Wharf Resources buys Homestake’s claims

Following an option agreement with Homestake Mining, of Vancouver, Wharf Resources has purchased Homestake’s 50% interest in 19 claims in South Dakota.

Under the agreement, Wharf receives 28 patented and two unpatented claims and the surface rights to 17 patented claims for $2.5 million(US).

The claims are located near Wharf’s Foley Ridge mine which is currently producing gold at a rate of 40,000 oz annually. Ore reserves within the Foley Ridge deposit consist of over 16 million tons of average grade 0.045 oz gold per ton.

To expand reserves at the acquired claims, an exploration program has already started.

Wharf also has an option to buy Homestake’s 50% interest in 320 patented and 39 unpatented contiguous claims for $3 million on or before Dec 31, l988.