| ||May 29, 2009|
Hawthorne Amends and Exercises Bourdon Option Agreement at Frasergold
| ||Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX-V: HGC, US: HWTHF) has entered into an amending option agreement ("Amended Agreement"), subject to regulatory approval, to acquire a mineral claim from Bob Bourdon ("Bourdon"), that is located in the historic Cariboo Gold Mining District of central British Columbia. This property is located between the Hawthorne-optioned Frasergold Property owned by Eureka Resources Inc. and the Hawthorne-optioned Dajin Resources Inc. property. The mineral claim optioned from Bourdon falls within a two kilometer 'Area-of-Interest' clause and is an expansion of the original optioned Frasergold Property. |
Highlights of historic exploration on the Bourdon Eureka Peak claim include DDH 88-05: 8.17 metres averaging 2.49 g/t Au and DDH 88-06: 1.25 metres grading 15.05 g/t Au (1989 Rebagliati Geological Consulting Ltd. report titled: Summary Report -- Eureka Peak Gold Prospect, for Sirius Resource Corporation). The author indicates that the mineralization remains open along strike and down dip.
The mineral claim is centered on Eureka Peak and the Eureka Peak syncline. Two styles of gold mineralization are known within this portion 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 and the Frasergold mineralization is hosted within phyllitic sediments and is located on the east limb of the syncline. 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 Paracatu (Brazil), MacRaes (New Zealand) and Sukhoi Log (Russia).
Under the terms of the Amended Agreement with Bourdon, Hawthorne will issue 200,000 common shares to Bourdon to earn a 100% interest in the claim. The prior agreement required the Company to make additional cash payments of $90,000 and issue an additional 45,000 common shares to Bourdon over the next twelve months. Bourdon will retain a 2% net smelter return of which half can be purchased by Hawthorne for payment of $1.0 million. Hawthorne is also obligated to issue 150,000 common shares to Bourdon if the property is subject to a positive feasibility study.
Michael Petrina, P.Eng., the Company's Vice President of Mining and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in 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 (April 30, 2012 with extensions) and making cash payments totaling $175,000 ($125,000 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 Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties in British Columbia, Canada. Hawthorne is led by well-respected mining leaders Richard Barclay and Michael Beley. Hawthorne's goal is to become a junior gold producer by working towards production at Table Mountain in the latter part of 2009 and to continue resource development at the nearby Taurus deposit, as well as the Frasergold deposit in the south central British Columbia Cariboo region.
For more information on Hawthorne, contact Todd Hanas toll free at 1-866-869-8072 or the Company at (604) 629-1505 or toll free at 1-888-629-1505, or you can visit Hawthorne's website at www.hawthornegold.com.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
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