High assays were capped, prior to compositing, at various levels depending on the statistical characteristics of the individual zones.
The Homestake Silver and South Reef resource estimates were entirely classified as Inferred Mineral Resources. For all zones, blocks qualified as at least Inferred if they fell within 75 m of a drill hole intercept. In the Main Homestake, blocks within 20 m of the nearest intercept, and estimated by at least two drill holes were tagged as eligible for upgrade to Indicated. Polygons were manually drawn around panels of contiguous Indicated-eligible blocks, which were then upgraded to an Indicated classification.
To view Figure 1, click on the following link: http://media3.marketwire.com/docs/h424m.pdf
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. 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) plus an Inferred Resource of 911,000oz gold and 20,366,000oz silver (1,225,785oz AuEq) at the Main Homestake, Homestake Silver and South Reef deposits. Visit the Company website at www.homestakeresource.com 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 2,585-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 623-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 4.5-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. Bravada is currently conducting additional exploration at Wind Mountain under a funding and option agreement with Argonaut Gold Corporation.
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. David Rennie, P. Eng. and Principal Geologist for Roscoe Postle Associates Inc., is the Independent Qualified Person responsible for preparation and review of the Mineral Resource Estimate.
On behalf of the Board of Directors
Joseph A. Kizis, Jr., Director, President, Homestake Resource Corporation
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.
We seek safe harbor.
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.
Homestake Resource Corporation
1-888-456-1112 or 604-641-2773
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