- Helix Resources (HLX) has received assays from 13 holes drilled across four prospects at the Cobar Gold Project in New South Wales
- While results were mixed, Helix was most encouraged by results from Link Zone and Reward which yielded 2.4g/t gold and 3.2g/t gold, respectively
- Drilling so far has only tested available areas however the company is preparing to drill another 16 holes in newer areas
- The next stage of drilling will begin later this month and will be completed in November
- Company shares have dropped 26.9 per cent and are trading for one cent
Helix Resources (HLX) has received assays from an initial 13 holes drilled at the Cobar Gold Project in New South Wales.
This drilling is part of a 29-hole, 3400-metre drilling program. The next 16 holes will be drilled in newer areas following a recent review which outlined areas that showed high potential geochemical and structural indicators.
The holes were drilled across the Amitys, Reward, Battery Tank and Link Zone prospects with the company being most encouraged by results from Reward and Link Zone.
“This current work was the first phase of a follow up to earlier work in 2017 and aimed at identifying areas where there is potential to extend the current ‘from-surface’ Inferred Resource base of 118,000 ounces,” Executive Chairman Peter Lester said.
Link Zone
Helix drilled one hole at Link Zone which is situated between the Sunrise prospect and the Good Friday prospect. The company targeted this area as it demonstrates the potential for a larger-scale if the adjacent prospects join through a mineralised structure.
The hole returned five metres at 1.3g/t gold from 25 metres including one metre at 2.4g/t gold.
Reward
Three holes, for 459 metres, were drilled at Reward to target gold mineralisation. Results include three metres at 1.2g/t gold from 18 metres and one metre at 3.22g/t gold from 25 metres.
One of the holes has an unexplained arsenic anomaly with a peak of 1352 parts per million (ppm) arsenic and an average value of 380 ppm arsenic. Arsenic values in this range are usually associated with gold mineralisation in the project area.
“In this initial program, the results over the four prospects, although mixed, have shown encouraging signs at the Link Zone and Reward in particular where previous strong rock chip and drill intercept results were received,” Peter added.
Amity’s Reward
Helix drilled five holes, for 713 metres, at Amity’s to target bedrock gold mineralisation under high-grade surface rock chips and gold and arsenic in-soil anomaly.
Results include one metre at 1.35g/t gold from 93 metres. Gold mineralisation appears to follow a northwest-southeast strike.
Battery Tank North
A total of four holes, for 520 metres, were drilled below anomalous gold and arsenic in-soil anomalism.
Results include two metres at one gram per tonne gold from 15 metres. This represents a 250-metre extension to the Battery Tank discovery hole and shows the prospect requires further drilling.
The next round of drilling will commence this month and be completed in November.
Company shares have dropped 26.9 per cent and are trading for one cent at 2:33 pm AEDT.