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Thursday, 6 December 2012
Homestake Resource extends mineralization at Kinskuch, finds parallel copper-gold zone
Vancouver-based Homestake Resource Corp (CVE:HSR) reported Thursday that surface soil and rock sampling on its Kinskuch project in BC has extended silver-lead-zinc mineralization south of the company's 2011 drilling by an additional 750 metres.
The sampling has also expanded the overall Illiance River trend to more than 4.5 kilometres of strike length, the company said. Mineralization along the entire trend remains open in all directions.
Further, a second parallel trend of elevated copper and gold anomalies has been found to the west of the main trend within a large geophysical anomaly. The geologic setting is believed to be similar to the historic Dolly Varden VMS mine, the largest historic silver producer in the region, Homestake noted.
The Illiance River trend is the first of several "high-priority areas" identified by Homestake on this large 63,200 hectare Kinskuch property in British Columbia, next to the company's Homestake Ridge project.
"Some of the best VMS deposits in the world occur within Jurassic-age Hazelton rocks, and include the past-producing Eskay Creek and nearby Dolly Varden deposits," said the company's VP of exploration, Rob Macdonald.
"Our drilling demonstrated that Ag-Pb-Zn mineralization occurs at very attractive grades, similar to grades at the Dolly Varden deposits. Our rock and soil geochemical results, combined with our EM geophysical data, demonstrate that we have an extensive VMS horizon at Illiance River that could host several significant mineral deposits.
"We will initially offset our successful prior drill holes because we feel there is a very good likelihood of developing an attractive resource there, but VMS deposits typically form in clusters so other deposits probably exist in this under-explored region."
Notable sampling results south of the 2011 drilling included 3,321 grams per tonne (g/t) silver, 1.9 g/t gold, 0.8% copper, 40.1% lead and 22.4% zinc, or 4,341 g/t silver equivalent.
The company also said it saw "strongly elevated silver mineralization" in a series of three select chip samples ranging from 14.5 to 61.9g/t silver, located 350 metres to the south of the 2011 drilling.
Meanwhile, it reported 989 g/t silver, 1.1% copper, 0.4% lead and 20.3% zinc from chip sampling of outcrop located an additional 400 metres to the south.
Homestake noted that these surface results are similar to those from initial 2011 sampling, where drilling that followed found a series of sub-vertical mineralized VMS horizons along a 500 metre strike length of the trend.
The company owns a 100 per cent interest in the Homestake Ridge project, which is located in a prolific mineral belt in northwestern British Columbia.
It also holds an option to acquire a 100 per cent interest in the 623-square-kilometre Kinskuch project located adjacent to, and to the southeast of, the Homestake Ridge project.
The explorer also holds a 10.19 percent interest in Bravada Gold Corporation (CVE:BVA), which is exploring and developing numerous gold/silver projects in Nevada.