Hawthorne Gold and Cusac Gold Mines have agreed to merge to create a balanced portfolio of gold exploration, development and near-term production assets, all located in British Columbia, Canada.

Hawthorne is led by Richard Barclay and Michael Beley who co-founded Bema Gold and Eldorado Gold in 1980s and 1990s and have worked together for nearly 40 years.

The company is advancing the Frasergold property with an exploration and development program that includes the ongoing 5,000 m drill program to be completed by the end of 2007. The current exploration and development program also includes surface trenching, underground channel and bulk sampling, and property wide aerial surveys.

The underground bulk sample will assist in developing a mill process flow sheet for the planned feasibility study on the Frasergold deposit. Hawthorne’s short-term objective is to convert the historic gold resource of Frasergold.

Cusac is a junior gold exploration and past-producing company focused primarily on the Cassiar gold property, a 175 km2 package of mineral claims located in north central British Columbia. The Cassiar property hosts a number of gold assets, including the Taurus deposit, the fully permitted Table Mountain gold mine, and the Taurus II early stage exploration area.

Hawthorne President and CEO Richard Barclay: “We are pleased with this development in the evolution of Hawthorne. Cusac’s assets meet our corporate strategy of adding quality gold properties."

Cusac CEO David H. Brett stated: “Joining forces with Hawthorne’s seasoned team brings to bear the knowledge and experience needed to help unlock shareholder value in Cusac’s gold assets.”