HOMESTAKE RESOURCE CORP VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 19, 2015) - Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH) ("Homestake" or "Company") reported today that it has signed a Letter of Intent to option fifty percent (50%) of the Company's Homestake Ridge property to Banks Island Gold ("Banks Island") for a total of Cd$16.5 million in work and option payments over a three-year period. Payments and work commitments are as follows:
| Cash - $ | Work Commitment - $ | |
| On January 31, 2016 | 500,000 | - |
| By December 31, 2016 | - | 2,000,000*Note 1 |
| On January 31, 2017 | 500,000 | - |
| By December 31, 2017 | - | 3,000,000 |
| On January 31, 2018 | 500,000 | - |
| By December 31, 2018 | - | 5,000,000 |
| On December 31, 2018 | 5,000,000 | - |
| TOTAL | 6,500,000 | 10,000,000 |
| Note 1: Of which 60% must be expended by September 30, 2016 |
Banks Island will be operator during the earn-in period. In order to exercise the option, Banks Island is also required to deliver to the Company a Preliminary Economic Assessment by September 30, 2018 or within 30 days of completion of earn-in expenditures.
Benjamin Mossman, President and CEO of Banks Island, commented, "The Homestake Ridge Property presents a unique opportunity to bring a significant deposit into production through the use of our existing process facilities, equipment, and staff at the Yellow Giant mine, which is currently on care and maintenance. The Company plans to aggressively develop the Homestake project to its full potential."
The addition of the Homestake Ridge mineral resources to the Yellow Giant operations, which are located on tide-water 320km to the south of Homestake Ridge on Banks Island, BC, could significantly extend the life of operations at the Yellow Giant production facilities. The Homestake Ridge deposit is located just 35km from tide-water at Alice Arm, BC.
As part of its overall strategy Banks Island has advised of intentions to:
- Recommence production at the Yellow Giant Mine to establish positive cash flow from operations in order to fund work commitments on the Homestake Ridge project.
- Evaluate the use of pre-concentration and complete a definition drilling program at Homestake Ridge to define high-grade resources with potential for economic extraction.
- Commence environmental baseline work and permitting at Homestake Ridge.
- Complete road access from Homestake Ridge to Alice Arm and establish a barge landing facility near Alice Arm.
- Permit and construct an underground mining operation at Homestake Ridge, beginning with high- grade portions of the Homestake deposits.
- Transport mined material from Homestake Ridge to Alice Arm overland and then via barge to Banks Island for processing at the Yellow Giant facility.
- Continue exploration efforts for the identification and development of new deposits at Homestake Ridge.
Joseph Kizis, President of Homestake, commented, "We are pleased to have Banks Island as an experience mining partner to develop our discoveries at Homestake Ridge into near-term production, which will be enhanced and facilitated by the synergies between the Yellow Giant and Homestake Ridge projects. We also feel there remains great potential for new discoveries and expansions of existing discoveries, which will ensure a long mine life."
Homestake Ridge Project
The Homestake Ridge project is located within the mineral-rich Stikine terrane of northwestern British Columbia. Exploration at Homestake Ridge has resulted in the discovery of three significant mineral deposits, with a potential fourth deposit at the Slide Target. As shown on the attached table, 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). Within this resource are higher grade zones, as demonstrated by the project's highlight intercept from the 2008 drill hole HR08-87, which returned an estimated true width intercept of 52.5 metres averaging 20.99g/t Au and 11.60g/t Ag (See Oct. 02, 2008 press release). All three deposits remain open in several directions and none of the recently discovered mineralization at the Slide target has been incorporated into resource estimates.
About Banks Island
Banks Island Gold Ltd. is a gold producer with a mine on care and maintenance at its Yellow Giant Gold Property. The company is focused on gold production, exploration, and development of economically viable mineral resources. The Yellow Giant Gold Property is located on Banks Island, British Columbia. Multiple mineralized zones on the Property are open at depth and strike with numerous gold showings and mineralized zones, and relatively little exploration to date. For more information, please refer to the Company's website at www.banksislandgold.com.
About Homestake Resource Corporation
Homestake Resource Corp. is a Canadian-based exploration company. The Company's primary asset is the Homestake Ridge Project, a gold-rich epithermal/VMS-related vein system containing NI 43-101 compliant resource estimates. Homestake owns a 100 percent interest in the project, located in the Kitsault Mineral district in northwestern British Columbia, subject to various royalty interests held by vendors. To date, 268 holes, totaling 77,845 metres, have been completed on the property and multiple exploration targets remain to be tested on the large 3,617-hectare 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. For more information on the Homestake Ridge project, including a link to the 2013 Technical Report, please refer to Homestake's website at www.homestakeresource.com.
| Table: Summary of Mineral Resources at Homestake Ridge | ||||||||||||||||||||||
| Main Homestake Deposit - Indicated Resources | ||||||||||||||||||||||
| Cut Off | Cut Off | Tonnes | Au | Au | Ag | Ag | Cu | Cu | NSR | AUEQ | AUEQ | |||||||||||
| (NSR$/t) | (g/t) | (g/t) | (oz) | (g/t) | (oz) | (%) | (Mlb) | ($US/t) | (g/t) | (oz) | ||||||||||||
| 140 | 3.5 | 421,000 | 8.1 | 109,000 | 62.7 | 849,000 | 0.23 | 2.1 | 374 | 9.2 | 125,000 | |||||||||||
| 120 | 3.0 | 482,000 | 7.4 | 115,000 | 57.0 | 883,000 | 0.21 | 2.2 | 343 | 8.4 | 131,000 | |||||||||||
| 85 | 2.1 | 604,000 | 6.4 | 124,000 | 48.3 | 939,000 | 0.18 | 2.4 | 294 | 7.3 | 141,000 | |||||||||||
| 65 | 1.6 | 652,000 | 6.0 | 127,000 | 46.5 | 973,000 | 0.17 | 2.5 | 278 | 6.9 | 144,000 | |||||||||||
| Main Homestake Deposit - Inferred Resources | ||||||||||||||||||||||
| Cut Off | Cut Off | Tonnes | Au | Au | Ag | Ag | Cu | Cu | NSR | AUEQ | AUEQ | |||||||||||
| (NSR$/t) | (g/t) | (g/t) | (oz) | (g/t) | (oz) | (%) | (Mlb) | ($US/t) | (g/t) | (oz) | ||||||||||||
| 140 | 3.5 | 1,158,000 | 8.2 | 307,000 | 42.1 | 1,568,000 | 0.33 | 8.4 | 375 | 9.2 | 341,000 | |||||||||||
| 120 | 3.0 | 1,357,000 | 7.4 | 325,000 | 37.7 | 1,646,000 | 0.31 | 9.4 | 339 | 8.3 | 362,000 | |||||||||||
| 85 | 2.1 | 2,031,000 | 5.6 | 369,000 | 28.6 | 1,868,000 | 0.31 | 13.9 | 260 | 6.4 | 415,000 | |||||||||||
| 65 | 1.6 | 2,240,000 | 5.3 | 380,000 | 26.7 | 1,920,000 | 0.30 | 14.7 | 243 | 5.9 | 428,000 | |||||||||||
| Homestake Silver Deposit - Inferred Resources | ||||||||||||||||||||||
| Cut Off | Cut Off | Tonnes | Au | Au | Ag | Ag | Cu | Cu | NSR | AUEQ | AUEQ | |||||||||||
| (NSR$/t) | (g/t) | (g/t) | (oz) | (g/t) | (oz) | (%) | (Mlb) | ($US/t) | (g/t) | (oz) | ||||||||||||
| 140 | 3.5 | 2,250,000 | 3.8 | 278,000 | 190.4 | 13,774,000 | 0.03 | 1.6 | 258 | 6.6 | 478,000 | |||||||||||
| 120 | 3.0 | 2,802,000 | 3.5 | 317,000 | 168.8 | 15,202,000 | 0.03 | 1.9 | 233 | 6.0 | 537,000 | |||||||||||
| 85 | 2.1 | 4,402,000 | 2.8 | 403,000 | 130.4 | 18,460,000 | 0.03 | 2.5 | 185 | 4.7 | 671,000 | |||||||||||
| 65 | 1.6 | 5,384,000 | 2.5 | 437,000 | 117.8 | 20,394,000 | 0.02 | 2.8 | 165 | 4.2 | 733,000 | |||||||||||
| South Reef Deposit - Inferred Resources | ||||||||||||||||||||||
| Cut Off | Cut Off | Tonnes | Au | Au | Ag | Ag | Cu | Cu | NSR | AUEQ | AUEQ | |||||||||||
| (NSR$/t) | (g/t) | (g/t) | (oz) | (g/t) | (oz) | (%) | (Mlb) | ($US/t) | (g/t) | (oz) | ||||||||||||
| 140 | 3.5 | 297,000 | 14.2 | 136,000 | 3.8 | 36,000 | 0.04 | 0.3 | 571 | 14.3 | 137,000 | |||||||||||
| 120 | 3.0 | 311,000 | 13.7 | 138,000 | 3.7 | 37,000 | 0.04 | 0.3 | 551 | 13.8 | 138,000 | |||||||||||
| 85 | 2.1 | 332,000 | 13.0 | 139,000 | 3.6 | 39,000 | 0.04 | 0.3 | 523 | 13.1 | 140,000 | |||||||||||
| 65 | 1.6 | 341,000 | 12.8 | 140,000 | 3.6 | 39,000 | 0.04 | 0.3 | 512 | 12.8 | 141,000 | |||||||||||
| Combined Main Homestake + Homestake Silver + South Reef Resources | ||||||||||||||||||||||
| Tonnes | Au | Au | Ag | Ag | Cu | Cu | NSR | AUEQ | AUEQ | |||||||||||||
| (g/t) | (oz) | (g/t) | (oz) | (%) | (Mlb) | ($US/t) | (g/t) | (oz) | ||||||||||||||
| $140/t Cut-off (3.5g/t AuEq) | ||||||||||||||||||||||
| Indicated | 421,000 | 8.1 | 109,000 | 62.7 | 849,000 | 0.23 | 2.1 | 374 | 9.2 | 125,000 | ||||||||||||
| Inferred | 3,705,000 | 6.1 | 721,000 | 129.1 | 15,378,000 | 0.13 | 10.3 | 320 | 8.0 | 956,000 | ||||||||||||
| $120/t Cut-off (3.0g/t AuEq) | ||||||||||||||||||||||
| Indicated | 482,000 | 7.4 | 115,000 | 57.0 | 883,000 | 0.21 | 2.2 | 343 | 8.4 | 131,000 | ||||||||||||
| Inferred | 4,470,000 | 5.4 | 779,000 | 117.5 | 16,885,000 | 0.12 | 11.6 | 287 | 7.2 | 1,037,000 | ||||||||||||
| $85/t Cut-off (2.1g/t AuEq) | ||||||||||||||||||||||
| Indicated | 604,000 | 6.4 | 124,000 | 48.3 | 939,000 | 0.18 | 2.4 | 294 | 7.3 | 141,000 | ||||||||||||
| Inferred | 6,766,000 | 4.2 | 911,000 | 93.6 | 20,366,000 | 0.11 | 16.3 | 224 | 5.6 | 1,226,000 | ||||||||||||
| $65/t Cut-off (1.6g/t AuEq) | ||||||||||||||||||||||
| Indicated | 652,000 | 6.0 | 127,000 | 46.5 | 973,000 | 0.17 | 2.5 | 278 | 6.9 | 144,000 | ||||||||||||
| Inferred | 7,965,000 | 3.7 | 957,000 | 87.3 | 22,353,000 | 0.10 | 17.8 | 202 | 5.1 | 1,301,000 | ||||||||||||
| Notes: |
| 1. For details on the data verification and the key assumptions, parameters and methods used to calculate the mineral resource estimate, please see the Homestake Ridge Technical Report, a copy of which was filed on SEDAR on June 7, 2013. The Report is available at www.sedar.com. |
| 2. The current estimate was prepared by Roscoe Postle Associates Inc. (RPA) utilizing three separate block models constrained by 3D wireframes of the mineralized zones. |
| 3. 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 5m x 5m x 5m, with grades for Au, Ag, Cu, AuEq and NSR values interpolated using ID3 weighting. |
| 4. 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%>0.1%; and where calculated using just Au and Ag recoveries in blocks with <0.1% Cu. |
| 5. Mineral Resources are conceptual in nature and as such do not have demonstrated economic viability. |
| 6. David Rennie (P.Eng.) is the Independent Qualified Person responsible for presentation and review of the Mineral Resource Estimate. |
| Banks Island Gold is not basing its production decision on the Yellow Giant project on a feasibility study of mineral reserves with demonstrated economic and technical viability. Banks Island Gold Ltd. has decided to put the Property into production without first establishing mineral reserves supported by a NI43-101 compliant technical report and feasibility study. The Company cautions readers that such production may not be economically feasible and historically such projects have a much higher risk of economic or technical failure. |
Rob Macdonald, P.Geo is the qualified person who has reviewed and approved the contents of this news release on behalf of Homestake.
ON BEHALF OF THE BOARD OF DIRECTORS OF HOMESTAKE RESOURCE CORPORATION
Joseph A. Kizis, Jr., President & Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release. Neither the TSX Venture Exchange nor its Regulation Service 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 press release contains forward-looking statements. All statements, other than statements of historical fact, constitute "forward-looking statements" and includes statement regarding the timing for completion of the grinding and flotation circuits, its effect on gold recovery, grade and average payable gold, as well as any other information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company's strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance.
Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company's project, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, and other statements that express management's expectations or estimates of future performance.
There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.
