Peru fears Gold Hawk mine tailings rupture could pollute Lima’s drinking water supply

Peru’s Presidential Council of Minister has declared a state of emergency due to a potential tailings facility rupture, which could lead to a possible environmental disaster, as well as landslide danger at the Coricancha mine.

Author: Dorothy Kosich
Posted: Monday , 21 Jul 2008

mineweb

RENO, NV -

The Peruvian Government has declared a state of emergency, ordering Vancouver-based junior miner Gold Hawk Resources, (TSX-V: CGK) to relocate some Coricancha mine facilities because of imminent landslide danger, and a possible tailings facility rupture that could contaminate Lima's main water supply.

A 60-day state of emergency was imposed Saturday in the district of San Mateo after soil began to loosen around a waste facility at the mine, threatening to spill into the Rimac River, the main source of the capital city's water supply.

The emergency decree calls for the relocation of the Coricancha processing plant and tailings area.

A geotechnical audit was initiated in April at the end of the first full rainy season at the mine to evaluate the ability of the tailings handling facility to handle full production, an entire rainy season and regional seismic activity over the past year.

By May 9th Gold Hawk officials ordered an immediate suspension of crushing and milling operations to reduce risk to employees, nearby communities and the environment. All material in the processing circuits were removed and neutralized, according to the Gold Hawk news release. "While we are uncertain as to the extent of the movement we are committed to ensuring that we mitigate risk and in the event that remedial action is required, we will implement a plan that upholds our safety and environmental commitments and returns our operation to production," said Kevin Dover, Golden Hawk's president and CEO.

By May 23rd, an audit by a Lima civil and geotechnical engineering firm found several probable factors that may have continued to the ground displacement including:

· A high level of regional seismic activity;

· Leakage from a hydro power utility water channel that passes through the company's property;

· Impact from a third-party irrigation system located uphill from the tailings handling area and processing plant. This has provided a continuous source of water to the lower areas since installation last year; and

· The tailings impoundment and the geotechnical features of the area around and near the tailings impoundment.

The company had hoped to produce 15,000 ounces of gold, 600,000 ounces of silver, 6.1 million pounds of zinc, and 6 million pounds of lead annually from the facility. However, the government warned that by-products from lead, zinc, arsenic, and other metals and minerals could escape into and pollute the Rimac River. Around one third of Peruvians live in and around Lima, which is estimated to have a population between 6 million to 7 million people.

The impending landslide and tailings dam rupture could also destroy a key portion of a major railroad line and disrupt traffic on a highway where hundreds of vehicles daily transport food to Lima, according to government officials.

A government spokesman told the news media that he believes the rupture occurred as a result of the tailings facility being overburdened.

Gold Hawk acquired the Coricancha mine in Match 2006, refurbished the mine and concentrator, and began commercial production in October 2007. Drover said he believes the government decree "will expedite the required authorizations to implement measures that will minimize the risks to people, the environment and property."