Homestake Responds to BCSC Clarification Request
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 3, 2013) -
Homestake Resource Corporation (TSX-VENTURE:HSR)(FRANKFURT:B6IH)
("Homestake" or "the Company") reported today that as a result of a
recent targeted mining disclosure review by the British Columbia
Securities Commission ("BCSC"), the Company is issuing this news
release to clarify disclosure on its website, Corporate
Presentation, and in certain news releases regarding technical
disclosure issues therein.
The following Technical Disclosure issues were identified by the
BCSC as being non-compliant to NI43-101 and have been addressed by
the Company.
Technical Disclosure Issues Identified by the BCSC
Non-Compliant
Exploration Targets
In its Corporate Presentation and website the Company disclosed
an exploration target for its Illiance River project which included
a potential target size (5 million tonnes to 10 million tonnes)
without providing the appropriate cautionary language that the
target is conceptual and that there has been insufficient
exploration to define a mineral resource on the project as per
section 2.3 (2) of NI 43-101.
The Company clarifies that the potential quantity and grade of
the target is conceptual in nature and that there has been
insufficient exploration to define a mineral resource and that it
is uncertain if further exploration would result in the
identification of a mineral resource.
When identifying the target size, the strike-length of the
surface mineralization (+2.0km), the grade and thickness of
mineralized intercepts from drilling (+5m cumulative thickness)
within this strike-length and the spacing of the drill holes were
all considered.
Non-Compliant
Disclosure of Historical Estimates
In its Corporate Presentation and Website, the company disclosed
"historic non NI 43-101 compliant resources" on the neighboring
Dolly Varden property without providing the necessary information
and cautionary language as required by the national instrument.
The Company notes that this disclosure used incorrect
terminology in its reference to a neighboring property. To the
Companies knowledge, no qualified person has done sufficient work
to classify this Historical Estimate as current Mineral Resources
or Reserves and as a result, should not be relied on as such.
The Company has removed references to this historical estimate
in its public disclosure.
Non-Compliant
Disclosure of Mineral Resources/Reserves
- In its recent news releases, Presentation, and its fact sheet,
the company discloses a mineral resource without providing all the
necessary information required by section 3.4 of NI 43-101
including: (a) the effective date of the resource; (c) a complete
set of assumptions, methods and parameters used to estimate the
mineral resource and (d) the identification of any legal,
political, environmental or other risks that could materially
affect the potential development of the mineral resource.
The Company has added this information to its technical
disclosure.
- On its website and Corporate Presentation, the Company
discloses resources and/or reserves of neighboring deposits and
other major mineral deposits throughout northwestern British
Columbia without disclosing the applicable categories, adding
inferred categories to other categories and disclosing mineral
resources solely in the form of metal content required by section
2.2 (a), and 2.3(1)(a) of NI 43-101.
- Contrary to section 2.2(b), on its website and Corporate
Presentation, the Company does not disclose each category of
mineral resources or mineral reserves separately when describing
neighboring deposits and other major mineral deposits throughout
northwestern British Columbia.
- Contrary to section 2.2(c), on the its website, and Corporate
Presentation, the Company adds inferred mineral resources to other
categories when describing neighboring deposits and other major
mineral deposits throughout northwestern British Columbia.
- Contrary to section 2.2 (d), on the its website, and Corporate
Presentation, the Company discloses resources solely in the form of
metal content when describing neighboring deposits and other major
mineral deposits throughout northwestern British Columbia.
The Company has updated the disclosure to show production of
applicable neighboring deposits and the applicable Mineral Resource
categories for several additional deposits within the region.
Non-Compliant
Disclosure of metal equivalent grades
Contrary to section 2.3 (d), in the About Homestake section of
its some earlier news releases, the Company discloses metal
equivalent grades for resource estimates that do not include the
individual grade of each metal used to establish the metal
equivalent grade.
For clarity the Company repeats the grade and tonnage of the
mineral resource in the table below as of June 2013 at an
$85NSR/tonne cut-off:
To view the table, please visit the following link:
http://media3.marketwire.com/docs/HSRTechTable.pdf.
In its most recent news release, the Company provided
information pertaining to individual grades used to establish the
metal equivalent grade, as required by section 2.3 (d) of NI43-101,
in the form of a footnote to the body of the text.
Qualified
Person
On its website and Corporate Presentation, the Company does not
identify and disclose the relationship to the Company of the
qualified person who prepared, supervised the preparation of, or
approved of the technical information it is disclosing as required
under section 3.1 of NI 43-101.
The Company has updated the Corporate Presentation and website
with the appropriate QP language.
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, subject to various royalty interests held by
vendors. 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 @ 7.3g/t AuEq grade) plus an
Inferred Resource of 911,000oz gold and 20,366,000oz silver
(1,225,785oz AuEq @ 5.6g/t AuEq grade) in three deposits (1). 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, 262 holes were drilled for a total of 74,973 metres,
and multiple exploration targets remain to be tested on the large
3,617 -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
645-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
+4.0-kilometre strike-length; Homestake will be aggressively
exploring this trend in 2014.
Homestake owns a 10 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.
|
(1) |
The
current estimate was prepared by David W. Rennie of Roscoe Postle
Associates Inc. (RPA) and reported in "Technical Report on the
Homestake Ridge Project, an Updated Mineral Resource, Kitsault,
British Columbia" June 7, 2013. Mineral Resources utilize three
separate block models constrained by 3D wireframes and were
constrained using a 2g/t AuEq grade shell. The block models are
comprised of an array of blocks measuring 5 m x 5 m x 5 m, with
grades for Au, Ag, Cu, AuEq and NSR values interpolated using ID3
weighting. The models identified an indicated resource of 604,000
tonnes averaging 6.4g/t Au, 48.3g/t Ag and 0.18% Cu and a
cumulative inferred resource of 6,765,000 tonnes averaging 4.2g/t
Au, 93.6g/t Ag, 0.11% Cu. Mineral Resources are estimated using an
average long-term gold price of US$1,500 per ounce Au, US$27 per
ounce Ag, and US$3.50 per pound Cu, with an exchange rate of
C$1.00=US$1.00. NSR and Gold Equivalence were calculated using Au,
Ag and Cu metallurgical recoveries of 92% Au, 88% Ag and 88% Cu in
blocks where Cu% >0.1%; and where calculated using just Au and
Ag recoveries in blocks with <0.1% Cu. Homestake Resource Corp
is unaware of any legal, political, environmental or other risks
that could materially affect the potential development of the
mineral resource. |
Robert Macdonald, MSc., PGeo., is Homestake's Vice President of
Exploration and is the Qualified Person responsible for the
supervision and preparation of the technical information in this
disclosure.
On behalf of the Board of Directors,
Joseph A. Kizis, Jr., President & Director, Homestake
Resource Corporation
For further information, please visit the company's website at
www.homestakeresource.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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.
Homestake Resource
Corporation604-684-9384info@mnxltd.comwww.homestakeresource.com
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