VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/19/12 -- Homestake Resource Corporation. (TSX VENTURE: HSR)(FRANKFURT: B6IH) announced today a financing for its 2012 Homestake Ridge 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 10 million flow-shares to Canadian resident investors, each flow-through share priced at $0.25 to raise gross proceeds of a maximum of $2,500,000 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 Homestake Ridge and Kinskuch projects in British Columbia, Canada with expense renunciations on The Dec. 31, 2012.
Units: Issuance of a maximum of 10,000,000 Units priced at $0.20 per Unit to raise gross proceeds of a maximum of $2,000,000. Each Unit is comprised of one common share and one share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.30 per share for 36 months. The proceeds from the non-flow through private placement will be utilized for working capital.
Drilling on the Homestake Ridge Project in 2012 will delineate the extent of mineralization discovered in 2011 at the South Reef deposit, which is located about 800 metres to the southwest of the Homestake Silver deposit. The planned holes will offset three holes from the 2011 program that tested a 75 metre strike-length of the mineralized trend to depths of 260 metres and intersected +30g/t gold in each hole, including a 3.1m interval averaging 30.8g/t Au and 3.3g/t silver within a 8.7 metre interval averaging 11.3g/t gold and 1.6g/t silver from drill hole HR11-232 (see NR-14-11).
Drilling will target much of a 1.2 kilometre strike length of this newly identified, mineralized zone, which represents the third high-grade gold/silver deposit discovered in this evolving district. Mineralization is open at depth and along the full strike-length of the target horizon, which is equal to the cumulative strike-length of the previously delineated Main Homestake and Homestake Silver deposits.
Homestake owns a 100 percent interest in the Homestake Ridge project, which is located in a prolific mineral belt in northwestern British Columbia. The 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. Homestake also holds an option to acquire the 623-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Homestake's Homestake Ridge project. Homestake holds a 9.76 percent interest in Bravada Gold Corporation (TSX VENTURE: BVA), which is exploring 21 projects in Nevada.
ON BEHALF OF THE BOARD
Joseph A. Kizis Jr., President
1. 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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