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HELIX RESOURCES LIMITED — Interim / Quarterly Report 2016
Jan 30, 2017
65059_rns_2017-01-30_d1fe4d40-e638-4a6d-9af4-6c324bc6092c.pdf
Interim / Quarterly Report
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Quarterly Report December 2016
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HIGHLIGHTS
Collerina Copper‐Zinc Prospect (NSW)
Drilling
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Reverse circulation and diamond drilling programs have intersected extensions of the Collerina mineralised zone with copper mineralisation now intersected in drilling over 1,000m in length and to a depth of 350m at the main prospect.
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Ongoing activities and results confirm that a large copper system is present at Collerina.
On‐going Programs
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A geological review completed in December 2016 has identified several new targets.
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The new targets include untested oxide zones, sulphide zone extensions and dip continuations at the main Prospect, that are planned to be tested with drilling in early 2017.
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Regional activities have also re‐commenced with a 600 line kilometre high‐powered helicopter‐borne EM survey starting at the end of the quarter. Data from this survey is currently being processed and will be reported in a separate release when available.
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Follow‐up soils and first‐pass drilling of priority regional targets is expected early in the 2017 field season.
Cobar Gold Project (NSW)
Drilling
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Diamond drilling at the Cobar Gold Project was completed during the quarter. High‐grade gold was returned at both the Good Friday and Boundary Prospects:
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Boundary Prospect : HRDD002: 45m @ 3.4g/t Au from 46m, incl. 5m @ 9.3g/t Au from 51m and 11.4m @ 5.1g/t Au from 71m².
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Good Friday Prospect: HRDD003: 28.8m @ 3.0g/t Au from 29m incl. 8m @ 4.9g/t Au from 31m and 7.8m @ 4.0g/t Au from 50m to EOH².
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An aircore and slim‐line RC program was completed late in the quarter after rain delays. Highly encouraging results reported last week from initial testing of a new discovery area at the Battery Tank prospect returned:
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43m @ 2.3 g/t Au from surface to end of hole¹.
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Including: 11m @ 5.1g/t Au to EOH, finishing in high‐grade gold mineralisation¹.
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Drilling has confirmed the potential for the Project to host a high‐grade gold deposit or deposits.
On‐going Programs
- Planning for future drilling programs is well underway and is expected to include further diamond, RC and aircore drilling. Further soil auger sampling is also being planned to examine extensions of the anomalous areas defined to date.
For Further Information please contact: Mick Wilson ‐ Managing Director Email: [email protected]
Helix Resources Limited 78 Churchill Ave. Subiaco WA 6008 Telephone: +61 8 9321 2644 Fax: +61 9321 3909 www.helix.net.au
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Quarterly Report December 2016
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Project Activities
NSW ‐ Copper and Gold
Collerina Copper‐Zinc Prospect
The Collerina Prospect is located within a regionally significant VMS prospective belt between the Tritton Mine to the North and Tottenham deposits to the south in Central NSW.
The Prospect is defined by an open‐ended large base metal and gold soil anomaly and associated moving loop EM conductor and lies within a regionally significant VMS trend.
The main mineralisation at Collerina is dominated by massive pyrite and chalcopyrite in the primary zone. A strong zone of high grade copper mineralisation has been defined with individual peak values in the sulphide zone of 12% Cu, 1.5g/t Au and 4.6% Zn.
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Figure 1 | Tenement scale prospectivity along strike from the Collerina discovery
The regional project area is also highly prospective for copper (evidenced by multiple groups of additional un‐tested workings to the north‐west of the Project) and gold mineralisation which remains largely unexplored (refer figure 1).
Geological modelling of drilling has highlighted a remarkable continuity of the sulphide system from the gossan at surface down dip/plunge, with localised folding and faulting causing variation in widths and distribution of mineralisation.
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Quarterly Report December 2016
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Activities during the Quarter
Exploration drilling at the Collerina Copper‐Zinc Prospect has continued to intersect sulphide mineralisation on the extension to the main mineralised zone. Drilling on the large step‐out pattern has tested a further 300m east of previous drilling bringing the total length of the system to over 1,000m and tested the system to a vertical depth of 350m.
Six of eight holes targeting the main zone position have intersected sulphide mineralisation over various widths, the remaining two missed due to hole deviation.
The Company is very encouraged at the presence of sulphide mineralisation at predictable depths within the targeted corridor. The geological controls on the main mineralised zone are now well understood with a foot‐wall marker horizon consistently being intersected 10‐20m below mineralisation, providing a good geological control within the Prospect. This will be used to better define the potential dip extensions beyond the areas drilled to date.
The thicknesses of sulphide mineralisation and the presence of massive pyrite continues to be variable across the trend tested.
The understanding of the geological controls is key to effective targeting with drilling of these systems and targeting at greater depths in future programs. Downhole geophysics, infill and extensional drilling will continue to be used to define the full extent of the mineralised zone at Collerina.
Tritton‐style copper deposits have significant variability in mineralisation thickness from 2m to 30m thick. At Collerina there is similar variability of sulphide accumulation in the drilling to date and therefore there is confidence that with further infill and extensional drilling, zones of greater thickness and grade tenor will continue to be identified within the system.
Drilling
Two exploration diamond tails were drilled into a modelled off‐hole EM conductor position below previous drilling at Collerina. Both holes have intersected highly altered sediments and volcanoclastics with varying amounts of disseminated and veinlet‐style pyrite and chalcopyrite that is present throughout both diamond tails. The amounts of sulphide present are not considered sufficient to give the modelled EM response and therefore further down hole EM is planned to identify the source of the anomaly.
Two broad‐spaced RC exploration holes were also drilled into the northern EM anomaly and have intersected a mixed package of meta‐sediments to a depth of 190m. The holes drilled have not identified a source for the EM response. The eastern‐most hole (CORC044) has been selected for DHEM to assess if a definable EM plate can be modelled off‐hole at this location for future drill testing.
Future Activities
The Eastern and Western extensions of the surface gossan and associated soil anomaly remain poorly tested by drilling. DHEM targeting primary zones down dip of the oxide copper results in the limited shallow holes in these areas is being assessed to assist in planning further drilling. DHEM will be targeting repeats or parallel “shoots” similar to the main mineralised zone targeted to date for further drill testing (refer figure 2).
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Quarterly Report December 2016
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Western Target
Eastern Target
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Figure 2| Collerina Prospect showing near prospect drilling targets for 2017
Large Regional Geophysics Survey Commenced
Helix commissioned a VTEM‐Max helicopter‐borne geophysical survey to cover the entire 25km Collerina Project VMS prospective trend. The survey commenced in late December 2016 and was completed in mid‐ January 2017.
Copper‐rich deposits in this region are known to form in clusters. Previous detailed aeromagnetics and mapping by Helix has identified a series of priority regional targets along the trend, however the high rainfall over the winter period in 2016 delayed proposed regional soil programs aimed at assessing those targets.
The VTEM‐Max survey will fast‐track the regional program identifying late‐time EM conductors which will be followed‐up with detailed close‐spaced surface geochemistry sampling. Where coincident EM and geochemical anomalies are identified, first‐pass drilling will test for associated copper mineralisation.
The cost for this survey has been kept to a minimum by joining with several other Companies in the region to give the overall survey an economy of scale that has reduced both the mobilisation cost and line kilometre rate for each Company.
If the VTEM‐Max system proves successful in defining prospects with potentially economic copper mineralization within this survey, the Company will consider expanding the coverage. Future surveys may include some or all of the remaining 60km of prospective VMS trend within Helix’s tenement portfolio in this region.
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Figure 3 | Area recently flown with VTEM-Max survey
Cobar Gold Project
The Company controls over 300km² of gold prospective ground in the Cobar District (refer figure 4). The projects host numerous historic gold shafts and pits mined in the early 1900’s.
The potential for high‐grade gold deposits on the Cobar Gold Projects is good with the nearby Mt Boppy Gold Mine an example of the systems present in the area.
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Figure 4 | Location map of Cobar Gold Tenements
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Activities during the Quarter
High‐grade gold results have been returned from drilling in gold‐bearing structures at the Boundary, Good Friday and battery Prospects. Intercepts have been returned from shallow depths and include:
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Boundary Prospect : HRDD002: 45m @ 3.4g/t Au from 46m, incl. 5m @ 9.3g/t Au from 51m and 11.4m @ 5.1g/t Au from 71m².
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Good Friday Prospect: HRDD003: 28.8m @ 3.0g/t Au from 29m incl. 8m @ 4.9g/t Au from 31m and 7.8m @ 4.0g/t Au from 50m to EOH².
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Battery Tank Prospect: HRAC018 returned 43m @ 2.3g/t Au from surface to end of hole with the bottom of the intercept returning 11m @ 5.1 g/t Au from 32m finishing in high‐grade gold mineralisation¹.
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Figure 5 | Location map of Prospects with recent High-grade intercepts
Good Friday Prospect:
HRDD003 at the Good Friday Prospect ended in gold mineralisation, returning 5.3g/t Au over 0.8m to EOH at a depth of 57.8m. The high‐grade gold bearing structures at both Prospects remain open in several directions.
This program was the first diamond drilling undertaken by Helix at the Cobar Gold Project and was carried out to better understand the controlling structures of the high grade gold in the goldfield. The structural information from this program will assist in further targeting of the structures at these Prospects as well as targeting other similar structures in the numerous untested Prospects throughout the goldfield.
Assay results from this diamond drilling program are comparable to the nearby historic Mt Boppy Gold Mine, where high‐grade gold was mined from a 300m long orebody with historical production of approximately 500,000 ounces of gold.
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Boundary Prospect:
Diamond drilling at the Boundary Prospect was targeting a high‐grade gold structure below a gold‐in‐soil anomaly previously defined by Helix with auger soil sampling. Follow‐up broad spaced RC drilling had returned 70m @ 1.1g/t Au, including 15m @ 2.3g/t Au from 55m². However, the orientation of the gold mineralisation at the Prospect was not well understood.
Diamond hole HRDD002 was drilled nearby and has intersected significant high‐grade gold in quartz veins and silica‐rich breccias within a package of highly altered and deformed sediments. The hole has returned a very encouraging 45m @ 3.4g/t Au from 46m including two outstanding high‐grade zones of 5m @ 9.3g/t Au from 51m and 11.4m @ 5.1g/t Au from 71m².
The gold tenor in this diamond hole is much higher than the previous RC drilling, which suggests the diamond hole is likely to have directly intersected the main high‐grade gold structure. Structural modelling is underway to allow planning for further drilling to follow‐up the high‐grade intersections and further examine the untested potential along strike, up dip and down dip.
In addition to this Prospect scale potential, the return of such high‐grade gold results under a greenfield gold‐ in‐soil anomaly like that of the Boundary Prospect provides significant scope for additional new discoveries in this area.
Also at the Boundary Prospect, a small three hole slim‐line RC program was conducted to assist in defining the geometry of the gold mineralisation present.
Drilling has confirmed an approximate E‐W strike and a sub‐vertical dip to the gold mineralisation. Hole HRRC101 returned 20m @ 1g/t from 72m to EOH, including 4m @ 3.2g/t Au from 92m to EOH and Hole HRRC103 returning 48m @ 0.6g/t from surface including 20m @ 1.2g/t Au¹ Note: All sampling was 4m composite spear sampling, with more accurate riffle split 1m samples to be collected.
The information from this small program will now allow for more comprehensive drill testing, with RC and diamond drilling targeting the full extent of gold mineralisation at Boundary. The Boundary Prospect remains an open, gold in soil anomaly with at least 300m of strike to be tested.
Battery Tank Prospect:
Aircore drilling commenced at the Battery Tank Prospect near Cobar in NSW. The 20 hole program, for approximately 1,000m, tested a large 500m x 500m gold‐in‐soil anomaly associated with a series of historic pits and trenches scattered throughout the Prospect area.
Wet weather during winter had delayed the program at Battery Tank, however with improved ground conditions and a clearer understanding of the high‐grade gold structures, work commenced in December 2016. HRAC018 returned 43m @ 2.3g/t Au from surface to end of hole with the bottom of the intercept returning 11m @ 5.1 g/t Au from 32m finishing in high‐grade gold mineralisation¹.
The discovery hole at the Battery Tank Prospect was drilled to blade refusal, with significant quartz and siliceous alteration noted throughout the hole, increasing in abundance at the bottom of the hole.
Several other holes have returned highly encouraging thick zones of lower‐order gold mineralisation in the wide‐spaced aircore drilling to blade refusal (hard rock). It should be expected that additional gold mineralisation will be intersected at depth at many of these locations, given the strong relationship between the presence of hard quartz veins and high‐grade gold.
Four prospects Battery Tank, Boundary, Good Friday and Sunrise have now all returned wide high‐grade gold results, suggesting a significant gold system is present in the goldfield.
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Figure 6 | Photo of HRAC018 drill collar and nearby historic prospector pit
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Figure 7 | Photo of fine gold panned from a handful of sample from the last 3m of HRAC018
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Ongoing Activities
Drilling programs are currently being designed and prepared for the Cobar Gold Project as part of a broader exploration program for the 2017 field season. These gold results are a welcome addition to the ongoing focus on both copper and gold in this highly prospective district. A review of other regional prospect/targets is also underway targeting similar structures within the broader goldfield.
Chile
No field work was completed during quarter. The Company has received approaches by third parties under Confidentiality Agreements that are interested in the assets and Helix will keep the market informed of any material developments to these discussions.
Joshua Project
The drilling to date has identified the presence of at least three porphyry events including: Andesitic, Dacitic and Dioritic porphyry events, associated with the copper mineralisation at the Joshua Project.
The main Joshua porphyry target is at least 3 kilometres by 1 kilometre comprising a large copper in soil anomaly coincident with a large IP anomaly, continuing to a depth in excess of 500m from surface. The main Joshua porphyry target comprises Target 1, the Carmelita Mine zone and Target 4.
The Joshua Project is located in Region IV Chile, 40km East of Ovalle, at low altitude (less than 1,700m), nearby to infrastructure. Four porphyry targets have so far been identified in a regionally significant north‐ west structural corridor within the total project area of 100km².
No fieldwork was completed on this or the other Chile assets during the quarter.
Other Assets
Canbelego Project ‐ NSW
(HLX 70% Manager: Straits 30% Contributing) An Inferred Resource of 1.5Mt @ 1.2 % (refer to resources table below). Copper from surface at the Canbelego Prospect with further potential for oxide copper from surface on 3 advancing prospects (Canbelego, Canbelego West & Caballero). There also remains untested VMS‐style mineralisation associated with a strong DHEM conductor below the Canbelego deposit, below up‐ dip intercepts including 2m @ 6.8% Cu & 5m @2.4% Cu.
Work had commenced on a large soil auger program at Canbelego during the quarter, however the program was also disrupted by the 2016 winter weather. Soils are planned to define drilling targets at the Canbelego, Canbelego West & Caballero Prospects with our JV partner contributing to the program, the program will re‐ commence in 2017.
Yalleen Iron Ore Project – Western Australia
Yalleen Project has a resource 84Mt @ 57% Iron ore in Indicated and Inferred Resources (refer to resources table below) on 575km² of tenements in the West Pilbara owned by Helix Resources ‐ API JV: iron ore rights only Helix is diluting to a royalty over iron ore production from the tenements.
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Figure 5: Company Project Location Map
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Capital Structure
| Capital Structure | ||
|---|---|---|
| ASX Ticker Code | HLX | |
| Share Price | AU$0.058 | |
| Market Cap | $18M | |
| Fully Paid Shares | 308M | |
| Directors and Management | ||
| Michael Wilson | Managing Director | |
| Jason Macdonald | Non‐Executive Director | |
| Michael Naylor | Non‐Executive Director | |
| Assets | ||
| Cash | $1.0 million | |
| NSW ‐ Collerina Project | New Copper‐Zinc discovery | |
| NSW – Cobar Gold | High‐grade gold intercepts at four advancing prospects | |
| NSW ‐ Canbelego JV (70% ) | 1.5Mt @ 1.2% Cu (100%) – (JORC 2004)* | |
| Chile ‐ Joshua Project | Significant Cu‐Au porphyry | |
| Chile ‐ Huallillinga Project | Blanco Y Negro: 1.5Mt @ 1.4% Cu, 0.5g/t Au (JORC 2012) – Samuel PorphyryProspect: Large Cuporphyrytarget |
*Refer to Resource Inventory table below and previous ASX releases or at www.helix.net.au
Resource Inventory
| Commodity | Category | Project | Interest | Resource |
|---|---|---|---|---|
| Copper (+Gold) |
Indicated Inferred Total |
ByN, Chile | 100% Helix | 0.8Mt @ 1.5%Cu + 0.5g/tAu 0.7Mt @ 1.3%Cu + 0.6g/tAu 1.5Mt @ 1.5%Cu + 0.5g/tAu(at 0.5% Cu Cut‐off)– 2012JORC** |
| Copper | Inferred | Canbelego JV, NSW |
70% (Aeris Contributing30%) |
1.5Mt @ 1.2% Cu for 18,000t* Contained Cu (at 0.3%Cu Cut‐off) |
| Gold | Inferred | Cobar Gold | 78% (Glencore diluting 22%) |
2.6Mt @ 1.2g/t Au for 100,000oz (0.3 g/t Au cut off)*** |
| Iron Ore | Indicated Inferred |
Yalleen JV, WA |
30% (Diluting) |
47.9Mt @ 57.3% Fe (Channel Iron)* *36.4Mt@ 57.1% Fe(Channel Iron)**** |
| Joint ventured with API Management Pty Ltd (50% Boasteel, 50% AMCI) and forms part of their West Pilbara Iron Ore Project[WPIOP]which comprises multipleJV’s. |
** Refer to ASX announcement 13 August 2015
*** Refer to ASX announcement 17 August 2011
**** Refer to ASX announcement 24 April 2009
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Helix Resources Tenements
| Tenement | Name | Mineral | Ownership |
|---|---|---|---|
| NSW COPPER & GOLD PROJECTS (INCL. CANBELEGO AND RESTDOWN JV's) | |||
| EL6105 | Canbelego | Copper/Gold | Helix 70%, Straits 30% |
| EL6140 | Restdown | Gold/Copper | Helix 70%, Glencore 30% |
| EL6336 | Collerina | Copper/Gold | HLX 100% precious and base metals |
| EL6501 | South Restdown | Copper/Gold | Helix 70%, Glencore 30% |
| EL6739 | Muriel Tank | Gold/Copper | Helix 70%, Glencore 30% |
| EL7438 | Quanda | Copper/Gold | HLX 100% |
| EL7439 | Fiveways | Copper/Gold | HLX 100% |
| EL7482 | Little Boppy | Copper/Gold | HLX 100% |
| ELA5241 | Boundary | Gold/Copper | HLX 100% |
| ELA5394 | Yanda Creek | Gold/Copper | HLX 100% |
| YALLEEN IRON ORE PROJECT | |||
| E47/1169‐I | Yalleen | Iron ore/Base metals | HLX 100%, API Management Pty Ltd 70% iron ore rights |
| E47/1170‐I | Yalleen | Iron ore/Base metals | HLX 100%, API Management Pty Ltd 70% iron ore rights |
| E47/1171‐I | Yalleen | Iron ore/Base metals | HLX 100%, API Management Pty Ltd 70% iron ore rights |
| CHILE PROJECTS | |||
| EXPLORATION CONCESSIONS | |||
| Joshua 1‐17 | Joshua | Copper/Gold | HLX 100% |
| Bogarin 1‐26 | Huallillinga | Copper/Gold | HLX 100% |
| EXPLOITATION CONCESSIONS | |||
| Blanco Y Negro 1/20 |
Blanco Y Negro | Copper/Gold | HLX 100% |
| La Cana 11/20 | Blanco Y Negro | Copper/Gold | HLX 100% |
| Joshua A1/150 | Joshua | Copper/Gold | HLX 100% |
Mining Tenements disposed
Nil
Beneficial percentage interests held in farm‐in or farm‐out agreements
Nil
Beneficial percentage interests in farm‐in or farm‐out agreements acquired or disposed
Nil
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Notes
1 For full details of exploration results refer to ASX announcements 24 January 2017. Helix Resources is not aware of any new information or data that materially effects the information in these announcements
² For full details of exploration results refer to ASX announcements dated17 November 2016. Helix Resources is not aware of any new information or data that materially effects the information in these announcements
Competent Persons Statement
The information in this announcement that relating to previous reported Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Details of the assumptions underlying any Resource estimations are contained in previous ASX releases or at www.helix.net.au
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