing and results thereof; and any potential mining scenario at Colomac, and the ability for any of the satellite deposits to be considered economic to supplement such mining operation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" 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 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, environmental risks, permitting timelines, capital expenditures, 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, 2017, 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.

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SOURCE Nighthawk Gold Corp.