Helix Resources (ASX:HLX) is re-prioritising drill targets at its Canbelego Project in New South Wales in light of new induced polarisation (IP) results.
Canbelego is a joint venture project between Helix and Aeris Resources (ASX:AIS) in which Helix holds the majority interest. The project covers the Rochford Copper Trend and is surrounded by Helix’s wholly owned Western Group tenements.
Helix, which has a $9.29 million market capitalisation, says the results, generated from follow-up IP geophysical surveys, have extended the target zone for new copper lodes immediately adjacent to the Canbelego Main Lode resource.
The results have expanded the previously defined Western anomaly 600m to the north, extending to a total length of 625m, which is longer than the 350m-long IP anomaly over the Canbelego Main Lode. It sits 135m below the surface and is open at depth.
Drilling will test the target this month. Helix believes the target may represent a parallel zone of copper lodes, leading to a potential increase in the scale of Canbelego. Assays are expected in mid-June.
Up to three 300m-deep reverse circulation holes will be drilled into the peak of the anomaly. Helix expects to complete the drilling in one week, however, if water is produced or if the holes deviate from the target, they will be completed with diamond tails to ensure the strongest parts of the anomaly are tested.
If diamond drilling is necessary, the drilling program would likely take an additional two weeks to complete.
No drilling has been completed along the new anomaly to date.
Helix Resources Managing Director Dr Kylie Prendergast says the presence of multiple copper lodes are a characteristic feature of several Cobar-style deposits, including Metals Acquisition’s (ASX:MAC) CSA copper deposit.
“Upcoming drilling will confirm if the compelling new IP geophysics anomaly at Canbelego represents a new zone of copper mineralisation and demonstrate that Canbelego has multiple near-surface copper lodes,” Prendergast says.
“To date, three separate high-grade copper lodes have been identified by drilling at Canbelego including the Main Lode copper resource and two smaller western lodes which are narrower but well developed.
“All of the lodes have geophysical IP anomalies however the new ‘far’ Western anomaly is the largest we have identified.
“It is now time to drill test the new targets and Helix is planning to bring a drill rig to site in the coming weeks. In addition, Helix continues to advance further high-priority copper and gold targets in its portfolio in the prolific Cobar region.”
According to Metals Acquisition, the CSA copper mine represents one of Australia’s deepest underground mines and sits only 11km northwest from the township of Cobar, with reported ore reserve grades of 4%.
It produced 36,147 tonnes of copper and 429,259 ounces of silver in 2023 from just shy of 1.1 million tonnes processed on site, and has been in operation for almost 60 years.
Metals Acquisition purchased the CSA Copper Mine from Glencore (LON:GLEN) in June 2023.
The price of copper is currently sitting at US$4.60 ($6.97) per pound as of this morning, approaching the two-year high of US$4.70 per pound amid a softer dollar and increasing supply concerns, according to Trading Economics.
As of 31 March 2024, Helix had just under $1.68 million in cash and cash equivalents at hand, according to its latest quarterly report.
However, the company on 22 April announced it was looking to tap existing shareholders for roughly $2.3 million via a one-for-three renounceable entitlement offer.
The rights issue was partially underwritten up to $1.5 million by lead manager and underwriter Mahe Capital.
Write to Adam Drought at Mining.com.au
Images: Helix Resources
