Helix Resources : Recent Diamond Drilling Returns New Gold Intercepts

ASX Announcement 26 April 2017

Highlights

• Recent drilling at Helix's Cobar Gold Project in NSW has returned significant gold intercepts from shallow depths at two additional prospects:

  Battery Tank Prospect:

  Diamond hole HRDD005 drilled down dip of the discovery hole has returned

  - 10m @ 3.3 g/t Au (incl. 3.3m @ 5.2g/t Au) and

  - 5m @ 2.4g/t Au

  within an overall intercept of 54.5m @ 1g/t Au. Discovery hole 1m re-sampling has returned 14m @ 2.8g/t Au and 4m @ 13.3g/t Au within 43m @ 2.3g/t Au from surface to EOH. Sunrise Prospect: Diamond hole HRDD006 has intersected multiple gold bearing structures including: - 8m @ 3.3g/t Au (incl. 3m @ 6.1g/t Au) - 2m @ 3.5 g/t Au - 7m @ 1.3g/t Au and - 7m @ 1.2g/t Au within an overall 88m @ 0.7g/t Au intercept of gold mineralisation from surface.
• Identification of gold bearing quartz vein arrays and breccia zones perpendicular to the regional northwest trends is an important geological breakthrough for the project. This indicates that the size and grade of the known gold mineralisation has the potential to increase significantly with further drill testing.
• Similarities have been identified between the gold mineralising controls in the nearby Peak gold trend (approx. 4 million ounce gold endowment) and the Cobar Gold Project.
• A follow-up RC drilling program is being formulated and planned. It is likely to include:
• Infill drilling at Sunrise and Good Friday targeting the high-grade gold in northeast trending structures.
• Step-out drilling at Battery Tank, Good Friday and Boundary Prospects to test extent of strike and dip of gold bearing structures.
• First-pass drill testing of several regional targets.

Helix Resources Limited (ASX:HLX) is pleased to provide an update with regard to its recent diamond drilling program at the Cobar Gold Project in NSW.

Cobar Gold Project

The Cobar Gold Project is located approximately 40km southeast of the mining hub of Cobar in Central NSW. Helix's 750km² of tenements cover an entire goldfield hosted in a regionally significant anticline, where northwest regional trends appear to control gold-bearing structures in highly altered sediments. Gold mineralisation was targeted by a series of historic shafts and pits when the area was mined in the late 1800's. The goldfield was only abandoned due to a lack of water to process the gold ore at the time. The goldfield has small historic gold workings scattered over a 13km x 5km area, demonstrating the potentially extensive gold mineralised system present in the area. The area has had only limited drilling to a maximum depth of 120m from surface at four prospects (Battery Tank, Good Friday, Sunrise and Boundary).

Figure 1: Location of the Cobar Gold Project which has a similar geological and structural setting to the Peak Gold Trend and also showing the wider district with several nearby long-life operations and significant new discoveries; including Helix's Collerina Copper Project.

Recent diamond drilling has intersected further gold bearing structures, in addition to previously identified gold structures, with associated quartz vein arrays and breccias, within wide zones of gold mineralisation commencing from surface or very near surface.

The encouraging gold drill results have been returned from a direction perpendicular to the northwest regional trends now at all four prospects (Battery Tank, Good Friday, Sunrise and Boundary) that have been subject to initial drill testing to date.

Figure 2: Diamond drill hole locations at the Battery Tank, Good Friday, Sunrise and Boundary Prospects showing associated anomalism in soil geochemistry

This new geological and structural interpretation provides scope for potential linkage between these prospects, both along strike and under shallow cover in drainage channels.

It also assists in planning drilling targeting dip/plunge extents, particularly where northwest and northeast structures intersect.

A regional structural review has highlighted similarities between the mineralising controls in the nearby (30km northwest) Peak gold trend, which has around a 4 million ounce gold endowment over an 8 kilometre strike length, and the gold mineralising structural controls present within the Cobar Gold Project.

A schematic long section (refer Figure 3) demonstrates the exploration potential of this relatively underexplored goldfield; with existing prospects currently only limited by the lack of exploration drilling . A comparison long section of the Peak Trend is also shown (refer Figure 3).

Figure 3: Schematic longsection comparison between the Cobar Gold Project gold field and the nearby producing Peak Trend which hosts approximately 4 million ounces of gold (looking south west).

Recent Diamond Drilling Program

The recent drill program was designed to assess alternate controls for gold mineralisation at the known prospects and confirm the presence of perpendicular (northeast trending) gold bearing structures in the broader regional northwest trends seen in the goldfield.

The 710m diamond drill program (refer Tables 1 and 2 below) comprised:

• four new diamond holes (two at the Battery Tank and two at the Sunrise Prospects); and

• four diamond tail extensions of previous holes (two at the Good Friday and two at the Boundary

Prospects).

In addition, selected portions of sample intercepts from the December 2016 aircore drilling at Battery Tank, including discover hole HRCA0018, were re-sampled on a 1 metre basis (refer Table 3 below). The initial sampling was undertaken on the basis of 4 metre composites and was reported in January.