Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

January 23, 2006 10:42 ET

Gold Hawk Announces a 43-101 Compliant Resource Estimate for the Tamboraque Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2006) - Gold Hawk Resources Inc. ("Gold Hawk") (TSX VENTURE:CGK) is pleased to announce that it will file, within a few days, a 43-101 technical report on the Tamboraque Mine on Sedar ( The mine is located 90 km. east of Lima, Peru and the mining concessions cover an area of 3,162 hectares.

The total mineral resource estimate for the Tamboraque Mine is provided in the following table:

Tonnes Au Ag Pb Zn Cu
(oz/t) (oz/t) (%) (%) (%)
Measured Resources 466,198 0.215 6.69 3.31 3.70 0.44
Indicated Resources 186,620 0.20 5.86 2.82 4.20 0.45
Total and Measured and
Indicated 652,818 0.209 6.46 3.18 3.85 0.44
Inferred Resources 3,911,218 0.17 8.40 2.56 3.12 0.35
Total 4,564,036

The resource estimate is based on 22,500 underground and surface channel samples taken at two meter intervals across the entire width of the veins. In total, 3,587 of the samples (2,466 from the Constancia vein and 1,121 from the Wellington vein) were used to perform a statistical analysis for the grade populations. Level plans, cross sections and longitudinal sections were updated and the outline of each mineralized vein was electronically produced on longitudinal sections. The longitudinal sections were divided into resource blocks 100 meters horizontal by 50 meters vertical. Each block was assigned a grade and tonnage based on all available data. Each of the mineral resources blocks were distributed into the measured, indicated and inferred categories based on the knowledge level and geological confidence of the data.

All of the measured and indicated resources are contained in the Constancia and the Wellington veins. The inferred resources are contained in seven veins, including the Constancia and Wellington. The above resources are estimated above the 3500 meter elevation to the upper part of the deposit (4500 meter level) and there is estimated to be a minimum of an additional 400 meters of depth extension where the veins have been partly exposed by drifting and some underground workings, however, no resources were assigned. Therefore, there is a significant potential to increase the current known resources not only at depth but also in other veins that were partly developed during previous years.

The precious metal content of the above resources is summarized in the following table:

(000's oz.)
Gold Silver Gold Equivalent(i)
Measured and Indicated 137 4,212 202
Inferred 663 32,760 1,209

(i)Silver/Gold ratio 60:1

The Tamboraque Mine is characterized to be a polymetallical vein deposit emplaced within brittle and tensional fractures developed in the andesitic rocks of the Rimac Formation. The mineralized system bears all the features of a hydrothermal low sulphidation deposit. The veins pinch and swell and vary in thickness up to 2 meters and average 0.6 meters. The mineralization is comprised of pyrite, sphalerite, silver rich galena, chalcopyrite, arsenopyrite, tennandite, tetrahedrite, native gold, native silver and quartz. The gold is refractory, as it is closely associated with and included or encapsulated inside the arsenopyrite.

The mine is equipped with a modern 600 tonne per day (tpd) concentrator with a state of the art BIOX circuit for the recovery of gold and silver. The flotation part of the plant will produce zinc, lead copper and arsenopyrite concentrates when in operation. The lead, zinc and copper concentrates will be sold to Peruvian smelters which are located nearby. The arsenopyrite concentrate, which contains 75% of the gold, will be treated in the BIOX circuit to liberate the gold from the arsenopyrite and the gold is later recovered on carbon in the leach circuit. The loaded carbon will be sent to a Peruvian refinery to recover the gold and silver in dore metal.

The mine has 37 developed stopes and the related infrastructure such as compressors, haulage locomotives, rail cars, etc.

Local infrastructure includes a paved highway and a railway line to the plant gate, water supply, a private hydroelectric generating plant is located within 100 yards of the plant and a major power line, tied to the national grid, runs through the property. The population of the town of San Mateo, located a few kilometers from the mine, is supportive for the mine to resume operation and has presented to the government a petition supporting the resumption of operations. In addition, the mine is located within 70 kilometers of two smelters.

The Tamboraque property has been in production, mostly as a 200 tpd operation, since 1906. In 1999, a private Peruvian company expanded the mine and built a new 600 tpd mill, utilizing the BIOX process for the recovery of gold and silver from the refractory ore. The company was forced into bankruptcy in 2000 due to low metal prices, high mining dilution and poor metal recoveries.

Weise Sudameris Leasing S.A. (WSL), the major secured creditor, took ownership of the mining property and fixed assets in early 2001. WSL hired a contractor to make some design changes and restart the operation in May 2002. The operation was shut down again in December 2002 due to low metal prices, high dilution, and poor metal recoveries. These problems were exasperated by five acts of sabotage to the only power line. In addition, there were environmental challenges related to the location of an old tailings deposition by the previous owners.

Metal prices are more than twice the level of late-2002, the tailings deposition challenge has been resolved and the acts of sabotage of the only power line will not be a problem in the future. Gold Hawk has developed a business plan to solve the dilution problem and to improve the metal recoveries. Once a preliminary feasibility study is completed, as recommended in the 43-101 report, it is Gold Hawk's intention to resume the operation at a rate of 600 tpd before the end of 2006 and to commence expansion of the facility to between 800 and 900 tpd in the medium term. It is also Gold Hawk's plan to explore the down dip extension of the vein system once operations have commenced.

Gold Hawk has signed agreements to acquire a 100% interest in the Tamboraque Mine for US$12.0 million cash, of which US$750,000 has been paid. The next payment which was originally scheduled for January 31, 2006 is now scheduled for Feb. 17, 2006 (see Press Release dated Dec. 14, 2005). In order to fund the balance of the purchase price, Gold Hawk plans an equity issue combined with a bridge loan facility (see Press Release Dec. 14, 2005).

The mineral resource estimate in this press release and the 43-101 report which is to be filed on Sedar ( within a few days was made by Mr. Rodney Lamond, P. Eng., an independent Qualified Person under National Instrument 43-101.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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