Helix Resources (ASX:HLX) is hitting the road with an investor roadshow as Managing Director Mike Rosenstreich makes his way to visit the company’s Cobar project site in New South Wales.
The MD is undertaking investor and broker meetings across the country over the next week and will be visiting the company’s Cobar project site for the next 2-3 weeks. At present the MD will be visiting Sydney, Melbourne, and then Perth with a possible visit to Adelaide subject to timing.
Speaking to Mining.com.au while in transit, Rosenstreich says during the investor roadshow he will outline the company’s regional work, including its focus on making new copper discoveries is regaining momentum after effectively a 2-year hiatus due mainly to rain-related access issues.
Helix also currently has an active engagement program into Europe and the UK and the objective is to diversify the register geographically to create greater buyer interest and stability, Rosenstreich says.
While on his way to the company’s Cobar project site, Rosenstreich will engage with small funds, private offices, and high-net-worth individuals, particularly as Helix has plenty of news flow on the way.
Part of his spiel on the roadshow will be conveying how the Cobar region is one where new discoveries keep arising. For example, Aeris Resources’ (ASX:AIS) new discovery Constellation is 7 million tonnes at 2% Cu and 0.6g/t Au and remains open. Discovered with new VTEM technology in December 2019, the same as what Helix flew in 2021.
Rosenstreich adds: “So the message is that regional exploration, that is, testing earlier stage targets is vital to making new discoveries, it is high-risk, but high reward for shareholders. Helix has the money and the targets to undertake this work but have not been able to for the past 18 months due to weather related land access issues. The ground is dry. It has stopped raining and we are now gaining momentum getting on the ground to test these earlier stage targets. One of the reasons for spending an extended period on site is to work with the team to review these targets, understand the potential and then be able to share these stories with shareholders.
I would add our strategy since joining has always been to drill advanced projects (Canbelego and CZ) to generate news flow and add ‘easy copper’ tonnes and undertaking regional exploration (which does not attract much interest) in parallel focused on new discoveries. We are drilling depth continuity at our high-grade Canbelego copper project, after releasing exciting shallow high-grade cu results recently. We have more results to come before closing down for a short time to enable the completion of the MRE.”
The MD tells this news service that Helix has been aggressive drilling at Canbelego for the past 18 months and maintained site access despite the rain issues, and generated some ‘excellent’ results both in terms of depth extensions and identifying higher grade zones at shallow levels.
“Therefore, I am confident of increased contained copper tonnes in the updated MRE due in the June quarter this year.”
“Therefore, I am confident of increased contained copper tonnes in the updated MRE due in the June quarter this year”
Helix is well funded with $8.6 million cash and is well-positioned to make new copper discoveries, as well as to add copper tonnes in its updated MRE at Canbelego due soon.
The forthcoming investor roadshow meetings will update existing shareholders and position Helix on the watch-screens of potential new investors ahead of active news flow from both early stage and advanced project work streams.
Meanwhile, the MD notes that while the roadshow is not specifically organised to discuss the upcoming float of Ionick Metals, a wholly owned subsidiary company, it is a great opportunity to discuss the IPO market in general and the appetite for Ionick specifically.
“The IPO market is difficult at present – there are still some items we would like to add to the mix strengthen the Ionick business plan for example we plan to drill there soon to test some of the targets as a proof of concept. I know, people say don’t ruin a good prospect by drilling it but, these projects are better than that, with significant potential to add to the existing high-grade nickel-cobalt laterite resource we already have delineated.”
Helix is yet to mandate advisors for the Ionick listing and is currently looking to close off the business case and then market it ‘aggressively’ to seek broker/strategic partner support.
Rosenstreich says the rationale to float Ionick now is that exploration of laterite nickel-cobalt is relatively straight forward and the main challenge being to turn ‘resource tonnes’ into ‘ore tonnes’.
“That is done by mining and processing studies. Our copper (and gold) exploration requires ‘high-powered’ geological brains and data and the focus is clearly on adding copper tonnes. So, in my view a different skill set, albeit early stage exploration synergies which we will exploit) and also a likely different investor pool.”
On 28 February, Helix announced Ionick had executed an option agreement over 3 exploration licences prospective for laterite hosted nickel-cobalt-platinum group metals mineralisation located in the ‘Greater Cobar’ region of NSW. The option deal with private exploration company Jodama is the initial phase of a broader strategy of unlocking hidden value for a suite of nickel-cobalt-platinum group metals (PGM) prospects centred around Ionick’s Homeville Nickel-Cobalt Deposit.
To maintain its focus predominantly on copper, Helix plans to float Ionick on the Australian Securities Exchange (ASX) in H2 2023, subject to market conditions and regulatory approval.
Helix Resources is an ASX-listed resources company, which is ‘all-in on copper’ exploration in the prolific copper producing region of Cobar. The company possesses a sizable ground position across two tenement groups, which are largely untested despite being located within 50km of significant copper producing operations.
The western tenement consists of 30km of contiguous strike and the company is advancing a pipeline of wholly owned copper opportunities, as well as the Canbelego JV Project (70% owned and operated by Helix and 30% owned by Aeris Resources) where massive copper sulphides have been intersected. The eastern tenement group encompasses more than 150km of prospective strike and includes the 100% owned CZ copper deposit.
Write to Adam Orlando at Mining.com.au
Images: Helix Resources Ltd
