Proactiveinvestors USA & Canada

Helix Resources snares A$19.5M deal with Mitsubishi

Mon, 08 Oct 2012 23:50:00 -0400

Helix Resources (ASX: HLX) has entered into a Memorandum of Understanding with Japan’s Mitsubishi Materials Corporation that could provide up to A$19.5 million in funding for the company’s Joshua Copper Project in Chile.

Under the deal, Mitsubishi Materials Corporation, a core company of the multinational conglomerate Mitsubishi Group, will fund $4.5 million of exploration activities to advance Joshua over the next 18 months to earn a 20% interest.

Mitsubishi Materials Corporation has established operating bases in 25 countries and regions worldwide.

Helix will remain manager of the joint venture, and exploration activities will include drilling of induced polarisation and alteration targets to confirm the potential size and grade profile, as well as a high level Scoping Study on technical and financial viability aspects.

Following the completion of phase one of the MoU, Mitsubishi Materials Corporation then has the right to contribute $15 million in funding to earn a 50% interest.

Activities in phase two will include a plus-30,000 metre drilling program to determine a JORC Resource, as well as certain Pre-Feasibility Studies on infrastructure assessment, mining and processing, environmental reviews and detailed financial analyses.

If Mitsubishi Materials Corporation decides not to exercise its right after providing phase one funding, the two companies will jointly fund and/or introduce a third party to advance the Joshua Project.

The deal is scheduled for completion on 31 October 2012 following due diligence by Mitsubishi Materials Corporation.

Greg Wheeler, chairman of Helix Resources, commented: “The Joshua Copper Project has significant potential and we welcome MMC’s support to create value.

“This deal illustrates the unrecognised value in our mineral asset portfolio and we will continue to seek industry partners to advance and monetise this value.”

Large scale, bulk tonnage project potential

Helix has outlined the potential for a large scale, bulk tonnage copper (+gold) project likely to be amenable to open pit mining. The project has an exploration target of over 500 million tonnes.

The Joshua Project is Helix’s most advanced project in Chile, is 100% owned with no option payments or royalties, and is located 40 kilometres southeast of Teck’s Carmen de Andacollo porphyry deposit, which hosts a reserve of 400 million tonnes at 0.38% copper.

Previous drilling has returned highlights of 400 metres at 0.33% copper equivalent from surface including 70 metres at 0.41% copper equivalent, and 242 metres at 0.14% copper equivalent from surface.

Drilling to date has been confined to the only access track developed to the southeast flank of the system, testing about 0.2 square kilometres of a 1.5 square kilometre target area.

Access tracks onto the larger northern flank of the system are the next stage and results to date suggest that the system could improve both in grade and a width through this zone, and is considered a priority target for future drilling.

Capital Raising

Helix recently launched a A$1.7 million one for three non-renounceable rights issue of options to fund exploration activities in New South Wales and Chile.

Existing shareholders will be offered one option for every three shares held at $0.025 per option to raise the funds.

Analysis

Today’s announcement of an MoU with Japan’s Mitsubishi Materials Corporation is a huge vote of confidence in Helix’s Joshua Copper Project, which is demonstrating early potential to be large scale, bulk tonnage copper project.

In addition to the $1.7 million capital raising, the initial $4.5 million from Mitsubishi Materials Corporation reduces exploration funding uncertainty, and potentially provides longer term funding for the project.

Proactive Investors believes that many investors are perhaps missing the significance of today's deal with Mitsubishi. Apart from taking away funding risk, it provides Helix and shareholders with a global major that does not get involved in deals like this - unless there is significant upside. This is a coup for Helix's Greg Wheeler.

We believe this provides an opportunity for investors to pick up Helix shares before the Mitsubishi deal given the current Helix valuation of $9.41 million and share price of $0.046.

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Helix Resources launches capital raising to drive exploration in NSW and Chile

Tue, 02 Oct 2012 19:50:00 -0400

Helix Resources (ASX: HLX) plans to undertake a one for three non-renounceable rights issue of options to raise around A$1.7 million to continue exploration activities in New South Wales and Chile.

Existing shareholders will be offered one option for every three shares held at $0.025 per option to raise the funds.

Helix currently has no ASX-listed options issued as part of its capital structure, and following the option issue a total of 68.2 million options will be issued assuming the rights issue closes fully subscribed.

The company is currently enjoying success in the highly prospective Lachlan Fold Belt of New South Wales, where it has unearthed notable rock chip results of up to 26.7 grams per tonne (g/t) gold.

A drilling program is now well advanced aimed at testing these targets and several new gold anomalies at the Restdown Project and surrounding wholly owned projects.

The Restdown Project is 25 kilometres from the historic Mt Boppy Gold Mine, which produced 500,000 ounces at plus-10g/t gold, and is now owned by Polymetals Mining (ASX: PLY), and 35 kilometres from YTC Resources’ (ASX: YTC) Nymagee and Hera development projects.

Restdown hosts an Inferred JORC Resource of 2.6 million tonnes at 1.2g/t for 100,000 ounces of contained gold.

Exploration upside is evident with the mineralisation open in all directions and additional gold prospects identified along strike.

Helix is targeting the definition of around 500,000 ounces of gold for the Restdown Project.

There is the potential for Helix to toll treat ore from its New South Wales copper and gold projects at nearby mills with excess capacity.

Meanwhile, in Chile at the Joshua Project, Helix has outlined the potential for a large scale, bulk tonnage copper (+gold) project likely to be amenable to open pit mining.

The Joshua Project is Helix’s most advanced project in Chile, is 100% owned with no option payments or royalties, and is located 40 kilometres southeast of Teck’s Carmen de Andacollo porphyry deposit, which hosts a reserve of 400 million tonnes at 0.38% copper.

Previous drilling has returned highlights of 400 metres at 0.33% copper equivalent from surface including 70 metres at 0.41% copper equivalent, and 242 metres at 0.14% copper equivalent from surface.

Drilling to date has been confined to the only access track developed to the southeast flank of the system, testing about 0.2 square kilometres of a 1.5 square kilometre target area.

Access tracks onto the larger northern flank of the system are the next stage and results to date suggest that the system could improve both in grade and a width through this zone, and is considered a priority target for future drilling.

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Helix Resources unlocks value of South Australian magnetite assets, receives $1.5m payment

Tue, 21 Aug 2012 02:50:00 -0400

Helix Resources (ASX: HLX) is successfully executing the company strategy of unlocking value from the company's projects, and has now received the first payment of $1.5 million from Lodestone Equities over the Olary Magnetite Project in South Australia.

Helix has executed a Share Subscription Agreement with Lodestone over Olary which assets include tenements EL3956 and EL4022 which are prospective for Braemar Fe Formation, reflecting the terms of the MoU announced last month.

Lodestone has now acquired a 33% shareholding in Olary (which was a wholly owned subsidiary of Helix) with an up-front cash payment of $0.5 million and another $1 million towards the proposed work program.

When all of the approvals have been received to enable drilling to commence, Lodestone will provide a further $1 million to Helix to earn 50% in Olary. Helix will oversee the work program, receiving a management fee.

Greg Wheeler, chairman of Helix, spoke with Proactive Investors today, and said that the company is targeting a start to drilling before the end of 2012.

The program will include around 12,000 metres of drilling (11,000 metres reverse circulation and 1000 metres diamond), covering around 100 holes - with the data to be used to establish a maiden JORC Resource.

Lodestone then has one month after receipt of the independent JORC Report to elect whether to acquire the remaining 50% shareholding in Olary by an additional cash payment calculated in accordance with the following formula: Cash Payment = JORC Resource tonnes x DTR% x $0.035 x 150%, with a floor price of $5 million and a cap of $9 million.

If the Option to acquire the remaining 50% is not exercised by Lodestone, the parties will operate Olary as a corporate joint venture.

Wheeler added, “The Olary deal is an example of the unlocked value of our projects. It raises funds during challenging market conditions and supports our business model of targeting prospective areas and spending money in the ground to drive our Projects up the value curve.”

Olary proximity to plus billion tonne projects

Olary is located in a highly prospective region and is in close proximity to some plus billion tonne projects, including Mutooroo (1.5Bt) which is less than 20 kilometres away and Hawsons (1.4Bt) which is 50 kilometres away.

Comment

The deal monetises Helix’s South Australian magnetite assets, providing the company with a cash injection from non core assets to focus on its portfolio of highly prospective copper-gold assets in Australia and Chile.

It is also worth noting the experience from Lodestone, which is an investment company associated with Gordon Toll, who has 44 years experience in mining including as chairman of Fortescue Minerals Group (ASX: FMG) during the critical engineering and funding of the company’s initial US$3.3billion development of its Pilbara iron ore interests.

Even if Lodestone chooses not to acquire the remaining 50% of Olary Magnetite Pty Ltd, Helix has acquired substantial expertise and funding to advance Olary and will retain exposure to a prospective asset while significantly reducing the associated risk.

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Helix Resources realises value from South Australian magnetite assets

Tue, 24 Jul 2012 20:10:00 -0400

Helix Resources (ASX: HLX) will realise value from its Olary Magnetite Project in South Australia with the proposed staged acquisition of wholly owned subsidiary Olary Magnetite Pty Ltd by Lodestone Equities.

Lodestone is an investment company associated with Gordon Toll, who has 44 years experience in mining including as chairman of Fortescue Minerals Group (ASX: FMG) during the critical engineering and funding of the company’s initial US$3.3billion development of its Pilbara iron ore interests.

Toll is also the founder and former chairman of Ferrous Resources, a Brazilian iron company; deputy chairman of Ivanhoe Mines, including responsibility for one of the largest copper discoveries of the past two decades; and has raised or helped to raise more than $5 billion for mining and associated infrastructure projects in the past decade.

Helix has entered into a memorandum of understanding under which Lodestone will acquire an initial 50% shareholding in Olary Magnetite Pty Ltd in exchange for a A$0.5 million cash payment and funding a $2 million work program to establish a JORC Resource.

Lodestone will then have one month after receipt of the independent JORC report to elect whether to acquire the remaining 50% shareholding in Olary.

Consideration for the remaining 50% interest will be via a cash payment calculated according to the JORC Resource defined, with a minimum floor of $5 million and a capped maximum of $9 million.

If the option to acquire the remaining 50% is not exercised by Lodestone, the parties will operate Olary as a corporate joint venture.

Greg Wheeler, chairman of Helix, commented on the strategic partnership: “We consider Olary has similar magnetite resource potential to the Hawsons (1.4Bt) and Mutooroo (1.5Bt) deposits and welcome Mr Toll’s expertise to create value in this region.

“The Olary deal illustrates the current disconnect between our market capitalisation and our significant portfolio of mineral assets, and Helix will continue to monetize this unlocked value.

Helix and Lodestone are aiming for the deal to be completed by the end of August following due diligence.

Comment

Importantly, this deal monetises Helix’s South Australian magnetite assets, providing the company with a cash injection to continue to focus on its portfolio of highly prospective copper-gold assets in Australia and Chile.

Even if Lodestone chooses not to acquire the remaining 50% of Olary Magnetite Pty Ltd, Helix has acquired substantial expertise and funding to advance the Olary Magnetite Pty Ltd and will retain exposure to a prospective asset while significantly reducing the associated risk.

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Helix Resources aims for early cash flows in Chile near Glencore’s Punitaqui operations

Thu, 05 Jul 2012 04:24:00 -0400

Helix Resources (ASX: HLX) might be a step closer to earning cash flows by the acquisition of the Blanco Y Negro Mine and surrounding mining leases which is 21 kilometres north-east of Glencore’s (LON: GLEN) Punitaqui copper mine and operations.

Helix aims to define an economic resource and potentially toll treat or contract mine the material at a nearby operating mill.

Glencore's Punitaqui copper mine began operations over a year ago to produce around 40,000 DMT of copper concentrates annually.

Blanco Y Negro is also located just 10 kilometres south-west of a large service town, Ovalle.

Consideration for the deal from a private vendor is US$80,000, providing Helix with total ownership of 1258 hectares of exploitation concessions within the regional Huallillinga Project.

Anecdotal information suggests artisanal mining on the property has been at a rate of 10 tonnes per day recovering material with a grade of 1.5% to 2% copper.

Highlighting the prospectivity of the acquisition, first-pass rock-chips have returned up to 1.1% copper (over 4.5 metres) and up to 1.3g/t gold (over 4.2 metres) in channel samples taken from outcrop.

In total 43 channel samples were collected, with the results averaging a very encouraging 0.4% copper, 0.2g/t gold and 47ppm molybdenum, over a strike exceeding 900 metres, which provides evidence that a large copper gold target is present.

Helix on fast track to define economically exploitable copper gold

The importance of the acquisition of the Blanco Y Negro Mine and surrounding mining concessions is that Helix is now well placed to potentially fast-track the definition of an economically exploitable copper gold system.

If this outcome is achieved it could be attractive to nearby operating mills who can contract mine and/or toll-treat the material, which would create cashflow for Helix to fund additional exploration - such as the Joshua Copper Porphyry Project.

Joshua is also located in Chile, with reverse circulation and diamond drilling at the Joshua Target 1 having recently returned; 400 metres at 0.33% copper equivalent, including 70 metres at 0.41% copper equivalent; 256 metres at 0.32% copper equivalent from surface, including 27 metres at 0.58% copper equivalent; and 143 metres at 0.27% copper equivalent from surface.

Individual assays have returned grades of up to 0.8% copper, 1.15g/t gold and 764ppm molybdenum.

The system covers more than 1.5 square kilometres, and mineralisation remains open at depth and along strike in all directions.

Analysis

Helix has $1.8 million in cash and investments, yet the market cap. of just $8 million provides an enterprise value of just over $6 million.

This valuation appears light considering the value of the company's growing portfolio or projects, which include the;

- Restdown Gold JV (70%) hosting 2.6 million tonnes at 1.2g/t gold;

- Canbelego Copper JV (51%) hosting 1.5 million tonnes at 1.2% copper;

- Yalleen Iron Ore JV (30%) hosting 84.3 million tonnes at 57.2% iron; and the Tunkillia Gold JV (45%) hosting 800,000 gold ounces and 1.6 million silver ounces.

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Helix Resources perfectly positioned to benefit from exploration upside at Tunkillia

Tue, 26 Jun 2012 02:55:00 -0400

Helix Resources' (ASX: HLX) joint venture partner Mungana Goldmines (ASX: MUX) remains well funded to explore at the Tunkillia Gold Project in South Australia’s Gawler Craton, where there is a target for production in 2015.

Mungana has a revised budget of $6.2 million for the 2012 calendar year of which $1.2 million has already been spent, earning Mungana around 70% of the project by the end of 2012. Helix has elected not to contribute under the terms of the joint venture.

Helix is therefore perfectly positioned to either stay in as a joint venture participant as Tunkillia comes into production, or alternatively Helix can realise the value of the asset by selling to a third party at an appropriate point in time.

Highlighting the potential of the project, a Scoping Study has determined that the Tunkillia Gold Project is likely to be a “robust, medium-scale project”.

Tunkillia hosts a JORC Resource of 15.6 million tonnes at 1.6 grams per tonne gold, for 803,000 ounces of contained gold.

With average cash costs of $983 per ounce, this equates to a project with the potential for robust financial returns.

Pit optimisations run as part of the Scoping Study indicated that the open pit operation could be developed in stages to provide faster access to mill feed, expediting production and commercialisation.

Helix paves way for gold Resource increase at Restdown; project round-up

With Tunkillia in good hands, Helix is working at other projects including continuing to identify robust gold-in-soil anomalies through soil sampling at its Restdown Gold Project in New South Wales, with multiple targets a look-alike to the 80,000 ounce Sunrise Prospect.

The Restdown Project is 15 kilometres from the historic Mt Boppy Gold Mine, which produced 500,000 ounces at plus-10 grams per tonne (g/t) gold, and is now owned by Polymetals Mining (ASX: PLY), and 30 kilometres fromYTC Resources’ (ASX: YTC) Nymagee and Hera development projects.

Importantly, drill confirmation of the mineralisation model is expected to lead to additional resource definition drilling in the second half of 2012 to increase the existing 100,000 ounce gold inventory.

Quanda & Fiveways

At Quanda & Fiveways auger geochemical sampling is underway using a company owned auger rig to define target zones for follow up electromagnetic surveys.

Helix has confirmed the continuation of both the Tritton and Kurrajong volcanogenic massive sulphide (VMS) trends onto its landholding south of Straits Resources’ (ASX: SRQ) recent discoveries.

The company is now planning a small drill program to test for gold and copper beneath the “Quanda” historic mine shafts on a copper VMS horizon representing the continuation of the Tritton Trend.

Canbelego Copper Project

Two reverse circulation holes are planned below the current copper Resource at the Canbelego Mine Prospect, with down-hole electromagnetic surveys targeting down plunge on the high grade sulphide lode system.

The electromagnetic surveys will cover three priority areas – west of the Canbelego copper mine, the Caballero Prospect and the Mullen Prospect.

Canbelego hosts an Inferred JORC Resource of 1.5 million tonnes at 1.2% copper, with mineralisation open along strike and down dip.

Little Boppy

An electromagnetic survey is planned to test for massive sulphide conductors in an over 500 metre by 450 metres copper plus gold soil anomaly at the Boppy Broken Hill Prospect.

A small drill program is also planned to test an epithermal vein system for gold near historic prospecting pits.

Anomalous gold rock chips with grades of 0.5g/t and greater than 60 parts per million antimony have been identified, along with other supporting base metal anomalism.

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Helix Resources paves way for gold Resource increase at Restdown with discovery of multiple targets

Thu, 14 Jun 2012 03:12:00 -0400

Helix Resources (ASX: HLX) is continuing to identify robust gold-in-soil anomalies through soil sampling at its Restdown Gold Project in New South Wales with multiple targets a look-alike to the 80,000 ounce Sunrise Prospect.

The Restdown Project is 15 kilometres from the historic Mt Boppy Gold Mine, which produced 500,000 ounces at plus-10 grams per tonne (g/t) gold, and is now owned by Polymetals Mining (ASX: PLY), and 30 kilometres from YTC Resources’ (ASX: YTC) Nymagee and Hera development projects.

Importantly, drill confirmation of the mineralisation model is expected to lead to additional resource definition drilling in the second half of 2012 to increase the existing 100,000 ounce gold inventory.

Work approvals and tenders have been received for a reverse circulation drilling program, set to begin in July, to test the multiple targets.

The project hosts an Inferred JORC Resource of 2.6 million tonnes at 1.2g/t for 100,000 ounces of contained gold.

Exploration upside is evident with the mineralisation open in all directions and additional gold prospects identified along strike.

Helix is targeting the definition of around 500,000 ounces of gold for the Restdown Project.

Exploration on the company’s other three projects in New South Wales, where Helix has defined an exploration target of 5 to 20 million tonnes, is also well underway, with rapid progress being made.

Quanda & Fiveways

At Quanda & Fiveways auger geochemical sampling is underway using a company owned auger rig to define target zones for follow up electromagnetic surveys.

Helix has confirmed the continuation of both the Tritton and Kurrajong volcanogenic massive sulphide (VMS) trends onto its landholding south of Straits Resources’ (ASX: SRQ) recent discoveries.

The company is now planning a small drill program to test for gold and copper beneath the “Quanda” historic mine shafts on a copper VMS horizon representing the continuation of the Tritton Trend.

Canbelego Copper Project

Two reverse circulation holes are planned below the current copper Resource at the Canbelego Mine Prospect, with down-hole electromagnetic surveys targeting down plunge on the high grade sulphide lode system.

The electromagnetic surveys will cover three priority areas – west of the Canbelego copper mine, the Caballero Prospect and the Mullen Prospect.

Canbelego hosts an Inferred JORC Resource of 1.5 million tonnes at 1.2% copper, with mineralisation open along strike and down dip.

Little Boppy

An electromagnetic survey is planned to test for massive sulphide conductors in an over 500 metre by 450 metres copper plus gold soil anomaly at the Boppy Broken Hill Prospect.

A small drill program is also planned to test an epithermal vein system for gold near historic prospecting pits.

Anomalous gold rock chips with grades of 0.5g/t and greater than 60 parts per million antimony have been identified, along with other supporting base metal anomalism.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Helix Resources forging ahead with copper, gold exploration in Chile

Fri, 08 Jun 2012 00:25:00 -0400

Helix Resources (ASX: HLX) is continuing to progress exploration at its copper and gold projects in Chile, and has identified a large copper porphyry system at the Joshua Project.

Reverse circulation and diamond drilling at Joshua Target 1 have returned wide, near surface intercepts of copper and anomalous molybdenum.

The best results from drilling to date include:

- 400 metres at 0.33% copper equivalent, including 70 metres at 0.41% copper equivalent;
- 256 metres at 0.32% copper equivalent from surface, including 27 metres at 0.58% copper equivalent; and
- 143 metres at 0.27% copper equivalent from surface.

Individual assays have returned grades of up to 0.8% copper, 1.15 grams per tonne (g/t) gold and 764 parts per million (ppm) molybdenum.

The system covers more than 1.5 square kilometres, and mineralisation remains open at depth and along strike in all directions.

Helix has commenced an induced polarisation geophysical survey to close off the extensions of Target 1 and test the remaining three targets.

Meanwhile, mapping, surface sampling and track work are being used to prioritise targets for the next drilling program.

Field activities

Helix is also undertaking exploration at the Hado Copper Project and Huallillinga copper gold project in Chile, with initial field activities underway at both.

At Hado, first pass field work has identified an alteration system stretching over more than 5 square kilometres, with hydrothermal breccias surrounding a porphyritic diorite.

Mapping and rock chip sampling are underway to define surface copper, gold and molybdenum while Helix is planning two induced polarisation lines to identify and prioritise drill targets.

Early field activities at Huallillinga suggest potential for high grade shear and vein-hosted copper and gold systems.

Copper and gold mineralisation has been found in structures between 5 metres and 30 metres wide, with potential for sub-parallel systems up to 3 kilometres in length.

An induced polarisation survey is planned to follow up on the current program of mapping and geochemical sampling.

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Helix Resources and JV partner advance Tunkillia Gold Project with next phase of drilling

Thu, 24 May 2012 20:34:00 -0400

Helix Resources’ (ASX: HLX) is likely to gain more market attention as it and joint venture partner Mungana Goldmines (ASX: MUX) progresses the Tunkillia Gold Project in South Australia.

The joint venture partners have begun a A$3 million exploration campaign comprising 8,000 metres of diamond and reverse circulation drilling designed to infill and extend the current Resource.

Tunkillia currently hosts a JORC Resource of 15.6 million tonnes at 1.6 grams per tonne for 803,000 ounces of contained gold.

This next phase of drilling will begin with a series of metallurgical and geotechnical holes to confirm pit design and recovery factors.

Previous testwork has indicated high recoveries of 92% in the oxide zone and 90% on the primary zone.

Importantly, the drilling campaign will progress the Feasibility Study on the project and begin the search for additional deposits within the region.

This presents the potential for Tunkillia to rapidly advance to a medium-scale project with strong financial returns.

An earlier Scoping Study has determined the project is likely to be a “robust, medium-scale project”.

At prices of A$1,500 to $1,700 per ounce of gold, the project could produce a pre-tax operating surplus of between $115 and $210 million and internal rate of return of between 20.9% and 35.4%.

With average cash costs of $983 per ounce, this equates to a project with the potential for robust financial returns.

Pit optimisations run as part of the Scoping Study indicated that the open pit operation could be developed in stages to provide faster access to mill feed, expediting production and commercialisation.

Further improving the financial standing of the project is the relatively straightforward metallurgical processing requirements, keeping costs down.

Information to date indicates that metallurgical processing of ore from Tunkillia could follow a standard gold flow sheet, comprising crushing, grinding and carbon-in-leach gold and silver extraction.

Realising the value of the asset

With Mungana looking to increase its stake in Tunkillia from 55% to 65% by the end of the year, Helix has a number of options to realise the value of the asset.

Based on the quality of the project and the interest from the market, Helix can look to stay in as a joint venture partner as Tunkillia comes into production, or the company can realise the asset by selling to a third party at a suitable time.

The upside for Helix is as Mungana continues to spend money on advancing Tunkillia it increases the value to Helix.

Tunkillia project

The Tunkillia project is located in South Australia’s Gawler Craton, about 600 kilometres northwest of Adelaide.

Helix holds a 45% stake in Tunkillia, with Mungana owning the remaining 55%. Based on its current exploration expenditure, Mungana looks to increase its earn in position to 65% by December 2012, and could increase it further in 2013 by spending an additional $11 million.

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Helix Resources identifies further porphyry copper at Joshua, Chile

Mon, 23 Apr 2012 20:48:00 -0400

Helix Resources (ASX: HLX) has intersected further porphyry style copper mineralisation at the company’s Joshua Project in Chile in the second hole of a diamond drilling program.

The 1,000 metre program was designed to follow up on wide intercepts of copper mineralisation.

Remaining assays from the second drill hole showed that drilling had stayed within the mineralised zone, returning highlights of:

- 70 metres at 0.41% copper equivalent from 82 metres;
- 38 metres at 0.44% copper equivalent from 256 metres; and
- 20 metres at 0.52% copper equivalent from 192 metres.

Overall, the second drill hole intercepted 400 metres at 0.33% copper equivalent from surface to end of hole.

Mineralisation remains open along strike and at depth, and there is continued good correlation between copper and gold values, as well as molybdenum. Assays from the final two drill holes are pending.

Track building is scheduled to give Helix access to untested areas on the northern, western and eastern flanks of the system at Target 1. Channel sampling along the tracks will provide a clearer understanding of the dimensions.

Helix is planning additional induced polarisation work over three other targets, complementing the next drilling program at the Joshua project.

A number of induced polarisation lines will also be undertaken at the nearby Hado and Huallillinga projects.

Huallillinga acquisition

Helix applied for the Huallillinga Project, which covers 95 square kilometres of exploration concessions, in late March, targeting shear hosted copper and gold.

Huallillinga is along strike from Glencore International’s (LON: GLEN) Punitaqui Mine, which produced 39,000 tonnes of copper in 2011.

The project is also close to Helix’s Joshua and Hado projects. The area has a number of Picenero operations that are mining between 2% and 5% copper deposits, with minimal drilling and no exploration to date.

Helix has identified evidence for associated gold from samples taken from the project.

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Helix Resources: Scoping Study indicates 'strong financial returns' from Tunkillia Gold Project

Fri, 20 Apr 2012 00:52:00 -0400

Helix Resources’ (ASX: HLX) greenfield Tunkillia Gold Project has the potential to produce strong financial returns, a Scoping Study by joint venture partner Mungana Goldmines(ASX: MUX) has found.

Based on the results of the study, Helix and Mungana intend to progress to a Bankable Feasibility Study at Tunkillia, targeting production in 2015.

Helix managing director Greg Wheeler told Proactive Investors today that progressing the project would likely draw more market interest towards Helix.

“They’re heading down the Bankable Feasibility Study path, which means more money in the ground which brings it closer to production which brings investor interest,” he said.

The Scoping Study has determined that the Tunkillia Gold Project is likely to be a “robust, medium-scale project”.

Tunkillia hosts a JORC Resource of 15.6 million tonnes at 1.6 grams per tonne gold, for 803,000 ounces of contained gold.

At prices of A$1,500 to $1,700 per ounce of gold, the project could produce a pre-tax operating surplus of between $115 and $210 million and internal rate of return of between 20.9% and 35.4%.

With average cash costs of $983 per ounce, this equates to a project with the potential for robust financial returns.

Pit optimisations run as part of the Scoping Study indicated that the open pit operation could be developed in stages to provide faster access to mill feed, expediting production and commercialisation.

With Mungana looking to increase its stake in Tunkillia from 55% to 65% by the end of the year, Wheeler told Proactive Investors that Helix has a number of options to realise the value of the asset.

“Based on the quality of the asset and the interest from the market, we can look to stay in as a joint venture participant as Tunkillia comes into production, or we can realise that asset by selling to a third party at an appropriate point in time,” Wheeler said.

“We have the best of all worlds, Mungana needs to spend the money to advance the asset and as it advances the asset it increases the value to Helix.

“Mungana’s focus on rapidly and efficiently monetizing this asset is very encouraging.”

Further improving the financial standing of the project is the relatively straightforward metallurgical processing requirements, keeping costs down.

Information to date indicates that metallurgical processing of ore from Tunkillia could follow a standard gold flow sheet, comprising crushing, grinding and carbon-in-leach gold and silver extraction.

Future work

With the Scoping Study complete, the focus at Tunkillia has shifted to the completion of a Bankable Feasibility Study and the start of production.

Immediate activities include an infill and extensional drilling program beginning in May 2012, with results to help reinterpret the geological model for Tunkillia.

A program of metallurgical test work is set to commence as soon as possible, and work will be undertaken to enable the submission of a Mining Lease Proposal, with project approvals expected to take between 18 and 24 months.

The first stage of Feasibility Study work will be progressed, evaluating all major technical and commercial areas. In this phase, consideration will be given to all project development options.

In addition, work is underway to secure potential long lead infrastructure items such as water and power supply and second hand process plant items to reduce capital costs.

Tunkillia project

The Tunkillia project is located in South Australia’s Gawler Craton, about 600 kilometres northwest of Adelaide.

Helix holds a 45% stake in Tunkillia, with Mungana owning the remaining 55%. Based on its current exploration expenditure, Mungana looks to increase its earn in position to 65% by December 2012, and could increase it further in 2013 by spending an additional $11 million.

Helix Resources establishes 100,000oz initial gold resource for Restdown JV project

Tue, 16 Aug 2011 20:20:00 -0400

Helix Resources (ASX: HLX) has achieved a maiden gold inferred resource of 2.6 million tonnes (Mt) at 1.2 grams per tonne (g/t) gold for 100,000 ounces (oz) from the resource model at the Sunrise and Good Friday Prospects.

With mineralisation open along strike and down dip at both the Sunrise Prospect and Good Friday Prospect, there is potential these mineralised systems connect.

The prospects are part of the Restdown joint venture project with Glencore International (LON: GLEN), located 60 kilometres south east of Cobar in central New South Wales.

As a pointer to future development potential, the region has nearby operating mines and strong infrastructure.

This resource model is based on a sediment-hosted style of mineralisation, with evidence for higher grade pods within the mineralised systems, and the company believes it can continue to build on this resource base as it is constrained only by the existing drill density and distribution.

The company said the resource drilling and modeling process has shown a series of lithological controls, structural directions and pathfinder elements in downhole geochemistry that are assisting in focusing future exploration.

Helix is planning additional drilling in the second half of 2011.

Greg Wheeler, Helix’s managing director, said “our initial Resource target of 100,000oz gold has been achieved since securing the ground 12 months ago.

"The current zone of interest 20 kilometres by 9 kilometres within our 1,500 square kilometre of tenure provides confidence for further discoveries in a region with nearby operating mines and excellent infrastructure.”

Helix, through its 100% owned subsidiary Oxley Exploration Pty Ltd, has entered into an earn-in joint-venture agreement covering the Restdown and Muriel Tank Projects with Isokind Pty Ltd, a subsidiary of Glencore.

The projects have a tenement package covering an area of about 278 square kilometres.

Historic mine records report the Restdown goldfield was active during the late 1800’s/early 1900’s with gold extracted from quartz-rich material at very high grades including up to 3kg gold per tonne.

Historic workings were limited to hand-dug shafts and pits due to a lack of water being available for treating ore.

Glencore had previously undertaken trenching and some drilling activities in the immediate vicinity of the old workings at Good Friday and found
gold intercepts including 56 metres at 11.7 g/t gold from 5 metres.

After reviewing studies conducted by Glencore, Helix formulated a plan to test possible extensions of gold at Good Friday and some drilling to test whether goldfield is active at the Sunrise Prospect.

Under an earn-in joint-venture agreement, Helix is required to spend $700,000 by June 2012 to acquire a 70% interest in the Restdown and Muriel Tank Projects and after the current drilling program expects to have earned its 70% interest.

The Restdown Project is 15 kilometres from the historic Mt Boppy Gold Mine which produced 500,000 oz at +10g/t gold, and is now owned by PolyMetals (ASX: PLY), and 30 kilometres from YTC’s (ASX: YTC) Nymagee and Hera development projects.

Helix Resources initial drilling points to large iron ore system at Olary Project

Mon, 15 Aug 2011 03:13:00 -0400

Helix Resources (ASX: HLX) has returned results from its maiden regional 11 hole reverse circulation (RC) drill program on the Olary Project that underpin confidence that a large iron ore system could be present.

Significantly, Olary Project could have potential access to the Broken Hill-Port Pirie railway network as it transects the Helix tenements.

Highlights of drilling included: 124 metres at 31% iron (Fe) from surface to end of hole; and 140 metres at 30% Fe from 4 metres.

Drilling tested the magnetite rich Braemar Iron Formation at the project in South Australia and was conducted on wide spacings along a small portion of the magnetic anomalies in the north-east of the project area.

Results suggest there is potential for thick intersections of magnetite rich material on the project.

Greg Wheeler, Helix’s managing director, said “these initial results are very positive and have only tested around 11 kilometres of strike length, a small percentage of the prospective horizons.

"We will conduct further metallurgical work including Davis Tube Recovery and petrological studies, and seek Mines Department approval for a 5,000 metres to 10,000 metres RC and diamond drill program to assist in identifying the full extent of the system as a precursor to Resource estimation.”

Growing frontier for magnetite iron ore

Helix has a strategic tenement holding in the area with significant exploration potential and direct access to infrastructure (Rail & Highway) in a region that is being considered as a new frontier for the development of magnetite iron ore.

The Olary Region is an emerging iron ore province in the ENE of South Australia. A number of companies have reported encouraging drilling results from various prospects scattered in a belt south of the Barrier Highway from the township of Yunta to the New South Wales border.

The iron occurrences are all associated with the folded and deformed Braemar Iron Formation.

Projects in the region include Royal Resources' (ASX: ROY) Razorback Project, Minotaur Exploration's (ASX: MEP) Mutooroo Fe project, and Havilah Resources' (ASX: HAV) Lilydale and Maldorky projects.