Homestake Resource Corp. (TSXV:HSR,FWB:B6IH) is a Canadian-based exploration company, committed to increasing shareholder value with an experienced management team that has successfully demonstrated the ability to identify, explore and develop gold/silver properties within North America. In August 2012 that ability was confirmed when Agnico-Eagle Mines Limited entered into a property option for Homestake Resource’s flagship asset, the Homestake Ridge Project, as well as a share purchase agreement to acquire approximately 7% of the Company. Agnico-Eagle can earn up to 65% interest in the Project with staged expenditures of $25.3 million over five years. Agnico-Eagle’s 2013 exploration commitment totals $3.5milion.
2013 Mineral Resource Highlights
- Homestake Ridge Project: Updated NI 43-101 compliant mineral resource (as of April 2013, using a $85NSR/t cut off):
- Indicated resource: 124,000oz Au and 0.94 MMoz Ag averaging 6.4g/t Au, 48.3g/t Ag (141,000ozs AuEq)
- Inferred resource: 911,000 oz Au and 20.36 MM oz Ag averaging 4.2g/t Au, 93.6g/t Ag (1,226,000ozs AuEq)
- Identification of new high-grade resources at the South Reef Deposit (139,000ozs Au and 38,000ozs Ag averaging 13.0g/t Au, 3.6g/t Ag) which remains open to the northwest
- Optimization of the Main Homestake deposit resulted in an increase in grade at equivalent cut-offs and overall contained gold ounces
- Inclusion of silver-enriched resources identified in 2011 drilling at the Homestake Silver deposit
- Homestake Silver deposit updated from a 2-dimensional model to a 3-dimensional model to be consistent with the modeling of the other two deposits on the property
Homestake Ridge Project – British Columbia, Canada
Advanced Exploration Stage Gold and Silver Enriched VMS and Epithermal Project with a Defined 43-101 Compliant Resource.
The Homestake Ridge Project is favourably located within the Iskut-Stewart-Kitsault Belt approximately 32km north-northwest of the tidewater communities of Alice Arm and Kitsault, BC, with road access within six kilometres. The Homestake Ridge property comprises 26 mineral claims containing 151 units and seven crown grants for a total area of 3,617ha in the Skeena Mining Division with specific claims subject to a 2% net smelter return (NSR).
High Grade Gold Discovery at South Reef
- New high grade gold ounces at South Reef enhance the potential downstream economics of the project allowing for quicker paydown of capital
- Continued on-strike potential
- Additional high grade targets throughout the property
Since 2003, Homestake Resource has completed 66,283 meters in exploration and delineation drilling on the property and has indentified The Company has entered into a. With a firm commitment of $1.8 million in expenditures for the remainder of 2012, Agnico-Eagle has the option to earn up to 65% interest in the Homestake Ridge Project with the staged expenditure of $25.3 million over five years.
100% increase in high grade Mineral Resources since 2010
Poised for Continued Discovery:
$3.5 million – 2013 Agnico-Eagle exploration commitment
Goal: expansion and definition of new deposits and resources accretive to previous discoveries at Main Homestake, Homestake Silver and South Reef
Kinskuch Project – British Columbia, Canada
The Kinskuch Project is an important strategic acquisition totaling 646 square kilometers. It provides the Company with control over a large portion of this prospective district and covers the continuation of the same rock units that host mineralization at Homestake Ridge. The potential is excellent to develop resources at several of the target areas identified on the Kinskuch property.
The Company in 2011 began initial evaluations of the documented 37 historic mineral occurrences and conducted a helicopter geophysical survey over approximately 60% of the property.
An initial four-hole drilling program was completed at the 2.5km-long Illiance River target area by the Company in 2011 with very encouraging results. The two best holes are located approximately 500m apart and intersected 2.8m of 318g/t Ag & 8.7% Pb+Zn in KN11-02 and 3.9m of 267g/t Ag & 7.8% Pb+Zn in KN11-03. Follow-up drilling to offset these holes is being planned.
Joseph A. Kizis, Jr. – President & Director
Mr. Kizis is a Registered Geologist with 35 years experience in exploration for gold, silver, copper, molybdenum, lead, zinc, and uranium in the U.S., Canada and abroad. Currently, he is the President and director of Homestake Resource Corp. and Bravada Gold Corporation, and has held previous executive positions with Fairmile GoldTech, Sierra Geothermal, the Geological Society of Nevada, and the GSN Foundation.
Lawrence Page, QC – Chairman & Director
As the principal and founder of the Manex Resource Group, Lawrence Page brings over 45 years of experience in corporate and securities law, and has been a director and officer of public companies which have discovered and brought mines such as Eskay Creek, Mascot Gold, and Pensaquito in to production.
Stephen Beardslee - Director
Stephen Beardslee retired from the U.S. Air Force as an information systems director in 1986, and retired from The Boeing Company as an engineering manager in 2002. He has been involved with mineral exploration on Woewodski Island in Southeast Alaska for more than 20 years. He has previously served as treasurer, then president of the Boeing Employees’ Flying Association.
Declan Costelloe - Director
Declan Costelloe serves as a director of Homestake Resource Corporation and is also the President of Celtic Mining Ltd., an independent mining consulting firm. Mr. Costelloe is a chartered engineer (UK Engineering Council) and a mining geologist with over 20 years experience.
Terrence E. Eyton - Director
Mr. Eyton is a Chartered Accountant and currently Chief Financial Officer of Peninsula Merchant Syndications Corp. His professional career encompasses depth in financial, regulatory and compliance matters across many sectors including mining.
Fred Sveinson -Mining Engineer and Director
Fred Sveinson is a professional mining engineer with more than 40 years experience in all stages of mine development at operations ranging in size from 100 to 2,000 tonnes per day in Canada, the US, South America and Africa. His experience includes permitting and regulatory governmental dealing and involvement with First Nations negotiations in British Columbia as well as finance negotiations for exploration and mine development on a national and international level. His senior positions have included General Manager of Echo Bay’s Lupin and Sunnyside operations, and Vice-President of Tonto Mining and Dynatec Mining.