Helix Resources earns in to Canbelego Joint Venture with Straits Resources

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THE DRILL SERGEANT: Helix Resources (ASX: HLX) has secured a 70 per cent equity interest in the Canbelego Joint Venture with Straits Resources (ASX: SRQ) after completing earn-in requirements.

Straits have subsequently notified Helix, which is to act as the manager of the project, it will contribute to the joint venture in line with its 30 per cent equity interest.

The Canbelego Joint Venture is located in the Cobar Region of New South Wales and includes the 1.5 million tonnes at 1.2 per cent copper inferred resource Canbelego Mine prospect and the recently drilled Caballero prospect, which lies 2.5 kilometres south of the Canbelego Mine prospect on the same geological trend.

Both JV partners have agreed to Phase 1 of a Forward Work Program.

Helix recently completed a drilling program at both the Canbelego Mine and Caballero prospects.

The company said RC and diamond drilling carried out at Canbelego had intersected stringer and breccia veined copper sulphides and it is now waiting on the assay results.

The single RC hole to be drilled so far at Caballero returned:

–    12 metres at 0.9 per cent copper, including 4 metres at 1.4 per cent copper and 4 metres at 1.1 per cent copper within the oxidized zone above an EM conductor.

This intersection occurred within a broader zone of:

–    68m at 0.4 per cent copper (single metre re-split drilling assays are still pending).

“The JV partners have agreed to drill a second deeper RC hole at Caballero targeting sulphide mineralisation below the initial intersection, which is coincident with a high copper in soils anomaly (up to 0.3 per cent copper) and a 500 metres long fixed loop EM conductor,” Helix Resources said in its ASX announcement.

“The hole is expected to be drilled in the week commencing 16th September 2013.

“The remainder of the agreed Forward Work Program will include additional fixed loop EM and down-hole EM surveys in the recently drilled holes, infill augur soil geochemistry and further drilling.”