start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

I say things on Twitter

7/17/08

Gold Hawk Resources (CGK.v) in the news (and it's not good)

As well as making the PR circuit news tonight with the announcement that it has closed its $3,3m placement successfully, Gold Hawk Resources (CGK.v) has suddenly become a whipping boy in the Peruvian press. This is the link to a cached version of a report in Peru's widely read "Caretas" magazine dated July 17th entitled "Time Bomb". Caretas states that the tailings dump at the Coricancha mine (100% owned by CGK.v) has been declared unstable by the Peruvian authorities, something that readers of this blog already know (due to this post last week).

However, the thrust of the Caretas article is that the tailings dump in question may collapse and contaminate the River Rimac with highly toxic waste at any moment, and as the Rimac is the main source of fresh water for the Capital city of Lima, it presents a serious health hazard to the population. What is more the blame is being laid at the door of Gold Hawk by the author of the Caretas report. Journalist Roberto More writes (Otto translation)

"In February 2007 the Canadians renewed extraction activities at the old mine and irresponsibly accumulated the tailings at the old tailings pond. As time passed, the extra weight destabilized the uncommon mass of mining waste."

In fact, CGK has complied with every environmental edict imposed upon it by the Peru gov't. The tailings dump was examined by the relevant Peruvian authorities and given the green light by that important third party. This seems to have escaped the journalist. Also, the journalist makes one of the local farmers look like a victim, when it is in fact his over-watering of his tree plantation that is the main cause of the tailings dump destabilization. There are other biased accusations levelled at CGK by the reporter, too. For example, he seems to think that the recent 55m share offering at 6c was something that suited the company, when in fact the total opposite is true.

All in all, it is horribly biased and unjustified journalism, but unfortunately Caretas magazine carries a lot of weight in Peru. And the Caretas story has already been picked up by Peruvian TV, with reporters stretching the truth even further and saying that the tailings dump may collapse in the next few hours or days. Images of eight million people dying of water poisoning being conjured in the local press will do wonders for that program's ratings, no? If it bleeds it leads........

Gold Hawk now has a public relations mess on its hands, and it needs to address the false accusations and biased press immediately.