Three diamond holes were completed in February, targeting the Canbelego Main Zone to help resolve some interesting clues from previous drilling, and they have successfully extended the main lode with a partial assay of 5.3m grading at 3.4% copper from 421m in the lower portion of a hole, drilled some 60m below an intercept of 14m at 4.2%.

 

The upper zone from surface to 295m is yet to be assayed.

 

The two intercepts are at least 100m below the historical inferred Canbelego resource of 1.5 million tonnes at 1.2% for 18,000t copper.

 

The second hole returned 1m at 4% below historical workings, with only minor copper-mineralised intervals marked by 1m at 4.32% from 117m in the third.

 

Helix's reinterpretation of the orebody, informed by the diamond results, suggests the high-grade, massive copper-sulphide shoot plunges steeply to the south, not to the north as previously thought - and the lode may widen out the down-plunge potential.

 

That would explain a "near miss" of 1m at 2.53% from 66m over 1m at 3.48% from 108m that was likely constrained by the earlier model. 

 

Managing director Mike Rosenstreich said the depth potential of the Main Lode and the new parallel lodes identified earlier this year was just starting to become clear.

 

"Excitingly, these results are, consistent with our Cobar style deposit model which is typified by parallel mineralised zones with very long vertical dimensions containing high grade copper," he said.

 

Drilling resumed at Canbelego in late April with a program of 10,000m of diamond and RC holes to depth extensions of the Main Lode and scope out the western lodes. Shallow copper is also a target.

 

Downhole electromagnetic surveys are also planned.

 

The drill rig will also be deployed to test the Caballero prospect, which is 2.5km to the southeast of the Main Lode.

 

The pair drilled the first diamond holes at the Canbelego resource in almost a decade in April 2021.

 

Helix believes the Rochford Trend has the potential to host CSA-style deposits given the geological similarities of the rocks to the Cobar Basin, compared with the more deformed Girilambone Group that is being exploited by Aeris at Tritton, just 30km away.

 

Helix is well funded having completed a $11 million placement at 1.2c in March last quarter. A share purchase plan for a further $2 million closes tomorrow. 

 

The project is about 30km from Aeris' Tritton operations.

 

Helix shares were up 4% today to 1.2c, valuing it at $18 million, while Aeris' stock was up 5% to 10.5c, capitalising it at $225 million.