Helix’s (ASX:HLX) drilling creates smoke, but no fire

• Helix Resources (HLX) has completed a reverse circulation drilling program at its Cobar Gold Project with mixed results
• The company drilled 15 holes, for 1768 metres, across seven previously untested targets
• While many of the holes returned negligible results, two holes revealed a possible mineralised zone between two previously identified deposits
• Fieldwork over the coming months will include re-sampling of the new anomalous zones and further target generation work
• Helix is down 21.43 per cent on the news, trading at 1.1 cents

Helix Resources (HLX) has completed a reverse circulation drilling program at its Cobar Gold Project but hasn’t hit the jackpot just yet.

The copper and gold explorer drilled 15 holes, for 1768 metres, across seven previously untested targets. Disappointingly, 13 of the holes uncovered negligible results.

Somewhat more encouraging though were the results for holes CORC 146 and 147.

In a linkage zone between the two previously identified deposits Sunrise and Good Friday, samples recording 12 metres at 0.5g/t from 68 metres and 27 metres at 0.1g/t from 172 metres (to the end of the hole) were discovered.

The company hopes these findings could signal a broad mineralised zone connecting from Sunrise to Good Friday.

What’s next?

The company is now planning to complete a thorough review of all the results and targets generated.

Field work over the coming months will include re-sampling of the new anomalous zones and further target generation work on the northern portion of the project area.

The northern area covers a fold closure which is over 50 square kilometres and has received no methodical field assessment to this point. Helix has gained access to the area for the first time since the early 2000’s and plans to follow-up several higher priority targets identified by an external review in early 2020. This will culminate in an overall ranking of all the Cobar Gold project targets and finalisation of updated work programs.

Helix’s Managing Director, Mike Rosenstreich commented, “Helix is exploring for gold in a known gold province with numerous gold occurrences outlining a broad anomalous gold system — creating a lot of ‘smoke’.”

“The team’s continued focus is to narrow-in on possible gold haloes and structures to identify potential deposits.”

“There has been a tremendous amount of data generated in the past 6 months and I am looking forward to working with Helix’s exploration team to systematically assess it to refine our geological models and targets prior to any further gold drilling activity, if this is warranted.”

Helix is down 21.43 per cent on the news, trading at 1.1 cents at 12:05 pm AEDT.