The company puts great emphasis on establishing drill targets as quickly as possible, selecting those with highest potential for containing a large gold deposit and testing them with diamond or reverse circulation drilling. Because of exploration budget reductions over the last two to three years stemming from low gold prices, Homestake currently is focused on reserve replacement around its mines and the exploration of extensive, high potential property packages derived from the acquisitions of Plutonic in Australia and Argentina Gold in Argentina. Summaries of the company's larger and more important exploration projects follow and the project locations are shown on the accompanying world map. Exploration to date has outlined an extensive system of gold mineralized structures adjacent to the old Pinson mine workings but the future focus will be on testing several target areas for much larger gold deposits. Although a number of new mineralized areas have been encountered none so far is economic.
Several targets remain to be drill tested.
Recently Homestake concluded an earn-in agreement with European American Resources Inc. on about 1,200 acres of mining claims south of the Ruby Hill mine. These claims contain widespread gold showings that have not been comprehensively explored in modern times. Homestake expects to start drilling on the new property this coming summer. In northern British Columbia, Canada, Homestake controls approximately 15,600 acres of mining claims covering most of the favorable geology around the high grade Eskay Creek mine that commenced production in 1995. Since start up the successful search for extensions of the cluster of gold-silver deposits at Eskay Creek has added approximately five plus years of life to the mining operation.