Homestake and Agnico Eagle Amend Homestake Ridge Agreement; Plan
2014 Exploration Program
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 12, 2013) -
Homestake Resource Corporation (TSX-VENTURE:HSR)(FRANKFURT:B6IH)
("Homestake" or "the Company") reported today that the Company and
Agnico Eagle Mines Limited ("Agnico Eagle") have agreed to amend
the September 2012 (see NR-04-12) option agreement for exploration
and development of the Homestake Ridge property in northwestern
British Columbia. The amendment reduces 2013 and 2014 expenditures
by $3.0 million and adds an extra year to the initial option
period, in which 2015 will have a required expenditure of $3.0
million. In effect, the option period is extended by one year, but
with total required expenditures remaining the same; AEM can earn a
65% interest in the property after total expenditures of $25.3
million or completion of a feasibility document.
Agnico Eagle has notified the Company that 2013 expenditures are
expected to be approximately $2.5 million. The 2013 program was
successful in discovering a potential new mineral zone called the
Slide target southeast of the Homestake Silver deposit, as reported
in a recent Company news release (NR-10-13, November 25, 2013).
Agnico Eagle has expressed its intention to drill offset holes to
the southeast and down dip of hole HR13-253, which as reported in
NR-10-13 contains a 18.6 metre interval averaging 101g/t silver,
including a 0.5 metre interval averaging 1,675g/t silver from 364.4
to 383.0 metres down hole (the true thickness has not been
determined yet). Drilling is anticipated to begin at the Slide
target in late June, snow-conditions permitting, in order to allow
receipt and interpretation of assays from these early holes to
influence drilling plans later in the season. Also anticipated are
additional surface work and drill testing of other targets that
were developed or refined during the 2013 season.
About Homestake
Resource Corporation
Homestake owns a 100 percent interest in the Homestake Ridge
project, located in the Kitsault Mineral district in northwestern
British Columbia, subject to various royalty interests held by
vendors. The project is being advanced as a potential high-grade
underground mining operation. At an $85 NSR cut-off value and based
on drilling completed through 2012, the project contains an
estimated NI 43-101 compliant Indicated Resource of 124,000oz gold
and 939,000oz silver (141,000oz AuEq @ 7.3g/t AuEq grade) plus an
Inferred Resource of 911,000oz gold and 20,366,000oz silver
(1,225,785oz AuEq @ 5.6g/t AuEq grade) in three deposits (see
Footnote 1 for assumptions, methods, and grade and tonnage
distribution). Visit the Company website at
www.homestakeresource.com to see how the Homestake Ridge resource
estimate compares to gold deposits worldwide, as ranked by Natural
Resource Holdings (June 2012).
To date, 262 holes were drilled for a total of 74,973 metres,
and multiple exploration targets remain to be tested on the large
3,617 -hectare property. Agnico Eagle Mines Limited has assumed
project management since January 2013 under an option agreement
signed in August 2012 to fund exploration and development costs of
$25.3 million over a 5-year period to earn a 65% interest in the
property.
Homestake holds an option to acquire a 100% interest in the
645-square-kilometre Kinskuch project, located adjacent to, and to
the southeast of, the Homestake Ridge project. Diamond drilling
along the Illiance trend on the Kinskuch property during 2011 was
successful in intersecting high-grade silver/lead/zinc VMS
mineralization in three of four holes. Surface soil and rock-chip
sampling along the trend in 2012 extended mineralization to a
+4.0-kilometre strike-length; Homestake will be aggressively
exploring this trend in 2014.
Homestake owns a 10 percent equity interest in Bravada Gold
Corporation (TSX-VENTURE:BVA) which is exploring and developing
numerous gold/silver projects in several of Nevada's prolific gold
belts. At the advance-stage Wind Mountain project, BVA has received
a positive PEA from an independent engineering company for an
open-pit/heap-leach operation.
(1) The current estimate was prepared by Roscoe Postle
Associates Inc. (RPA). Mineral Resources utilize three separate
block models constrained by 3D wireframes of the mineralized zones.
Mineral Resources were constrained using a 2g/t AuEq grade shell
and CIM definitions were followed for Mineral Resources. The block
models are comprised of an array of blocks measuring 5 m x 5 m x 5
m, with grades for Au, Ag, Cu, AuEq and NSR values interpolated
using ID3 weighting. The models identified an indicated resource of
604,000 tonnes averaging 6.4g/t Au, 48.3g/t Ag and 0.18% Cu and a
cumulative inferred resource of 6,765,000 tonnes averaging 4.2g/t
Au, 93.6g/t Ag, 0.11% Cu. Mineral Resources are estimated using an
average long-term gold price of US$1,500 per ounce Au, US$27 per
ounce Ag, and US$3.50 per pound Cu, with an exchange rate of
C$1.00=US$1.00. NSR and Gold equivalence were calculated using Au,
Ag and Cu metallurgical recoveries of 92% Au, 88% Ag and 88% Cu in
blocks where Cu%>0.1%; and where calculated using just Au and Ag
recoveries in blocks with <0.1% Cu
David Rennie (P. Eng.) is the Principal Geologist for Roscoe
Postle Associates Inc. and is the Independent Qualified Person
responsible for preparation and review of the Mineral Resource
Estimate. Homestake Resource Corp is unaware of any legal,
political, environmental or other risks that could materially
affect the potential development of the mineral resource
Robert Macdonald, MSc., PGeo., is Homestake's Vice President of
Exploration and is the Qualified Person for Homestake's disclosure
of technical information.
On behalf of the Board of Directors,
Joseph A. Kizis, Jr., President & Director, Homestake
Resource Corporation
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 or
accuracy of this release.
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. These statements are based on a
number of assumptions, including, but not limited to, assumptions
regarding general economic conditions, interest rates, commodity
markets, regulatory and governmental approvals for the company's
projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Homestake Resource
Corporation does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law.
Homestake Resource
Corporation604-684-9384info@mnxltd.comwww.homestakeresource.com
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