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Tuesday, March 11, 2008
Hawthorne Drill Results Confirm Bulk Tonnage Opportunity
At Frasergold
Hawthorne Gold
Corp. ("Hawthorne") (TSX-V: HGC; WKN: A0M55U) and Eureka Resources
Inc. ("Eureka") (TSX-V: EUK) are pleased to announce the results of the 16 hole drill program
(3,617 metres) completed on Frasergold in December 2007. The property is
located in the Cariboo Gold District of central British Columbia, Canada and
is accessible by highway and logging roads year round.
Highlights from the recent drill program include hole No. 07298 which
intersected 43.7 metres averaging 1.00 g/t Au, hole No. 07297 intersected
28.4 metres averaging 1.06 g/t Au, hole No. 07300 intersected 30.5 metres of
1.11 g/t Au, and hole No. 07295 intersected 24.4 metres averaging 1.05 g/t
Au. The balance of the highlighted results are listed in the table below.
In addition, a series of 211 vertical channel samples taken across the entire
130 metre strike length of the underground workings averaged 0.85 g/t Au
which compares well with the current HQ core size and historical reverse
circulation drill results. As reported on February 28, 2008, a series of
eleven 200 kilogram bulk samples across the same length of the channel
samples resulted in a weighted grade of 1.81 g/t Au. The Company believes the
gold distribution throughout the deposit is better represented through the
bulk and channel samples noting the nugget effect through the system. Published documents
from the Paracatu (Brazil), Macraes (New Zealand), and Bendigo (Australia)
gold deposits, which are similar geologically and mineralogically, confirm
that the larger the sample, the more accurate a determination of the head
grade of deposits where coarse gold is present within the mineralized system.
The 16 drill holes were designed to initiate a due diligence program within
the two kilometer Main Zone that lies within the 10 kilometer long gold
mineralized zone to determine the geological model of the gold deposit and to
prepare for the 26,000 metre definition drill program planned for 2008.
Hawthorne believes there is potential for a gold deposit amenable to a low
grade bulk tonnage open pit mining operation. A typical cross section 5837E
illustrates this concept. This cross section and plan view of the 2007 drill
hole program can be viewed on Hawthorne's website (www.hawthornegold.com) or
http://www.hawthornegold.com/s/Frasergold.asp. Hawthorne compares the
potential Frasergold mining operation to Kinross's Paracatu Gold Mine in
Brazil and the Fort Knox Gold Mine in Alaska (both low-grade, open-pit
bulk-tonnage operations). Paracatu and Fort Knox operate at a grade of 0.38
g/t Au and 0.86 g/t Au, respectively.
"The Frasergold property hosts the potential for a significant gold
resource. The current program is confirming mineralization and gold
distribution within the Main Zone that has close similarities to the Paracatu
gold deposit. Drill holes No. 07295 and No. 07304B are identifying a
potentially very large mineralized system. In drill hole No. 07295, on
section 5300E, the mineralized intersection averaged 0.53 g/t Au over 104.6
metres. Approximately 2.2 kilometers along strike, on section 7475E, drill
hole No. 07304B averaged 0.69 g/t Au over 50.8 metres. These two significant
intersections confirm the historical mineralized system that extends over two
kilometers in length." commented Michael Redfearn, Vice President of
Operations of Hawthorne.
"These positive drill results further confirm our historical findings
and make me all the more optimistic about the future of the Frasergold
Project." stated John J. O'Neill, CEO and President of Eureka.
The results are in line with expectations and continue to confirm the
integrity of the geological model and continuity of mineralization
intersected in the previously completed drilling programs.
Results from the drill holes are tabled below:
Section
|
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Hole No.
|
|
|
From (m)
|
To (m)
|
|
Length (m)
|
Au g/t
|
|
|
|
|
|
|
|
|
|
|
5300E
|
|
7295
|
|
|
33.3
|
137.9
|
|
104.6
|
0.53
|
|
|
|
including
|
|
35.4
|
59.8
|
|
24.4
|
1.05
|
|
|
|
including
|
|
90.2
|
92.3
|
|
2.1
|
5.49
|
|
|
|
|
|
|
|
|
|
|
5425E
|
|
7308
|
|
|
126.1
|
142.3
|
|
16.2
|
0.58
|
|
|
|
including
|
|
140.3
|
142.3
|
|
2.0
|
2.02
|
|
|
|
|
|
|
|
|
|
|
5425E
|
|
7309
|
|
|
65.8
|
154.2
|
|
88.4
|
0.54
|
|
|
|
including
|
|
67.9
|
68.9
|
|
1.0
|
6.29
|
|
|
|
including
|
|
85.1
|
87.2
|
|
2.1
|
5.00
|
|
|
|
|
|
|
|
|
|
|
5450E
|
|
7296
|
|
|
32.3
|
173.5
|
|
141.2
|
0.41
|
|
|
|
including
|
|
42.5
|
49.6
|
|
7.1
|
1.00
|
|
|
|
including
|
|
171.5
|
174.6
|
|
3.1
|
7.00
|
|
|
|
|
|
|
|
|
|
|
5525E
|
|
7306
|
|
|
163.7
|
168.8
|
|
5.1
|
0.68
|
|
|
|
and
|
|
214.5
|
227.7
|
|
13.2
|
0.84
|
|
|
|
including
|
|
224.6
|
226.7
|
|
2.1
|
3.63
|
|
|
|
|
|
|
|
|
|
|
5550E
|
|
7297
|
|
|
26.2
|
118.7
|
|
92.5
|
0.54
|
|
|
|
including
|
|
53.6
|
68.9
|
|
15.3
|
1.08
|
|
|
|
and
|
|
99.4
|
127.8
|
|
28.4
|
1.06
|
|
|
|
including
|
|
102.4
|
103.4
|
|
1.0
|
3.39
|
|
|
|
including
|
|
113.6
|
116.6
|
|
3.0
|
6.82
|
|
|
|
|
|
|
|
|
|
|
5600E
|
|
7298
|
|
|
77.0
|
210.1
|
|
133.1
|
0.49
|
|
|
|
including
|
|
78.0
|
121.7
|
|
43.7
|
1.00
|
|
|
|
including
|
|
209.1
|
210.1
|
|
1.0
|
3.41
|
|
|
|
|
|
|
|
|
|
|
5837E
|
|
7299
|
|
|
22.5
|
137.3
|
|
114.8
|
0.52
|
|
|
|
including
|
|
126.1
|
137.3
|
|
11.2
|
1.07
|
|
|
|
including
|
|
22.5
|
23.5
|
|
1.0
|
6.59
|
|
|
|
including
|
|
107.8
|
110.9
|
|
3.1
|
4.00
|
Section
|
|
Hole No.
|
|
|
From (m)
|
To (m)
|
|
Length (m)
|
Au g/t
|
|
|
|
|
|
|
|
|
|
|
5837E
|
|
7307
|
|
|
117.7
|
171.5
|
|
53.8
|
0.50
|
|
|
|
and
|
|
193.9
|
210.1
|
|
16.2
|
0.65
|
|
|
|
including
|
|
118.7
|
119.7
|
|
1.0
|
3.18
|
|
|
|
including
|
|
163.4
|
168.5
|
|
5.1
|
2.15
|
|
|
|
|
|
|
|
|
|
|
5900E
|
|
7302
|
|
|
110.9
|
118.0
|
|
7.1
|
0.83
|
|
|
|
and
|
|
214.5
|
221.6
|
|
7.1
|
0.93
|
|
|
|
including
|
|
115.9
|
116.9
|
|
1.0
|
3.57
|
|
|
|
including
|
|
219.6
|
220.6
|
|
1.0
|
3.76
|
|
|
|
|
|
|
|
|
|
|
5950E
|
|
7300
|
|
|
122.0
|
197.2
|
|
75.2
|
0.57
|
|
|
|
including
|
|
166.7
|
197.2
|
|
30.5
|
1.11
|
|
|
|
including
|
|
174.4
|
175.9
|
|
1.5
|
5.40
|
|
|
|
including
|
|
183.0
|
184.0
|
|
1.0
|
15.70
|
6025E
|
|
7301
|
|
|
51.6
|
131.9
|
|
80.6
|
0.44
|
|
|
|
including
|
|
60.8
|
78.0
|
|
17.2
|
1.02
|
|
|
|
including
|
|
73.0
|
75.0
|
|
2.0
|
6.20
|
|
|
|
|
|
|
|
|
|
|
7475E
|
|
07304A
|
|
|
75.3
|
123.0
|
|
47.7
|
0.48
|
|
|
|
including
|
|
73.3
|
83.4
|
|
7.1
|
1.03
|
|
|
|
including
|
|
121.0
|
122.0
|
|
2.0
|
4.04
|
|
|
|
|
|
|
|
|
|
|
7475E
|
|
07304B
|
|
|
73.3
|
124.1
|
|
50.8
|
0.69
|
|
|
|
including
|
|
102.7
|
124.1
|
|
21.4
|
1.01
|
|
|
|
including
|
|
79.4
|
80.4
|
|
1.0
|
4.08
|
Drill holes No. 07303 and No. 07305 both intersected minor mineralization.
The assay intervals reported are believed to be close to true width based on
currently known structural dip and drillhole angles laid out to intersect the
horizon of interest.
The Frasergold mineralization appears to fit the orogenic lode-gold deposit
type. Higher-grade gold tends to occur in quartz veins with coarse
particulate gold occurring in quartz-rich segregations of stringers, veins,
boudins and mullions. Pervasive low grade gold mineralization is also found
within the host knotted phyllite strata where quartz is absent. Orogenic
lode-gold deposits occur throughout the world with various age dates ranging
from current day formations to those formed in excess of 3 billion years ago.
Those along the Circum-Pacific rim are generally much younger in age and are
formed along accretionary boundaries often resulting in the formation of
large mountain chains, tectonic controls such as subduction zones, mantle
plumes, thrusting, faulting and shearing play a large part in the control of
hydrothermal fluids and conduits for gold mineralization and ultimate
precipitation. Lode gold is a simple term for gold occurrences within the
solid rock in which the gold was deposited.
All logged core samples, in one-metre segments, were split using a diamond
saw and sent to International Plasma Labs (IPL) for analysis. A rigorous
sampling and assay protocol included a one kilogram metallic screen analysis
with triplicate samples of the minus 150 mesh fraction. Quality assurance and
quality control included blanks and standards randomly inserted throughout
the program, while field duplicates and preparation duplicates were also
randomly taken throughout the program.
Jim Sparling, P.Geo., a Qualified Person as defined by National Instrument
43-101, has approved the technical content of this news release.
About the Frasergold Option Agreement
Pursuant to an option agreement dated October 31, 2006 between Hawthorne and
Eureka, Hawthorne can earn a 51% interest in the Frasergold property by
completing sufficient exploration expenditures totaling $3.5 million
(expended), completing a feasibility study by April 30, 2010 and making cash
payments totaling $175,000 ($75,000 paid to date) before October 31, 2009.
Hawthorne can earn a further 9% (for a total of 60%) by arranging financing
for 70% of the estimated capital costs for production.
About Eureka Resources Inc.
Since its incorporation in 1981, Vancouver-based Eureka Resources Inc. has
focused on the exploration and development of natural resource properties in
order to create wealth for investors. Moreover, with renowned British
Columbia entrepreneur John J. O'Neill at the helm, Eureka has long been a
steady and trustworthy presence on the British Columbia mineral-exploration
scene. In addition to Eureka's fostering of the Frasergold claim, the company
holds the rights to the promising Lottie Lake copper claim, which is also in
central British Columbia. Shares in Eureka Resources trade on the Venture
Exchange of the respected Toronto Stock Exchange.
About Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development
company with key properties located in British Columbia, Canada. Hawthorne is
lead by well-respected mining leaders Richard Barclay and Michael Beley
together with mining veteran Michael Redfearn. Hawthorne's goal is to become
a junior gold producer through planned production at Table Mountain in 2009
and continued resource development at the Frasergold and Taurus deposits. The
acquisition of Table Mountain is subject to the previously announced merger
with Cusac Gold Mines Ltd., expected to close in late March 2008.
For more information on Hawthorne, contact Robert Ferguson at (604) 629-1505
or toll free at 1-888-629-1505 or Todd Hanas toll free at 1-866-869-8072, or
you can visit Hawthorne's website at www.hawthornegold.com. For more
information on Eureka, contact John J. O'Neill at (604) 608-6154 or you can
visit Eureka's website at www.eurekaresourcesinc.com.
ON BEHALF OF
HAWTHORNE GOLD CORP.
"Richard J. Barclay"
President & CEO
ON BEHALF OF
EUREKA RESOURCES INC.
"John J. O'Neill"
President & CEO
Certain information regarding the
companies including management's assessment of future plans and operations,
may constitute forward-looking statements under applicable securities laws
and necessarily involve risks associated with mining exploration and
development, volatility of prices, currency fluctuations, imprecision of
resource estimates, environmental risks, access to labour and services,
competition from other companies and ability to access sufficient capital. As
a consequence, actual results may differ materially from those anticipated in
the forward-looking statements. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
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