Homestake Expl. to consider name change to HSK Minerals

Shareholders of Homestake Explorations will be asked to consider and, if deemed appropriate, to approve a name change of the company to HSK Minerals Ltd.

A special shareholders meeting has been called for Oct 24 for this purpose, President Hugh D. Harbinson tells The Northern Miner.

The listing of the company’s shares on the Toronto Stock Exchange will proceed shortly following the name change, he says. Right now the company is listed on The Alberta Stock Exchange and trades around the 50 cents level.

In other developments, Mr Harbinson reports that Homestake has entered into three separate agreements whereby the company has the option to acquire a 100% working interest in 15 contiguous mineral claims located in Teck and Otto twps. in the Kirkland Lake area of Ontario.

The northern portion of the claim group adjoins Queenston Gold Mines’ Gracie West and Kirkland Lake West properties and lies within one-quarter mile directly south of the Kirkland Lake main break.

The southern claim group straddles the Teck-Otto twp. line. It lies adjacent to the central and western shore of Vigrass Lake and encompasses the Larder Lake gold structure.

Mr Harbinson says these 15 claims have seen only limited exploration to date. A thorough exploration program is warranted, the company feels, due to the property’s immediate proximity to the main break and Larder Lake gold structures.

A program of stripping, trenching and sampling is scheduled to start this month on the south portion of the claim group. Here recent ground prospecting has uncovered extensive quartz veining and sulphide mineralization.

A survey will be conducted immediately on the three most northerly claims situated south of the Kirkland Lake main break in order to bring these claims to lease, says Mr Harbinson.

Under the terms of the purchase/option agreements, the vendors will receive $10,000 cash, a total of 200,000 treasury shares to be issued over six years, and a 10% net profit royalty from proceeds of future production.

Adding to the company’s presence in the famed Kirkland Lake camp is its recent purchase-option of 20 contiguous claims known as the Gull Lake property in Lebel Twp. within Kirkland Lake city limits. Discussions are in progress with a third party regarding a joint venture exploration program on the claims. Mr Harbinson says that regardless of the outcome of the discussion, Homestake will initiate its own preliminary work program, including trenching and sampling, on the claims this month.

Financially the company is in healthy shape. Its cash position for the six months ended June 30 stood at $351,037 versus $406,175 at the end of the same year-earlier program.