Homestake Resource Corporation: 2012 Drilling at Homestake

Homestake Resource Corporation: 2012 Drilling at Homestake Ridge
Further Defines and Expands South Reef Deposit 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/13 -- Homestake
Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH) reported today
final assay results from 2012 Phase II drilling on the Homestake
Ridge project, located in northwest British Columbia. Funding for the
$1.8 million Phase II drilling program was provided by Agnico Eagle
Mines Limited (Agnico-Eagle) under an option agreement to fund
exploration and development costs of $25.3 million over a five year
period to earn 65% interest in the property. AEM has assumed project
management for the 2013 exploration season. 
The drill results are from the remaining 10 of 13 diamond drill
holes, totaling 4,250 metres, that were completed on the project
during the 2012 exploration season; results from three holes were
previously reported (NR-05-12). The holes tested a 600 metre
strike-length of the South Reef structure, as well as three other
targets on the property. Highlights include: 


 
--  a 3.0 metre interval averaging 5.4g/t gold, 3.2g/t silver and 0.26%
    copper which includes an 0.8 metre interval averaging 14.4g/t gold,
    5.4g/t silver and 0.42% copper from drill hole HR12-242; and 
--  a 5.8 metre interval averaging 2.3g/t gold, 7.4g/t silver, 0.13% copper
    and 3.0% zinc which includes a 0.6 metre interval averaging 12.2g/t
    gold, 22.0g/t silver, 0.5% copper and 21.9% zinc from hole HR12-248.

 
The newly reported holes are offsets to holes previously reported
from South Reef during the 2011 and 2012 exploration seasons. Those
holes include a 4.0 metre interval averaging 11.4g/t gold and 3.7g/t
silver from drill hole HR12-243 (see NR-05-12) and a 3.1 metre
interval averaging 30.8g/t gold and 3.3g/t silver within an 8.7 metre
interval averaging 11.3g/t gold and 1.6g/t silver from drill hole
HR11-232 (see NR-14-11). Estimated true thickness of the mineralized
intervals is generally 70% to 85% of down hole thickness and is
reported in the accompanying table. 
Geological modeling indicates that drilling results in 2012 have
increased the size of the high-grade mineralized zone to
approximately 250 metres along strike and 250 metres down dip before
ending in, or being offset by, a major fault structure.
Mineralization is open along strike to the northwest, where it
projects beyond the extent of previous drilling in the Fox Reef zone.
In addition, the modeling has identified several prospective targets
to the southeast of the newly defined South Reef deposit.
Mineralization identified in the South Reef deposit has not yet been
incorporated into the most-current mineral resource estimate for the
project and will be accretive thereto. 
The South Reef deposit occurs along the eastern margin of a strong IP
geophysical anomaly that can be traced through much of the central
part of the Homestake Ridge property. High-grade gold-quartz veins
occur within broad zones of strongly anomalous gold mineralization
(e.g. 75.9m averaging 0.5g/t Au in hole HR12-248) associated with
disseminated pyrite and strongly chloritic host rocks that can be
traced for the entire 600 metres of the tested strike-length. Thick
intervals of anomalous silver (e.g. 60.0m averaging 1.9g/t Ag in
HR12-249 and 11.6m averaging 16.6g/t Ag in HR12-251) mineralization
were identified in several holes that tested to the east of the
Vanguard Fault. These intervals appear to be closely associated with
host rocks and styles of mineralization identified in the Homestake
Silver deposits, indicating a potential proximity to additional
gold/silver deposits or the extension of the Homestake Silver deposit
to the southeast on the property. A Plan Map of the drill hole
distribution is available at www.homestakeresource.com. 


 
Table: Select Composited Assays from Homestake Ridge Project 2012
 
----------------------------------------------------------------------------
                                      Inter-  Tr                            
            Az   Dip Depth  From    To  val Thck.  Au   Ag   Cu     
Hole #     Deg   Deg    (m)   (m)   (m)  (m)  (m)(g/t)(g/t)(ppm) Comments   
----------------------------------------------------------------------------
                                                                            
HR12-241 225.0 -54.0 239.9 188.1 189.7  1.6  1.2  1.9  2.7  NSV  48.7m of
                                                                 0.15g/t Au
                                                                 (160.1 to
                                                                 207.8m)
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-242 234.0 -71.0 300.8  14.8  17.8  3.0  1.6  5.4  3.2 2576  29.0m of
                                                                 0.3g/t
                                                                 (179.5
                                                                 to 207.4m)
inc.                        17.0  17.8  0.8  0.4 14.4  5.4 4176             
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-244 215.0 -44.5 319.1 221.5 242.4 20.9 17.9  0.4  0.6   44             
inc.                       240.5 242.4  1.9  1.6  2.3  1.5  231             
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-245 224.0 -45.0 386.2 319.9 365.6 45.7 39.5  0.3  1.8  NSV             
inc.                       346.9 348.1  1.3  1.1  3.5  1.3  NSV             
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-246 223.0 -45.0 535.5  11.8  17.7  6.0  5.1  0.6  0.3  113             
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-247 223.0 -45.0 411.3  31.4 105.4 74.0 64.0  0.3  0.6   53             
inc.                        89.1  96.8  7.7  6.7  0.7  1.0   13             
                                                                            
and                        208.0 218.5 10.5       0.2  1.2  NSV  East of
                                                                 Vanguard
                                                                 Fault
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-248 223.0 -60.0 468.5  47.0 122.9 75.9 53.6  0.5  2.0  118  0.2% Zn
inc.                       107.5 113.2  5.8  4.1  2.3  7.4 1269  3.0% Zn
inc.                       111.5 112.0  0.6  0.4 12.2 22.0 5165  21.9% Zn
                                                                            
and                        363.6 446.6 83.0  UNK  0.0  1.4  NSV  East of
                                                                 Vanguard
                                                                 Fault
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-249 223.0 -45.0 349.6 208.0 263.0 55.0  UNK  0.1  1.9  NSV  East of
                                                                 Vanguard
                                                                 Fault
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-250 223.0 -45.0 502.0                                  NSV             
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-251 222.0 -45.0 523.3 328.9 340.5 11.6  UNK  0.0 16.6  NSV  East of
                                                                 Vanguard
                                                                 Fault
inc.                       328.9 337.9  9.0  UNK  0.0 19.7  NSV  1g/t Ag
                                                                 over
                                                                 81.3m (69.3
                                                                 to 150.6m)
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-239 202.0 -52.0 285.6 216.0 254.3 38.3 28.1  0.7  1.5  NSV  Previously
                                                                 Released
                                                                 (NR-05-12)
inc.                       239.8 245.5  5.7  4.2  2.6  2.2  NSV             
inc.                       239.8 240.4  0.6  0.4 16.1  6.7  NSV             
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-240 231.0 -47.0 282.6 205.4 208.3  2.9  2.4  5.9  2.0  NSV  Previously
                                                                 Released
                                                                 (NR-05-12)
inc.                       206.4 206.8  0.5  0.4 16.3  4.5  NSV             
                                                                            
----------------------------------------------------------------------------
                                                                            
HR12-243 194.0 -44.0 139.3 101.9 105.9  4.0  3.0 11.5  3.7  615  Previously
                                                                 Released
                                                                 (NR-05-12)
inc.                       101.9 104.9  3.0  2.2 14.9  4.2  516             
                                                                            
----------------------------------------------------------------------------
 
Analyzed by FA-ES/AA for gold and ICP-MS by Acme Labs, Vancouver BC; Samples
greater than 10g/t Au re-assayed with FA-Grav - check assays are pending;
Silver overlimits (greater than 100g/t Ag) re-assayed with FA-Grav.

 
To view "Figure: Longitudinal Section of 2012 Drilling on the
Homestake Ridge Project" please click on:
http://media3.marketwire.com/docs/hsr117i.pdf 
Homestake Resource Corporation continues to compile and interpret
2012 data and is working with Agnico-Eagle in the planning of the
2013 exploration program. Planned exploration expenditures under the
option agreement for 2013 are $3.5 million. 
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. The project is being advanced as a potential high-grade
underground mining operation. At a 3.0g/t AuEq cut-off and based on
drilling completed through 2010, the project contains an estimated
NI43-101 compliant Indicated Resource of 191,000oz gold and 1,350,000
oz silver (215,500oz AuEq) plus an Inferred Resource of 530,000 oz
gold and 13,470,000oz silver (775,900oz AuEq)(1) at the Main
Homestake and Homestake Silver deposits. 
To date, 251 holes were drilled for a total of 70,533 metres, and
multiple exploration targets remain to be tested on the large
2585-hectare property. Agnico-Eagle has assumed project management
under an option agreement 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
623-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 4.5
kilometre strike-length; Homestake will be aggressively exploring
this trend in 2013. 
Homestake owns a 10.19 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. Bravada is currently conducting
additional exploration at Wind Mountain under a funding and option
agreement with Argonaut Gold Corporation. 
Robert Macdonald (P.Geo.) is the Qualified Person as defined by
National Instrument 43-101 for the Homestake Ridge project and has
reviewed and approved the technical contents of this release. 
ON BEHALF OF THE BOARD 
Joseph A. Kizis, Jr., President and Director 


 
(1) The current estimate was prepared by Roscoe Postle Associates Inc.
    (RPA). Mineral Resources on the Main Homestake deposit were estimated
    previously in 2010 using a block model constrained by 3D wireframes of
    the mineralized zones. Mineral Resources on the Homestake Silver deposit
    were estimated in 2011 using a block model constrained by pierce points
    projected to 2D surfaces. The Main Homestake block model comprised an
    array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and
    Cu interpolated using ID3 weighting. The Homestake Silver block model
    comprised an array of blocks measuring 10m x 10m. At a 3.0g/t AuEq. cut-
    off, the models identified an indicated resource of 888,000 tonnes
    averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred
    resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.

 
For further information, please visit the company's website at
www.homestakeresource.com. 
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. 
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. 
Contacts:
Homestake Resource Corporation
Liana Shahinian
1-888-456-1112 or 604-641-2773
liana@mnxltd.com
www.homestakeresource.com
 
 
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