Halo Updates NI 43-101 Compliant Resources Estimate for Sherridon District, Manitoba
TORONTO, ONTARIO -- (Marketwire) -- 11/04/10 -- Lynda Bloom, President and CEO of Halo Resources Ltd. (TSX VENTURE: HLO)(FRANKFURT: HRLN) is pleased to announce that the Mineral Resources for the Cold, Lost, Bob Lake and Jungle Lake copper-zinc deposits at Halo's Sherridon VMS Property, Manitoba have been revised to include 6.5 million tonnes grading 0.85% copper and 1.22% zinc as Indicated Resources and an additional 15.9 million tonnes grading 0.68% copper and 0.84 % zinc as Inferred Resources with precious metal credits. At least 75% of the material in both categories is contained within potentially economic open pits.
The Mineral Resources are reported in accordance with Canadian National Instrument 43-101 ('NI43-101') and have been estimated in conformity with the generally accepted Estimation of Mineral Resource and Mineral Reserves Best Practices guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum ('CIM').
The new estimate was prepared by Giroux Consultants Ltd. (GCL) for Halo and incorporates 33 additional drill holes since the previous resource estimate was published in September 2008 under the supervision of Scott Wilson RPA. The resources estimated by GCL, classified as Indicated or Inferred, are summarized below.
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Category Mining Tonnes Copper Zinc Gold Silver
Method (%) (%) (g/t) (g/t)
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Indicated Open Pit 5,317,000 0.80 1.23 0.34 7.21
Underground 1,235,800 1.04 1.18 0.48 8.19
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Total Indicated 6,552,800 0.85 1.22 0.37 7.40
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Inferred Open Pit 12,240,000 0.62 0.77 0.26 5.29
Underground 3,620,000 0.91 1.08 0.32 7.37
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Total Inferred 15,860,000 0.68 0.84 0.28 5.77
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Category Mining Tonnes Copper Zinc Gold Silver
Method (Mllbs) (Mllbs) (ozs) (ozs)
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Indicated Open Pit 5,317,000 94 144 58,829 1,233,373
Underground 1,235,800 28 32 19,230 325,343
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Total Indicated 6,552,800 122 176 78,059 1,558,716
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Inferred Open Pit 12,240,000 168 208 103,921 2,083,390
Underground 3,620,000 72 87 37,324 857,689
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Total Inferred 15,860,000 240 294 141,245 2,941,079
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Notes:
1. Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of the
Mineral Resources estimated will be converted into Mineral Reserves.
2. Mineral resources are estimated at a net smelter return (NSR) cut-off of
US$20 per tonne and US$45 per tonne for open pit & underground
respectively.
3. Metal prices used are US$3.00/lb copper, US$1.05/lb zinc, US$1,000/oz
gold and US$15.00/oz silver.
4. Metallurgical recovery factors assumed were 92% for copper, 83% for
zinc, 65% for gold and 57% for silver.
5. The Mineral Resources are reported at a cut-off grade to reflect
reasonable prospects for economic extraction, which were evaluated by
designing a series of conceptual pit shells using the Lerchs-Grossman
optimizing algorithm.
6. Common values for operating costs and smelter terms were assumed.
Lynda Bloom, President and CEO of the Company, commented 'The expansion of our resource base and its amenability to low cost open pit and shallow underground mining methods will spur a scoping level economic evaluation later in 2011. The close proximity of the deposits to each other and the town of Sherridon, a power line, road and railroad, provides a realistic framework to consider a central processing facility for the district. Halo's vision of building a new VMS district in northwestern Manitoba is enhanced with the new resource estimation for the four known deposits and our commitment to further exploration.'
All four deposits in the resource estimate lie within a 4 km by 4 km area of the 200 sq km Sherridon VMS Property. At the current time Halo holds a 100% interest in all of the deposits and claims within the Sherridon Complex. HudBay Hudson Bay Mining and Smelting Co., Limited ('HudBay'), a subsidiary of HudBay Minerals Inc. (TSX: HBM), has an option to earn up to a 67.5% joint venture interest in a 1.1 sq. km. area that includes the Cold and Lost deposits as well as a back-in right to earn a 51% interest in the Jungle deposit. In total, HudBay has commitments of $8.675 million in work expenditures and cash payments, in addition to other considerations such as funding and completing a feasibility study within four years to advance the Cold and Lost deposits, to earn its interests.
Technical Highlights
Details of the updated resource estimate by deposit are shown below. The open pit resources are generally located within 200 meters of surface.
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Deposit Mining Tonnes Copper Zinc Gold Silver
Method (%) (%) (g/t) (g/t)
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INDICATED CATEGORY
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COLD Open Pit 942,000 0.87 1.43 0.5 11.6
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Underground 81,000 0.90 1.88 0.3 10.1
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LOST Open Pit 865,000 0.83 2.99 0.5 9.5
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Underground 4,800 0.44 2.51 0.4 6.0
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BOB Open Pit 2,220,000 0.70 0.72 0.2 4.9
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Underground 290,000 1.05 1.03 0.3 7.2
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JUNGLE Open Pit 1,290,000 0.90 0.77 0.3 6.4
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Underground 860,000 1.06 1.16 0.6 8.4
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INFERRED CATEGORY
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COLD Open Pit 1,280,000 0.48 1.19 0.3 7.1
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Underground 340,000 0.74 1.54 0.3 9.1
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LOST Open Pit 1,420,000 0.67 1.86 0.5 8.0
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Underground 340,000 0.63 2.38 0.5 8.7
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BOB Open Pit 7,600,000 0.62 0.49 0.2 4.4
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Underground 1,130,000 1.02 0.82 0.2 7.4
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JUNGLE Open Pit 1,940,000 0.67 0.80 0.4 5.7
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Underground 1,810,000 0.92 0.92 0.3 6.8
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Deposit Mining Tonnes Copper Zinc Gold Silver
Method (M lbs) (M lbs) (ozs) (ozs)
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INDICATED CATEGORY
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COLD Open Pit 942,000 18.0 29.8 15,294 352,468
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Underground 81,000 1.6 3.4 867 26,172
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LOST Open Pit 865,000 15.8 57.0 13,432 263,837
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Underground 4,800 0.1 0.3 67 924
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BOB Open Pit 2,220,000 34.5 35.0 16,416 352,876
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Underground 290,000 6.7 6.6 2,536 67,373
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JUNGLE Open Pit 1,290,000 25.6 21.9 13,687 264,192
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Underground 860,000 20.1 22.0 15,760 230,874
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INFERRED CATEGORY
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COLD Open Pit 1,280,000 13.4 33.5 10,288 290,581
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Underground 340,000 5.6 11.5 3,618 99,540
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LOST Open Pit 1,420,000 21.1 58.3 22,690 363,086
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Underground 340,000 4.7 17.9 5,892 95,375
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BOB Open Pit 7,600,000 104.4 81.6 49,113 1,077,319
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Underground 1,130,000 25.3 20.5 8,610 268,227
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JUNGLE Open Pit 1,940,000 28.7 34.2 21,830 352,404
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Underground 1,810,000 36.7 36.7 19,204 394,547
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Notes:
7. Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of the
Mineral Resources estimated will be converted into Mineral Reserves.
8. Mineral resources are estimated at a net smelter return (NSR) cut-off of
US$20 per tonne and US$45 per tonne for open pit & underground
respectively.
9. Metal prices used are US$3.00/lb copper, US$1.05/lb zinc, US$1,000/oz
gold and US$15.00/oz silver.
10. Metallurgical recovery factors assumed were 92% for copper, 83% for
zinc, 65% for gold and 57% for silver.
11. The Mineral Resources are reported at a cut-off grade to reflect
reasonable prospects for economic extraction, which were evaluated by
designing a series of conceptual pit shells using the Lerchs-Grossman
optimizing algorithm.
12. Common values for operating costs and smelter terms were assumed.
GCL was provided with a database of all available drill hole data, comprising collar, survey, assay, and lithology information as of September 15, 2010 as well as a 3-D geological model to constrain the resource estimation. The data base for the resource estimation, effective date September 2010, consisted of 108 drill holes at Bob, 60 drill holes at Cold, 33 drill holes at Lost and 62 drill holes at Jungle. The majority of the drilling was done by Halo and the database also includes drilling by Hudson Bay Exploration and Development (Jungle, Cold and Lost) and Sherritt Gordon (Bob). All of the drilling by Halo has included an assay quality control program including reference materials and check assays. All of the data are considered suitable for use in resource estimation.
The resource estimates reported in this press release were produced by Gary Giroux, P.Eng. MASc. a Qualified Person as defined by NI 43-101 who is responsible for the technical material contained in this news release. A comprehensive technical report will be produced by Halo within 45 days of the issue of this news release.
About the Sherridon VMS Property
The Sherridon VMS Property covers an area of over 20,876 hectares and hosts the past-producing Sherridon Mine that was operated by Sherritt Gordon Mines from 1933 to 1950 and produced 7.7 million tonnes of ore grading 2.46% copper and 0.8% zinc. Results from an airborne geophysical survey completed in the summer of 2006 identified an additional 122 targets. The property is located only 70 km northeast of the mining and metallurgical complex in Flin Flon operated by HudBay Minerals Inc. (TSX: HBM). Future development of the property is facilitated by the presence of an all-weather road and railroad access as well as a power line and communications tower.
About Halo Resources Ltd.
Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in 3 projects: Duport, which is an advanced stage gold project; Red Lake, which is a gold exploration project, and the Sherridon project that is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. The Company is operated by an experienced management team and backed by a strong network of mining financiers. The Company's growth strategy is to develop a diversified portfolio of advanced mining projects.
This news release presents 'forward looking information' within the meaning of the applicable Canadian securities laws that involve inherent risks and uncertainties. Forward-looking information includes, but is not limited to, information with respect to the proposed private placement. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Halo to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to financings; risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Halo Resources Ltd. believe that the expectations reflected in such forward-looking information are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information Halo does not undertake to update any forward-looking information referenced herein, except in accordance with applicable securities laws. Trading in the securities of Halo Resources Ltd. should be considered highly speculative.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Halo Resources Ltd.
Lynda Bloom
President & CEO
416-368-7045 or Toll Free: 1-866-841-0068
416-368-9805 (FAX)
lbloom@halores.com
www.halores.com
First Canadian Capital Corp
416-742-5600
Toll Free: 1-866-580-8891