Nov 23 2012
Homestake Resource Corporation ("Homestake") has completed 13 diamond holes during the 2012 exploration season for a total of 4,743 metres at its Homestake Ridge project, located in Northwest British Columbia. The program consisted of two phases, with the second phase being funded by Agnico-Eagle Mines Limited ("Agnico-Eagle").
The first phase was conducted at the South Reef target, which is located approximately 800 m to the southwest of, and on a parallel mineralized trend to, the project's current resource inventory at the Main Homestake deposit and the Homestake Silver deposit. The second phase tested shallow, on-strike projections of the South Reef target as well as several other targets on the property.
Homestake was the operator for the 2012 season and planning is underway to transfer operatorship of the property to Agnico-Eagle in January, as agreed to in the Option Agreement between the parties. Agnico-Eagle is required to spend $3.5 million in 2013 on exploration and development work on the property as part of this Option Agreement.
South Reef Phase I Drilling
Five drill holes, totaling 1,248 metres, were completed on the South Reef deposit and previously announced highlights include:
a 4.0m interval averaging 11.4g/t gold and 3.7g/t silver from drill hole HR12-243; and
a 2.9m interval averaging 5.9g/t gold and 2.0g/t silver, which includes a 0.5m interval averaging 16.3g/t gold and 4.6g/t silver from drill hole HR12-240.
The new holes offset three holes drilled in 2011 that tested a 75m strike-length of the South Reef deposit and returned high-grade gold from all three holes, including a 3.1m interval averaging 30.8g/t gold and 3.3g/t silver within an 8.7m interval averaging 11.3g/t gold and 1.6g/t silver from drill hole HR11-232 (see NR-14-11). Estimated true thicknesses were not calculated for the reported intervals due to uncertainty in correlating mineral intercepts with surface exposures; however, it is likely that the mineralization is sub-vertical.
South Reef Phase II Drilling
Phase II drilling consisted of eight core holes, totaling 3,495m at an approximate cost of the $1.8 million which was funded by Agnico-Eagle under the Option Agreement (see NR-04-12). All assay results are expected to be received by early January and will be reported at that time.
The combined 2012 Phase I and Phase II budgets totaled approximately $2.5 million. Agnico-Eagle has the option to spend an additional $8.5 million by December 31, 2014 to earn a 51% interest in the Homestake Ridge Project and a total of $25.3 million by 2016 to earn a 65% interest of the project, with the additional option to arrange 100% of capital expenditure funding of the project to earn an additional 5% for a total 70% working interest (see NR-04-12).
Source: http://www.homestakeresource.com/