VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2012) - Homestake Resource Corporation. (TSX VENTURE:HSR)(FRANKFURT:B6IH) announced today a financing for its 2012 Kinskuch exploration program. The proposed offering shall be on a non-brokered basis, consisting of flow-through Common Shares and non-flow-through Units. The Company may pay finders' fees in cash and issue Finder's Warrants each having the same terms and conditions as the Warrants. The private placements and payment of finders' fees are subject to regulatory approval.
Flow through Common Shares: Issuance of a maximum of 2,000,000 Flow-through shares to Canadian resident investors, each flow-through share priced at $0.30 to raise gross proceeds of a maximum of $600,000 with the gross proceeds utilized for Canadian exploration expenses, within the meaning of the Income Tax Act (Canada), related to the exploration during 2012-2013 of the company's Kinskuch project in British Columbia and other eligible exploration expenses, Canada with expense renunciations on December 31, 2012.
Units: Issuance of a maximum of 4,000,000 Units priced at $0.30 per Unit to raise gross proceeds of a maximum of $1.200,000. Each Unit is comprised of one common share and one half share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.35 per share for 24 months. The proceeds from the non-flow through private placement will be utilized for working capital.
The Kinskuch project is a large 623 sq. km property which is located directly east of Homestake Ridge and extends south approximately 30km to tidewater at Alice Arm/Kitsault in Northwestern British Columbia.
Initial work will follow-up encouraging 2011 results along a 2.5km strike of the Illiance trend and will continue the systematic surface evaluation of the numerous epithermal vein and massive sulphide showings on the trend both to the north and south, a cumulative 14 kilometres of strike length. Other historical showings and numerous geophysical anomalies identified by the 2011 airborne geophysical survey over the property will be examined with the goal of developing new targets for drill testing in 2013.
Extremely encouraging results in the 2011 drilling included KN11-02 that intersected several mineralized zones with the strongest being 2.8m of 318 g/t silver, 2.2% lead and 6.5% zinc. A 500-metre offset of that hole, KN11-03, also encountered multiple intercepts including 3.9m of 267 g/t silver, 1.3% lead and 6.5% zinc (see News Release Feb 02/12).
Homestake Resource Corporation owns a 100 percent interest in the Homestake Ridge project and an option to earn a 100 percent interest in the Kinskuch project which are located in the emerging Kitsault mineral district in northwestern British Columbia. The Homestake Ridge project is being advanced as a potential high-grade underground mining operation with a current NI43-101 compliant Indicated Resource, at a 3.0 g/t AuEq. cut-off, of 191,000 oz gold and 1,350,000 oz silver (215,500 oz AuEq) plus an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver (775,900 oz AuEq)(1). Two deposits have been delineated to date, with a third, South Reef, discovered late in 2011. Multiple exploration targets remain to be tested on the large 2585 hectare property. Agnico-Eagle Mines Limited has an option to fund exploration and development costs of $25.3 million over a 5 year period to earn a 65% interest in the property. The Kinskuch project is a large 62,300 hectare property package located adjacent to, and to the southeast of, Homestake's Homestake Ridge project and hosts numerous epithermal vein and massive sulphide showings throughout the property. Homestake holds a 9.76 percent interest in Bravada Gold Corporation (TSX VENTURE:BVA), which is exploring numerous projects in Nevada.
ON BEHALF OF THE BOARD
Joseph A. Kizis Jr., President
- The current estimate was prepared by Roscoe Postle Associates Inc. (RPA). Mineral Resources on the Main Homestake deposit were estimated previously in 2010 using a block model constrained by 3D wireframes of the mineralized zones. Mineral Resources on the Homestake Silver deposit were estimated in 2011 using a block model constrained by pierce points projected to 2D surfaces. The Main Homestake block model comprised an array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and Cu interpolated using ID3 weighting. The Homestake Silver block model comprised an array of blocks measuring 10 m x 10 m. At a 3.0g/t AuEq cut-off, the models identified an indicated resource of 888,000 tonnes averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.
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. Bravo Gold 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.
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