Oracle Ridge Copper Mine - Tucson, Arizona
2.17% copper - Production facility construction is expected to begin in the first half of 2012
Message: Announces Third Quarter Financial Results
| December 1, 2008 |
| Gold Hawk Announces Third Quarter Financial Results |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2008) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to provide a summary of the Company's financial results for the third quarter ended September 30, 2008. Note that due to production suspension as of May 9, 2008, there are no production results associated with the quarter. Third Quarter Highlights - Achieved slope stability in and around Coricancha tailings and processing plant by the end of July following May 9 suspension of production due to ground displacement caused by a third party saturation irrigation system; - Expressions of interest received in November regarding Coricancha mine property; - Negotiated an extension to the "standstill" agreement with the Company's lenders with debt due date extended to December 31, 2008; and, - Company remains on track for second quarter 2009 restart, subject to timely receipt of a permit for the Chinchan tailings facility and obtaining additional financing. "Gold Hawk made significant progress toward completion of the Environmental Impact Assessment (EIA) for the new tailings area at Chinchan during the quarter. The final version of the EIA is scheduled for submission this month," said Mr. Kevin Drover, President and CEO of Gold Hawk. "Gold Hawk is in a privileged position when compared to similar producers: the Company has a compelling high-grade reserve base and a mine with a long history of production, a completely developed mining operation with a 600 tonnes per day processing facility and an experienced management team that has been able to weather extremely challenging times during volatile global commodity and financial markets." Board of Directors change Richard Godfrey has resigned as a Director of the Company due to his expanded CFO role following the merger of Sherwood Copper and Capstone Mining. The Company thanks Mr. Godfrey for his invaluable contributions, particularly in his role as the Company's Audit Committee Chairman and for his leadership during the transition to a commercially producing company, as well as his guidance during the Company's CFO transition earlier this year. Rene Galipeau, a Director, has agreed to become Chairman of the Audit Committee and Director Michel Tardif has also been appointed to the Audit Committee. For complete details of the third quarter ended September 30, 2008, as well as the audited annual Financial Statements and Management's Discussion and Analysis, please see the Company's filings on SEDAR (www.sedar.com). About Gold Hawk Resources Inc. Gold Hawk (TSX VENTURE:CGK) is a Canada-based precious and base metals company with reserves and resources containing gold, silver, lead, zinc and copper. Since the acquisition of the wholly owned Coricancha mine in Peru in March 2006, the mine and concentrator were refurbished and commercial production status was achieved on October 1, 2007. The rated capacity of the processing facility is approximately 600 tonnes of ore per day. In early May 2008, during a regular inspection of its facilities, the Company detected evidence of ground movement uphill and near the tailings handling area and processing plant. As a precautionary measure, company management immediately suspended plant operations and tailings placement pending further investigation of the extent of the movement. Geotechnical consultants subsequently determined the cause of the movement was due to excessive irrigation by third parties of the hillside above the tailings and processing plant. In consultation with authorities, a number of mitigation measures were immediately implemented, including termination of the use of the irrigation system, installation of instrumentation to detect ground movement and de-watering of the affected area. Mining operations, as well as the crushing and grinding circuit, are not affected. Due to the Company's proactive steps to mitigate landslide risk, as of the end of July 2008 the ground movement effectively ceased. To further assist in minimizing the risk to people, the environment and property, on July 18, 2008, the Peruvian government issued an Emergency Decree declaring a State of Emergency in the District of San Mateo. Gold Hawk expects to return to production in the second quarter 2009 following the issuance of a permit for the permanent Chinchan tailings handling area. Gold Hawk is based in Vancouver, Canada and is operated by an experienced management team. Gold Hawk and its wholly owned subsidiary, Compania Minera San Juan (Peru) S.A. also have exploration properties in Peru and Canada (Quebec), and are actively pursuing other growth opportunities. |
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