Agnico Eagle to Commence Homestake Ridge Drilling Program

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By peterc on July 7, 2013. No Comments

 

Homestake Resource Corporation (TSX.V – HSR) (“Homestake” or “the Company”) reported today that optionee Agnico Eagle Mines Ltd. (“Agnico Eagle”) has notified the Company that it has commenced camp construction, with field-crew mobilization to follow and drilling to begin in early July at the Homestake Ridge property. The planned $3.5 million program is Agnico Eagle’s spending commitment for 2013 under an option agreement signed in August 2012, funding exploration and development costs of $25.3 million over a 5-year period in order to earn a 65% interest in the property. Recently completed geological and geochemical studies, commissioned by Agnico Eagle, have identified several target areas for detailed mapping, rock and soil sampling, geophysics, and drilling. Initial surface exploration will focus on the “Eskay Horizon” in the upper Hazelton stratigraphy, which is exposed for several kilometers of strike-length on the property. Limited drilling of this horizon by Homestake in 2009-10 intersected thick intervals of altered felsic rocks with strong silver enrichment over 10’s of metres in two holes. In addition, several areas of known mineralization, such as the South Reef resource, will be drilled along strike and down dip where not yet tested. Agnico Eagle expects to drill approximately 6,000m during the season. Some additional ground geophysics is contemplated to augment earlier IP/resistivity surveys and a property-wide airborne AeroTEM III survey conducted by Homestake. The Company’s systematic exploration of the Homestake Ridge property since 2003 has resulted in the discovery of three significant deposits of gold, silver, and copper, making it one of the top undeveloped, higher-grade deposits in the world. Several other high-quality exploration targets exist on the property, which could develop into additional deposits.

www.homestakeresource.com

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