Hawthorne Gold Corp.
TSX VENTURE : HGC

Hawthorne Gold Corp.

August 29, 2007 06:30 ET

Hawthorne Announces 30,000 Meter Diamond Drill Contract

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC) is pleased to announce a 30,000 meter diamond drilling contract on the Frasergold Property optioned by Hawthorne from Eureka Resources Inc. ("Eureka").

Hawthorne has contracted SCS Diamond Drilling Ltd. ("SCS"), of Kamloops, BC, for 30,000 meters. The first 5,000 meters of the drilling program will begin September, 2007 and will include 10 HQ diamond drill holes in the Main Zone to facilitate the definition of a NI 43-101 compliant resource. A rigorous sampling and assay protocol will include a one kilogram metallic screen analysis with triplicate samples of the -150 mesh fraction. Quality assurance and quality control will include blanks, standards and duplicates inserted with every ten core samples. The second phase of drilling, consisting of approximately 25,000 meters will be undertaken in the 2008 field season and will include in-fill drill holes followed by stepout drilling that, with success, may significantly increase the existing gold resource.

The Company's 2007/2008 exploration and development program also includes surface trenching, underground channel and bulk sampling, and property wide aerial surveys including photogrammetry and geophysics (magnetic, EM and radiometric). Concurrently, the Company will initiate a baseline environmental study that should lead to an Environmental Assessment Certificate application.

The Company's long term plan is for a feasibility study to be completed within the next three years and, if positive, to bring the project through to production. To date, the Company has established a permanent 34 person camp to house project staff and contractors. The technical team has conducted a detailed surface mapping program and commenced additional exploration initiatives. Key to the success of the planned diamond drill program is to explore and develop a geological bulk tonnage model based on the apparent stratabound nature of the 10 kilometer long Frasergold mineralized zone. The planned underground bulk sample will assist in developing a mill process flow sheet for the feasibility study.

The gold 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 has outlined a 10 kilometer long mineralized zone that remains open along strike and down dip. The company believes the historic data has underestimated the potential for a large open pittable gold deposit. The historic resource of approximately 363,000 ounces of gold, consisting of 6,612,675 tones of mineralized material at an average grade of 0.055 ounces of gold per ton, was calculated using only the higher grade portion of the deposit. The historic resource calculation was not conducted according to current CIM standards and is not compliant with NI 43-101. The calculation is not to be relied upon for evaluating the Frasergold Property and is presented for historic purposes only.

Hawthorne has optioned approximately 11,092 hectares on and around the Eureka Peak Syncline, including the recently optioned ground from Dajin Resources Corp. ("Dajin"). The Company believes that Frasergold style mineralization could be present on the opposite limb of the Eureka Peak Syncline.

Ms. Sheri Burt, P.Geo., a Qualified Person under NI 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 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.

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 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.

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