Gold Hawk Resources Inc.
TSX VENTURE : GHK

Gold Hawk Resources Inc.

January 18, 2011 06:00 ET

Gold Hawk Contracts Lyntek Inc. to Prepare an Engineering Design Study for the Oracle Ridge Copper Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:GHK) is pleased to announce that the Company's U.S. subsidiary, Oracle Ridge Mining LLC, has contracted Lyntek Inc. to produce an engineering, design and capital cost study for a 2,000 tons-per-day flotation plant and related processing facilities in order to facilitate the re-opening of the underground Oracle Ridge Copper Mine located in rural Pima County, Arizona. Lyntek is an internationally respected provider of mineral processing engineering, design and construction services.

Engineering and design work will be undertaken at a +/-15% cost estimation level consistent with industry standards for project debt financing should the company elect to utilize this method for construction financing. The study will be based on a 2,000 tons-per-day processing facility and related facilities including the tailings impoundment. Preliminary production estimates indicate that approximately 140 tons of high-grade copper concentrate could be produced on a daily basis. Both the underground mine and tailings facility are located on private land.

The Oracle Ridge Copper Mine will seek to use state-of-the-art environmental engineering practices, including dry-stack tailings, water reclamation techniques and backfilling of stopes with tailings. Environmental monitoring systems will be a key part of the engineering design study in order to insure that the facility is a zero discharge operation. Should permitting agencies allow, water storage facilities will include wildlife watering stations and a dipping tank that can be made available to the U.S. Forest Service for their use in fire suppression activities in the region.The company intends to work with all stakeholders in the area in order to achieve environmentally friendly, sustainable development of Arizona's natural resource endowment.

The engineering study is being developed in conjunction with the recently announced drilling program that is designed to validate the historic data base. This data base contains the results of more than 163,000 feet of drilling in 534 drill holes. The Company is pleased to announce that the drill rig has arrived on site and drilling is expected to commence shortly. This phase one drill program is to consist of an initial 15,000 feet and will facilitate the planning of additional drill holes. Initial assay results from the drill program are expected to be released in the first quarter.

The Oracle Ridge Copper Mine hosts at least 12 known zones containing multiple beds of primary copper skarn mineralization. Copper grades as high as 22% are reported in the historic drill hole data. During previous operations gold and silver were produced as by-products. Given current precious metal prices a silver/gold credit could potentially enhance project economics. Past ore produced by the mine were not consistently tested for the presence of other minerals, such as magnetite, and the Company plans to undertake detailed metallurgy studies as part of the Lyntek studies.

Historically there have been a number of resource and reserve estimates available that were made by reliable, knowledgeable professionals. As part of a 1995 feasibility study for a 2,000 tons-per-day processing plant, the former operator developed a mine plan containing 8.8 million tons grading 2.3% copper diluted, in all categories. This mine plan conformed to United States Securities and Exchange Commission mining reserve definitions in place at that time. The reader is cautioned that the foregoing estimate is not in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and is cited for historical purposes only and should not be relied upon until further work is carried out. Gold Hawk believes, however, that the historical resource estimates reported above are material and should be disclosed. Gold Hawk believes these historical results provide an indication of the potential of the property and are relevant to future exploration.

For additional information on the Oracle Ridge Copper Mine, please see the August 20, 2010 Technical Report, Review of the Oracle Ridge Mine Project, available on SEDAR and on the Company's website (http://www.goldhawkresources.com/en/properties/oracle-ridge.php).

Glenn R. Clark, P.Eng. of Glenn R. Clark & Associates Limited, a consultant for Gold Hawk, and a Qualified Person under NI 43-101, has reviewed the technical material contained in this media release and is responsible for the technical information reported herein.

About Gold Hawk Resources Inc.

Gold Hawk (TSX VENTURE:GHK) is a Vancouver, Canada-based company with a focus on uncovering overlooked deep-value projects to achieve superior shareholder returns. The Company is the sole owner and operator of Oracle Ridge Mining LLC and copper mine located 24 km northeast of Tucson, Arizona. Gold Hawk has cash on hand of approximately $24 million, minimal long-term debt and is managed by an experienced team of mining professionals with extensive operating and financial experience.

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Gold Hawk Resources Inc. (hereinafter referred to as the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking 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, commodity prices, 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 www.sedar.com. 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.

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