THE DRILL SERGEANT: Helix Resources (ASX: HLX) posted an interim maiden Indicated and Inferred Mineral Resource estimate for the Central Zone portion of the company’s Collerina copper deposit in the Cobar Region of Central New South Wales.
Helix Resources believes the high-grade copper from near surface at Collerina provides scope for potentially advantageous development optionality with the project being well located in a region with increasing development and exploration activity.
The interim Indicated and Inferred Mineral Resource estimate is 2.02 million tonnes grading 2.03 per cent copper, 0.1 grams per tonne gold and includes a high-grade massive sulphide component of 1.4 million tonnes grading 2.6 per cent copper, 0.2g/t gold.
The company explained this Resource announcement was delayed from earlier expectations due to the undertaking of a reinterpretation of the mineral system’s localised geometry, particularly in the deeper parts of the system, and with several delays in drilling.
The company considers the new interpretation will be a critical part in the planning for future drilling to expand on the Resource estimate.
The review established a robust and refined interpretation of the broader Collerina copper system and provided clear vectors to expand the known copper mineralisation envelope, well beyond the current drill pattern.
“The interim resource modelling process has substantially improved our overall understanding of the controls on the distribution of copper at the Collerina deposit,” Helix Resources managing director Mick Wilson said in the company’s announcement to the Australian Securities Exchange.
“Due to the drill density so far, only a modest portion of the Collerina system can be converted to JORC 2012 compliant resources at this stage.
“However, the low discovery costs to date and near-surface high grade copper reporting in the fresh portion of the Central Zone Plunge underpin the projects emerging value.
“Drilling in adjacent target areas, particularly up and down dip of the Central Zone Plunge are clear priorities.
“Our confidence in the refined geological shape and understanding of the structural controls on copper distribution and enrichment, with further drilling, we expect to see significant portions of the surrounding Exploration Target shape included in a deposit scale resource estimate.”