Here’s the Gold Hawk (CGK.v) one year chart with a couple of notes added.
This site has followed the trials and tribulations of CGK.v closely (see related links at the bottom of this post for some of the coverage), mainly because your caring-sharing Otto is sympathetic to its cause. The company has had a lot of problems foisted upon it by circumstances not under its control and has been suffering greatly due to the snail-like speed of Peruvian bureaucracy and foot-dragging insurance companies.
However, in all 2008 it has done right by its workforce, by the law, by social standards and by the environment. It should be remembered that way back in May when the first cracks appeared in the wall of its tailings pond, it was the company that voluntarily closed down its operations and contacted the authorities.
This isn’t some bad example of a dirty and dangerous mining operation (are you listening LAMMP in Bromley?). This is an example of a good corporate citizen that deserves support and applause for its attitude.
FINALLY, YESTERDAY, THIS GOOD GUY JUNIOR MINER GOT A DOSE OF WELL-DESERVED GOOD NEWS. Underneath I’ve pasted out the press release (also linked here) that says the company has been granted the permits and permissions needed to get moving again. It also has a bit of breathing space on the $9.7m it owes, so hopefully it can sort out its finances this month and not go into default.
GREAT NEWS, and I’m happy for the guys at CGK.v. DYODD, dude, but expect CGK to move away from the 1c and 2c prices of the last few weeks. The company isn’t out of the woods yet, but this is a big step forward no doubts.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 7, 2009) – Gold Hawk Resources Inc. (“Gold Hawk” or the “Company”) (TSX VENTURE:CGK – News) is pleased to announce that the Company’s Peru subsidiary, Compania Minera San Juan (CMSJ) received earlier today the final permit for the construction of its new permanent tailings facility at Chinchan.
– Final permit received to construct permanent tailings facility at Chinchan.
– Certificate of Mining Operations (COM) for 2009 as well as the water use authorization for the new Chinchan tailings facility have now been received.
– The most recent extension of the Emergency Decree no longer requires the Coricancha processing plant to relocate once certain conditions are met.
– The Company has negotiated with lenders for an extension to January 29, 2009 of its debt repayment date.
– As a result, the Company is in a position to more effectively seek the funding required to rapidly advance its strategy to restart production at the 100%-owned Coricancha polymetallic mine.
“Final permitting of the new permanent tailings facility at Chinchan is a significant milestone for Gold Hawk and its shareholders, and a key component of our strategy to restart production at the Coricancha mine,” said Mr. Kevin Drover, Gold Hawk’s President and CEO. “With these permits in hand, we now have the ability to more aggressively look for financing on acceptable terms that will allow us to construct the tailings facility and get back into production as quickly as possible.”
Other key permits received include the Certificate of Mining Operations (COM) for 2009, a key permit to allow mining that needs to be renewed annually, and the water use authorization for the new Chinchan tailings facility. All other permits required to operate the Coricancha mine are in place and in good standing.
The authorization to construct the new tailings facility at Chinchan is a general authorization to construct the tailings area, which will be used as the new location both for historical tailings that require relocation as well as new tailings generated when the Company resumes production in the third quarter 2009 subject to the Company obtaining additional financing.
The most recent extension of the Emergency Decree states that the requirement for the relocation of the processing plant as specified in the original Decree would be eliminated provided certain conditions are met. These conditions include:
– The third-party irrigation system must remain shut-off,
– drainage of the hillside must remain in place; and,
– the Company commit to relocate the tailings, stabilize and ensure continued safety monitoring of the hillside.
The Company is confident it can achieve these conditions and that the plant can be operated in its current location, resulting in a significant reduction in time delay and cost necessary to re-start operations.
Chinchan is located approximately 30 kms from the Company’s Coricancha mine and processing plant in central Peru. The Chinchan tailings facility occupies a large land holding of more than 40 hectares and through a phased expansion of the current design produced by the Company’s U.S.-based consultants Tetratech, more than 15 years of tailings capacity can be achieved. The Company expects to transport tailings via rail from Coricancha to Chinchan; both sites are easily accessible by existing railway and paved road. Chinchan was in the initial stages of geo-engineering and baseline studies prior to ground displacement being discovered in May 2008, leading to a suspension of production.
Debt repayment extension
The Company’s lenders have agreed to extend the debt repayment date to January 29, 2009. The US$9.7 million total debt was scheduled for repayment on December 31, 2008. This extension will allow the company to continue discussions with current and other lenders regarding alternative financing arrangements.