1. CIM definitions were followed for Mineral Resources.2. Mineral Resources are estimated at a Net Smelter Return (NSR) cut-off value of US$85/t.3. The NSR cut-off value was generated using an average long-term gold price of US$1,500 per ounce Au, US$27.00 per ounce Ag, and US$3.50 per pound Cu, with an exchange rate of C$1.00=US$1.00.4. The NSR cut-off value was calculated as described above in the text of this report.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as mineral reserves. There is no assurance that any part of the resources will ultimately be converted to mineral reserves
Kathleen Jones-Bartels has resigned as Corporate Secretary of Homestake and Mahesh Liyanage has resigned as Chief Financial Officer. The board of directors thanks Ms. Jones-Bartels and Mr. Liyanage for their efforts on behalf of the company and wishes them well in their respective future endeavours.
Homestake is pleased to announce that Lawrence Page, Q.C., Chairman and director of the company, will serve as Corporate Secretary. The company also welcomes Graham Thatcher as Chief Financial Officer subsequent to Mr. Liyanage's resignation. Mr. Thatcher moved from London, England to Vancouver, British Columbia in 2006. Specializing in financial reporting and auditing across a breadth of business sectors in both the UK and Canada, he brings extensive experience of operating with International Financial Reporting Standards and paperless systems. He is also senior accountant at Manex Resource Group which provides administrative, financial, corporate, corporate finance and geological services to a number of public companies in the mineral resource sector. Prior to this, he worked in public practice at Smythe Ratcliffe LLP with companies in the mining and exploration sector. Mr. Thatcher obtained a Bachelor of Arts degree with Honours in Economics from Lancaster University in 1995, which included a one year program at the University of British Columbia. He is also a finalist of global accounting designation, the Association of Chartered Certified Accountants (ACCA). Mr. Thatcher is also volunteer board member and treasurer at Heritage Hall Preservation Society, a non-profit charitable organization whose mandate is to restore and manage Heritage Hall, a landmark building located in Vancouver.
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. To date, 252 holes were drilled for a total of 71,026 metres, and multiple exploration targets remain to be tested on the large 3,617-hectare property.
On September 4, 2012, Homestake entered into a property option agreement with Agnico-Eagle Mines Limited (Agnico-Eagle) for the continued exploration and development of the Homestake Ridge Project. Under the terms of the agreement, Agnico-Eagle has the option to earn up to 65% interest in the Homestake Ridge Project with the staged expenditure of $25.3 million over 5 years.
Agnico-Eagle has met the $1.8 million spending requirements for 2012 and assumed project management of the property in January 2013. Agnico Eagle is required to spend $3.5 million on exploration in 2013.
Homestake holds an option to acquire a 100% interest in the 646-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.
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
For further information, please visit the company's website at www.homestakeresource.com.
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 Corporation 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Homestake Resource Corporation