Agnico Eagle to Commence Homestake Ridge Drilling Program in July
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/25/13 -- Homestake
Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6I) ("Homestake" or
"the Company") reported today that optionee Agnico Eagle Mines Ltd.
("Agnico Eagle") has notified the Company that it has commenced camp
construction, with field-crew mobilization to follow and drilling to
begin in early July at the Homestake Ridge property. The planned $3.5
million program is Agnico Eagle's spending commitment for 2013 under
an option agreement signed in August 2012, funding exploration and
development costs of $25.3 million over a 5-year period in order to
earn a 65% interest in the property.
Recently completed geological and geochemical studies, commissioned
by Agnico Eagle, have identified several target areas for detailed
mapping, rock and soil sampling, geophysics, and drilling. Initial
surface exploration will focus on the "Eskay Horizon" in the upper
Hazelton stratigraphy, which is exposed for several kilometers of
strike-length on the property. Limited drilling of this horizon by
Homestake in 2009-10 intersected thick intervals of altered felsic
rocks with strong silver enrichment over 10's of metres in two holes.
In addition, several areas of known mineralization, such as the South
Reef resource, will be drilled along strike and down dip where not
yet tested. Agnico Eagle expects to drill approximately 6,000m during
the season. Some additional ground geophysics is contemplated to
augment earlier IP/resistivity surveys and a property-wide airborne
AeroTEM III survey conducted by Homestake.
The Company's systematic exploration of the Homestake Ridge property
since 2003 has resulted in the discovery of three significant
deposits of gold, silver, and copper, making it one of the top
undeveloped, higher-grade deposits in the world. Several other
high-quality exploration targets exist on the property, which could
develop into additional deposits.
To view Figure 1: Cascading Longitudinal Sections of Deposit Growth
at Homestake Ridge 2003-13, click here:
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((1)). 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, 251 holes were drilled for a total of 70,533 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
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
4.5-kilometre strike-length; Homestake plans to aggressively explore
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
Rob Macdonald (P.Geo.) is the Vice-President of Exploration for
Homestake and is the Qualified Person responsible for reviewing the
technical results in this release.
On behalf of the Board of Directors,
Joseph A. Kizis, Jr., Director, President, Homestake Resource
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. 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. 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.
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 Corp. 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.
"A MANEX RESOURCE GROUP COMPANY"
Homestake Resource Corporation
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