Helix Resources' (ASX: HLX) joint venture partner Mungana Goldmines (ASX: MUX) remains well funded to explore at the Tunkillia Gold Project in South Australia's Gawler Craton, where there is a target for production in 2015.
Mungana has a revised budget of $6.2 million for the 2012 calendar year of which $1.2 million has already been spent, earning Mungana around 70% of the project by the end of 2012. Helix has elected not to contribute under the terms of the joint venture.
Helix is therefore perfectly positioned to either stay in as a joint venture participant as Tunkillia comes into production, or alternatively Helix can realise the value of the asset by selling to a third party at an appropriate point in time.
Highlighting the potential of the project, a Scoping Study has determined that the Tunkillia Gold Project is likely to be a "robust, medium-scale project".
Tunkillia hosts a JORC Resource of 15.6 million tonnes at 1.6 grams per tonne gold, for 803,000 ounces of contained gold.
With average cash costs of $983 per ounce, this equates to a project with the potential for robust financial returns.
Pit optimisations run as part of the Scoping Study indicated that the open pit operation could be developed in stages to provide faster access to mill feed, expediting production and commercialisation.
Helix paves way for gold Resource increase at Restdown; project round-up
With Tunkillia in good hands, Helix is working at other projects including continuing to identify robust gold-in-soil anomalies through soil sampling at its Restdown Gold Project in New South Wales, with multiple targets a look-alike to the 80,000 ounce Sunrise Prospect.
The Restdown Project is 15 kilometres from the historic Mt Boppy Gold Mine, which produced 500,000 ounces at plus-10 grams per tonne (g/t) gold, and is now owned by Polymetals Mining (ASX: PLY), and 30 kilometres fromYTC Resources' (ASX: YTC) Nymagee and Hera development projects.
Importantly, drill confirmation of the mineralisation model is expected to lead to additional resource definition drilling in the second half of 2012 to increase the existing 100,000 ounce gold inventory.
Quanda & Fiveways
At Quanda & Fiveways auger geochemical sampling is underway using a company owned auger rig to define target zones for follow up electromagnetic surveys.
Helix has confirmed the continuation of both the Tritton and Kurrajong volcanogenic massive sulphide (VMS) trends onto its landholding south of Straits Resources' (ASX: SRQ) recent discoveries.
The company is now planning a small drill program to test for gold and copper beneath the "Quanda" historic mine shafts on a copper VMS horizon representing the continuation of the Tritton Trend.
Canbelego Copper Project
Two reverse circulation holes are planned below the current copper Resource at the Canbelego Mine Prospect, with down-hole electromagnetic surveys targeting down plunge on the high grade sulphide lode system.
The electromagnetic surveys will cover three priority areas - west of the Canbelego copper mine, the Caballero Prospect and the Mullen Prospect.
Canbelego hosts an Inferred JORC Resource of 1.5 million tonnes at 1.2% copper, with mineralisation open along strike and down dip.
An electromagnetic survey is planned to test for massive sulphide conductors in an over 500 metre by 450 metres copper plus gold soil anomaly at the Boppy Broken Hill Prospect.
A small drill program is also planned to test an epithermal vein system for gold near historic prospecting pits.
Anomalous gold rock chips with grades of 0.5g/t and greater than 60 parts per million antimony have been identified, along with other supporting base metal anomalism.
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