Halo Announces Drilling Resumes at Cold-Lost Project, Manitoba
TORONTO, ONTARIO -- (Marketwire) -- 01/27/11 -- Halo Resources Ltd. (TSX VENTURE: HLO)(FRANKFURT: HRLN) ('Halo' or the 'Company') is pleased to announce that Hudson Bay Mining and Smelting Co., Limited ('HudBay'), an affiliate of HudBay Minerals Inc., has resumed drilling at the Cold-Lost property, a 1.1 square kilometer area of Halo's 200 square kilometer Sherridon VMS Property in Manitoba, in which HudBay can earn up to a to earn up to a 67.5% joint venture interest.
HudBay plans a staged exploration drill program in the area between the Cold and Lost deposits which, depending on results, may expand up to approximately 20 holes and 2000 meters.
Lynda Bloom, Halo's President & CEO, stated, 'Drilling has commenced at the northern extremity of the Lost deposit and will continue into the 750 meter gap between the two deposits that has not been previously drilled. Halo is excited about the possibility of extending the known Lost deposit further north to where surface chip samples assayed up to 5% zinc and 0.4% copper. Positive results in this area could be a significant 'game-changer' for Halo and management has been looking forward to the time when the right ice conditions and funding allows this important work to commence.'
The Lost deposit has been outlined as a high-grade plunging feature over a strike length of more than 300 meters (see map that follows this release). Of particular significance is the fact that this zone extends from near surface in the south to approximately 85 meters below surface in the north and is amenable to exploitation by low cost mining methods. Halo is optimistic that Lost has the potential to be quickly brought into production, with ore from the deposit able to be shipped by truck to HudBay's concentrator in Flin Flon.
Halo remains committed to mineral resource investigation and evaluation of its 200 square kilometer Sherridon VMS Property in Manitoba. Halo is planning its own drill program to begin in February, testing targets along strike from the Cold-Lost trend.
HudBay has advised that metallurgical test work on the Lost mineralization is underway at G&T Metallurgical Services Ltd. with results expected in March. HudBay also made the required first-anniversary cash payment of $150,000 and has completed about $820,000 towards the total work commitment of $1.35 million required to be completed by December 21, 2011 for the option to remain in good standing.
The above information has been prepared under the supervision of Lynda Bloom, P.Geo., who is designated as a 'Qualified Person' with the ability and authority to verify the authenticity and validity of the data.
ON BEHALF OF THE BOARD OF DIRECTORS
Marc Cernovitch, Chairman
To view the map accompanying this press release please visit the following link: http://media3.marketwire.com/docs/halormap127.gif
About Halo Resources Ltd.
Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. The Company's focus is the 200 sq. km. Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. A 2008 NI43-101 compliant copper-zinc resource, for four of the known deposits in the district, was completed in less than 18 months. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and is the operator for contiguous joint venture properties in West Red Lake covering 26 sq. km. The Company is operated by an experienced management team with a growth strategy to develop a diversified portfolio of advanced mining projects.
Forward Looking Statements
This Company Press Release may contain certain 'forward-looking' statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Halo Resources Ltd.
Michael Joyner
IR
416-619-7539
416-601-9046 (FAX)
ir@halores.com
First Canadian Capital Corp.
416-742-5600 or Toll Free: 1-866-580-8891