Helix has ‘no cause’ to question West Lynn MRE following queries

‘All-in on copper’ company Helix Resources (ASX:HLX) reports it has no cause to question the accuracy or reliability of the West Lynn Project exploration results following a number of queries.

The company has released additional information to shareholders in relation to the West Lynn Project following some undisclosed enquiries.

As reported by Mining.com.au on 9 November 2023, Alchemy Resources (ASX:ALY) has executed an option agreement with Helix subsidiary Ionick Metals for the West Lynn tenements at Alchemy’s 80% owned Lachlan Projects in New South Wales.

On 19 February 2019, Alchemy announced that a maiden inferred Mineral Resource Estimate (MRE) had been completed for the nickel-cobalt zone of the West Lynn Project, an advanced project located 10km west of Nyngan and 40km north of Ionick’s nickel mineral rights.

As per recent announcements, Alchemy confirms the 2019 results showing West Lynn has an inferred MRE containing 21.3Mt @ 0.84% Ni, and 0.05% Co (180,000t of Ni and 11,000t of contained Co). The project also contains an additional alumina resource of 6.6Mt @ 20.8% Al203.

Today (13 November 2023), Helix reiterates that the MRE has been reported in accordance with the JORC Code (2012) and was completed by Resource Evaluation Services (RES).

The JORC Code (2012) describes a number of criteria, which must be addressed in the documentation of MREs, prior to public release of the information. These criteria provide a means of assessing whether the data inventory used in the estimate is adequate for that purpose.

Helix confirms it is relying on the reported resource prepared by Alchemy and that it has conducted a technical review of the data prior to execution of the option agreement.

The company says nothing has come to its attention that causes it to question the accuracy or reliability of Alchemy’s exploration results. The company adds that it has not independently validated the previous results and therefore is not to be regarded as reporting, adopting, or endorsing those results.

Helix did not disclose the nature of the queries it has received.

Upon exercising the option and acquiring the West Lynn asset, Ionick Metals proposes to undertake additional drilling to confirm and further expand the resource. As reported on 9 November 2023, the funds raised from Ionick’s proposed $10 million IPO will be used to complete stage one exploration work.

Helix Resources’ broader strategy includes splitting its copper-gold and nickel-cobalt mineral rights, with Ionick’s core assets including the Homeville nickel-cobalt deposit and as of last week, also the West Lynn Project.

For completeness, Helix has released a summary of its existing Homeville MRE which is also reported in accordance with the JORC Code (2012). The Homeville MRE was completed in 2018 by Optiro and is reported above a 0.7% nickel cut-off grade. The 2018 mineral resource was publicly reported by Alpha HPA (formerly Collerina Cobalt Limited) on 28 September 2018.

Metallurgical testwork undertaken in 2015 to 20171 examined atmospheric counter-current acid leaching, achieving >90% nickel and cobalt recoveries to produce nickel cathode and a cobalt-carbonate.

Write to Adam Orlando at Mining.com.au

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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.