Jul 23 2014
Homestake Resource Corporation reported today that drilling has commenced on the Company's 100% owned Homestake Ridge property in Northwestern BC.
The 2014 exploration program is being conducted by Agnico Eagle Mines Limited and is expected to include +7,500 meters of core drilling budgeted at a cost of $3 million. Agnico Eagle has assumed project management under an option agreement to fund exploration and development costs of $25.3 million by December 31, 2017 to earn a 65% interest in the property. Agnico Eagle is in the third year of the six year option.
Drilling is underway 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). An initial six drill hole program is planned on the Slide target, which will test areas along strike and down dip of hole HR13-253 (see Figure 1).
President Joe Kizis commented, "We look forward to an aggressive drilling campaign at Homestake Ridge this field season. It follows up on a new mineralized zone discovered last year, as well as includes significant step outs from our known deposits that could potentially add to the current NI 43-101-compliant resource. Having a strategic partner like Agnico Eagle in these difficult times allows the company to aggressively advance our project to create additional shareholder value."
The Homestake Ridge project is being advanced as a potential high-grade underground mining operation. The project contains an estimated Inferred Resource of 911,000oz gold and 20,366,000oz silver (1,225,785oz AuEq @ 5.6g/t AuEq grade) and an estimated Indicated Resource of 124,000oz gold and 939,000oz silver (141,000oz AuEq @ 7.3g/t AuEq grade).
To date, 262 holes have been drilled for a total of 74,973 metres, including the project's highlight intercept from the 2008 drill hole HR08-87, which returned an estimated true width intercept of 52.5 metres averaging 20.99 g/t gold and 11.60 g/t silver.
Source:
https://www.dollyvardensilver.com/