Gold Hawk Resources Inc.

Transcription

1 Gold Hawk Resources Inc. Gold Hawk updates mineral resources and reserve estimates for the Coricancha Mine Vancouver, British Columbia, March 31, Gold Hawk Resources Inc. ( Gold Hawk or the Company ) (TSX-V: CGK) is pleased to announce the completion of a new National Instrument compliant technical report for its Coricancha Mine located 90 kilometres east of Lima, Peru. The report, entitled Technical Report on Re-start of the Coricancha Mine, Peru, was completed by Tetra Tech of Golden, Colorado. This report will be filed on SEDAR ( and on the Company s website at The new Technical Report supersedes all information contained in older Technical Reports and investors are advised to review the new report once it is available on SEDAR. The new Technical Report outlines a total Proven and Probable reserve of 458,434 tonnes at a gold grade of 4.80 grams per tonne and a silver grade of grams per tonne containing a total gold equivalent of approximately 121,000 ounces based on a silver to gold conversion ratio of 50:1. The Technical Report on the Re-start of the Coricancha Mine provides proven and probable reserves with a two-year mine life, which is consistent with the previous Technical Report and, given the nature of this mine and its more than 60 years of production history, it is quite likely that a significant portion of mineral resources will be moved into the proven and probable categories as development progresses. Our strategic objective right now is to source funding in order to construct the new tailings storage facility at Chinchan and to re-start production by September 2009, said Mr. Kevin Drover, President and CEO. Following is a summary of the mineral reserve and resource estimates as at March 30, 2009 for the Coricancha Mine: Total Proven and Probable Diluted Mineral Reserve Resource Class Tonnes Au Ag Pb Zn Cu Proven Probable 325, , Total Mineral Reserve 458, Note: 1) The mineral reserves stated here are included in the mineral resource statement. 2) The mineral reserves are based on an economic cut-off value of US$80/tonne.

2 - 2 - Total Measured and Indicated Mineral Resources* Resource Class Tonnes Au Ag Pb Zn Cu Measured Indicated 486, , Total Mineral Resource 698, (*) Includes proven and probable reserves but excludes inferred resources. Total Inferred Mineral Resources** Vein Tonnes Au Ag Pb Zn Cu Constancia Vein Wellington Vein Escondida San Jose Colquipallana Animas Rocio 1,447, , ,700 63, , , , Total Inferred Resources 3,911, (**) Mineral resources which are not mineral reserves do not demonstrate economic viability. The methodology used in determining the mineral resource and mineral reserve estimate for the Coricancha Mine consisted of measuring the vein width in working levels of the mine combined with estimating the length of the vein in section along the drifts. The area information about the long sections of the veins was entered into AutoCAD. This data, combined with assay data in an Excel spreadsheet was used to generate the mineral resource estimate. Tetra Tech reviewed and independently calculated block areas and average assay values for about 10 per cent of the block data. Tetra Tech found the block areas and average sample data calculations to be within acceptable limits. Tetra Tech s opinion is that the mineral resources and mineral reserves stated in the Technical Report are NI compliant and meet the Canadian Institute of Mining (CIM) guidelines and requirements. The mineral reserve estimate for the Coricancha Mine is based on the mineral resource estimate for the Constancia and Wellington Veins, in addition to current mine development, cost and metal recovery criteria established by Compania Minera San Juan (CMSJ), Gold Hawk s wholly owned Peru subsidiary. Resource blocks were drawn in longitudinal sections along the vein using AutoCAD, with individual blocks having dimensions of 100 metres along strike and 50 metre vertical between mine levels. Reserve blocks were classified according to three criteria: 1) the amount of development, 2) the amount of sampling, and 3) the economic block value in comparison to the budget cutoff value.

3 - 3 - The amount of development was considered first, using the long sections of the Constancia and Wellington Veins. Blocks with development along four sides were classified as proven reserves. Blocks with development along two or three sides were classified as probable reserves. Blocks with development along four sides but inaccessible and/or not to be scheduled were classified as measured resources. Blocks with development only along one side were classified as indicated resources. The number of samples per resource block was then considered. Some resource blocks, based upon the amount of development, had been initially categorized as probable reserves; but were represented by only one to three samples, which CMSJ considered an insufficient number of samples. These blocks, regardless of the amount of defining development, were returned to the indicated resource category. Only resource blocks in the indicated resource category were affected. No blocks in the measured category were changed in this second review. Finally, the net value cutoff of each block was compared to the mine s projected operating cost cutoff value of US$80/tonne. All reserve blocks with values below the cutoff value were returned to the appropriate indicated or measured resource category as being considered uneconomic under present metal prices, metallurgical recovery and operating costs. A spreadsheet developed by a consulting mine engineer in Lima, Peru was used to determine the diluted value per tonne of each mineral resource block. This calculation considered projected mine and mill recoveries, smelter terms and metal prices. The metal prices used in this calculation were: $900/oz Au, $12/oz Ag, $0.55/pound Pb, and $0.50/pound Zn. No value was given to copper as there will be no payable copper in the Coricancha concentrates, but metallurgical testing is underway to develop a saleable concentrate. A minimum mining width of 0.9 meters was used for determining the tonnage of the resource blocks. Dilution is calculated as the difference between the minimum mining width of 0.9 m and the vein width. The additional vein width dilution was carried at zero grade. Veins over 0.9-m wide have been assigned a minimum of 10 dilution. A mining loss of 10 per cent was deducted from the block tonnage to account for horizontal pillars left in the top and bottom of the stope for support. Metal prices, metallurgical recoveries and dilution were added to the spreadsheet in order to calculate a net value for each block. While CMSJ has identified several areas where mineralized material from existing veins could be included in mineral resources and possibly upgraded to mineral reserves, the Company has taken the conservative approach and only considered mineralized material which has been accessed through current mine development. Although other veins with previous development will require review, access and development may likely require rehabilitation. The veins at the Coricancha Mine are geologically very continuous, adding confidence that the measured vein widths can be used to accurately calculate the mineral resources and mineral reserves. The 60-plus years of operating history also support the mineral resource and mineral reserve estimates stated in the report.

4 - 4 - Operating Costs: The following table details the annual operating costs used to determine the economic viability of the project using a current economic analysis. Operating Costs - US$ (1,000) Cost Center Process 2,084 4,620 5,645 Mine & Engineering 2,084 5,514 6,562 Power 675 1,620 1,680 Technical Services Maintenance & Services Site Administration 573 1,228 1,127 Concentrate Handling Indirect Site Costs Other 400 1,500 1,500 Total Operating Costs 6,627 16,098 18,025 Capital Costs: The following table details the capital costs used to determine the economic viability of the project. Capital Expenditure Summary US$ (1,000) Cost Center Mine Development 228 Mine DMS / Mill Safety & Environmental Maintenance Services Administration Tailings Facility 2, Sustaining Capital Mill 700 Working Capital 1,684 Total Capital Cost 4,513 2,030 1,130

5 - 5 - Production Rate and Mine Life: Gold Hawk has invested approximately US$40 million on the Coricancha Mine purchase as well as mine and processing plant rehabilitation and improvements. Gold Hawk began commercial production in October 2007 but suspended production in May 2008 following discovery of ground displacement, which was subsequently sourced at a neighbouring third-party property and halted by the Peru government. The Company is currently completing engineering work on its new long-term tailings handling area at Chinchan and the mine and processing plant are being maintained in order to bring the facility back into operation as quickly as possible once restart financing is in place. The production rate initially starts at 115,500 tonnes per year (330 tonnes per day) and eventually rises to 210,000 tonnes per year (600 tonnes per day). Based on current proven and probable mineral reserves and the projected production rate, the mine life is estimated to be approximately two years. Like most underground mines, the proven and probable reserves of the Coricancha Mine are limited, not because of a lack of resource material, but due to the cost of proving up large quantities of mineral reserves. There are considerable measured, indicated, and inferred resources available at this time, and it is Tetra Tech s opinion that a significant portion of these resources will be moved into the proven and probable categories as development progresses. If these resources are included, the mine life could increase from two years to approximately eight years. Gold Hawk Resources Inc. and its wholly owned subsidiary, Compania Minera San Juan SA (CMSJ) commissioned Tetra Tech, Inc. (Tetra Tech) to prepare the Technical Report regarding the re-start of the Coricancha Mine in Peru that meets the requirements of National Instrument (NI ). The report was prepared in accordance with the guidelines provided in NI , Standards of Disclosure for Mineral Projects, dated December 23, The Qualified Persons responsible for the report are Mr. John W. Rozelle P.G., Principal Geologist, and Mr. Donald B. Tschabrun, Principal Mining Engineer, both employees of Tetra Tech, with Mr. Rozelle serving as the Qualified Person responsible for the entire report. Tetra Tech s senior staff have extensive experience in due diligence audits and reviews, Independent Engineer commissions, feasibility studies, technical studies and technical reports for stock exchange listing requirements. The Qualified Persons mentioned above have reviewed and approved this media release. About Gold Hawk Resources Inc. Gold Hawk (TSX-V:CGK) is a Canada-based precious metals company with reserves and resources containing gold, silver, lead, zinc and copper and a near-term production project at the Coricancha Mine and 600 tonnes of ore per day processing facility, located 90kms east of Lima, Peru. On January 7, 2009 the Company received its final permit to construct a new permanent tailings facility at Chinchan and has all of the other permits required for the re-start of the mine. Gold Hawk is based in Vancouver, Canada and is operated by an experienced management team. Gold Hawk and its wholly owned subsidiary, Compañía Minera San Juan (Peru) S.A. also have exploration properties in Peru and Canada (Quebec). This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forwardlooking statements are made as of the date of this document and Gold Hawk Resources Inc. (hereinafter referred to as the Company ) do not intend, and do not assume any obligation, to update these forward-looking statements. Forward-looking

6 - 6 - statements relate to future events or future performance and reflect management of the Company s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company s interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For further information, contact: Mr. Jason Mercier Director Investor Relations Gold Hawk Resources Inc. Tel: (604) info@goldhawkresources.com Website: