Nighthawk Gold Corporation

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Exchange: TSX
Ticker: NHK
Market Cap: 69,710,151
Fully diluted shares: 193,639,311
Date of analysis: 26 april 2019
Exploration – Developing – Mining
Nighthawk Gold Corp ( previously Merc International Minerals) took up the historic Colomac Gold mine
some 12 years after the bancrupcy of Royal Oak Mines in 1997.
Colomac has 5 known gold deposits that are open in all directions and only the Colomac dyke deposit was
allready mined and has produced 527,908 Oz of gold between 1990 and 1997.
The project, located in Yellowknife in the North-West Territory contains the Grizzly Bear, the Dyke
Land, the Goldcrest and the 24 and 27 deposits. In total Nighthawk Gold owns 900 square kilometers of
land in the Indin Lake Greenstone Belt.
The reason of Royal Oak Mines bancrupcy and the shut down of the Colomac Gold mines was its low
goldprice. The avarage goldprice in 1997 was as low as 287.05 US dollar.
After collecting data and drilling results, Nighthawk Gold reported its first National Instrument 43-101 in
february 2012 with an inferred resource of 42.7 million tonnes with 1.05 grams gold per tonne for 1.45
million Oz gold at a cut off grade of 0.6 gram gold per tonne
An update of the resources in 2013 showed a inferred resource to 39.8 million tonnes grading 1.67 grams
gold for 2.1 million OZ gold
Drilling results of 2012 together with the historic verification holes showes an increase of 24.4 % of
resources between 2013 and 2018. The inferred resources went up from 2.1 million Oz up to 2.6 million
In november 2016, Kinross Gold took part on a non-brokered private placement and holds now a 8.6 % of
Nighthawk Gold's shares.
Northfield Capital Corporation is besides private equity and retail, the largest shareholder of Nighthawk
Gold with 18.4 % of its shares.
Board and managment are holding 5 % shares of the company and Osisko Gold Royalties own 9.9%
With Mr Luc Lessard, who is Senior Vice President of Osisko Gold Royalties and a director in the board
of Nighthawk Gold, the first has a strong arm in the board of the company.
The same goes for Mr Morris Prychidny and Mr Brent Peters that have a seat in Northfield Capital
As the company shows in its presentation that they have 2.61 million Oz inferred resources, or 50.31
million tonnes at 1.62 grams per tonne gold means that the metal value based on a goldprice of 1285
Usdollar would be 60.37 Usdollar.
The total value of this inferred resources should than be 3,037 Billion Usdollar.
Based on the value of these resources the value of a share should be 15.68 Usdollar.
As I'm doing this to make money instead of losing some and we talk about inferred resources I use a
discount of 35% what brings the value to 1,974,189,555 Usdollar.
Its share value then will be 10.20 Usdollar.
We come back to this numbers at a later time in this presentation
Based on the calculated numbers, Nighthawk Gold is undervalued compared to other large North
American gold developers according to this company presentation.

As the soup is not eaten as hot as it is served, Nighthawk Gold is in my opinion a company to start
investing in with small steps at the time.
The company is working towards its PEA what still makes investing a high risk.
An interesting fact to keep an eye on is that the company calls itself a next developer, but yet they are still
an exploration company.
Due the fact that they are a junior company, it is logic that they are undervaleued to large developers.
My personal opinion is that a company can become a developer when the Feasability study is done. For
Nighthawk gold, all is still based on a scoping study at the moment.
When we look at the Market Cap of 69 million Canadian dollar and at the 193.6 million fully diluted
shares we also see that this company probably will issue a lot more non-brokered shares to fund their
Depending on the quantity of the shares when they start to construct the mine,will eventualy determen the
value of its shares.
So take good notion of it that the share price of 10.20 dollar will be much lower when they are building a
Another thing that bothers me a little is that the management has a excellent geologist and very
experienced financial officers aboard but what I don't find is the experience to construct a mine.
What they do have, altough is that they are very familiar with mergers and aquisitions and therefor my
opinion is that Nighthawk Gold can become a nice takeover target for a major company in the future.
A next level of investing can be calculated after the companies PEA or even better, after its Pre
feasability study.
With a quick ratio of 35. from their last annual report the company is well funded for further drilling in
Nighthawk Gold is deffinatly a Junior to take notice of.
Updates will follow after more company details are presented in the Pre feasabillity study.
Al given information are my personal calculations and findings and are not investing advice, always do
your own due dilligence.

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