Dec 13 2013
Homestake Resource Corporation reported today that the Company and Agnico Eagle Mines Limited have agreed to amend the September 2012 option agreement for exploration and development of the Homestake Ridge property in northwestern British Columbia.
The amendment reduces 2013 and 2014 expenditures by $3.0 million and adds an extra year to the initial option period, in which 2015 will have a required expenditure of $3.0 million. In effect, the option period is extended by one year, but with total required expenditures remaining the same; AEM can earn a 65% interest in the property after total expenditures of $25.3 million or completion of a feasibility document.
Agnico Eagle has notified the Company that 2013 expenditures are expected to be approximately $2.5 million. The 2013 program was successful in discovering a potential new mineral zone called the Slide target southeast of the Homestake Silver deposit, as reported in a recent Company news release (NR-10-13, November 25, 2013). Agnico Eagle has expressed its intention to drill offset holes to the southeast and down dip of hole HR13-253, which as reported in NR-10-13 contains a 18.6 metre interval averaging 101g/t silver, including a 0.5 metre interval averaging 1,675g/t silver from 364.4 to 383.0 metres down hole (the true thickness has not been determined yet). Drilling is anticipated to begin at the Slide target in late June, snow-conditions permitting, in order to allow receipt and interpretation of assays from these early holes to influence drilling plans later in the season. Also anticipated are additional surface work and drill testing of other targets that were developed or refined during the 2013 season.