Gold Hawk provides update on the Coricancha mine

Gold Hawk Resources Inc. provides the following update on the recent natural ground displacement around and near its tailings handling area of the Coricancha mine in Peru.

A well-respected civil engineering and geotechnical consulting firm based in Lima, and who is familiar with the property, has provided Gold Hawk management with an initial assessment of the probable factors that may have contributed to the ground displacement.

These include:
􀂃 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 lower areas since installation last year; and
􀂃 the tailings impoundment and the geotechnical features of the area around and near the tailings impoundment.

Gold Hawk and its geotechnical consultants acted quickly to minimize risk but we will need to continue to monitor the area and analyze data to focus our efforts on the areas most in need of stabilization, said Mr. Kevin Drover, Gold Hawk’s President and CEO.

He added we thank our employees, the community and our shareholders for their patience as we take the necessary steps before a final conclusion can be reached.

It is still too early to determine the most efficient and cost-effective remediation method, said Mr. Drover.

The geotechnical consultants advised that due to the limited monitoring data set collected to date, more data will be required to make a decision regarding future actions to be taken.

They advised that based on the available information collected to date, and considering the actions already taken by the Company to control the displacement, it is unlikely that a major failure could occur under current normal conditions.