Vancouver — Recent Peruvian government resolutions lifting a 2002 “stop work order” on the concentrator at its Coricancha gold- silver-lead-zinc mine, located 90 km east of Lima in west-central Peru, has Gold Hawk Resources (CGK-V, CGHRF-O) ready to restart operations.
Gold Hawk is now able to draw down the remaining US$3 million of its US$5-million Tranche A loan provided by Natexis Banques Popularies and Auramet Trading. Terms of its Tranche B US$5-million loan have also been amended, allowing the company to access the money for capital requirements at the Coricancha mine through to mid-2007.
The company expects to fire up its mill in February 2007 and achieve full throughput of 600 tonnes per day within a couple of months.
Previously called Tamboraque, Gold Hawk bought the mine earlier this year for US$12 million from proceeds of a brokered private placement. The company was issued its “certificate of mining operations” in early August.
The deposit hosts measured and indicated resources of about 653,000 tonnes grading 7.2 grams gold per tonne, 221.5 grams silver, 3.2% lead, 3.9% zinc and 0.4% copper. An additional 3.9 million inferred tonnes at 5.8 grams gold, 288 grams silver, 2.6% lead, 3.1% zinc and 0.35% copper has also been reviewed.
Mineralization occurs in hydrothermal, low-sulphidation polymetallic vein structures within andesites. The vein sets average about 0.6 metre in width but swell to 2 metres in sections. Pyrite, sphalerite, silver-rich galena, chalcopyrite, arsenopyrite, tennandite, tetrahedrite, native gold, native silver and quartz are the predominant minerals in the veins. Gold is primarily hosted within the arsenopyrite and is mostly refractory due to inclusion and encapsulation.
The past-producing mine has 37 developed stopes and a modern 600-tonne-per-day concentrator with a BIOX gold-silver recovery circuit. Infrastructure is ideal with paved road and rail to the front gate, plus an adjacent generating plant. It is also located within 70 km of two smelters.
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