Helix Resources logs deep copper anomaly on-site its NSW JV Canbelego project

Wed 30 Nov 22, 1:11pm (AEST)
A man in hiking boots rests on a rocky outcrop in an unknown location in outback WA
Source: iStock

Key Points

  • Helix Resources hits copper sulphides and strong magnetic anomaly target deep underground at the Canbelego project
  • Assays for drill cores pulled and reported on today are due back in Q1 of 2023, giving indication of copper sulphide concentration grades
  • The company is experimenting with deep drilltesting to ascertain a better idea of how far down copper extends below floor of existing shafts

Busy drilling in the Cobar region of NSW, microcap explorer Helix Resources (ASX:HLX) today reports its discovery of a deep-lying magnetic anomaly interpreted to reflect a potentially game-changing copper deposit on-site the company’s JV-held Canbelego project

Covering some 40km2, the project is located only 5km south of a historical mine called ‘Mt. Boppy’ which produced over 500Koz of gold in the state’s central region. 

The deep-lying magnetic anomaly revealed today reflects an entirely new exploration target for the company’s ongoing operations. Two rigs are currently operating on-site. 

The Canbelego project itself is also the site of a former operation which produced, in turn, 10,000t of ore grading at 5% copper concentrations, well and firmly above the high-grade cut-off of 1.5% published by investor information providers Undervalued Equity. 

Mt. Boppy is worth recognising, given the relatively common geological occurrence of copper-gold mineral systems coinciding. 

Sulphides hint at copper deposit 

The magnetic anomaly identified in downhole imaging work is interpreted to be copper in part due to the presence of visible copper sulphides in drillcores pulled from the hole in question. 

Two shear zones at Canbelego correlate to two targets on the company’s radar; the upper Western Lodes and Canbelego Main Lode, respectively. 

Drilling intersected a 5m intersection of copper sulphide mineralisation at the main lode within a larger 15m core section at significant depth (539m). 

The Western Lode, meanwhile, turned over a 22m core section with ultimately less evidence of copper contained, but, 1m section did show strong early-stage evidence for further mineralisation nearby underground. 

Drillholes sunk at both lodes were the first deep-hole tests run by the company, as it strives to ascertain just how deep copper mineralisation runs at the project. 

Results so far, the company notes, confirm “the vertical continuity of the overall [copper] system.” 

Sampling is underway, with assays expected in Q1 of 2023. 

Possibility of an entirely untested lead: Management 

“These results potentially highlight a major new mineralised position never drilled before,” Helix chief Mike Rosentreich said. 

“These early outcomes vindicate our decision to be bold and ‘drill deep’ to establish this drill platform for DHEM surveys and to demonstrate the depth continuity of the high-grade copper shoots intersected 200m above.” 

What remains to be seen is how, exactly, Helix intends to get to copper half a kilometre under the earth, should a broad and economically viable grade of copper system be further confirmed. 

Existing underground mine shafts are present on-site. 

Helix shares are up 7% today to a 7th of 1c; the company's share price struggles with illiquidity
Helix shares are up 7% today to a 7th of 1c; the company's share price struggles with illiquidity


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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