Positive Results From Halo 2011 Exploration Program
TORONTO, ONTARIO -- (Marketwire) -- 06/15/11 -- Halo Resources Ltd. (TSX VENTURE: HLO)(FRANKFURT: HRLN) ('Halo' or the 'Company') is pleased to announce that the Company has received the results from 1,650 meters of diamond drilling that tested three new exploration targets in areas controlled 100% by Halo within the 200 square kilometer Sherridon VMS Property in Manitoba (refer to February 10, 2011 release).
Halo's 8-hole program is in addition to drilling previously reported by Hudson Bay Mining and Smelting Co., Limited ('HudBay'), an affiliate of HudBay Minerals Inc. (TSX: HBM)(NYSE: HBM), that is focused at the Cold-Lost property, a 1.1 square kilometer area where HudBay can earn up to a 67.5% interest.
'This program, designed to test geophysical targets within the Mineralized Horizon between the Cold-Lost and Bob deposits, has been extremely encouraging' stated Lynda Bloom, Halo's President & CEO. 'We not only confirmed the location and attitude of a new mineralized lens at Bob but also discovered a strong, significant geophysical response in a highly prospective area the we consider the first step in discovery of major new discovery'.
A major late-time response electromagnetic end-of-hole anomaly located at depth between the Bob and Cold-Lost deposits has created optimism. A ground geophysical survey is planned to better define the source of the end-of-hole anomaly and will serve as the basis for diamond drill testing. The occurrence of a major late-time response EM anomaly located in the known prospective stratigraphy between the Bob and Lost deposits, and in the vicinity of 2008 Halo drill results of up to 2.4% copper over 2.4 meters, is highly encouraging.
The highlights of the program are as follows:
-- The presence of a second shallow mineralized lens located east of the
main Bob deposit has been confirmed. DH11-163 encountered disseminated
and massive sulphides over a length of more than 14 m including 2.37% Zn
over 3.28 m and also 0.87% copper and 2.06% zinc over 1.07 m. DH11-164
also intersected more than 20 m of mineralization within a 33 m thick
zone that includes an impressive 9.23 m interval grading 0.82% copper
and 0.86% zinc. These intersections are adjacent to existing Open Pit
Inferred Resources at Bob of similar grade.
-- A Bore Hole Pulse Electromagnetic (BHPEM) survey conducted in two of the
three shallow holes drilled in the Bay/Sheila Lake area to test a VTEM
anomaly has revealed the presence of a large late-time response off-hole
anomaly at depth. One of the holes drilled reported minor zinc
mineralization.
Technical Highlights
Halo's 2010/2011 winter exploration focused on a 5.5km long area of known prospective geology (the Mineralized Horizon) extending from the Lost deposit to the eastern portion of the Bob deposit on claims held 100% by Halo (see map, available at the following link: http://media3.marketwire.com/docs/hlo0615.pdf).
A Ground Pulse Electromagnetic Survey (GPEM) completed in 2010 in the Sherlett Lake area, east of the Lost deposit, resulted in the discovery of two weak conductors. Hole DH11-167 tested the anomaly which has been explained by minor disseminated mineralization and fault gouge at a depth of approximately 90 m.
The second GPEM anomaly, located 300 m to the north, was tested with DH11-168 and disseminated copper-zinc sulphide mineralization was encountered at depths of 175 and 200 meters indicating the continuation of the Mineralized Horizon. An extension of the GPEM survey (winter 2010-2011) identified strengthening geophysical anomalies further east towards Bay/Sheila Lake.
The prospective horizon that extends through the Bay/Sheila Lake area and wraps around the Sheila Lake fold enroute to the Bob deposit has been the subject of an intensive multidisciplinary exploration program conducted over the past several years. A few hundred meters to the north of 2011 drilling, 2008 Halo drilling intersected up to 2.4% copper over 2.4 meters at Fidelity. An east-west fence of three shallow drill holes spaced at approximately 200 metres (DH11-160, 161 and 162) tested an area with major plunging structural features within the strong alteration zone that stretches eastwards to Bob.
Only DH11-161 reported minor disseminated zinc mineralization (two 0.5 m intersections of 0.2% zinc at a hole depth of approximately 125 metres), but down hole geophysics (BHPEM) at holes DH11-160 and DH11-162 identified a vector towards strong airborne VTEM and magnetic responses. Very large, late-time responses (greater than 100 ms) detected in both holes indicate the presence of a large non-formational conductor located at depth. A follow up GPEM survey and drill testing are planned for the next winter exploration season.
Bob Deposit
The Bob deposit, located at the eastern extent of this trend, contains an Indicated Open Pit Resource of approximately 2.2 million tonne containing 0.70% copper and 0.72% zinc and an Inferred Open Pit Resource of 7.6 million tonne grading 0.62% copper and 0.49% zinc (refer to November 4, 2010 news release of NI 43-101 compliant resources for Sherridon). The majority of these resources are contained within single shallow plunging structure, extending almost 1,000 meters along strike and to a depth of approximately 200 meters below surface.
The three hole drill program at Bob confirmed the presence of a second mineralized lens that projects to near-surface including a mineralized intersection of approximately 14 m (DH11-163; see Table 1) outside the 2010 Open Pit Indicated and Inferred Resource envelope.
Significant assay results from drilling at the Bob deposit are shown in the following Table 1.
Table 1
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From To Length(i) Gold Silver Copper Zinc
Drill Hole (m) (m) (m) (gpt) (gpt) (%) (%)
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DH11-163 134.20 140.25 6.05 0.06 8.80 0.17 1.94
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including 134.20 137.48 3.28 0.10 12.18 0.25 2.37
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and 146.20 154.20 8.00 0.17 11.72 0.69 1.42
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including 148.98 150.05 1.07 0.30 15.61 0.87 2.06
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DH11-164 105.95 115.18 9.23 0.23 8.79 0.82 0.86
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including 105.95 111.72 5.77 0.36 10.33 0.78 1.10
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DH11-165 42.27 45.66 3.39 0.46 11.11 0.70 0.27
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Including 44.35 45.66 1.31 0.06 9.44 1.28 0.23
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(i) True widths are not known but are not expected to vary significantly
from the reported lengths.
An additional program of exploration at Bob targeting further definition and expansion of the second lens and its' extension to surface is under consideration.
NQ-sized drill core is sawn in half and submitted to the ALS-Chemex, Thunder Bay sample preparation facilities with analyses performed at ALS-Chemex Vancouver, an internationally recognized, accredited facility. The entire sample is crushed and a 200 g split is pulverized. Base metals and a suite of up to 30 trace elements are determined by inductively coupled plasma spectrometry (ICP) after an aqua regia digestion, with over-range copper, zinc and silver determined by multi-acid digest and atomic absorption spectrometry (AAS) analyses. Gold is determined by standard fire assay with an ICP instrumental finish on a 30 g charge. A quality control program consisting of blanks and analytical control standards has been implemented to monitor laboratory performance and no significant discrepancies are reported.
The above information has been prepared under the supervision of Tom Healy, P.Eng., 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
About Halo Resources Ltd.
Halo is a Canadian-based resource company with base metal and gold assets. 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 2010 NI43-101 compliant copper-zinc resource, for four of the known deposits in the district, included Indicated Resources of 6.5 million tonnes grading 0.85% copper and 1.22% zinc and Inferred Resources of 15.9 million tonnes grading 0.68% copper and 0.84 % zinc. At least 75% of the material in both categories is contained within potentially economic open pits. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and a 60:40 joint venture partnership with Red Lake Gold Mines Partnership (RLGMP), a partnership between Goldcorp Canada Ltd. and Goldcorp Inc. (TSX: G)(NYSE: GG) at West Red Lake covering 3,500 hectares. 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.
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Contacts:
First Canadian Capital Corp.
416-742-5600 or Toll Free: 1-866-580-8891
ir@halores.com
www.halores.com