News Feed Item

Homestake Announces Commencement of Drill Program and Arranges Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/21/14 -- Homestake Resource Corporation (TSX VENTURE: HSR)(FRANKFURT: B6IH) ("Homestake" or the "Company") 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 (TSX: AEM)(NYSE: AEM) ("Agnico Eagle") 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).

To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/0721HSR.pdf

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).(1)

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 (See Oct. 02, 2008 press release).

Corporate Update

Homestake plans to issue up to 15,000,000 units in a non-flow-through private placement at a price of $0.05 per unit for gross proceeds of $750,000. Each unit consists of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share at an exercise price of $0.05 for a period of 3 years. The Company will pay finders' fees on a portion of the financing. The securities will be subject to a hold period of four months from date of closing.

The net proceeds from this private placement will be used for the continued exploration of the Kinskuch Project and for general working capital purposes. The proposed financing is subject to the approval of the TSX Venture Exchange.

For further information, please visit the company's website at www.homestakeresource.com.

Robert Macdonald, MSc., PGeo., is Homestake's Vice President of Exploration and is the Qualified Person responsible for the supervision and preparation of the technical information in this disclosure.

On behalf of the Board of Directors,

Joseph Anthony Kizis, Jr., President & Director, Homestake Resource Corporation

About Homestake Resource Corporation

Homestake Resource Corp. is a Canadian-based exploration company which operates two major projects totaling 661 sq. km in the emerging Kitsault Mineral District. The primary asset is the Homestake Ridge Project, a gold-rich epithermal/VMS-related vein system containing NI 43-101 compliant resource estimates. The Company has entered into an option with Agnico Eagle Mines Limited to fund exploration and development costs of $25.3 million by December 31, 2017 to earn a 65% interest in the property. Homestake Resource Corp. is affiliated with Manex Resource Group, a private company comprised of an exceptional multi-disciplinary team of professionals, with specific expertise in all the areas of exploration, development and public company administration.

1.  The current estimate was prepared by Roscoe Postle Associates Inc. (RPA)
    utilizing three separate block models constrained by 3D wireframes of
    the mineralized zones. Mineral Resources were constrained using a 2g/t
    AuEq grade shell and CIM definitions were followed for Mineral
    Resources. The block models are comprised of an array of blocks
    measuring 5 m x 5 m x 5 m, with grades for Au, Ag, Cu, AuEq and NSR
    values interpolated using ID3 weighting. The models identified an
    indicated resource of 604,000 tonnes averaging 6.4g/t Au, 48.3g/t Ag and
    0.18% Cu and a cumulative inferred resource of 6,765,000 tonnes
    averaging 4.2g/t Au, 93.6g/t Ag, 0.11% Cu. Mineral Resources are
    estimated using an average long-term gold price of US$1,500 per ounce
    Au, US$27 per ounce Ag, and US$3.50 per pound Cu, with an exchange rate
    of C$1.00=US$1.00. NSR and Gold equivalence were calculated using Au, Ag
    and Cu metallurgical recoveries of 92% Au, 88% Ag and 88% Cu in blocks
    where Cu%greater than 0.1%; and where calculated using just Au and Ag
    recoveries in blocks with less than 0.1% Cu.

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.

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
By now most people have either created their configuration management solution or are just embarking on this journey. In his session at @DevOpsSummit at 19th Cloud Expo, Marco Ceppi, a DevOps Engineer working at Canonical, will discuss how to take configuration management to the next level with modelling and orchestration. He will also discuss how and why people are moving from a machine-centric view to a service/application-oriented view of deployments, and how you can leverage the knowledge a...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...