VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 29, 2007) - Hawthorne Gold Corp. (TSX VENTURE:HGC) and Eureka Resources Inc. (TSX VENTURE:EUK) -
Hawthorne Gold Corp. ("Hawthorne") (TSX VENTURE:HGC) has entered into an option agreement ("Agreement") with Dajin Resources Corp. ("Dajin") (TSX VENTURE:DJI) to acquire eighteen mineral claims covering 7,930 hectares. These claims are adjacent to the Hawthorne optioned Frasergold Property owned by Eureka Resources Inc. ("Eureka") (TSX VENTURE:EUK). Certain mineral claims in the Dajin Option fall within the two kilometer perimeter surrounding the optioned Frasergold Property. The Frasergold mineral deposit is located in the historic Cariboo Gold Mining District of central British Columbia.
The mineral claims are centered on Eureka Peak and the Eureka Peak syncline. Two styles of gold mineralization are known within this portion of the syncline. The Frasergold gold-quartz deposit is hosted within phyllitic sediments and is located on the east limb of the syncline. Eureka Peak gold-sulphide mineralization is found closer to the core of the fold, near the base of volcanics that overlay the sediments. Both styles of gold mineralization fit within the Orogenic Gold model currently being applied to mineralization within the Cariboo Gold Belt. Deposits within the Orogenic Gold model range in size up to multi-million ounce deposits and include such noted examples as McRaes Flat (New Zealand) and Sukhoi Log (Russia). With the addition of these mineral claims, Hawthorne has greatly expanded its exploration potential in the area.
Under the terms of the Agreement with Dajin, Hawthorne can earn a 70% (and up to 100%) working interest in the claims by paying $100,000 in cash on signing and incurring $500,000 in exploration expenditures on the property over the next three years, including $150,000 in the first year. On the exercise of the option, Dajin may elect to either remain a 30% working interest partner or, for no additional consideration, convert its 30% working interest into a 2% net smelter return.
About the Frasergold Option Agreement
Pursuant to an option agreement dated October 31st 2006 between Hawthorne and Eureka Resources, Hawthorne can earn a 51% interest in eleven legacy mineral claims and seven additional claims located in the Cariboo Mining Division of British Columbia. Hawthorne can earn this interest by completing exploration expenditures totaling $3.5 million, completing a feasibilty study by April 30, 2010 and making cash payments totaling $175,000 before October 31st 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 Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties located in British Columbia, Canada. Hawthorne Gold is managed by well-respected mining leaders Richard Barclay and Michael Beley. Together with mining veteran Michael Redfearn, and a strong board of Directors from across the mining industry, the goal is to become another successful gold company through focused exploration initiatives, continued development of the Frasergold mineral deposit and potential acquisitions of other projects.
ON BEHALF OF HAWTHORNE GOLD CORP.
Richard J. Barclay, President & CEO
Certain 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 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 has not reviewed and does not accept responsibility for the adequacy of this release.
To view the map attached to this press release please click on the following link: http://www.ccnmatthews.com/docs/0529hgc.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Hawthorne Gold Corp.
(604) 629-1505 or Toll Free: 1-888-629-1505
(604) 629-0923 (FAX)
Eureka Resources Inc.