2012 Drilling Extends High-Grade Gold at Homestake Ridge Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/19/12 -- Homestake Resource Corporation (TSX VENTURE: HSR)(FRANKFURT: B6IH) reported today that high-grade gold assays were returned from three of five Phase I drill holes at the South Reef deposit on the Homestake Ridge project, located in Northwest British Columbia. The company also reported that Phase II drilling, which is funded by Agnico Eagle Mines Limited "Agnico-Eagle", has commenced. South Reef is located approximately 800 metres 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.
South Reef Phase I Drilling
Five drill holes, totaling 1248 metres, were completed on the South Reef deposit as part of the initial phase of drilling in 2012.
Highlights from the drilling include:
-- a 4.0 metre interval averaging 11.4g/t gold and 3.7g/t silver from drill
hole HR12-243; and
-- a 2.9 metre interval averaging 5.89g/t gold and 2.0g/t silver which
includes a 0.5 metre interval averaging 16.3g/t gold and 4.54g/t silver
from drill hole HR12-240.
The new holes offset three holes drilled in 2011 that tested a 75 metre strike-length of the South Reef deposit and returned high-grade gold from all three holes, including 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 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.
Drilling in 2012 has increased the strike length of the high-grade mineralized zone by approximately 100% which remains open in all directions. Gold mineralization is variably associated with strong quartz-chlorite alteration, pyrite and minor base metal sulphides interspersed with intervals of sericite + pyrite alteration. Assays for two holes are pending.
South Reef Phase II Drilling
Phase II drilling has commenced with a 6 to 8 drill holes, $1.8 million exploration program, being funded by Agnico-Eagle under a recently signed option agreement (see NR-04-12). The program will test a 600-metre strike length of the South Reef trend, including several hangingwall and geophysical targets. Drilling is anticipated to continue into mid-October.
The combined Phase I and Phase II budgets total $2.5 million for 2012. Agnico-Eagle can 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 65% of the project (see NR-04-12). Homestake Resources Corporation will remain as operator for the 2012 season.
Table 1: Composited Drill Assays from 2012 Phase I Drilling at the
South Reef Target
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Inte-
Hole Coords(UTM NAD83) Az Dip Depth From To rval Au Ag Cu
# Easting Northing Elev Deg Deg (m) (m) (m) (m) (g/t) (g/t) (ppm)
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HR12- 6177767 463495 1140 202 -52 285.6 239.8 253.3 13.5 1.4 2.6 NSV
239
inc. 239.8 245.5 5.7 2.6 2.2 NSV
inc. 239.8 240.4 0.6 16.1 6.7 NSV
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HR12- 6177767 463495 1140 231 -47 282.6 205.4 208.3 2.9 5.9 2.0 NSV
240
inc. 206.4 206.8 0.5 16.3 4.5 NSV
HR12- 6177665 463602 1116 Pending
241
HR12- 6177665 463602 1116 Pending
242
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HR12- 6177632 463603 1142 194 -44 139.3 101.9 105.9 4.0 11.5 3.7 615
243
inc. 101.9 104.9 3.0 14.9 4.2 516
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Analyzed by FA-ES/AA for gold and ICP-MS by Acme Labs, Vancouver BC; Samples
greater than 10g/t Au re-assayed with FA-Grav - check assays are pending;
Silver overlimits (greater than 100g/t Ag) re-assayed with FA-Grav. greater
than 0.1g/t Au or 15g/t Ag cut-off used for compositing intervals, less than
25% internal dilution unless otherwise indicated.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/hsr919i.jpg.
Kinskuch Project - Target Definition
Target definition and compilation for the Kinskuch project continues in preparation for surface exploration on this 623 square kilometre property, which is located directly east of Homestake Ridge and extends south approximately 30km to tidewater at Alice Arm/Kitsault. Exploration will focus on both historical showings and numerous geophysical anomalies identified by the 2011 airborne geophysical survey over the property, with the goal of developing new targets for drill testing in 2013.
Initial work will follow-up encouraging 2011 results along a 2.5km strike of the Illiance trend and will continue the systematic surface evaluation of the numerous epithermal vein and massive sulphide showings on the trend both to the north and south, a cumulative 14 kilometres of strike length.
Extremely encouraging results in the 2011 drilling included KN11-02 that intersected several mineralized zones with the strongest being 2.8m of 318 g/t silver, 2.2% lead and 6.5% zinc. A 500- metre offset of that hole, KN11-03, also encountered multiple intercepts including 3.9m of 267 g/t silver, 1.3% lead and 6.5% zinc (see News Release February 02/12).
About Homestake
Homestake owns a 100 percent interest in the Homestake Ridge project, which is located in a prolific mineral belt in northwestern British Columbia. The project is being advanced as a potential high-grade underground mining operation with a current NI43-101 compliant Indicated Resource, at a 3.0g/t AuEq cut-off, of 191,000 oz gold and 1,350,000 oz silver (215,500 oz AuEq) plus an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver (775,900 oz AuEq)(1). Two deposits have been delineated to date, with a third, South Reef, discovered late in 2011. Multiple exploration targets remain to be tested on the large 2585 hectare property. Agnico-Eagle has an option to fund exploration and development costs of $25.3 million over a 5 year period to earn a 65% interest in the property Homestake also holds an option to acquire a 100% interest in the 623-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Homestake's Homestake Ridge project. Homestake holds a 9.76 percent interest in Bravada Gold Corporation (TSX VENTURE: BVA), which is exploring and developing numerous gold/silver projects in Nevada.
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
For further information, please visit the company's website at www.homestakeresource.com.
1. 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 10 m x 10 m. 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.
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 Corporation 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.
Contacts:
Homestake Resource Corporation
Liana Shahinian
604-641-2773 or Toll Free: 1-888-456-1112
liana@mnxltd.com
www.homestakeresource.com