Hawthorne Gold Corp.

Hawthorne Gold Corp.
Eureka Resources Inc.

Eureka Resources Inc.

March 11, 2008 09:00 ET

Retransmission: Hawthorne Drill Results Confirm Bulk Tonnage Opportunity at Frasergold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2008) - Hawthorne Gold Corp. ("Hawthorne") (TSX VENTURE:HGC)(WKN:A0M55U) and Eureka Resources Inc. ("Eureka") (TSX VENTURE:EUK) are pleased to announce the results of the 16 hole drill program (3,617 metres) completed on Frasergold in December 2007. The property is located in the Cariboo Gold District of central British Columbia, Canada and is accessible by highway and logging roads year round.

Highlights from the recent drill program include hole No. 07298 which intersected 43.7 metres averaging 1.00 g/t Au, hole No. 07297 intersected 28.4 metres averaging 1.06 g/t Au, hole No. 07300 intersected 30.5 metres of 1.11 g/t Au, and hole No. 07295 intersected 24.4 metres averaging 1.05 g/t Au. The balance of the highlighted results are listed in the table below.

In addition, a series of 211 vertical channel samples taken across the entire 130 metre strike length of the underground workings averaged 0.85 g/t Au which compares well with the current HQ core size and historical reverse circulation drill results. As reported on February 28, 2008, a series of eleven 200 kilogram bulk samples across the same length of the channel samples resulted in a weighted grade of 1.81 g/t Au. The Companies believe the gold distribution throughout the deposit is better represented through the bulk and channel samples noting the nugget effect through the system. Published documents from the Paracatu (Brazil), Macraes (New Zealand), and Bendigo (Australia) gold deposits, which are similar geologically and mineralogically, confirm that the larger the sample, the more accurate a determination of the head grade of deposits where coarse gold is present within the mineralized system.

The 16 drill holes were designed to initiate a due diligence program within the two kilometer Main Zone that lies within the 10 kilometer long gold mineralized zone to determine the geological model of the gold deposit and to prepare for the 26,000 metre definition drill program planned for 2008. Hawthorne believes there is potential for a gold deposit amenable to a low grade bulk tonnage open pit mining operation. A typical cross section 5837E illustrates this concept. This cross section and plan view of the 2007 drill hole program can be viewed on Hawthorne's website (www.hawthornegold.com) or http://www.hawthornegold.com/s/Frasergold.asp. Hawthorne compares the potential Frasergold mining operation to Kinross's Paracatu Gold Mine in Brazil and the 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 property hosts the potential for a significant gold resource. The current program is confirming mineralization and gold distribution within the Main Zone that has close similarities to the Paracatu gold deposit. Drill holes No. 07295 and No. 07304B are identifying a potentially very large mineralized system. In drill hole No. 07295, on section 5300E, the mineralized intersection averaged 0.53 g/t Au over 104.6 metres. Approximately 2.2 kilometers along strike, on section 7475E, drill hole No. 07304B averaged 0.69 g/t Au over 50.8 metres. These two significant intersections confirm the historical mineralized system that extends over two kilometers in length," commented Michael Redfearn, Vice President of Operations of Hawthorne.

"These positive drill results further confirm our historical findings and make me all the more optimistic about the future of the Frasergold Project," stated John J. O'Neill, CEO and President of Eureka.

The results are in line with expectations and continue to confirm the integrity of the geological model and continuity of mineralization intersected in the previously completed drilling programs.

Results from the drill holes are tabled below:

Section Hole No. From (m) To (m) Length (m) Au g/t

5300E 7295 33.3 137.9 104.6 0.53
including 35.4 59.8 24.4 1.05
including 90.2 92.3 2.1 5.49

5425E 7308 126.1 142.3 16.2 0.58
including 140.3 142.3 2.0 2.02

5425E 7309 65.8 154.2 88.4 0.54
including 67.9 68.9 1.0 6.29
including 85.1 87.2 2.1 5.00

5450E 7296 32.3 173.5 141.2 0.41
including 42.5 49.6 7.1 1.00
including 171.5 174.6 3.1 7.00

5525E 7306 163.7 168.8 5.1 0.68
and 214.5 227.7 13.2 0.84
including 224.6 226.7 2.1 3.63

5550E 7297 26.2 118.7 92.5 0.54
including 53.6 68.9 15.3 1.08
and 99.4 127.8 28.4 1.06
including 102.4 103.4 1.0 3.39
including 113.6 116.6 3.0 6.82

5600E 7298 77.0 210.1 133.1 0.49
including 78.0 121.7 43.7 1.00
including 209.1 210.1 1.0 3.41

5837E 7299 22.5 137.3 114.8 0.52
including 126.1 137.3 11.2 1.07
including 22.5 23.5 1.0 6.59
including 107.8 110.9 3.1 4.00

5837E 7307 117.7 171.5 53.8 0.50
and 193.9 210.1 16.2 0.65
including 118.7 119.7 1.0 3.18
including 163.4 168.5 5.1 2.15

5900E 7302 110.9 118.0 7.1 0.83
and 214.5 221.6 7.1 0.93
including 115.9 116.9 1.0 3.57
including 219.6 220.6 1.0 3.76

5950E 7300 122.0 197.2 75.2 0.57
including 166.7 197.2 30.5 1.11
including 174.4 175.9 1.5 5.40
including 183.0 184.0 1.0 15.70

6025E 7301 51.6 131.9 80.6 0.44
including 60.8 78.0 17.2 1.02
including 73.0 75.0 2.0 6.20

7475E 07304A 75.3 123.0 47.7 0.48
including 73.3 83.4 7.1 1.03
including 121.0 122.0 2.0 4.04

7475E 07304B 73.3 124.1 50.8 0.69
including 102.7 124.1 21.4 1.01
including 79.4 80.4 1.0 4.08
Drill holes No. 07303 and No. 07305 both intersected minor mineralization.

The assay intervals reported are believed to be close to true width based on currently known structural dip and drillhole angles laid out to intersect the horizon of interest.

The Frasergold mineralization appears to fit the orogenic lode-gold deposit type. Higher-grade gold tends to occur in quartz veins with coarse particulate gold occurring in quartz-rich segregations of stringers, veins, boudins and mullions. Pervasive low grade gold mineralization is also found within the host knotted phyllite strata where quartz is absent. Orogenic lode-gold deposits occur throughout the world with various age dates ranging from current day formations to those formed in excess of 3 billion years ago. Those along the Circum-Pacific rim are generally much younger in age and are formed along accretionary boundaries often resulting in the formation of large mountain chains, tectonic controls such as subduction zones, mantle plumes, thrusting, faulting and shearing play a large part in the control of hydrothermal fluids and conduits for gold mineralization and ultimate precipitation. Lode gold is a simple term for gold occurrences within the solid rock in which the gold was deposited.

All logged core samples, in one-metre segments, were split using a diamond saw and sent to International Plasma Labs (IPL) for analysis. A rigorous sampling and assay protocol included a one kilogram metallic screen analysis with triplicate samples of the minus 150 mesh fraction. Quality assurance and quality control included blanks and standards randomly inserted throughout the program, while field duplicates and preparation duplicates were also randomly taken throughout the program.

Jim Sparling, P.Geo., 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 sufficient 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.


Richard J. Barclay, President & CEO


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.

Contact Information

  • Hawthorne Gold Corp.
    Robert Ferguson
    (604) 629-1505 or Toll Free: 1-888-629-1505
    (604) 629-0923 (FAX)
    Hawthorne Gold Corp.
    Todd Hanas
    Toll Free: 1-866-869-8072
    Website: www.hawthornegold.com
    Eureka Resources Inc.
    John J. O'Neill
    (604) 608-6154
    Website: www.eurekaresourcesinc.com