ASX-listed minerals exploration company Helix Resources (ASX:HLX) reports it has uncovered a major off-hole conductive copper target following a diamond drilling (DD) campaign at its Canbelego Joint Venture (JV) Project in New South Wales.
The newly discovered 400m x 70m Cu target was identified by a downhole electromagnetic survey (DHEM) of drillhole CANDD015, which returned a strong conductive response of 500S to 1000S and is supported by data produced from earlier peripheral drillholes.
This new Cu target represents the largest DHEM target measured on the project and is reported to plunge 60 degrees to 70 degrees to the north.
It is also reported that Cu mineralisation has been observed in the drill core within 2 shear zones that correspond with shears that host the upper Western Lodes and deeper Canbelego Main Lode positions.
Recent diamond drilling comprised 2 parent drillholes (CANDD015 and 016) and were conducted to test the down-plunge continuity of ‘high-grade’ Cu shoots identified by drilling over the past year up to 200m below the base of the 2010 inferred Mineral Resource Estimate (MRE).
Speaking on the results, Helix Resources Managing Director, Mike Rosenstreich says: “The DHEM response we have at the Canbelego is outstanding – it is intense, large scale and corroborated by earlier surveys which couldn’t quite penetrate deep enough to “illuminate” this new conductor.
“The DHEM response we have at the Canbelego is outstanding – it is intense, large scale and corroborated by earlier surveys”
This is an exciting phase for our copper discovery work and could have a major positive impact on our core objective to find more copper. Fortunately, Helix is well funded to thoroughly assess these opportunities and add real value for our shareholders with further positive results. With two rigs operating – targeting this new conductive zone within the mineralised Canbelego shear, we are well poised to make further discoveries.”
The company also notes that the visual observations of Cu mineralisation within the drill core at the predicted target positions for both the Main and new Western Lodes is further confirmation for the vertical continuity of the overall Canbelego Cu mineralised system.
However, it is reported that this mineralisation does not appear to be linked to the more intense response from the new off-hole conductor(s).
In addition, preliminary interpretation of the DHEM data suggests that the new, north-plunging, large-scale shoot structure has the hallmarks of a ‘Cobar-style’ and ‘high-grade’ Cu lode.
As of 8am AWST Helix Resources’ share price has increased by 7.69%.
Helix Resources’ Canbelego project is located 45km southeast of the township of Cobar in central NSW and represents a JV operation, with Helix owning the majority 70% of all associated tenements and the remaining 30% being owned by mid-tier base and precious metals producer Aeris Resources (ASX:AIS). The project currently boasts a MRE of 1.5Mt at 1.2% Cu, which was reported in October 2010.
With drilling still ongoing, Helix Resources announces that drillhole CANDD016 will now be extended to 700m to ensure adequate testing of the conductor at depth.