Gold Hawk Resources Inc.
TSX VENTURE : GHK

Gold Hawk Resources Inc.

April 04, 2011 01:00 ET

Gold Hawk on Schedule for Mine Re-Opening at Oracle Ridge Copper Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 3, 2011) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:GHK) is pleased to provide an update on activities at its wholly owned Oracle Ridge copper project near Tucson, Arizona.

"Gold Hawk is pleased with the progress being made toward obtaining the environmental permits needed to re-start the Oracle Ridge Copper Mine," said Mr. Kevin Drover, Gold Hawk's Chairman and CEO. "The Company is on track with its schedule to return the mine to production."

Activities since the beginning of 2011 have focused on validation of Oracle Ridge's historic resource database, engineering and design work for the proposed 2,000-tons-per-day processing plant, geotechnical and design work for the tailings impoundment and the mine permitting process.

Database validation program

  • Two surface core drilling rigs have been mobilized to site;
  • Six drill holes have been completed to date;
  • A 3-D laser survey of the accessible underground workings has been completed;
  • A surface and underground survey of locatable historic drill collars has been completed;
  • Geologic mapping and sampling of the underground workings has begun;
  • In addition to the copper, silver and gold assays contained in the historic database, iron and other valuable elements are being analysed for in samples from the ongoing drill program; and,
  • A methodical program of density determinations is being made from core samples of all mineralized zones intersected in the program.

The validation program has been designed with the approval of Glenn R. Clark, P.Eng. of Glenn R. Clark & Associates Limited, the Company's third-party Qualified Person for mineral resources under NI 43-101. The objective of this program is to ultimately produce a new NI 43-101-compliant resource technical report.

Process Plant and Tailings impoundment activities

  • Initial metallurgical test work for ore hardness testing has been completed;
  • A preliminary equipment list for a nominal 2,000-tons-per-day metallurgical plant has been compiled;
  • Trade-off studies for electrical power generation, mobile equipment and other processing components that impact air emissions are underway;
  • Geotechnical sampling in the tailings impoundment area have been completed; and,
  • Initial design of a 10-million-ton dry stack tailings impoundment and plant area have been completed and are under review.

The processing plant is being designed on the basis of milling the hardest ores tested, thereby facilitating smooth plant operating flow-through. All processing design engineering and costing work is being undertaken at a 15% confidence level and is being conducted under the direction of John Kyle, PE and Ed Bentzen, Company contractor Lyntek Inc.'s Qualified Persons.

Test work is also scheduled to begin an evaluation for a paste back-fill system. It is the Company's desire to return as much as possible of new tailings generated by the planned operation back underground as feasible, thereby minimizing the mine's environmental footprint.

Permitting process

  • Constructive meetings have been held with personnel representing Pima County, the Arizona Department of Environmental Quality and the U.S. Forest Service;
  • Flora and fauna inventory studies have begun in the project area and along the site access road;
  • Archaeological and cultural resource surveys have been completed on a portion of the project site and access road;
  • Water quality sampling has begun on both surface and underground waters and automated sampling station installed in affected drainages; and,
  • Two air quality and weather monitoring stations have been constructed.

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 $20 million, minimal long-term debt and is managed by an experienced team of mining professionals with extensive operating and financial experience.

Forward-looking Statement Disclaimer

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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