On 12 February 2019, Helix Resources Limited (ASX: HLX), a mineral exploration company from the metals and mining sector, shared its general investor presentation.
The presentation highlighted that Collerina and the Cobar District is a richly endowed province with high-value exploration potential. The region spreads in the area of approximately 1,500km² and has a strong presence of copper and gold camps which are still underexplored. The company is actively exploring the Collerina Copper Project.
The geological and structural review driven exploration strategy confirmed that the projects of Helix have provenance and potential scale. The analysis also helped in prioritizing targets to advance at the prospect as well as the project scaling within the funding limits. The ground selection confirmed the new target emerging in the untested regions.
The Collerina Copper Project is located in the infrastructure-rich central NSW. The exploration strategy at the Collerina prospect targeted a sufficient scale for potential stand-alone operation based on the new geological model established in 2017. Multiple new extensional DHEM conductor targets will be drilled for the delivery of Maiden Resource 1Q19.
The new geology and structural interpretation helped in refining the EM target. The immediate drilling at the prospect was a success. The discovery of copper exploration at depth gave Collerina scale and confidence to continue with their drilling EM related plunged targets.
Helix has the control of 85km of the prospective VMS Belt where multiple prospects were identified across three priority target zones within the 25km “Collerina Copper Trend”. In the north and south of the main Collerina Trend, HLX has additional 60km of prospective VMS corridor. It is a regional opportunity for Helix in the Collerina Copper with the emerging regional targets.
The Mundarlo project, which is 80% owned by the company, is located at 20km SW of Gundagai NSW. The project target is to link base metal mineralization with a series of gossanous horizons which lies within a North-West trending volcano-sedimentary basin sequence. The MLEM survey at the project led to the discovery of a discrete bedrock conductor in a favorable setting for VMS-style base metal deposits. This conductor lies below the zone of extensive spaced historic copper-in-soil anomalism that remain undrilled till date.
At Cobar Gold Project, the Geological model helped in refining the evidence for a significant gold system.
At Battery Tank, there were wide zones of gold mineralization:
A 43 meters drilling led to the discovery of 2.3 g/t of gold. It included another 4 meters and 14 meters drilling which led to the discovery of 13.3g/t gold and 2.8g/t gold respectively.
Another 54 metres drilling resulted in 1g/t of gold. It included drilling of 10 metres where 3.3g/t of gold was discovered, another 3.3 metres drilling where 5.2g/t gold was found and a further 5 metres drilling which led to the discovery of 2.4 g/t of gold. The region has the potential for linkage of prospect, and multiple regional targets remained untested.
In the last six months, the stock has generated a negative return of 25.81%. By the closure of the trading session, the stock traded flat on ASX. The closing price of the HLX shares was A$0.023 with the market capitalization of A$9.76 million and 424.47 million outstanding shares.
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