Gold Hawk Resources Inc.
TSX VENTURE : CGK

Gold Hawk Resources Inc.

March 13, 2007 15:57 ET

Gold Hawk Resources Inc.: Mineral Reserve and Mineral Resource Estimates for Coricancha Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 13, 2007) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to provide an update on the Company's mineral reserve and mineral resource estimates as at January 31, 2007 for its Coricancha Mine located approximately 90 kilometers east of Lima, Peru.

The mineral reserve and mineral resource estimates and other scientific and technical information contained in this press release were prepared by the Company's technical staff, and have been independently reviewed and verified by Mr. John W. Rozelle, of Gustavson Associates, LLC ("Gustavson") of Boulder Colorado in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Gold Hawk has retained John W. Rozelle of Gustavson to prepare a Canadian NI 43-101 independent technical report (the "Technical Report") in connection with the pre-feasibility study and mineral resource and mineral reserve estimates for Coricancha mine. The Company intends to file the Technical Report on Sedar (www.sedar.com) within 45 days of the date of this press release.

Following is a summary of the mineral reserve and resource as at January 31, 2007 for the Coricancha mine:



Proven and Probable Reserves January 31, 2007
Au Ag Pb Zn Cu
Tonnes g/t g/t % % %
Proven 152,657 4.43 166.71 2.94 2.42 0.30
Probable 283,860 5.45 158.38 2.60 2.57 0.31

Total 436,517 5.09 161.29 2.72 2.52 0.31

Measured and Indicated Resources(i) January 31, 2007
Au Ag Pb Zn Cu
Tonnes g/t g/t % % %
Measured 112,497 6.17 231.97 4.07 3.38 0.41
Indicated 538,733 6.57 193.81 2.98 3.94 0.44

Total 651,230 6.50 200.40 3.17 3.84 0.44

(i) Includes proven and probable reserves but excludes inferred
resources.

Inferred Resources(ii) January 31, 2007
Au Ag Pb Zn Cu
Tonnes g/t g/t % % %
Constancia
Vein 1,447,438 6.28 185.38 3.61 3.79 0.36
Wellington
Vein 744,858 6.94 228.92 2.39 3.94 0.58
Escondida 193,688 4.85 282.11 2.92 3.85 0.43
San Jose 63,010 3.95 139.03 11.14 0.10 0.10
Colquipallana 170,253 9.49 219.28 3.59 4.10 0.00
Animas 907,405 2.36 457.53 0.30 0.48 0.11
Rocio 384,566 3.67 174.18 2.19 4.94 0.60

Total 3,911,218 5.27 261.23 2.56 3.12 0.35

(ii) Mineral resources which are not mineral reserves do not demonstrate
economic viability.


A complete review was conducted of all available assay data from the mine's assay maps of stopes, drifts, and raises. This data base consisted of more than 22,500 samples. In addition, in order to verify the accuracy of these data, 43 check samples were taken in selected stope blocks and 20 samples were taken at various locations throughout the mine.

Various statistical methods were used to determine the level of confidence of the assay data for the mineral resource. A new inventory of data was compiled in order to verify the existence of the mineral resource. In total, 3,587 out of the 22,500 samples were used to perform a statistical analysis for the grade populations of Au, Ag, Pb, Zn and Cu.

The mineral resources for the Coricancha Mine have been classified into categories in accordance to those established by the Canadian Institute of Mining and published in "CIM Definition Standards -- For Mineral Resources and Mineral Reserves".

Reserve blocks were classified according to three criteria: 1) the amount of development, 2) the amount of sampling, and 3) the economic block value comparison to the budget cut-off value.

The amount of development was considered first, using the long sections. Blocks with development only along one side were classified as Indicated resources. Blocks with development along two or three sides were classified as Indicated-Probable reserves. Blocks with development along four sides were classified as Measured-Proven reserves. Blocks with development along four sides but inaccessible and/or not to be scheduled were classified only as Measured.

The number of samples per resource block was then considered. Some resource blocks, based upon the amount of development, had been in the first step categorized as Indicated-Probable Reserves; but they were represented by only one to three samples, 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 cut-off value of each block was compared to the mine's projected site operating cost of $50.16 USD/tonne. All Reserve blocks with values below the cut-off value were returned to the appropriate Indicated or Measured Resource category and not considered economic under present metal prices.

A spreadsheet was used to determine the diluted value per tonne of each mineral resource block. This calculation considered projected smelter terms and metal prices. The metal prices assumed in this calculation are: $550 US$/oz Au, $10 US$/oz Ag, $0.40 US$/pound Pb, $0.75 US$/pound Zn and $0.80 US$/lb Cu. For the short term, 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. Thus, dilution is calculated as the difference between the minimum mining width of 0.9 m and the vein width. Veins over 0.9 -m wide have been assigned a minimum of 5% dilution.

Operating Costs:

The following table details the annual operating costs used to determine the economic viability of the project.



---------------------------------------------------------
ESTIMATED OPERATING COSTS
---------------------------------------------------------
OPERATING COST CENTER (US$) (US$/tonne)
---------------------------------------------------------
Milling $3,520,800 $16.30
---------------------------------------------------------
Mining & Engineering 3,987,360 18.46
---------------------------------------------------------
Power 1,192,320 5.52
---------------------------------------------------------
Maintenance & Services 187,920 0.87
---------------------------------------------------------
Geology 198,720 0.92
---------------------------------------------------------
Site Administration 583,200 2.70
---------------------------------------------------------
Concentrate Handling 248,400 1.15
---------------------------------------------------------
Logistics and Sales 572,040 2.44
---------------------------------------------------------
Indirect Site Cots 334,800 1.55
---------------------------------------------------------
Taxes 54,000 0.25
---------------------------------------------------------
TOTAL OPERATING COSTS $50.16
---------------------------------------------------------


Capital Costs:

The following table details the capital costs used to determine the economic viability of the project.



----------------------------------------------------------------------
ESTIMATED CAPITAL COSTS
US$ (x 1000)
----------------------------------------------------------------------
Total
COST CENTER 2007- 2007 2008 2009 2010 2011 2012
2012 Total Total Total Total Total Total
----------------------------------------------------------------------
Development $4,400 $650 $750 $750 $750 $750 $750
----------------------------------------------------------------------
Mine $4,159 $1,219 $940 $500 $500 $500 $500
----------------------------------------------------------------------
Geology (in-mine
Exploration) $1,430 $180 $250 $250 $250 $250 $250
----------------------------------------------------------------------
Mill $3,528 $1,653 $75 $500 $300 $500 $500
----------------------------------------------------------------------
Safety $270 $20 $50 $50 $50 $50 $50
----------------------------------------------------------------------
Maintenance -
Services $1,035 $35 $200 $200 $200 $200 $200
----------------------------------------------------------------------
Administration $1,674 $424 $250 $250 $250 $250 $250
----------------------------------------------------------------------
Tailings Facility $2,804 $550 $1,254 $1,000
----------------------------------------------------------------------
Capital Costs,
$US (x1000) $19,300 $4,731 $3,769 $3,500 $2,300 $2,500 $2,500
----------------------------------------------------------------------


Recoveries:

The following table details the recoveries, by metal used to determine the economic viability of the project. As shown in the following table, the silver reports primarily to the lead concentrate.



------------------------------------------------------------
Recoveries by Metal
------------------------------------------------------------
Zinc Lead Gold
Metal Concentrate Concentrate Concentrate
------------------------------------------------------------
Zinc 85% 0% 0%
------------------------------------------------------------
Lead 0% 85% 0%
------------------------------------------------------------
Silver 5% 77% 0%
------------------------------------------------------------
Gold 1% 5% 80%
------------------------------------------------------------


Production Rate and Mine Life:

The production rate initially starts at 216,000 tonnes per year (600 tonnes per day) and eventually rises to 295,000 tonnes per year (800 tonnes per day). Base on current proven and probable mineral reserves and the projected production rate, the mine life is estimated to be approximately 2 years. If inferred resources are added at a 50% conversion rate, the estimated mine life is approximately 9 years.

Mr. John W. Rozelle is a qualified person within the meaning of NI 43-101 and is independent of Gold Hawk. Gustavson has served the global natural resources industries for more than 27 years and has prepared a number of NI 43-101 technical reports. Gustavson'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.

Gold Hawk is a Canadian natural resource company, based in Vancouver, B.C., engaged in the exploration, development and operating of precious and base metal mines. In addition to 100% ownership of the Coricancha Mine in Peru, the Company 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. Gordon F. Bub
    Chairman and C.E.O.
    (604) 689-9261
    or
    Gold Hawk Resources Inc.
    Mr. Kevin Drover
    President and Chief Operating Officer
    (604) 689-9296
    Website: www.goldhawkresources.com