Helix confirms "massive" copper intersection at NSW project

Helix Resources Limited (ASX: HLX) ("Helix" or "the Company") is pleased to report diamond drill hole CANDD006 has intersected visible copper sulphide mineralisation at the Canbelego Main Zone target position, approximately 50 metres down dip from the high-grade intercept of 18 metres at 3.4% Cu intersected in May, 2021 (included 14 metres at 4.22% Cu) [2].

The Main Zone intercept occurs from 405 to 434 metres comprising mainly incipient veins and disseminated chalcopyrite (CuFeS₂ – copper sulphide mineral) and includes approximately 1.3 metres of massive to semi-massive chalcopyrite from 425.2 metres.

Several intervals of mineralisation were observed higher in the hole which support the interpretation of parallel lode positions to the west of the Main Zone;

• from 80 metres a 20-metre interval of oxide copper minerals, malachite and possibly chalcocite; and
• between 100 to 200 metres downhole – several zones with scattered chalcopyrite veins, some associated with narrow quartz-breccia and quartz veins, including two observations of high-tenor copper mineral, Bornite (Cu₅FeS₄) with coarse grained chalcopyrite in sugary quartz.

A 12 to 15 hole RC drill program has commenced to test for parallel lode positions to the south-west. VTEM and soil geochemistry also indicate potential for new lodes to the north-east, but with denser vegetation cover further target definition work is planned here prior to clearing access for drilling.

Cobar style copper deposits commonly present as a series of structurally controlled, parallel lodes. Helix is developing its exploration strategy around a Cobar deposit model.

Commenting on these preliminary observations from the first drilling back at Canbelego, Helix Managing Director Mike Rosenstreich said:

"this is an encouraging start to the resumption of drilling at Canbelego. We have done a lot of work to understand the prospect scale geology and controls on the copper mineralisation – including how to target some of the higher grade, massive copper-sulphide shoots such as we hit in May last year, 18 metres at 3.4% copper."

"It's still very early days but we are also very interested to test the concept of repeat lodes which is typical for the 'Cobar Style' of copper deposits, which are often blind at surface or have small footprints but can extend for up to several thousand metres vertically. The mineralisation we observed higher in the hole may correlate with anomalous copper mineralised zones hit at shallow levels in drill hole 5 last year. This fits with an observed trend in some other historical drill holes in the project area and has helped develop our emerging parallel lode target concept.

"We have just commenced RC-drilling at Canbelego to test some shallow mineralised positions at the Main Zone as well as these possible new, parallel lode positions to the west."

Canbelego JV Drilling

The Canbelego Copper Project lies along the regional scale Rochford Copper Trend. It is a 70:30 'contributing' joint venture (Helix 70% and manager, Aeris Resources Ltd (ASX:AIS) 30%).

In 2021 the JV drilled five diamond drillholes (CANDD001 to CANDD005) for nearly 2,000 metres, since restarting exploration drilling around and beneath the Canbelego Mineral Resource[3] after an 8-year exploration hiatus.

This report provides preliminary observations for drillhole CANDD006 which commenced late in 2021 and was completed in mid-January 2022. It is important to note that observations are preliminary but given the generally visual nature of copper mineralisation these observations are potentially material.

A drill hole location plan and schematic Long-Section are presented in Figures 2 and 3 respectively. Table 1 presents drill hole details for CANDD006 and Table 2 provides a summary of the preliminary geological observations supporting the initial thoughts, outlined below:

• Main Zone – the intercept is approximately 50 metres down dip and north of the high-grade intercept in CANDD002 which hit 18 metres at 3.4% Cu. It is also 30 metres up dip of the weakly mineralised zones hit in CANDD005 which targeted the high-grade shoot but only hit narrow mineralised or anomalous intervals. Whilst not as intensely mineralised as CANDD002, the presence of the massive chalcopyrite interval and peripheral veins, extends known massive mineralisation depth and is regarded as encouraging for the continuation of the mineralised structure laterally and opens targets at depth to the north and south.
• Upper Zones - the upper mineralised zones were also intersected in CANDD005, but the mineralisation tenor looks better in CANDD006, and they may represent a new mineralised zone to the west that has not been systematically tested by drilling.

Forward Program for Canbelego JV

A 12 to 15 hole RC drill program has commenced to test for parallel lode positions to the south-west as summarised in Figure 2. This initial program is focused on the northern portions of the western 'lode' targets where there is existing geochemical data at surface and from historic drilling to step out from. VTEM and soil geochemistry also indicate potential for lodes to the north-east, but with denser vegetation cover further target definition work is planned here prior to clearing access for drilling.

The key current work elements comprise:

• A 12-to-15-hole RC drill program to test shallower mineralised positions at the Main Zone and potential en-echelon, parallel lode positions to the west of the Main Zone;
• Detailed logging, cutting and sampling of the CANDD006 drill core and submission of samples to the assay lab.
• Surface Moving Loop EM survey at Canbelego to better define VTEM anomalies to the northeast.
• Downhole EM surveying of CANDD006 to determine if EM can assist in vectoring deeper and lateral target positions.

Work is ongoing to update the geological model based on the recent drill and geophysical data as well as review of the historical data with the aim of better resolving the geological controls on the higher-grade copper zones. Helix is also working on its more regional prospects along the Rochford trend.

Table 2: Drill Hole Details

Grid: MGA94 Zone 55

Table 3: CANDD006 Preliminary Geological Observations

This ASX release was authorised by the Board of Directors of Helix Resources Ltd.