Hawthorne Gold Corp.

Hawthorne Gold Corp.

September 26, 2007 06:25 ET

Hawthorne Gold Acquires Claims Adjoining Frasergold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 26, 2007) - Hawthorne Gold Corp. ("Hawthorne") (TSX VENTURE:HGC) has entered into a letter agreement ("Agreement"), subject to regulatory approval, to acquire 100% of four mineral claims from Lloyd Addie ("Addie"). Consideration for the acquisition is 50,000 common shares of the Company. Addie will retain a 2% net smelter return of which half can be purchased by the Company for payment of $1 million.

The Claims are located in the historic Cariboo Gold Mining District of central British Columbia and are immediately adjacent to Hawthorne's existing property optioned from Eureka Resources Inc. These new claims are located along strike of the mineralized zone where Hawthorne is currently diamond drilling. A portion of the mineral claims acquired from Addie falls within a two kilometer 'Area-of-Interest' clause and is an expansion of the original optioned Frasergold Property. Lloyd Addie is the brother to Gordon Addie, the Company's Vice President.

About the Frasergold Option Agreement

Pursuant to an option agreement dated October 31, 2006 between Hawthorne and Eureka Resources Inc. (TSX VENTURE:EUK), Hawthorne can earn a 51% interest in the Frasergold property by completing exploration expenditures totaling $3.5 million, completing a feasibility study by April 30, 2010 and making cash payments totaling $175,000 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 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.


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.

Contact Information

  • Hawthorne Gold Corp.
    Robert Ferguson
    (604) 629-1505 or Toll Free: 1-888-629-1505
    (604) 629-0923 (FAX)
    Website: www.hawthornegold.com