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Homestake Resources To Start Drilling At Homestake Ridge Project

Homestake Resource Corp. (CVE:HSR) said Thursday that it has started drilling at its Homestake Ridge project, in Northwestern B.C., and adds more claims to its Kinskuch property.

The Homestake project is located within the Iskut-Stewart-Kitsault Belt 32 kilometres north-northwest of the tidewater communities of Alice Arm and Kitsault, B.C. The project consists of 26 mineral claims containing 151 units and seven crown grants.

The Vancouver-based mineral explorer said core holes will offset high-grade mineralization discovered back in 2011 at the South Reef deposit about 800 metres southwest of its silver deposit.

It said initial holes will offset three other holes from last year's program that tested a 75 metre strike length of a mineralized trend.

The year-ago program returned 30 plus grams per tonne (g/t) gold at 260 metres. This includes 30.8 g/t gold at 3.1 metres and 3.3 g/t silver in an 8.7 metre interval averaging 11.3 g/t gold and 1.6 g/t silver in drill hole HR11-232.

South Reef is the third largest high grade gold-silver deposit discovered by Homestake. Mineralization is open at depth and along a strike length of 3.4 kilometres.

At the Kinskuch project, the company also announced that it has staked 2,964 hectares of claims in two claim groups, which bolsters the land package to 62,364 hectares.

Claims were added on the northern margin of the property and cover a portion of the headwaters of the White River.

A second group of claims were staked along the southwestern projection of the Homestake and Dolly Varden mineral trends in the western part of the property.

In addition to the staked claims, Homestake Resources closed a second tranche from a private financing it previously announced.

The company sold 10 million units in the non-brokered private placement, and issued 837,500 non flow through shares for proceeds worth $167,500.

The flow-through shares are priced at 20 cents each, and consist of one common share and one warrant. The purchase warrants enable holders to buy an extra share for 30 cents for 36 months.

Proceeds from the offering will go toward general working capital and for corporate purposes.

Homestake Resource Corp., formerly Bravo Gold Corp., is a Canada-based exploration-stage company engaged in the acquisition and exploration of mineral properties.

Shares last traded at 25 cents each on the TSX Venture Exchange on Thursday late afternoon.