Agnico Eagle to Let Homestake Ridge Option Lapse

Homestake Resource Corp. (TSXV:HSR) announced that Agnico Eagle Mines Ltd. (TSX:AEM,NYSE:AEM) will let lapse its option to earn an initial 51-percent interest in the British Columbia-based Homestake Ridge property. Homestake will thus retain 100-percent ownership.

As quoted in the press release:

Drilling completed during the 2014 summer program by Agnico extended the new Slide target to 800 metres of strike length, confirming a new zone of silver mineralization similar to that identified at the Homestake Silver Deposit and indicating the potential for a similarly rich gold zone down dip, which remains to be tested.

Homestake will apply Agnico’s and Homestake’s exploration work towards assessment requirements of the Homestake Ridge Property and to the Kinskuch Property (62,500 hectares), for additional one and two year periods, respectively.  With more than 66,100 hectares in total, Homestake has one of the largest consolidated land packages in the Kitsault district, which is the southern extension of a prolific belt of precious metal-rich mineral deposits of Jurassic age.

Joe Kizis, president of Homestake, commented:

Agnico’s drilling has demonstrated that a silver resource is likely to be developed with further drilling at the Slide target. The newly extended portion with shallow mineralization lying between the existing Homestake Silver and South Reef deposits is particularly intriguing. Our mineral-zoning model, based on our three discoveries made to date on the property, suggests that rich gold mineralization should occur beneath the envelope of silver-biased mineralization seen at the Slide target, and we intend to utilize the model in the development of drill targets below the silver-rich mineralization.

Click here to read the full Homestake Resource Corp. (TSXV:HSR) press release.