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Helix Resources (ASX:HLX) begins drilling at Cobar

Mining
ASX:HLX      MCAP $9.293M
06 August 2020 18:00 (AEST)
Helix Resources (ASX:HLX) - Non Executive Director, Tim Kennedy

Source: Helix Resources

Helix Resources (HLX) has commenced drilling at its Cobar Gold Project in central New South Wales.

The company has officially received government approvals for its planned drilling program. Helix has also selected a local drill contractor for the initial phase of drilling.

Additionally, the company’s Perth and Queensland-based technical team travelled to the central west region from Canberra. The company took the appropriate COVID-19 travel protocols.

“We are pleased to be commencing our gold drilling program in Central NSW. The drilling is designed to test several new high-grade gold target areas across our goldfield,” Executive Chairman Peter Lester said.

Amity’s

Drilling will kick off at the Amity’s prospect, where previous work identified a 480 metre-by-270 metre gold-in-soil anomaly.

Previous sampling and mapping returned high-grade gold assays from rock chips. Results include 39.6g/t gold and 11g/t gold from the southeastern end of the ridge and 20.4g/t gold and 9.6g/t gold from the northwestern end of the ridge.

Helix will drill new holes and step-out holes along the strike of the soil anomaly to target high-grade gold.

Reward

The company will also drill the Reward prospect to follow up on an open gold intercept of 20 metres at one gram per tonne gold from 17 metres including one metre at 4.9g/t gold.

Recent mapping identified zones of sub-cropping “chevron” folds which is an important structural pathfinder seen at the prospective Mt Bobby deposit.

Battery Tank North

Helix will drill the Battery Tank North prospect, where a 370 metre-by-280 metre gold and arsenic anomaly returned several gold mineralised zones including seven metres at one gram per tonne gold from 25 metres.

“Our initial drill targets are well beyond the existing resource areas and could provide scope for progressive expansion of our 118,800-ounce gold inventory currently attributed to the Project,” Peter added.

Future work

Once Helix completes drilling at these prospects, it will test more targets at Homeward Bound, Lone Hand, Girl in Blue, the Link and Republic.

All of these prospects reportedly have significant surface gold and nearby workings. They’re also located close to regional mineralising structures’ intersections.

Company shares dropped 7.14 per cent to trade for two cents each at 3:27 pm AEST.

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