Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

July 17, 2007 17:31 ET

Gold Hawk Resources Inc.: Exploration and Operations Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce that exploration and development work on the 3140 meter level of its Coricancha Mine in Peru has encountered what is believed to be the downward extension of the Constancia Vein. Based on assay results, geological projections and mineralization characteristics, there is a high probability that the Constancia Vein extends at least 315 meters below the 3460 meter level, which is currently the lowest working level of the mine. No development or mining has yet been conducted on the Constancia Vein between the 3460 meter level and the 3140 meter level and no reserves or resources for this potential mineralized zone have been included in the latest 43-101 Technical Report (as disclosed in the Company's Press Release dated April 20, 2007).

Channel samples were taken by the Company's geologists over the 1.26 meter vein width encountered on the 3140 meter level and assayed by ALS Chemex Laboratory in Lima, Peru, using standard Atomic Adsorption methods for gold, silver, copper, lead and zinc and standard Fire Assay for high grade gold analysis. The samples assayed, averaged 2.54% copper, 3.34% lead, 4.20% zinc, 544.74 grams per tonne silver and 4.85 grams per tonne gold. The widths and average grades encountered to date are significantly higher than those encountered on the upper working levels of this vein (3460 and 3550 meter levels).

Approximately 43 meters of the Constancia Vein has been exposed on the 3140 meter level. Projecting this vein southward to the property boundary gives approximately another 2000 meters of potential strike length to be developed. With a vertical extent of 320 meters and the potential strike length of 2000 meters, there is the potential to significantly increase the total resources in the Constancia Vein between the 3140 and 3460 meter levels. In addition, the vein is open at depth below the 3140 meter level.

The latest 43-101 technical report for the Coricancha Mine dated April 16, 2007 included the following resources for the Constancia Vein:

Tonnes Au g/t Ag g/t Pb % Zn % Cu %
Measured and
Indicated 419,500 6.27 185.31 3.61 3.79 0.36

Inferred 1,447,400 6.28 185.38 3.61 3.79 0.36

Note: The Constancia Vein contains 64% of the Measured and Indicated
Resources and 37% of the Inferred Resources at the Coricancha Mine.

Development on the 3140 meter level is expected to continue to expose more of the vein in the near term and is scheduled as a priority project. It is planned to develop an internal shaft between the 3140 meter level and the upper mine levels. This shaft will allow access over the 315 meters of vertical extent for additional exploration and development as well as improve mine efficiencies. In addition, it is planned to drill exploration holes to test the down dip extension of the Constancia Vein below the 3140 meter level. These developments are key for the possible expansion of the Coricancha Mine by up to 100% for which a scoping study is currently underway.

Production ramp up at the Coricancha Mine and concentrator is progressing, but is slower than anticipated due, in large part, to further delays in the delivery of new mining equipment. As previously announced in the Company's May 25, 2007 operations update, the delivery of mine equipment was scheduled for early July, but has now been delayed until the end of August. The equipment has been shipped and is currently in transit, but port and custom delays in Lima have been significant recently and this will likely delay receipt of the equipment until the end of August. Other operating challenges that have, for the most part, been overcome include the hiring of experienced operating management, personnel training and equipment design modifications for the concentrator. Although attaining the rated capacity of 600 tpd has been slower than anticipated, steady progress is being made and management is confident that with the arrival of the new mining equipment and the hiring of additional site management, the Company is well on its way to achieving its production targets by early in the fourth quarter of 2007.

Mr. Rodney Lamond, P. Eng. is the Qualified Person as defined by National Instrument 43-101 for technical information contained in this press release. Mr. Lamond has reviewed and approved the technical information contained in this press release.

About Gold Hawk Resources Inc.

Gold Hawk is a precious metals producer with its primary asset, the Coricancha Mine, in Peru, now in production. The company purchased the Coricancha Mine in March of 2006 and since then has permitted, refurbished the mine and concentrator and is now ramping up production to design levels. The company, through it subsidiary, Compania Minera San Juan (Peru) S.A., has some 500 employees and contractors. Its head office is in Vancouver, British Columbia. The Company also, has exploration properties in Peru and Canada (Quebec).

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.

Contact Information

  • Gold Hawk Resources Inc.
    Mr. Kevin Drover
    President and Chief Executive Officer
    (604) 689-9296
    Gold Hawk Resources Inc.
    Mr. Gordon F. Bub
    Executive Chairman
    (604) 689-9261