Homestake Resource Corporation

Homestake Resource Corporation

May 15, 2013 13:52 ET

Homestake Expands Claim Holdings to 68,207 Hectares at Kinskuch and Homestake Ridge

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2013) - Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6I) ("Homestake") reported today that it has staked an additional 2290 hectares in two claim groups at the Kinskuch property, and an additional 1027 hectares in two claims at the Homestake Ridge property, expanding the Company's property position within the Kitsault Mineral District in northwest British Columbia to 68,207 hectares.

The Homestake Ridge property now totals 3,617 hectares and the Kinskuch project now totals 64,590 hectares. Exploration of the new Kinskuch claims will be conducted within the context of a larger 2013 exploration program, the planning for which to be finalized in the coming weeks.

Two of the new MTO claims, fall within the area of influence around the Homestake Ridge property and have been conveyed to Agnico Eagle Mines Ltd. ("Agnico Eagle"), which currently operates the Homestake Ridge project under an August 2012 option agreement where it has the option to earn a 65% interest in the claims by spending $25.3 million on exploration and development work.

The new MTO claims include two covering extensions of a diorite porphyry intrusion within the Dak River basin, and several claims located to the west of the historic Dolly Varden property and to the south of the Company's Homestake Ridge property.

The Dak River claims cover the north and south extensions of the FH property, currently held by a third party, which was explored with surface sampling and drilling by Durango Capital Corp in 2007. Copper-gold mineralization at the FH property is associated with a +5-kilometre-long diorite porphyry intrusion of possible Early Jurassic age. Intrusions of similar age and composition host, or are spatially associated with, major mineral deposits throughout the region, including the Company's Homestake Ridge deposit, the Silbak-Premier deposit (Ascot Resources Ltd.), the Red Mountain Deposit (Banks Island Gold Ltd.), and the Brucejack Lake Project (Pretium Resources Inc.).

The Kitsault Mineral District is an approximately 40-kilometer-long mineral belt underlain by prospective Stuhini and Hazelton Group stratigraphy located to the south of the Cambria Ice Fields in northwestern British Columbia. Major deposits in the district include the Kitsault Molybdenum project (Avanti Mining Inc.), the Dolly Varden project (Dolly Varden Silver Corp./Hecla Mining Ltd.) and the Homestake Ridge project (Homestake Resource Corp./Agnico Eagle). Historic production in the district dates back to the early 1900's.

Approximately $6.5 million was spent exploring for precious metals in the Kitsault Mineral District during 2012 including: $2.36 million spent at the Homestake Ridge Project by Homestake/Agnico Eagle; $0.14 million spent by Homestake at the Kinskuch project and $4.0 million reportedly spent by Dolly Varden Silver/Hecla at the Dolly Varden project. To maintain the option on the Homestake Ridge project, Agnico Eagle is required to complete $3.5 million in expenditures on the project in 2013. Homestake is planning a minimum $0.5 million exploration budget for the Kinskuch project in 2013.

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About Homestake Resource Corporation

Homestake owns a 100 percent interest in the Homestake Ridge project, located in the Kitsault Mineral district in northwestern British Columbia, subject to various royalty interests held by vendors. The project is being advanced as a potential high-grade underground mining operation. At an $85 NSR cut-off value and based on drilling completed through 2012, the project contains an estimated NI 43-101 compliant Indicated Resource of 124,000oz gold and 939,000oz silver (141,000oz AuEq @ 7.3g/t AuEq grade) plus an Inferred Resource of 911,000oz gold and 20,366,000oz silver (1,225,785oz AuEq @ 5.6g/t AuEq grade) in three deposits(1). Visit the Company website at to see how the Homestake Ridge resource estimate compares to gold deposits worldwide, as ranked by Natural Resource Holdings (June 2012).

To date, 251 holes were drilled for a total of 70,533 metres, and multiple exploration targets remain to be tested on the large 3,617 -hectare property. Agnico Eagle Mines Limited has assumed project management since January 2013 under an option agreement signed in August 2012 to fund exploration and development costs of $25.3 million over a 5-year period to earn a 65% interest in the property.

Homestake holds an option to acquire a 100% interest in the 645-square-kilometre Kinskuch project, located adjacent to, and to the southeast of, the Homestake Ridge project. Diamond drilling along the Illiance trend on the Kinskuch property during 2011 was successful in intersecting high-grade silver/lead/zinc VMS mineralization in three of four holes. Surface soil and rock-chip sampling along the trend in 2012 extended mineralization to a 4.0-kilometre strike-length; Homestake will be aggressively exploring this trend in 2013.

Homestake owns a 10.19 percent equity interest in Bravada Gold Corporation (TSX VENTURE:BVA) which is exploring and developing numerous gold/silver projects in several of Nevada's prolific gold belts. At the advance-stage Wind Mountain project, BVA has received a positive PEA from an independent engineering company for an open-pit/heap-leach operation.

Rob Macdonald (P.Geo.) is the Vice-President of Exploration for Homestake and is the Qualified Person responsible for reviewing the technical results in this release.

On behalf of the Board of Directors,

Joseph A. Kizis, Jr., Director, President, Homestake Resource Corporation

  1. The current estimate was prepared by Roscoe Postle Associates Inc. (RPA). Mineral Resources utilize three separate block models constrained by 3D wireframes of the mineralized zones. 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. David Rennie (P. Eng.) is the Principal Geologist for Roscoe Postle Associates Inc. and is the Independent Qualified Person responsible for preparation and review of the Mineral Resource Estimate.

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 Corp. 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. We seek safe harbor.

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