Junior mineral exploration company Halo Resources (TSX-V: HLO) reported the first assays from drilling completed in last 2009 on the ‘Lost’ deposit. Halo Resource much larger partner, Hudbay Minerals (TSX: HBM) has the right to earn up to 67.5% in a 1.1 square kilometre area that includes the Lost and Cold mineralization, as are situated in the larger Sherridon VMS District, Manitoba, Canada.
Highlights from drill results released today included 4 meters grading 45.7 grams per tonne silver, 3.8 % copper and 12.6 zinc from 60.4 meters in hole DH09-130. This intercept, which was highlighted by Halo Resources, was within a wider zone of 11.5 meters grading 26.4 grams per tonne silver, 2.2% copper and 4.8% zinc.
Halo has previously reported an inferred resource of 2.07 million tonnes grading 0.9% copper and 2.7% zinc, based on a copper price of $2.50/pound and zinc price of $0.90/pound and a NSR cut-off of $20 for open pit mining. The infill drill campaign completed in December 2009 was designed to upgrade the confidence in the mineralization.
"All of the holes intersected mineralization within 10 meters of the anticipated location and several of the intersections are better than expected", says Lynda Bloom, President and CEO. "The current drill program highlights the quality of the project and the Company looks forward to assessing its economic potential with our new partner, HudBay."
Drilling continues at Jungle Lake to test the downward projection of the deposit at 650 m from surface and additional exploration targets will be tested as part of the current 2,700 m drill program.
Disclosure: The author holds no positions in the company