The resource totals 3.75 million tonnes grading 1 gram per tonne for 118,800 ounces (at a 0.4 gram per tonne cut-off), with a higher cut-off grade of 1.2gpt returning 870,000t at 2gpt for 54,300oz.

"Whilst a high-level mining study assessment is yet to be conducted, the ‘from surface' nature of the gold mineralisation suggests the deposits may be amenable to initial open cut mining methods," Helix said.

Helix's Cobar ground is 30km east-southeast of Aurelia's Peak gold operations and 16km from the privately owned Mt Boppy gold mine (where historic production of 500,000oz was won from dirt grading an average of10gpt).

"The project shares similar geological and structural controls to the nearby Peak Trend deposits, being relatively short strike sediment hosted and structure related gold deposits," Helix said.

"The resource modelling and resource update has provided a clearer understanding of prospect-scale gold distribution and the broader geological setting, which will focus future drill programs."

Helix started the current quarter with A$392,000 cash and was expecting payments from a joint venture partner - JOGMEC in Chile - of about $640,000.

Helix also said in its quarterly report last month it had "received a number of approaches regarding possible interests in the company and specific assets"

Shares in Helix were unchanged Thursday at 1.9c, capitalising the company at about $8 million.