Homestake active in Venezuela

San Francisco-based Homestake Mining (NYSE) is planning exploration and drilling for several newly acquired gold properties 25 km northwest of Venezuela’s Kilometre 88 district.

Through a bidding process, the major secured a contract with Corporacion Venezolana de Guayana (CVG) to explore and develop El Foco, an area which contains about 118,000 acres of gold properties.

In a separate transaction, Homestake signed an agreement-in-principle with Idaho-based L.B. Mining for a joint venture to advance L.B.’s Truinfo and Las Flores gold properties in the same country’s Guariche district. Homestake will carry out a due diligence review and, if successful, fund exploration on the two properties, which cover 74,000 acres. The agreement allows Homestake to advance the projects to the feasibility stage if warranted by exploration results.

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