2012 Drilling at Homestake Ridge Further Defines and Expands South Reef Deposit
Homestake Resource Corporation (TSX.V: HSR) 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% zincfrom 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 inHR12-249 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
Analyzed by FA-ES/AA for gold and ICP-MS by Acme Labs, Vancouver BC; Samples >10g/t Au re-assayed with FA-Grav – check assays are pending; Silver overlimits (>100g/t Ag) re-assayed with FA-Grav.
Figure: Longitudinal Section of 2012 Drilling on the Homestake Ridge Project
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.V-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
- 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 homestakeresource.com or contact Liana Shahinian at either or or by email at[email protected]