Mining News: Northern Neighbors: Homestake buys royalty on namesake project

Homestake Resource Corp. May 16 agreed to purchase from Teck Resources Ltd. a 2 percent net smelter return royalty on mineral claims forming a portion of the Homestake Ridge property in northwestern British Columbia. Teck also held rights to purchase another 2 percent NSR on other mineral claims from its holder for C$1million within 60 days from start of commercial production from the claims. Homestake also has acquired this right of purchase, ensuring that those claims would remain royalty-free at commercial production. “The royalty being purchased affects about 46 percent of Homestake’s current resources, as well as the entire Slide exploration target and untested projections of mineralization,” explained Homestake President Joe Kizis. The Homestake Ridge property hosts three significant mineral deposits with 124,000 ounces of gold and 939,000 oz. silver in the indicated category; and 911,000 oz. gold and 20,366,000 oz. in the inferred category.

- Shane Lasley