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Helix Resources Limited (ASX: HLX)

COBAR DRILLING HITS COPPER

The first hole in Helix Resources Limited’s (“Helix” or “the Company”) recently commenced resource expansion drill programme has intersected 24 m of copper sulphide mineralisation at the 70% owned CSA-style Canbelego Copper Project, located near Cobar in Central Western New South Wales. This was intersected on target, ~40 m down dip from previous drilling. Aeris Resources’ (AIS: ASX, “Aeris”) holds the other 30% in a contributory JV with Helix.
Canbelego is one of two brownfields discoveries made by Helix since commencing operations in the region in 2009 - the other is the 100% held CZ, a volcanic-associated massive sulphide (“VAMS”) copper deposit within the Collerina Copper Trend, interpreted as being on the same trend hosting Aeris’ Tritton group of deposits. Mineralisation at both deposits remains open.

These highlight the quality of the Company’s ~1,570 km2 ground package and the work done to date. A recent change of management, along with a A$3 million raise however has resulted in a change of strategy. Rather than just concentrate primarily on the main copper and gold prospects and deposits (which was largely driven by relatively limited budgets), more emphasis will now be placed on tenement wide exploration focussing on copper - significant areas of the recognised copper trends are under-explored.

Also, Helix is now building an Orange based exploration team - the exploration HQ has been moved to Orange from Perth - with Orange based Gordon Barnes being appointed Exploration Manager. Other engagements include Vlad David, a consultant structural geologist with extensive Cobar region experience - given the deformation, an understanding of structure is a key exploration tool in the region.
The initiation of the new strategy has included the flying of an airborne electromagnetic (“EM”) survey covering most of the tenements, specifically the three copper trends. This has resulted in the identification of 24 high-priority anomalies that are now to be followed up by ground based work, including EM surveys, geochemical sampling and mapping, to define drill targets.

On the gold front, the Battery Tank gold project has returned encouraging results, and although not the main focus, requires further work.
The Cobar region is one of Australia’s most prolific copper producers and New South Wales’ most prolific gold producers, with an estimated pre-mining inventory of over 3 Mt of copper and 7 Moz of gold, plus other metals. The mineralised terranes include the Cobar Basin, the host to major base and precious metals operations including CSA and the Peak amongst others, and the Girilambone Group, which hosts several copper deposits and operations (including Tritton) along a ~200 km mineralised trend.
These largely comprise two distinct types of deposits - the Cobar Basin is characterised by structurally controlled, steeply plunging “CSA-style” polymetallic deposits, whereas the Girilambone Group hosts deformed VAMS copper +- gold mineralisation such as Tritton.
Although exploration in this region requires patience, persistence is rewarded, with several greenfields and brownfields discoveries being made over recent years. These include Mallee Bull and others (Peel Exploration, PEX: ASX), Dominion and Federation (Auralia Metals, AMI: ASX) and Constellation (Aeris). This highlights the potential of the region for ongoing discoveries.

In summary, Helix has a highly prospective exploration package in highly productive mineral belts with resources defined to date containing 58,400 t of copper and 119,200 oz of gold. Our view is that ongoing exploration has good potential to deliver the goods, and drive value for shareholders.