Homestake gains foothold in Alaska

The acquisition of two exploration properties in the Fairbanks district marks Homestake Mining’s (HL-N) first foray into Alaska.

The major entered into an agreement in principle with Silverado Mines (GOLDF-Q) to acquire the Whiskey Gulch and Marshall Dome properties in exchange for undisclosed cash payments, annual work commitments and a net smelter return royalty. Homestake also agreed to buy, by way of a private placement, shares in Silverado; the number of shares has not been disclosed.

The deal is expected to be signed before year-end.

The Whiskey Gulch property encompasses 100 acres adjacent to the True North gold deposit, a joint venture between Newmont Gold (NGC-N) and La Teko Resources (LAORF-Q).

A geophysical survey over the Whiskey Gulch property has identified an electromagnetic conductor trending into the True North property. Silverado believes the conductor is an extension of a gold-bearing structure at True North.

The Marshall Dome property comprises 14,400 acres and lies east of Whiskey Gulch.