Helix confirms iron ore potential at Olary

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THE DRILL SERGEANT: Minerals exploration company Helix Resources has received the results from the maiden reverse circulation drill program on its Olary project in northeast South Australia.

Helix said the results from the eleven hole program have given it confidence that a large iron ore system is present at Olary.

Better results from the drilling include:

– 124 metres at 31 per cent iron from Surface to En Of Hole; and

– 140m at 30% iron from 4m.

“These initial results are very positive and have only tested around eleven kilometres of strike length, a small percentage of the prospective horizons,” Helix Resources managing director Greg Wheeler said in the company’s announcement to the Australian Securities Exchange.

“We will conduct further metallurgical work including Davis Tube Recovery and petrological studies, and seek Mines Department approval for a 5,000 metre to 10,000 metre reverse circulation and diamond drill program to assist in identifying the full extent of the system as a precursor to Resource estimation.”

Helix began the drilling program of eleven RC holes for 1500m in June in order to test potential for the Olary project to host magnetite iron mineralisation associated with the Braemar Iron Formation.

“Drilling was conducted on wide spacings along a small portion of the magnetic anomalies in the north-east of the project area,” Helix said in the announcement.

“The drilling confirmed the magnetic response in the detailed aeromagnetics correlates well with iron content, and whilst the drilling was a ‘first pass’ to test the concept, the results suggest there is potential for thick intersections of magnetite rich material on the Olary project.”

Helix said it is now in the process of carrying out a series of metallurgical and petrological studies at Olary to gain a better understanding of the mineral species, possible recoveries (DTR’s) and characteristics of the iron ore intersected.

It is also using magnetic susceptibility readings it has collected as well as assay results from the drilling to model the detailed aeromagnetics and determine priority drill targets on the project.