November 26, 2008
2008 Exploration Drilling on Step-Out Section 52+00E Expands Large Gold System at Frasergold Property
Hawthorne Gold Corp. (“Hawthorne”) (TSX-V: HGC) and Eureka Resources Inc. (“Eureka”) (TSX-V: EUK)
are pleased to announce results from the first five diamond drill holes (“DDH”) of the 2008 exploration program consisting of 58 holes (totaling 10,405 meters) completed on the Frasergold property. The property is located in the Cariboo Gold District of central British Columbia, Canada and is accessible by highway and logging roads year round.2008 Drill Program
Of the 58 DDH, a total of 31 DDH intersected quartz/carbonate boudinaged ribbon vein systems containing visible gold (“VG”)
. Most of the drilling was concentrated in the Main Zone where 16 of 43 DDH intersected VG. Other interesting results to date were step out holes northwest and along strike from the Main Zone, drilling in this area intersected VG in 10 of 12 DDH. The 58 DDH were completed as part of a resource confirmation program within the two kilometer Main Zone that lies within a ten kilometer long gold mineralized zone.
“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 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 from 2007 and the 1980s and 1990s,” commented Richard Barclay, President & CEO of Hawthorne.
The extensive gold system at Frasergold has intrigued our geological team as drilling continues to intersect wide zones of gold mineralization along the northwest extension to the Main Zone. Mineralization in this area has been found from near surface to vertical depth in excess of 130 meters. Mineralized intersections, such as seen in hole No. 08-330 which intersected 171.64 meters averaging 0.446 g/t Au, including 75.29 meters of 0.830 g/t Au and hole No. 08-313 which intersected 183.27 meters averaging 0.440 g/t Au, including 96.07 meters of 0.771 g/t Au
continue to validate a shallow-depth bulk tonnage open pittable opportunity.
On February 28, 2008, the Company announced the assay results from a bulk sampling program extracted from underground at the Frasergold Deposit yielded a weighted average grade, using screened metallics, of 1.81g/t Au. The bulk samples provided 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 also confirmed continuity of the gold within the Main Zone.
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.
Additional highlights from the recent drill program include hole No. 08-330 which intersected 13.79 meters averaging 3.827 g/t Au and hole No. 08-313 which intersected 3.07 meters averaging 13.418 g/t Au.
Other results are listed in the table below. Please visit http://www.hawthornegold.com
for recent pictures of all holes, a plan map of the 2008 drill program, and the cross section of 52+00E.
“These positive drill results further confirm our historical findings and continue to make Eureka confident that an extensive and very large gold system exists at the Frasergold Property,” stated John J. O’Neill, CEO and President of Eureka.Frasergold in World Class Geological Setting
The primary rock units containing gold mineralization are knotted phyllites with associated parasitic ribboned, boudinaged and folded quartz veining (S1 fabric) generally following foliation and/or bedding within the unit. Vein geology is structurally complex and will require additional drilling to understand, however, drilling to date has increased the confidence level of predicting zones of interest and has extended the known gold horizon along strike to the northwest by 50 meters. Within the new zone of interest and within individual drill holes, exploration staff on site were able to estimate where potential VG intersections should occur along the S1 structural fabric with a large degree of accuracy. The extended zone currently has a maximum vertical depth of 100 meters from surface and is open along strike to the northwest. Along section 52+00 E the actual zone of mineralization appears to be tabular, undulating with variable thicknesses of 10 to 60 meters and up to 200 meters wide. Based on this, the controlling gold mineralizing structure may be the flatter lying S2b structure and not the more steeply dipping S1 fabric.
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 three 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.Assay Procedure and Results
All logged core samples were collected in segments ranging from 0.30 to 1.5 meters, which were subsequently split using a diamond saw and sent to International Plasma Labs (IPL) for analysis with check assays being performed by ALS Chemex Labs of North Vancouver.
A rigorous and time consuming sampling and assay protocol included an initial 30 gram fire assay be performed on all samples, with a subsequent one kilogram metallic screen analysis with triplicate samples of the minus 150 mesh fraction being performed on all fire assay values yielding results >0.1 g/t to ensure the most appropriate assay representation of each gold anomalous sample was obtained. 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.
The results below were calculated using the more representative Screen Metallic Fire Assay values preferentially over Fire Assay values where possible. The results from the drill holes are listed in the table below:
The assay intervals reported are believed to be close to true width based on currently known structural dip and DDH angles laid out to intersect the horizon of interest.
Michael Petrina, P.Eng., Hawthorne’s Vice President of Mining and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in 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 ($125,000 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 led by well-respected mining leaders Richard Barclay and Michael Beley. Hawthorne’s goal is to become a junior gold producer by working towards production at Table Mountain in 2009 and continued resource development at the nearby Taurus deposit, as well as the Frasergold deposit in the Cariboo region of south central British Columbia.
For more information on Hawthorne, contact Todd Hanas toll free at 1-866-869-8072 or the Company at (604) 629-1505 or toll free at 1-888-629-1505, 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 & CEOCertain information regarding the company 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 and permitting 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.
You can view the Next News item:January 28th, 2009, Hawthorne Assays 4.38 metres averaging 63.05 g/t Au at Frasergold
You can view the Previous News item:June 26th, 2008, Hawthorne Drills Initial 5,115 meters at Frasergold; Drilling Continues;Visible Gold Identified in Several Holes
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