Hawthorne Gold yields positive results

Hawthorne Gold Corp. and Eureka Resources Inc. announces 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, he said.

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.