Hawthorne Amends and Exercises Bourdon Option Agreement at Frasergoldadmin
Hawthorne Gold Corp. has entered into an amending option 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.
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.