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Helix Resources establishes 100,000oz initial gold resource for Restdown JV project

Helix Resources (ASX: HLX) has achieved a maiden gold inferred resource of 2.6 million tonnes (Mt) at 1.2 grams per tonne (g/t) gold for 100,000 ounces (oz) from the resource model at the Sunrise and Good Friday Prospects.

With mineralisation open along strike and down dip at both the Sunrise Prospect and Good Friday Prospect, there is potential these mineralised systems connect.

The prospects are part of the Restdown joint venture project with Glencore International (LON: GLEN), located 60 kilometres south east of Cobar in central New South Wales.

As a pointer to future development potential, the region has nearby operating mines and strong infrastructure.

This resource model is based on a sediment-hosted style of mineralisation, with evidence for higher grade pods within the mineralised systems, and the company believes it can continue to build on this resource base as it is constrained only by the existing drill density and distribution.

The company said the resource drilling and modeling process has shown a series of lithological controls, structural directions and pathfinder elements in downhole geochemistry that are assisting in focusing future exploration.

Helix is planning additional drilling in the second half of 2011.

Greg Wheeler, Helix’s managing director, said “our initial Resource target of 100,000oz gold has been achieved since securing the ground 12 months ago.
 
"The current zone of interest 20 kilometres by 9 kilometres within our 1,500 square kilometre of tenure provides confidence for further discoveries in a region with nearby operating mines and excellent infrastructure.”

Helix, through its 100% owned subsidiary Oxley Exploration Pty Ltd, has entered into an earn-in joint-venture agreement covering the Restdown and Muriel Tank Projects with Isokind Pty Ltd, a subsidiary of Glencore.

The projects have a tenement package covering an area of about 278 square kilometres.

Historic mine records report the Restdown goldfield was active during the late 1800’s/early 1900’s with gold extracted from quartz-rich material at very high grades including up to 3kg gold per tonne.

Historic workings were limited to hand-dug shafts and pits due to a lack of water being available for treating ore.

Glencore had previously undertaken trenching and some drilling activities in the immediate vicinity of the old workings at Good Friday and found
gold intercepts including 56 metres at 11.7 g/t gold from 5 metres.

After reviewing studies conducted by Glencore, Helix formulated a plan to test possible extensions of gold at Good Friday and some drilling to test whether goldfield is active at the Sunrise Prospect.

Under an earn-in joint-venture agreement, Helix is required to spend $700,000 by June 2012 to acquire a 70% interest in the Restdown and Muriel Tank Projects and after the current drilling program expects to have earned its 70% interest.

The Restdown Project is 15 kilometres from the historic Mt Boppy Gold Mine  which produced 500,000 oz at +10g/t gold, and is now owned by PolyMetals (ASX: PLY), and 30 kilometres from YTC’s (ASX: YTC) Nymagee and Hera development projects.