Homestake Resource (HSR-V) May 16, '16 has closed a purchase agreement with Teck Resources (TCK.B-T) to purchase a 2% net smelter return royalty and ancillary rights on mineral claims forming a portion of the Homestake Ridge property in British Columbia.
The royalty was created in 2003 when Homestake purchased the claims from Teck and Teck reserved a 2% NSR together with rights to purchase another 2% NSR on other mineral claims from its holder for $1.0 million within 60 days from commencement of commercial production from the claims. Homestake has also acquired this right of purchase to the effect that those claims could be royalty free at commercial production.
President Joe Kizis commented, "The royalty being purchased affects approximately 46% of Homestake's current resources, as well as the entire Slide exploration target and untested projections of mineralization. We feel this royalty acquisition is a very good investment for the Company on its own merit and, in addition, the ability to completely eliminate a royalty on this portion of the property greatly enhances the economics of the underlying Homestake Ridge property. The property can benefit from higher cash flow without the royalty burden, or the royalty may be sold for a much higher price closer to production in order to partially finance capital costs."
Homestake Ridge Project
The Homestake Ridge project is located within the mineral-rich Stikine terrain 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.
Homestake owns a 100 percent interest in the Homestake Ridge project, subject to various royalty interests on certain claims held by vendors. The project is being advanced as a potential high-grade, underground mining operation. To date, 268 holes, totaling 77,845 metres, have been completed on the property by Homestake and multiple exploration targets remain to be tested on the large 3,617-hectare property. For more information on the Homestake Ridge project 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:
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.
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 5m x 5m x 5m, with grades for Au, Ag, Cu, AuEq and NSR values interpolated using ID3 weighting.
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.
Mineral Resources are conceptual in nature and as such do not have demonstrated economic viability.
David Rennie (P.Eng.) is the Independent Qualified Person responsible for presentation and review of the Mineral Resource Estimate.
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
Homestake Resource Corporation
+1 (604) 684-9384
+1 (604) 688-4670
info@mnxltd.com
www.homestakeresource.com |
