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Gold Hawk Temporarily Suspends Crushing and Milling Operations at Coricancha Mine
MAY 9, 2008 - 19:57 ET VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2008) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) announces that it is temporarily suspending crushing and milling operations at its Coricancha mine in Peru due to unexplained ground movement in and around its tailings handling area. This action is being taken as a precautionary measure while a geotechnical audit is completed.
The geotechnical audit was initiated in April at the end of the first full rainy season. The audit was voluntarily initiated to evaluate the response of the tailings handling facility to full production, an entire rainy season and regional seismic activity over the past year.
Gold Hawk management and local and international consultants are on-site analyzing monitoring data and based on the recommendations of its experts, additional geotechnical instrumentation is being installed to monitor the magnitude and rate of potential future movement. The Company believes that the combined conditions of an unusually heavy rainfall during the recent wet season that has just ended and leakage from a water channel, owned by another party, that passes through the Company's property are likely contributing factors.
Geotechnical instrumentation that is being installed will provide continuous, long-term monitoring of the performance of the facility. In the meantime, ore is being stockpiled for processing upon re-start of processing operations.
"Gold Hawk's management and Board have taken these necessary, precautionary steps to minimize any risks to our employees, the communities and the environment," said Mr. Kevin Drover, Gold Hawk's President and CEO. "While we are uncertain as to the extent of the movement we are committed to ensuring that we mitigate risk and in the event that remedial action is required we will implement a plan that upholds our safety and environmental commitments and returns our operations to production."
The current tailings area was scheduled to close within the next two months and a new tailings handling area is under construction near the existing facilities. The Company is also preparing to permit a new, long-term tailings handling area approximately 20kms from the processing and existing tailings facilities, which is expected to come on-line in 2009.
Additional updates will be issued promptly as information becomes available.
About Gold Hawk Resources Inc.
Gold Hawk is a Canadian based precious and base metals producer with reserves and resources containing gold, silver, lead, zinc and copper. Since the acquisition of the wholly owned Coricancha Mine in Peru in March 2006, the mine and concentrator were refurbished and commercial production status was achieved on October 1, 2007. The rated capacity of the processing facility is approximately 600 tonnes of ore per day, with potential for expansion to 900 tonnes by the end of 2008. The Company, through its subsidiary, Compania Minera San Juan (Peru) S.A., has approximately 600 employees.
Gold Hawk is based in Vancouver, British Columbia, Canada and trades on the TSX-V under the symbol CGK, and is operated by an experienced management team. The Company also has exploration properties in Peru and Canada (Quebec), and is actively pursuing other growth opportunities.
This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources; the uncertainty of resource estimates and the ability to economically exploit resources; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Gold Hawk to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Gold Hawk to fund the capital and operating expenses necessary to achieve the business objectives of Gold Hawk, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Gold Hawk. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Gold Hawk should not place undue reliance on these forward-looking statements.
Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and Gold Hawk undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gold Hawk Resources Inc.
Mr. Jason Mercier
Director Investor Relations