TSX.V: HSR Frankfurt: B6IH. Homestake Ridge Kinskuch Project

Transcription

1 TSX.V: HSR Frankfurt: B6IH Homestake Ridge Kinskuch Project CORPORATE PRESENTATION March 2014

2 Forward Looking Statement Some of the statements contained in this presentation may be deemed forward looking statements. These include estimates and statements that describe the Company s future plans, objectives or goals, and expectations of a stated condition or occurrence. Forward looking statements may be identified by the use of words such as believes, anticipates, expects, estimates, may, could, would, will, or plan. Since forward looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, reclamation, capital costs, and the company s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as but not limited to; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for the minerals the Company expects to produce; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the Company s activities; and changing foreign exchange rates and other matters discussed in this presentation. Persons should not place undue reliance on the Company s forward looking statements. Further information regarding these and other factors, which may cause results to differ materially from those projected in forward looking statements, are included in the filings by the Company with securities regulatory authorities. The Company does not assume any obligation to update or revise any forward looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws, whether as a result of new information, future events or otherwise. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this presentation, that has been prepared by management. Robert Macdonald, MSc., PGeo., is Homestake s Vice President of Exploration and is the Qualified Person responsible for Homestake s disclosure of technical information. 2

3 Introduction Two major projects in the emerging Kitsault mineral district in northwestern British Columbia Homestake Ridge and Kinskuch 1. Recent acquisitions have brought two senior mining companies to the district; Agnico Eagle Mines Ltd. and Hecla Mining Ltd Resource Estimate: Homestake Ridge Project is an advanced project with a highgrade gold silver NI compliant resource (as of April 2013, using a $85NSR/t cut off): Indicated resource: 124,000oz Au and 0.94 MMoz Ag averaging 6.4g/t Au, 48.3g/t Ag (141,000oz AuEq) Inferred resource: 911,000 oz Au and MM oz Ag averaging 4.2g/t Au, 93.6g/t Ag (1,226,000oz AuEq) 3. Kinskuch Project is a large 625 sq km property adjoining the Homestake Ridge project which consolidates a large portion of the evolving district and increases the potential for discovery of new mineral deposits. 3

4 Kitsault District Recent acquisitions have brought two senior mining companies to this district 1. Agnico Eagle Mines Ltd: option with Homestake Resource Corp. to earn 65% of the Homestake Ridge project with staged expenditures of $25.3 million over 6 years 2. Hecla Mining Ltd: acquisition of 20% interest in Dolly Varden Silver; $3.5 million initial investment in the Dolly Varden project located immediately to the south of the Homestake Ridge project Upwards of $6 million total spent in the district in 2013 HomestakeResourceCorp.retains the right to a 100% interest on the Kinskuch Property Homestake Ridge Project Homestake Resource/Agnico Eagle 3600ha Dolly Varden Project Dolly Varden Silver (Hecla) Kinskuch Project Homestake Resource Corp 62,500ha Kitsault Mo Project Avanti Mining Alice Arm Kitsault Big Bulk Project Dolly Varden/Teck Ajax Mo Project Mercator Minerals Kitsault District Vancouver 4

5 Homestake Ridge Project: Agnico-Eagle Option In August 2012, Agnico Eagle Mines Limited optioned the Company s flagship asset, Homestake Ridge, & acquired ~7% of the Company s stock. Agnico can earn up to 65% interest in the Project with staged expenditures of $25.3 million over six years. Option to Earn 51% $10.3 million 2012: $1.8 million (completed) 2013: $2.5 million (completed) 2014: $3.0 million 2015: $3.0 million Option to Earn additional 14% (65% total) completion of feasibility or $15.0 million 2016: $5.0 million 2017: $10.0 million Agnico Eagle can earn an addition 5% by arranging production financing 5

6 Major Deposits in Northwestern BC Legend Productive Precious Metal Region: Snip Mine Production: 1.03Moz Au ALASKA Eskay Creek Mine Production: 3.3Moz Au, 159Moz Ag BRITISH COLUMBIA KSM Snowfield Brucejack Silbak Premier Mine Production: 2.0Moz Au, 42.9Moz Ag Road River Town Major Deposit Total Property Package in the Region = 661 sq km Homestake Ridge Property = 36 sq km Kinskuch Property = 625 sq km To date the region has produced: over 7M oz Au over 220M oz Ag over 1B lbs Cu Compliant Resources in the area include * : Homestake Ridge Property 124,000Oz Au, 939,000Oz Ag Indicated* 911,000Oz Au, 20.37MOz Ag Inferred* Stewart Dolly Varden/Torbrit Mine Production: 20Moz Ag Company Name Category Tonnes Grade (millions) (g/t) Seabridge Gold KSM Gold Ounces (million) Grade (g/t) Silver Ounces Grade (million) (%) Copper Pounds (million) M+I 2, ,700 Inferred 1, ,200 Date of Resource 31-Dec-12 : Kinskuch Property 625 sq km of prospective stratigraphy with multiple exploration targets Kitsault Moly Pretium Resources Pretium Resources Homestake Resources Brucejack Snowfields Homestake Ridge M+I Inferred M+I 1, ,000 Inferred ,100 Indicated Inferred Nov-12 Feb Apr-13 *All resources are compliant and taken from company websites. Mineral resources are conceptual in nature and as such do not have demonstrated economic viability. Some numbers have been rounded for ease of viewing. For more accurate information, visit the company websites. 6

7 Mining in BC: Infrastructure Northwest BC Prolific and historic mining district Politically stable and mining friendly province Homestake Ridge HSR/AEM Proposed Hydro Projects Kinskuch HSR Infrastructure Power Onsite power generation facility has been licensed Northwest Transmission Line (yellow line) currently under construction Synergies with proposed hydrodevelopment projects Dolly Varden Dolly Varden Silver (Hecla) Kitsault Mo Project Avanti Mining Road 32km to tidewater at Alice Arm by historic roadway Road access to within 6km of property 7

8 Homestake Project: Overview 100% ownership subject to 2% NSR Currently Optioned to Agnico Eagle Mines Limited (AEM) 262 diamond drill holes completed on the project for a total of 74,973 metres at a cost of +$33 million to 2013 Three high grade gold/silver deposits identified: Main Homestake, Homestake Silver and South Reef New Discovery in 2013: The Slide Zone Target, poised for delineation in 2014 Additional high grade mineral occurrences throughout the property 8

9 Homestake Project: 2013 Resource Estimate as of April 25 th 2013 using an NSR$85 Cutoff Indicated Zone Tonnage AU AU AG AG CU CU NSR AUEQ AUEQ Kt g/t Au oz Au g/t Ag oz Ag % Cu Mlb Cu $US/t g/t AuEq oz AuEq Main Homestake 604, , , ,000 Total 604, , , ,000 Inferred Main Homestake 2,031, , ,868, ,000 Homestake Silver 4,402, , ,460, ,000 South Reef 332, , , ,000 Total 6,766, , ,366, ,226, Mineral Resources were constrained using a 2g/t AuEq grade shell. 2. CIM definitions were followed for Mineral Resources. Mineral Resources are conceptual in nature and as such do not have demonstrated economic viability. 3. Mineral Resources above utilize three separate block models constrained by 3D wireframes of the mineralized zones. 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 ID 3 weighting. 4. 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$1.00=US$ 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 6. The current estimate was prepared by Roscoe Postle Associates Inc. (RPA). David Rennie (P. Eng.) is the Principal Geologist for Roscoe Postle Associates Inc. and is the Independent Qualified Person responsible for preparation and review of the Mineral Resource Estimate Mineral Resource Highlights Identification of new high grade resources at the South Reef Deposit (139,000ozs Au and 38,000ozs Ag averaging 13.0g/t Au, 3.6g/t Ag) which remains open to the northwest Optimization of the Main Homestake deposit resulted in an increase in grade at equivalent cut offs and overall contained gold ounces Inclusion of silver enriched resources identified in 2011 drilling at the Homestake Silver deposit 9

10 Homestake Project: 2013 Drilling New High Grade Drill Intercept Points to Fourth Mineral Deposit at Homestake Ridge Agnico Eagle Ltd Program 3,947 metres of core drilling in 10 widely distributed holes; Surface mapping and prospecting throughout the property; Soil sampling over previously untested areas; and 18.9 line kilometres of IP/Res geophysics Slide Target Potential New Discovery HR13 253: 3.1metres of 462.7g/t Ag inc: 0.5metres of 1,675g/t Ag Bonanza Grade Silver intercept is consistent with early shallow drilling on the Homestake Silver deposit and suggests proximity to a new high grade Au Ag deposit Of 261 total holes drilled, 31 contain +500g/t Ag assays; 29 of these holes occur within the Main Homestake and Homestake Silver deposits 10

11 Homestake Project: New Targeting 11

12 Homestake Project: Longitudinal Projection Homestake Resource s aggressive and successful exploration since acquisition in 2003: Discovery hole at Main Homestake deposit in 2005 Discovery hole at Homestake Silver deposit in 2009 Discovery hole at South Reef deposit in 2011 Discovery hole at Slide Target in 2013 For specific technical information related to the above resource, refer to slide 9. 12

13 Homestake Project: Asset Growth Profile 100% increase in high grade Mineral Resources since 2010 Poised for Continued Discovery: $3.0 million 2014 Agnico Eagle exploration commitment Goal: Identification and expansion of new mineral deposits accretive to previous discoveries at Main Homestake, Homestake Silver and South Reef 13

14 Homestake Project: Global Context Importance of High Grade Ounces The NRH Report documents 439 deposits worldwide that contain +1Mozs gold. About 250 remain undeveloped. Most are low grade deposits and very sensitive to gold price, location and capital cost (i.e. may never be mined) Less than 50 average +4g/t Au Homestake Ridge Project Average grade in the 4 6g/t range falls within: The Top 15 undeveloped high grade deposits in Canada The Top 50 undeveloped high grade deposits in the World Graphic from Natural Resource Holdings Report: Global Gold Mines &Deposits 2012 Ranking 14

15 Homestake Project: Metallurgy & Environment Dore Bars Metallurgical lab results Expected recoveries from a combined gravity/flotation processing plant would be: 85 90% gold 80 90% silver 85 90% copper Environmental testing indicates initial tailings sample has low potential for acid generation Nisga a Treaty Land: Excellent relations with First Nations; engagement and consultation are on going Exploration practices designed to preserve environmental integrity Base line work has been initiated 15

16 Kitsault District Consolidation Kitsault District Kitsault District Two Senior Mining Companies now active in the district Agnico Eagle Mining and Hecla Mining Vancouver Upwards of $6M spent in district in 2013 Kinskuch Project 625 sq. km of prospective stratigraphy 58 historical mineral occurrences Two Strongly Mineralized belts Homestake Trend VMS trend Illiance River Trend VMS trend 16

17 Kinskuch Project: Airborne Geophysics 3860 ln km 100 metre spacing Magnetic / Electro magnetic / Radiometric Survey Kinskuch Project Vancouver Survey covers most of the known mineral occurrences on the Kinskuch property Residual Magnetic Intensity (nt) Note: Graphic contains assays and grades obtained from historical BC gov t records which have not been independentlyverifiedbythecompanyandshouldnotbe relied upon as such 43,500 27,000 17

18 Kinskuch Project: Esperanza Target Area Highlights Eskay Creek type high grade Ag Au target at the contact between Salmon River Sediments and overlying Bowser Lake Group sediments. Easy access ~1.5km from tidewater at Alice Arm Historic workings from which high grade silver was produced between 1911 and Exploration Results 1.5km silver and gold in soil anomaly open to the north and to the south Surface chip sampling up to 154g/t Au and up to 1446g/t Ag Plans A Phase I, 4 drillhole program to test Eskay Creek type, high grade Au Ag target Note: Graphic contains assays and grades obtained from historical BC gov t records which have not been independently verified by the Company and should not be relied upon as such 18

19 Kinskuch Project: FH Target Area Red Chris / North Rok Type target centered on a 1000m x 500m Cu Au soil anomaly (Au shown on left) 4 modern drillholes (2008), best results: 41m of 0.11% Cu & 0.12g/t Au in 08SD 01* 1916 & 1917 drill holes w/ 14.6m of 2.64%Cu & 0.96g/t Au and 3.66m of 1.9% Cu & 2.4g/t Au (collar locations not identified)* Historic samples up to 3.7% Cu* * Assays and grade s obtained from historical BC gov t records which have not been independently verified by the Company and should not be relied upon as such 19

20 Kinskuch Project: Illiance River Trend Illiance River Trend 2011/12 Exploration Results Silver rich mineral occurrences over a +4.0 km strike length; high grade mineralization over entire trend 856 metres drilled in four holes: high grade Ag polymetallic drill intercepts over a 500m strike length Second Cu Au geochemical trend associated with a 2011 airborne EM geophysical anomaly 2011 Saw cut Channel Sampling (surface) 530g/t Ag, 5.5% Pb & 4.2% Zn (807g/t AgEq) over 2.2m. 373g/t Ag, 7.8% Pb & 5.2% Zn (743g/t AgEq) over 1.9m. High grade precious and base metal assays extending south of the 2011 drilling including: Massive sulphide float assaying 3321g/t Ag, 1.9g/t Au, 0.8% Cu, 40.1% Pb and 22.4% Zn (4341g/t AgEq) and 989g/t Ag, 1.1% Cu, 0.4% Pb and 20.3% Zn (1621g/t AgEq) assay from chip sampling of outcrop located 750 metres south 20

21 Kinskuch Project: Drill Targeting 2014 Drill testing on a +1500m strike length to begin in

22 Exploration Plans and Summary Homestake Ridge 2013 NI compliant resource (as of April 2013, using a $85NSR/t cut off): Total indicated resource of 124,000 oz Au and 0.94 MM oz Ag averaging 6.4g/t Au and 48.3g/t Ag Total inferred resource of 911,000 oz Au and MM oz Ag averaging 4.2g/t Au and 93.6g/t Ag $4.3 million total 2012/13 exploration expenditures Funded by Agnico Eagle Limited $3.0 million 2014 Budget Slide Zone Target Goal: Identification and expansion of new mineral deposits accretive to previous discoveries at Main Homestake, Homestake Silver and South Reef Kinskuch Proposed Exploration Drill program on the Illiance River Trend with the goal of delineating a new highgrade Silver Polymetallicdeposit Initial drill testing at Esperanza Goal: Continued exploration with the goal of developing a pipeline of targets that can develop into new mineral discoveries 22

23 Directors Joseph A. Kizis Jr., President, Director - Mr. Kizis is a Registered Geologist with 35 years experience in exploration for gold, silver, copper, molybdenum, lead, zinc, and uranium in the U.S., Canada and abroad. Currently, he is the President and director of Homestake Resource Corp. and Bravada Gold Corporation, and has held previous executive positions with Fairmile GoldTech, Sierra Geothermal, the Geological Society of Nevada, and the GSN Foundation. Lawrence Page, QC, Chairman, Director - As the principal and founder of the Manex Resource Group, Lawrence Page brings over 45 years of experience in corporate and securities law, and has been a director and officer of public companies which have discovered and brought mines such as Eskay Creek, Mascot Gold, and Pensaquito in to production. Nazlin Rahemtulla Currently an Independent Business Consultant, Ms. Rahemtulla has over 14 years of experience in the financial industry, previously holding management positions with Weiler Smith Bowers Consulting Structural Engineers, The MacLean Group, and RBC Financial Group. Stephen Beardslee, Director - Stephen Beardslee retired from the U.S. Air Force as an information systems director in 1986, and retired from The Boeing Company as an engineering manager in He has been involved with mineral exploration on Woewodski Island in Southeast Alaska for more than 20 years. He has previously served as treasurer, then president of the Boeing Employees Flying Association. Declan Costelloe, Director - Declan Costelloe serves as a Director of Homestake Resource Corporation and is also the President of Celtic Mining Ltd., an independent mining consulting firm and Director, Executive Vice President and Chief Operating Officer of Colt Resources Inc., a Canadian resource development company. Mr. Costelloe is a chartered engineer (UK Engineering Council) and a mining geologist with over 20 years experience. 23

24 Company Management Directors & Officers Joseph A. Kizis Jr., President, Director Lawrence Page, QC, Chairman, Director Nazlin Rahemtulla, Director Stephen Beardslee, Director Declan Costelloe, Director Senior Management Graham Thatcher, CFO Robert MacDonald, VP, Exploration Fred Sveinson, Consulting Mining Engineer Financial Summary TSX.V: HSR Shares outstanding 39 million Warrants outstanding 11 million Fully diluted 53 million Frankfurt: B6IH Share Ownership Insiders/Management etc 5% Agnico Eagle Mines Ltd. 7% Institutions ~15% German Retail 10% Homestake Ownership: 10% of Bravada Gold Corporation Contact Information Toll Free: Fax: Website: 24