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Thursday, February 28, 2008
Frasergold Underground Bulk Sampling Yields Positive
Results
Hawthorne Gold Corp. ("Hawthorne") (TSX-V:
HGC; WKN: A0M55U) and Eureka Resources Inc. ("Eureka") (TSX-V: 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 1.81g/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 0.88g/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.
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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