Banks Island, Homestake eye golden synergies
Last updated 11/29/2015 at Noon
Homestake Resource Corp. and Banks Island Gold Ltd. Nov. 19 reported the signing of a letter of intent in which Banks Island has the option to earn 50 percent of the Homestake Ridge gold property in northwestern British Columbia by investing C$16.5 million in work and option payments over a three-year period.
Exploration at Homestake Ridge has outlined 6.77 million metric tons of inferred resources averaging 4.2 grams per metric ton (911,000 ounces) gold and 93.6 g/t (20.37 million oz.) silver, and 604,000 metric tons of indicated resources averaging 6.4 g/t (124,000 oz.) gold and 48.3 g/t (939,000 oz.) silver.
Banks Island will be operator during the earn-in period.
In order to exercise the option, Banks Island also is required to deliver a preliminary economic assessment by Sept. 30, 2018 or within 30 days of completion of earn-in expenditures.
Banks Island Gold is a gold producer with a mine on care and maintenance at its Yellow Giant Gold property about 320 kilometers (200 miles) south of Homestake Ridge.
Banks Island President and CEO Benjamin Mossman said, "The Homestake Ridge property presents a unique opportunity to bring a significant deposit into production through the use of our existing process facilities, equipment, and staff at the Yellow Giant mine, which is currently on care and maintenance." As part of its overall strategy Banks Island plans to resume production at the Yellow Giant Mine to establish cash flow from to fund work commitments at Homestake Ridge.