January 28, 2009
Hawthorne Assays 4.38 metres averaging 63.05 g/t Au at Frasergold
Hawthorne Gold Corp. (“Hawthorne”) (TSX-V: HGC) and Eureka Resources Inc. (“Eureka”) (TSX-V: EUK) are pleased to announce significant grade intercepts from the 2008 Frasergold exploration program, which consisted of 58 diamond drill holes (totaling 10,405 metres). The property is in the Cariboo Gold District of central British Columbia, Canada and is accessible by highway and logging roads year round. Of interest, Hole No. 08-319 intersected 2.08 metres averaging 47.36 g/t Au, and hole No. 08-354 intersected 4.38 metres averaging 63.05 g/t Au.
Further assaying from the remaining holes continues and results are expected shortly. See hole details below.
“Hawthorne continues to identify a large low-grade mineralized gold system at Frasergold that hosts significant high-grade mineralization. As indicated previously, 54% of all holes in the 2008 drill program encountered visible gold in the core, and 83% of the holes within the northwest zone encountered visible gold. The gold distribution within the Main Zone appears to be structurally controlled and our geological team are confirming a mineralized zone that continues to extend to the northwest outside of the Main Zone,” commented Richard Barclay, President & CEO of Hawthorne.
“Historical drilling completed by Eureka on the Frasergold property indicated the opportunity for bonanza style grades and when combined with the consistent wide lower grade intercepts lend to the potential opportunity of a potential bulk tonnage open pittable deposit. We are very pleased with the progress and results to date from Hawthorne’s exploration activity,” stated John J. O’Neill, CEO and President of Eureka.
Mineralization continues to fit the orogenic lode-gold deposit model type with higher-grade course gold occurring predominantly within quartz carbonate veins ranging in size from 5 to 60 centimeters. These quartz veins typically contain a carbonate breccia with sulphides found in low abundance (~ 1 to 3 %) which are hosted within the main Knotted Phyllite unit. In addition, gold mineralization within the veins generally occurs along the margins of the veining and preferentially resides within fine fractures suggesting that the higher grade mineralization is late stage.
All logged core samples were collected in segments ranging from 0.30 to 1.5 metres, 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.
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 the latter part of 2009 and the 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 ON BEHALF OF
HAWTHORNE GOLD CORP.
“Richard J. Barclay”
President & CEO
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.
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