DAILY NEWS Nov 26, 2012 3:59 PM - 0 comments

GOLD: Agnico-Eagle takes over as operator at Homestake Ridge

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BRITISH COLUMBIA – The second phase of exploration at the Homestake Ridge gold property 32 km southeast of Stewart has been completed by 100% owner Homestake Resource Corp. of Vancouver. Having funded the second phase of work, Agnico-Eagle Mines is set to take over as operator. Agnico has an option to earn a 65% interest in the project.

Two deposits have been delineated to date, with a third, South Reef, discovered late in 2011. The first phase was conducted at the South Reef target, which is located approximately 800 metres to the southwest of, and on a parallel mineralized trend to, the project's current resource inventory at the Main Homestake gold deposit and the Homestake silver deposit. The best core assays were 11.4 Au and 3.7 g/t Ag over 4.0 metres and 5.9 g/t Au and 2.0 g/t Ag over 2.9 metres, including a 0.5-metre interval that averaged 16.3 g/t Au and 4.6 g/t Ag.

The second phase tested shallow, on-strike projections of the South Reef target as well as several other targets on the property.

Agnico has agreed to spend $8.5 million by the end of 2014 at the Homestake Ridge property to earn a 51% interest, and a total of $25.3 million by 2016 to earn the 65% interest.

Technical reports on the Homestake Ridge project are posted at HomestakeResource.com.

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