October 1, 2009
Hawthorne Gold and Eureka Resources Announce Independent Mineral Resource Estimate for Frasergold Project Confirms Gold System
(“Hawthorne” or the “Company”) (TSX-V: HGC, US: HWTHF) and Eureka Resources Inc. (“Eureka”) (TSX-V: EUK)
are pleased to report the recent completion of an independent Mineral Resource estimate (“the Estimate
”) using information from the 2007-2008 drill program on the Main Zone of the Frasergold Project, located approximately 100 kilometres to the east of Williams Lake, British Columbia, Canada.
“Hawthorne is pleased to see not only the completion of the estimate at Frasergold, but also the results of that estimate at Frasergold, and looks forward to publishing the National Instrument (“NI”) 43-101 Technical Report and Mineral Resource Estimate. The mineralized system has been traced for 10 kilometres and completing a resource estimate on approximately 1.5 kilometre portion of the zone is an important milestone for the project. The Company is now determining its action plan for both the Frasergold Project and the surrounding exploration camp,” commented Richard Barclay, President and CEO of Hawthorne.
See below for the mineral resource Estimate (other cutoff estimates will be available in the NI 43-101 Technical Report):Summary of Mineral Resource Estimate at a 0.30 g/t Au Cutoff
“Eureka originally acquired the Frasergold Project as our management team believed it to contain a significant gold system that extended over an approximate length of ten kilometres. This Estimate confirms Eureka’s historical exploration work on the property in the 1980s and 1990s, and Hawthorne’s work over the past two years. The resource estimate only tested a small portion of the mineralized system and we look forward to defining the full potential of this deposit through our continued relationship with Hawthorne Gold,” stated John J. O’Neill, CEO and President of Eureka Resources Inc.
The Frasergold Project is a large-tonnage, low-grade gold deposit, and is located in the Cariboo Gold District of British Columbia. The resource estimate was prepared by K.V. Campbell, Ph.D, P.Geo of ERSi Earth Resource Surveys Inc. and G.H. Giroux, MA.Sc, P.Eng. of Giroux Consultants Ltd.
The 2009 Frasergold resource estimate is based on a total of 160 diamond drill holes and 242 reverse circulation holes sampling a combined 49,691 metres. The drilling was completed by Eureka, and optionees, from 1983 to 1993 and Hawthorne Gold Group in 2007 and 2008. Hawthorne geologists determined three dimensional solids for a high grade zone surrounded by a lower grade envelope and two less densely drilled extensions; one projecting the mineralization to the northwest and the other to the southeast. Individual drill hole assays were tagged, sample statistics were run and erratic high assays were capped for each zone. Uniform 5 metres down hole composites were formed and modeled using pairwise relative semivariograms. Blocks 10 x 10 x 5 metres in dimension were estimated for gold by a combination of ordinary and indicator kriging. The bulk density was established from 128 core samples measured at site. Blocks were classified as measured, indicated or inferred based on grade continuity as established from the semivariograms analysis.
Due to the uncertainty of Inferred Mineral Resources it cannot be assumed that all or any part of this resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration. To justify upgrading of the Mineral Resource to a Mineral Reserve, demonstrated economic viability is required. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.About Frasergold Project
The Frasergold Project, optioned from Eureka Resources Inc., is located in the Cariboo Gold Camp, situated in the historic Quesnel Trough area of central British Columbia and has a long history of continued exploration since the 1970s. A combination of quartz veins and knotted phyllites host gold mineralization containing coarse free gold and finer grained sulphide bearing gold. Previous operators identified a ten kilometre belt of gold mineralization on the property through drilling, soil sampling, induced polarization (“IP”) geophysical surveys and surface exploration.
In 2007, the Hawthorne completed a 16-hole diamond drill program (3,617 metres), a series of 211 vertical channel samples taken across the entire 130 metre strike length of the underground workings and a series of eleven 200 kilogram bulk samples across the same length of the channel samples. In addition, an airborne geophysical survey was completed by Aeroquest International Limited. The survey covered the entire area between the Frasergold Project and Crooked Lake; encompassing the Eureka
Frasergold claims, the optioned Dajin Resources Corp. claims and claims acquired or optioned in 2007.
Subsequently, in 2008, Hawthorne completed a 58-hole 10,405-metre diamond drill program, a soil sampling program, and a reconnaissance exploration exercise. Total drilling on the property now exceeds 50,000 metres, including work from 2007/2008 and in the 1980s and 1990s. The 2008 exploration program focused within the Main Zone, located in the centre of the identified ten-kilometre mineralized zone. The total land position, totalling 11,293 hectares or 41 claims, is under option agreements with Eureka Resources Inc. and Dajin Resources Corp.
For further information on the Frasergold Project, including additional information on lab and assay procedures, please refer to Hawthorne’s website at: www.hawthornegold.com
Mr. Giroux carried out the Mineral Resource Estimate of the Frasergold deposit and both Mr. Campbell and Mr. Giroux are Qualified Persons (QP) in accordance with NI 43-101 Standards of Disclosure for Mineral Projects. They have verified the mineral resource information presented in this news release. Mr. Campbell and Mr. Giroux are currently preparing the NI 43-101 Technical Report and Mineral Resource Estimate on the property, which will be filed on SEDAR (www.sedar.com
) within 45 days from the date of this press release. Mr. Campbell and Mr. Giroux have visited the site and reviewed all the QA/QC data received to date.
Michael Petrina, P.Eng., Hawthorne’s Vice President of Mining and a Qualified Person as defined by NI 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 Project by completing sufficient exploration expenditures totaling $3.5 million (expended), completing a feasibility study by April 30, 2010 (April 30, 2012 with extensions) 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 claims, which are also in central British Columbia. Shares of 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 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 Cassiar Gold Mine and to continue resource development of the nearby Taurus deposit, as well as the Frasergold deposit in the south central British Columbia Cariboo region. Hawthorne continues to review potential acquisitions, focusing on high quality, advanced gold development opportunities.
For more information on Hawthorne, contact Todd Hanas toll free at 1-866-869-8072 or the Company at (604) 629-1505, or you can visit Hawthorne’s website atwww.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
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. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
You can view the Next News item:November 18th, 2009, Hawthorne Gold and Eureka Resources File National Instrument 43-101 Technical Report and Resource Estimate of Frasergold Deposit
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