Assays confirm gold at Restdown Joint Venture

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THE DRILL SERGEANT: Helix Resources recently completed a total of 59 drill holes, completing around 6,000 metres of RC drilling, on its Restdown gold joint venture (Helix earning 70% by expending $700,000 by June 2012; Glencore International AG 100%) during April.

The program was carried out to test extensions and continuity of significant gold results identified in Helix’s initial drilling program undertaken in the fourth quarter of last year to test several regional prospects.

Helix has received results from the first 14 holes of aqua regia assays (from the southern end of the Sunrise Prospect), in which all holes intersected mineralisation greater than 0.2 grams per tonne gold.

The better results received included: 42m at 1.5g/t gold from 15m (incl. 5m at 3.3g/t, 6m at 3.0g/t and 7m at 2.7g/t); 32m at 1.0g/t gold from 16m (incl. 5m at 5.4g/t); 17m at 1.5g/t from 19m (incl. 4m at 4.6g/t gold); and 14m at 2.0g/t gold from 40m (incl. 5m @ 4.0g/t).

“The width and continuity of grade in these drilling results complement those intersected in the 4Q10 drilling program (13m @ 4.2g/t Au in HRRC006 and 18m @ 2.7g/t Au in HRRC008) giving the mineralisation a strike of +200m with results still to come from the extensions of the mineralised zone,” Helix said in an anouncement.

The results have given the company confidence a maiden Resource estimation can be completed at Sunrise.

All zones returning greater than 0.1g/t gold are being re-sampled with a riffle splitter at 1m intervals and fire assayed with those results to form the basis for the resource model.

The logging of lithology in drill cuttings suggests a good correlation between quartz vein content and higher gold grades.

As manager of the JV, Helix has met the $700,000 expenditure required to earn a 70% interest in the Restdown JV tenements. A JV meeting to discuss an aggressive forward work program is scheduled for June.

Preliminary Scoping Studies have commenced to investigate development options concurrent with a High Level Environmental Impact Study

A detailed aeromagnetic survey (50m lined spacing) recently completed has highlighted a large zone of interest to the JV (9km wide by +20km long) within a regional-scale fold structure on Restdown.

Broad spaced soil geochemistry has confirmed the presence of new areas of gold anomalism to the south of the known prospects.

A soil sampling program over untested extensions to the north (Including extensions into Helix’s 100% owned EL7567) will be carried out and interpreted to define targets for drill testing in the third quarter of this year.