VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2008) - Hawthorne Gold Corp. ("Hawthorne") (TSX VENTURE:HGC)(WKN:A0M55U) and Eureka Resources Inc. ("Eureka") (TSX VENTURE:EUK) are pleased to announce that the assay results from the eleven 200 kilogram bulk samples extracted from underground at the Frasergold Deposit yielded a weighted average grade, using screened metallics, of 1.81 g/t Au.
"The results received from the bulk samples are very encouraging and provide a good indication that gold is present throughout the underground mineralized system. The bulk samples also provide confidence that the Frasergold Deposit is amenable to a potential bulk tonnage open pit mine operation," commented Michael Redfearn, VP Operations of Hawthorne. "Our goal is to develop a mining operation with a head grade of 1.0 g/t Au."
"These results confirm our long-held belief in the viability of the Frasergold property and help move the project towards the ultimate goal of establishing a mine," said John J. O'Neill, CEO and President of Eureka.
Three exploration drill holes that were completed in the 1980's in the Main Zone penetrated directly through the same mineralized zone that was recently bulk sampled. The results from the three holes yielded 2.21 g/t Au over 42.5 meters, 0.77 g/t Au over 22.5 meters, and 0.88 g/t Au over 43.5 meters in holes No. 86018, No. 87024, No. 87035, respectively. The bulk samples provide excellent representation of the mineralized zone due to the larger, more representative sample, and the increased opportunity to capture the true distribution of the contained gold in the mineralized zone. The bulk sample has confirmed continuity of the gold within the Main Zone.
The series of eleven 200 kilogram bulk samples were taken from throughout the extensive 298 meters of underground workings at the Frasergold Deposit. These underground workings, designed to cut across and along the mineralized strike of the Frasergold Deposit, extend approximately 130 meters along strike and allowed for the bulk samples to be taken from a variety of locations that represent the mineralized zone.
The bulk sampling and geological mapping will provide key data to be used to determine the distribution and continuity of the Frasergold Deposit mineralization, and for the planning of the potential optimum mining method (bulk tonnage) for the Frasergold Deposit. Historic exploration, including underground drifting, drilling and surface mapping, indicates that the Frasergold mineralization is located close to surface with minimum overburden, allowing for a potential bulk tonnage open pit mining operation.
Hawthorne believes there is potential for a gold deposit amenable to a low grade bulk tonnage open pit mining operation. Hawthorne is modeling the potential Frasergold mining operation to Kinross's Paracatu Gold Mine in Brazil and 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 mineralization appears to fit the orogenic lode-gold deposit type; gold tends to occur in quartz veins with coarse particulate gold occurring in segregations of stringers, veins, boudins and mullions. Pervasive low grade gold mineralization is also found within the knotted phyllite strata where quartz is absent. Historic exploration work outlined a 10 kilometer-long mineralized zone that remains open along strike and down dip.
Michael Redfearn, P.Eng, Hawthorne's VP Operations and 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 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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Hawthorne Gold Corp.
(604) 629-1505 or Toll Free: 1-888-629-1505
(604) 629-0923 (FAX)
Hawthorne Gold Corp.
Toll Free: 1-866-869-8072
Eureka Resources Inc.
John J. O'Neill