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Homestake Mining Co/DE – ‘DEFA14A’ on 3/3/98

As of:  Tuesday, 3/3/98   ·   Accession #:  950149-98-372   ·   File #:  1-08736

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 3/03/98  Homestake Mining Co/DE            DEFA14A                1:15K                                    Bowne - San Francisco/FA

Additional Definitive Proxy Solicitation Material   —   Schedule 14A
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: DEFA14A     Definitive Additional Material                        38     30K 


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SCHEDULE 14A
(RULE 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT 

SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES 
EXCHANGE ACT OF 1934 (AMENDMENT NO.           ) 

Filed by the Registrant  [X]                                                    
Filed by a Party other than the Registrant  [ ]                                 

Check the appropriate box:                                                      

[ ]  Preliminary Proxy Statement            [ ]  Confidential. For Use of the   
                                               Commission Only (as permitted
                                      by Rule 14a-6(e)(2))
[ ]  Definitive Proxy Statement                                                 

[X]  Definitive Additional Materials                                            

[ ]  Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12              

HOMESTAKE MINING COMPANY
--------------------------------------------------------------------------------
(Name of Registrant as Specified in Its Charter)

--------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)

Payment of Filing Fee (Check the appropriate box):                              

[X]   No fee required.                                                

[ ]   Fee computed on table below per Exchange Act Rules 14a-6(i)(1)  
and 0-11.                                                 

(1) Title of each class of securities to which transaction applies:   

--------------------------------------------------------------------------------

(2) Aggregate number of securities to which transaction applies:      

--------------------------------------------------------------------------------

(3) Per unit price or other underlying value of transaction computed  
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee
is calculated and state how it was determined):                                 

--------------------------------------------------------------------------------

(4) Proposed maximum aggregate value of transaction:                  

--------------------------------------------------------------------------------

(5) Total fee paid:                                                   

--------------------------------------------------------------------------------

[ ]   Fee paid previously with preliminary materials:                 

--------------------------------------------------------------------------------

  [ ]   Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was    
paid previously. Identify the previous filing by registration statement number, 
or the form or schedule and the date of its filing.                             

(1) Amount previously paid:                                           

--------------------------------------------------------------------------------

(2) Form, Schedule or Registration Statement No.:                     

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(3) Filing Party:                                                     

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(4) Date Filed:                                                       

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HOMESTAKE & PLUTONIC                                                            
Plutonic Resources Limited                                                      
March 1998                                                                      


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    Statements in this presentation regarding future or estimated reserves
and other mineralization; projected quantities and periods of future production;
production rates; production, capital and other costs; and other estimates of   
future results or activity are forward looking statements that involve risks and
uncertainties that could cause actual results to differ from estimated results. 
Actual results could differ materially depending on political events, labor     
relations, currency fluctuations and other general economic conditions, market  
prices for the Company's products, timing of permits and other government       
approvals and requirements, changes in expected operating conditions, lower than
expected ore grades, unexpected ground and mining conditions, availability and  
cost of materials and equipment, and risks generally inherent in the ownership  
and operation of mining properties and investments in foreign countries. See the
Company's Preliminary Proxy Statement filed with the Securities and Exchange    
Commission on January 26, 1998, "CAUTIONARY STATEMENTS," for a more detailed    
discussion of factors that may impact on expected future results.               


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Corporate Strategy                                                              
o  Long Term View of the Gold Industry and Pursue Value Adding Growth by        
Exploration and/or Acquisition to Achieve:                                
o  Lower cash costs                                                       
o  Reserves/production growth                                             
o  Improved exploration portfolio                                         

o  Plutonic Fits This Criteria                                                  

[STRONGER/LOWER COST COMPANY] 


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Due Diligence                                                                   
o  Homestake has undertaken extensive due diligence on Plutonic's assets having 
examined:                                                                 
o  Geological data                                                        
o  Metallurgical data                                                     
o  Mine sites                                                             
o  Budgets and mine plans                                                 
o  Homestake is satisfied with the quality of the assets, including its ability 
to meet:                                                                  
o  Future production rates                                                
o  Cash cost reductions                                                   
o  Conversion of mineralized material into reserves                       


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Synergies                                                                       
o  Strengthens Homestake's Capabilities in Australia                            
o  Will expand operations group in Perth                                  
o  Leverage complementary technological expertise                         
o  Plutonic's highly successful exploration team                          
o  Achieve Over $20 Million in Annual Cost Savings By End of 1998               
o  Will close corporate office and consolidate in Perth                   
o  Reduction in exploration expenditures from elimination of              
redundant/duplicate functions and general reduction in budget       


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Ranking of North American Gold Producers                                        
[Bar chart showing ranking of North American Gold Producers.  Graph reflects in 
descending order of greater production to less production as follows: Newmont*, 
Barrick*, Homestake & Plutonic, Placer Dome*, and Homestake.]                   
* Based on information compiled by Homestake.                                   


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Low Political Risk Profile*                                                     
[Pie chart reflecting by percentage a breakdown of the location of Homestake's  
operations:                                                                     
U.S.  26%                                                                       
Other  3%                                                                       
Canada  13%                                                                     
Australia  58%]                                                                 

*Based on Reserves and Mineralized Material                                     

December 31, 1997                                                         


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Homestake Operations                                                            
[Map reflecting the location of Homestake's operations.]                        


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5 Year Impact:  1998 - 2002                                                     
o  Plutonic to contribute Two of the Top Eight Mines in Homestake               
Homestake & Plutonic
Gold Production:  11.2 Million Ounces at $223 per Ounce 
[Pie chart reflecting by percentage gold production of each mine of Homestake,  
including the Plutonic mines:                                                   
Ruby Hill  5%                                                                   
Williams  8%                                                                    
Eskay Creek  17%                                                                
Super Pit  14%                                                                  
Plutonic  15%                                                                   
Darlot/Centenary 6%                                                             
Homestake 9%                                                                    
Round Mountain  6%                                                              
Other  20%]                                                                     


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Homestake & Plutonic                                                            
[Graph reflecting Annual Gold Production (in Millions of Ounces) for both       
Homestake and Plutonic from 1975 through 1997, along with estimates for 1998    
and 1999.]                                                                      


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Homestake Cost Reductions                                                       
Total Cash Cost Per Ounce of Gold                                               
[Graph of Total Cash Cost Per Ounce of Gold from 1981 to 1997, along with       
estimates for 1998 and 1999.]                                                   


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World Cost Curve                                                                
Western World Cash Cost for Gold Production                                     
[Graph of Western World Cash Cost for Gold Production for 1986 and 1996, showing
Homestake position in 1986 and 1997, Darlot Mine and Plutonic Mine.]            


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Homestake Mine                                                                  
[Picture of Homestake Mine.]                                                    
o   Lead, South Dakota                                                          
o   120 Years of Operation                                                      
o   39.0 Million Ounces Produced                                                
o   2.8 Million Ounces of Reserves                                              
o   New Mining Plan                                                             


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Williams and David Bell Mines                                                   
[Picture of Williams Mine and David Bell Mine.]                                 
o   Northwestern Ontario                                                        
o   Homestake has a 50% Interest                                                
o   Williams Largest Canadian Underground Gold Producer                         
o   8.0 Million Ounces Produced                                                 
o   3.3 Million Ounces of Reserves                                              


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Round Mountain Mine                                                             
[Picture of Round Mountain Mine.]                                               
o   Round Mountain, Nevada                                                      
o   Homestake has a 25% Interest                                                
o   Largest Heap-Leach Gold Mine in the World                                   
o   5.6 Million Ounces Produced                                                 
o   1.8 Million Ounces of Reserves                                              


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Eskay Creek                                                                     
[Picture of Eskay Creek Mine.]                                                  
o   Northwestern British Columbia                                               
o   High Grade Gold and Silver Mine                                             
o   1.9 Million Gold Equivalent Ounces Produced                                 
o   Reserves:  1.3 Million Ounces of Gold                                       
59.2 Million Ounces of Silver                       
(2.6 Million Ounces Gold Equivalent)                


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Ruby Hill                                                                       
[Picture of Ruby Hill Mine.]                                                    
o   Construction started in February 1997                                       
o   First Gold Pour was on November 6, 1997                                     
o   Mine is Now Fully Operational                                               
o   Gold production in 1998 is estimated at 110,000 ounces at a Cash Cost of    
$123/oz                                                                 


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Western Australian Gold Province                                                
[Map of Western Australia showing location of Plutonic Mines.]                  


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Kalgoorlie Mines                                                                
[Picture of Kalgoorlie Mines.]                                                  
o   Western Australia                                                           
o   Australia's Largest Gold Producer                                           
o   45 Million Ounces Produced in the "Golden Mile"                             
o   5.9 Million Ounces of Reserves                                              


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Plutonic Mine                                                                   
[Picture of Plutonic Mine.]                                                     
o   Outstanding Long Life Mine Transitioning to Underground Mine                
o   Annual Production 320,000 Ounces at $195 Per Ounce                          
o   Substantial Exploration Upside                                              
o   1.5 Million Ounces Produced                                                 
o   1.1 Million Ounces of Reserves                                              
o   28.5 Million tons at 0.217 oz/ton of Mineralized Material                   


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Plutonic Mine                                                                   

Area 54                                                                         
Estimated                                         
True Width    Grade                               
(m)          (g/t Au)                             
4.0             7.9                               
3.0            10.3                               
1.5             3.9                               
5.0            13.9                               
5.0             8.5                               
2.0             6.3                               
1.9             3.1                               
7.8            22.2                               
6.0            18.5                               
5.5            17.2                               
4.0            35.3                               
Weighted                                                                        
Average        4.1            15.7                                              
[Map of Zone 124 and Area 54]                                                   


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Darlot/Centenary                                                                
[Picture of Darlot/Centenary.]                                                  
o   Centenary Deposit Discovered 1996 next to Darlot Mine (500K Ounces          
Historical Production)                                                  
o   Low Cost Underground Mine Being Developed                                   
o   Annual Production 150,000 Ounces at $175 per Ounce                          
o   Substantial Exploration Upside                                              
o   1.6 Million Ounces of Reserves                                              
o   3.2 Million tons at 0.206 oz/ton of Mineralized Material                    


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Darlot/Centenary                                                                
CENTENARY PROJECT                                                               
[Map of Centenary Project.]                                                     


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Lawlers                                                                         
[Picture at Lawlers.]                                                           
o   Old Mining District Finding New Life in Underground (600K Ounces of         
Historical Production)                                                  
o   New Holland Deposit Providing High Grade Low Cost Ounces                    
o   Annual Production 50-90,000 Ounces at $240 Per Ounce                        
o   0.2 Million Ounces of Reserves                                              
o   Excellent Exploration Potential                                             


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Operational Skills                                                              
o   Wide Variety of Mining Experience                                           
o   10 Underground Mines                                                
o   6 Open Pit Mines                                                    
o   Familiarity With Modern Mining Techniques                           
o   Metallurgical Know-How                                                      
o   Recognized Pioneer for 120 Years                                    
  o   Refractory Ore Experience (Autoclaving, Roasting, Flotation, Bioleach,
Etc.)                                                           
o   Strong Safety Performance                                                   
o   Environmental Leadership                                                    


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Exploration                                                                     
Exploration Expenditures                                                        
[Bar Graph showing exploration expenditures for Homestake:                      
1993  -  $17 million                                                            
1994  -  $21 million                                                            
1995  -  $33 million                                                            
1996  -  $45 million                                                            
1997  -  $48 million]                                                           


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Attractive Exploration Opportunities                                            
o   Homestake Will Have a Large Number of Attractive Exploration Prospects in   
Western Australia                                                       
o   Australia's most prolific gold province where Plutonic and Homestake
have significant operations and experience                      
  o   Will allow shift from grassroots emphasis to more advanced projects in
Plutonic's portfolio                                            
o   Exploration Potential at Existing Operations                                
o   Finding cost in recent years around US$10/oz                        


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Plutonic Locations                                                              
[Picture/Map of Western Australia showing location of Plutonic Mines.]          


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Plutonic                                                                        
PLUTONIC - GRAM X METRES                                                        
Plutonic                                                                        
[Map of Plutonic Mine, Plutonic and Plutonic Extended.]                         


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Centenary Project                                                               
Centenary Project                                                               
Geochemical Anomalies                                                           
[Map of Gold Anomalies.]                                                        


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Lawlers                                                                         
Lawlers District                                                                
Tenement & Prospect Locations                                                   
[Map of Tenement & Prospect Locations.]                                         


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Financial Strength                                                              
o   Strong Balance Sheet                                                        
o   $250 Million Cash                                                   
Capitalization Ratio                                            
o   34% Total Debt/Total Capitalization                                 
o   Strong Cash Flow Generator                                                  


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Strategy For Growth                                                             
o   Consider Acquisitions Large and Small Only If Accretive (or Expected to be  
Accretive Soon) and Enhance Growth Opportunities                        
o   Continued Strong Support for Exploration                                    
o   Maximize Performance of Operations                                          


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Summary                                                                         
o   The New Homestake is a Company With Strong Capabilities/Performance         
o   Great Exploration Potential                                                 
o   Growth Strategy in Place                                                    
o   Strong Balance Sheet                                                        


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Market Can Not Long Ignore Changes in Homestake.  As Continued Exploration
  Success, New Mine Development, Lower Costs, Improved Profitability and Above
 All, Sustainable Growth, Become Evident, These Improved Fundamentals Should
be Reflected in Share Price.                                              


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Homestake vs. S&P Gold Index                                                    
[Graph comparing the S&P Gold Index with Homestake's Stock Price from 1/2/98    
through 2/6/98 using a 1998 Base equal to 100 and a Weighted Monthly Average.   
The graph depicts Homestake's Stock Price valued higher at each point than the  
S&P Index.  Specifically, on 2/6/98, Homestake was at 108 and the S&P Index was 
at 100.]                                                                        


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CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT. This   
document contains forward looking statements that are based on management's     
expectations and assumptions. They include statements preceded by the words     
"believe," "estimate," "expect," "intend," "will," and similar expressions, and 
estimates of reserves, future production and mine life, costs per ounce,        
reclamation and remediation costs, dates of construction completion, costs of   
capital projects and commencement of operations, exploration costs, and taxes.  
Actual results may differ materially from expectations.                         

Among the important factors that could cause actual results to differ materially
are the following. Reserve estimation is an interpretive process based on       
drilling results and past experience as well as estimates of ore characteristics
and mining dilution, prices, costs of mining and processing, capital            
expenditures and many other factors. Actual quality and characteristics of ore  
deposits cannot be known until ore is actually mined. Reserves change over time 
to reflect actual experience. Grades of ore processed at any time may also vary 
from reserve estimates due to geologic variations within areas mined. Production
and mine lives may vary from estimates for particular properties and for the    
Company as a whole because of changes in reserves, variation in ore mined from  
estimated grade and metallurgical characteristics, unexpected ground conditions,
mining dilution, labor actions, and government restrictions. Cash costs may vary
due to changes from reserve and production estimates, unexpected mining         
conditions, and changes in estimated costs of equipment, supplies, utilities,   
labor costs and exchange rates. Noncash cost estimates, based on total capital  
costs and reserve estimates, change based on actual amounts of unamortized      
capital and changes in reserves. Cost savings estimates are based on expected   
ability to eliminate duplicative expenses, anticipated reduction in             
administrative facilities and relocation of certain personnel. Actual cost      
savings may be lower than estimated and realization of savings may be lower than
expected.

Dates Referenced Herein   and   Documents Incorporated by Reference

Referenced-On Page
This ‘DEFA14A’ Filing    Date First  Last      Other Filings
Filed on:3/3/98
1/26/983DEFA14A,  PREM14A
12/31/97810-K,  10-K/A,  11-K,  8-K
11/6/9718
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