Halo Files NI 43-101 Compliant Sherridon Copper-Zinc Resource ...

Tag : zinc
The data base for the resource estimation on the Bob, Cold and Lostdeposits consisted of 97 drill holes in the Bob Zone, 54 drillholes in the Cold Zone and 18 drill holes in the Lost Zone. Themethodology used to generate the resource estimate is summarized inthe Halo August 19, 2008 press release. All of the deposits liewithin a 4 km by 4 km area of the 200 sq km Sherridon VMS Propertywhich also incorporates the Jungle Lake deposit (Technical Reportfiled December 19, 2007).
There are 3,115,000 tonnes in the Indicated resource category withan overall grade of 1.00% copper, 0.97% zinc and precious metalcredits. In addition, there are 9,937,000 tonnes in the Inferredresource category with an overall grade of 0.9% copper, 1.2% zincand precious metal credits. The cut-off grades are calculated usingcopper, zinc, gold and silver values and are based on the NetSmelter Return ("NSR") assumptions included under TechnicalHighlights with different criteria used for the Jungle Lakedeposit.
Some 70% of the inferred and indicated resources lie withinapproximately 100 m of the surface and may therefore be amenable tolow cost open pit mining methods. As open pit mining costs are lessthan half the cost of underground mining costs, and with much lowercapital costs, the resources classified as Open Pit in thefollowing table adds significantly to the positive economics of theSherridon project. The close proximity of the four deposits, in thevicinity of the town of Sherridon, a power line, road and railroad,provides a realistic framework for further economic evaluation ofthe deposits.
The resources are expected to expand due to a combination offactors including
a) the current resource calculations do not incorporate mineralizedintersections from drill holes DH08-98 to DH08-129;
b) thick intersections of massive sulphides at Bob Lake, up to 33 mof 1.1% copper and 0.9% zinc are not included in the resourcemodel;
c) near surface mineralized zones at Jungle Lake, which expand thedeposit near surface, are not incorporated in the resource model;
d) the resource models do not extrapolate mineralized zones tosurface which will be incorporated when low cost topographicsurveys are completed;
e) a bedrock sample assaying 5.1% zinc and 0.48% copper expandedthe potential strike of the Lost Lake deposit north towards theCold Lake deposit; the most northerly drill core intersectioncurrently at Lost Lake of 1.3% copper and 7.8% zinc over 6.3m isthe highest grade and thickness reported to date on the SherridonVMS Property (see press release March 18, 2008); and
f) additional high-priority exploration targets based on strongVTEM and magnetic anomalies, combined with field investigations in2007-2008 and strong geochemical alteration signatures.
A scoping level study will commence later this year whenpreliminary metallurgical test work is completed and drilling ofhigh priority targets is anticipated in early 2009.
Technical Highlights
A NSR cut-off value of US$20 was used for the open pit resources inthe Bob, Cold, and Lost Lake deposits and a NSR cut-off value ofUS$45 was used to determine underground resources. The Jungle Lakeresources were determined using cut-off values of US$20 and US$40respectively for the open pit and underground portions of thedeposit with the bottom of the pit lying approximately 100 m belowsurface.
Copper, zinc silver and gold contribute to the economics of thedeposit so that a Net Smelter Return value (NSR) was calculated foreach block based on the estimated grades of copper, zinc, silverand gold, reasonable metal prices, the estimated recoveries foreach metal and common industry values for smelter terms. Theparameters used were as follows:
Parameters used to calculate the NSR for the Jungle Lake deposit,reported earlier, were:
The results of the resource estimate are as follows:
Halo holds a 100% interest in the mineral rights to the Cold andLost Lake deposits. Halo has the option to earn a 100% interest inthe Jungle Lake deposit from Hudson Bay Exploration and DevelopmentCo. Ltd. through a series of cash and share payments and escalatingwork commitments as detailed in the option agreement. Halo also hasthe option to earn a 100% interest in the Bob Lake deposit from W.Bruce Dunlop Limited NPL.
The resource estimates reported in this press release were producedby Gary Giroux, P.Eng. MASc. a Qualified Person as defined byNI43-101 who is responsible for the technical material contained inthis news release.
The above information has been prepared under the supervision ofStephen MacConnell, who is designated as a "Qualified Person" withthe ability and authority to verify the authenticity and validityof the data.
About the Sherridon VMS Property
The Sherridon VMS Property covers an area of over 20,876 hectaresand hosts the past-producing Sherridon Mine that was operated bySherritt Gordon Mines from 1933 to 1950 and produced 7.7 milliontonnes of ore grading 2.46% copper and 0.8% zinc. Results from anairborne geophysical survey completed in the summer of 2006identified an additional 122 targets. The property is located only70 km northeast of the mining and metallurgical complex in FlinFlon operated by HudBay Minerals Inc. Future development of theproperty is facilitated by the presence of an all-weather road andrailroad access as well as a power line and communications tower.
This news release presents "forward looking information" within themeaning of the applicable Canadian securities laws that involveinherent risks and uncertainties. Forward-looking informationincludes, but is not limited to, information with respect to theproposed private placement. Generally, forward-looking informationcan be identified by the use of forward-looking terminology such as"plans", "expects" or "does not expect", "is expected", "budget","scheduled", "estimates", "forecasts", "intends", "anticipates" or"does not anticipate", or "believes", or variations of such wordsand phrases or state that certain actions, events or results "may","could", "would", "might" or "will be taken", "occur" or "beachieved". Forward-looking information is subject to known andunknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements ofHalo to be materially different from those expressed or implied bysuch forward-looking information, including but not limited to:risks related to financings; risks related to the integration ofacquisitions; risks related to joint venture operations; actualresults of current exploration activities; actual results ofcurrent or future reclamation activities; conclusions of economicevaluations; changes in project parameters as plans continue to berefined; future prices of gold and other minerals and metals;possible variations in ore reserves, grade or recovery rates;failure of equipment or processes to operate as anticipated;accidents, labour disputes and other risks of the mining industry;and delays in obtaining governmental approvals or financing or inthe completion of development or construction activities. Althoughthe management and officers of Halo Resources Ltd. believe that theexpectations reflected in such forward-looking information arebased upon reasonable assumptions and have attempted to identifyimportant factors that could cause actual results to differmaterially from those contained in forward-looking information,there may be other factors that cause results not to be asanticipated, estimated or intended. There can be no assurance thatsuch information will prove to be accurate, as actual results andfuture events could differ materially from those anticipated insuch information. Accordingly, readers should not place unduereliance on forward-looking information. Halo does not undertake toupdate any forward-looking information referenced herein, except inaccordance with applicable securities laws. Trading in thesecurities of Halo Resources Ltd. should be considered highlyspeculative.
The TSX-Venture Exchange has not reviewed and does not acceptresponsibility for the accuracy or adequacy of this release.