Homestake Provides 2014 Drilling Update and Appoints New Director
July 02 2014 - 7:30AM
Marketwired
Homestake Provides 2014 Drilling Update and Appoints New Director
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 2, 2014) -
Homestake Resource Corporation (TSX-VENTURE:HSR)(FRANKFURT:B6IH)
("Homestake" or the "Company") is pleased to announce the
appointment of Jeff Tindale as a director. Mr. Tindale has
extensive experience in raising capital in North America and
Europe, corporate development, project acquisitions, and strategic
planning. Mr. Tindale has been Managing Partner of a private
consulting group providing advisory services to numerous private
and public companies since 2006. He has a diversified background
including founding successful private enterprises and over eight
years in the exploration field, exploring for diamonds and precious
metals where he was a part of major economic discoveries.
Mr. Tindale has filled a vacancy on the board of directors
created by the resignation of Nazlin Rahemtulla. Homestake thanks
Ms. Rahemtulla for her service as a director and wishes her well in
her future endeavours.
Homestake Ridge Project
Update
Camp mobilization continues toward the start of the 2014
Exploration Program on the Company's 100% owned Homestake Ridge
property in Northwestern BC. The program is expected to include
+7,500 meters of core drilling and is budgeted at a cost of $3
million. Camp construction is nearly complete and drilling is
expected to commence in early July.
Agnico Eagle Mines Limited ("Agnico Eagle") can earn up to 65%
interest in the project with staged expenditures of $25.3 million
at the Homestake Ridge Property. Agnico Eagle is in the third year
of the six year option having spent approximately $4.3 million to
date.
Drilling will start on a newly discovered mineralized zone
called the Slide target, first identified in 2013 and located
southeast of the Homestake Silver deposit (see news release
NR-10-13, November 25, 2013). Agnico Eagle plans an initial six
drill holes on the Slide target (see Figure 1) which will test
areas along strike 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).
Figure 1: Longitudinal section showing approximate targeting for
the first six proposed drill holes on the Slide target at the
Homestake Ridge property.
http://media3.marketwire.com/docs/955294e.pdf.
Further drilling is also anticipated on several other targets
throughout the property including up to two holes to test
"Eskay-equivalent" stratigraphy in the upper Hazelton Group exposed
to the east and south of the Homestake Silver deposit.
Kinskuch Project
Update
At the Kinskuch property this season, the Company is planning to
drill three or four holes at the Illiance River target in order to
extend high-grade silver and base metal mineralization encountered
on surface and in drilling by the Company during the 2011 field
season. Field work also is planned to develop sites for drill tests
of several other targets. The 100% optioned Kinskuch Property
(62,500ha) lies south of, and partially contiguous with, the
Homestake Ridge property.
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 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(1). Visit the Company website to read
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 the option agreement to
fund exploration and development costs on the property.
- 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
Corporation 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 responsible for the
supervision and preparation of the technical information in this
disclosure.
On behalf of the Board of Directors,
Joseph Anthony 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 CorporationJoseph Anthony Kizis, Jr.President
&
Director604-684-9384info@mnxltd.comwww.homestakeresource.com
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