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Halo Resources Ltd. (TSX VENTURE:HLO - News; FRANKFURT:HRLN - News;
"Halo" or the "Company") is pleased to announce that
Hudson Bay Mining and Smelting Co., Limited ("HudBay"),
an affiliate of HudBay Minerals Inc. (TSX:HBM - News; NYSE:HBM - News), has advised that it has
completed the previously announced drill program at the Lost copper-zinc
deposit. Assays for an additional 10 holes have been reported, including one
intersection of 6.8 meters that averages 2.29% copper and 7.5% zinc with
precious metal credits (see table below). All holes were shallow with a
maximum depth of 154 meters.
Lynda Bloom, Halo's President& CEO,
stated "The HudBay drill program confirms the
presence of a thick, high grade plunging feature that now shows remarkable
continuity over a strike length of more than 300 meters. Of particular
significance is the fact that this zone is flat-lying, extends from near
surface in the south to approximately 85 meters below surface in the north
and is amenable to exploitation by low cost mining methods. Halo is
optimistic that Lost deposit has the potential to provide mill feed to HudBay's facilities in Flin Flon. The deposit remains open to the north and will be
tested this winter by further drilling in an area between the Cold and Lost
deposits, (see Figure 1), where surface chip samples assayed up to 5% zinc
and 0.4% copper".
Halo remains committed to mineral
resource investigation and evaluation of its 200 square kilometer Sherridon VMS Property in Manitoba. Halo has already
spent in excess of $13 million in exploration at the Sherridon
property and continues to evaluate high potential areas for additional
copper-zinc deposits through an effective systematic, and geoscientific
approach to mineral deposit exploration; the same approach that led Halo to
its copper-zinc discovery at Lost Lake. The Halo - HudBay
agreement at Lost and Cold positively reinforces Halo's exploration approach
in the Sherridon property area. Halo intends to
implement an aggressive plan to ramp up exploration activity based on its
success to date and is also initiating strategic studies to evaluate possible
local production of base metal concentrate from the four defined copper-zinc
deposits. These contemplated production scenarios will take full advantage of
the existing hydroelectric and transportation infrastructure.
Background
An option agreement announced December
21, 2009 allows HudBay to earn up to a 67.5% joint
venture interest in a 1.1 square kilometer area of the 200 square kilometer Sherridon VMS Property in Manitoba which hosts the Cold
and Lost mineralization. The January and September 2010 drill programs will
contribute to the minimum $350,000 work commitment to be completed by
December 21, 2011. A cash payment of $150,000 is due on or before the same
date and a total work commitment of $1.35 million is required by December 21,
2011 for the option to remain in good standing.
Technical Information
HudBay controlled all aspects of the drill
program reported here including logging, sampling, assaying and quality
control. Sample preparation, assaying and quality control programs are
consistent with the disclosure in the press release dated November 12, 2010.
Assays for holes HMET002, HMET004 and HMET006 were included in the previous
press release of November 12, 2010.
The Lost deposit is best described as a
horizontal to sub-horizontal plunging zone of higher grades and thickness
contained within a mineralized envelope dipping 55 degrees to the northeast.
The plunging feature is characteristic of a VMS deposit and contains the bulk
of the metal within the known resource. The shallow depth of this plunging
feature that extends from surface for a length of at least 300 meters, offers
the opportunity for extraction by low cost mining methods. The high copper
and zinc grades also provide an opportunity for transportation to nearby
processing facilities in Flin Flon.
A total of 1,450 meters were drilled in
13 holes over a small area of approximately 290 meters by 65 meters (see
figure) at dips of 45 to 65 degrees at grid azimuth of 270 degrees.
Approximately 60% of the drilling penetrated the high grade core zone.
Samples will be sent to G & T Metallurgical in Kamloops for metallurgical
test work to confirm that the existing Flin Flon mill circuits are capable of producing saleable
concentrates from the Lost ore. The remaining holes pierced the mineralized
envelope down dip, providing valuable geological data and improving
delineation of the lower limits of the plunging high grade zone.
Significant assays and intercepts are
reported in the following Table 1. While the true widths are not known, they
are not expected to vary significantly from the reported lengths.
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Length Copper Gold Silver
HOLE From (m) To (m) (m) (%) Zinc (%) (g/t) (g/t)
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HMET001 74.7 81.8 7.1 1.23 1.72 0.51 11.9
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includes 79.0 81.8 2.8 1.76 3.23 0.67 18.0
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HMET002(i) 100.3 104.2 3.9 0.35 1.86 0.86 4.6
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includes 100.3 100.9 0.6 0.70 3.66 0.25 7.0
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includes 103.7 104.2 0.5 1.49 8.98 5.67 25.0
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HMET003 61.7 68.5 6.8 2.29 7.51 0.58 21.6
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HMET004(i) 105.2 112.5 7.3 3.27 8.60 1.67 33.7
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HMET005 128.2 128.9 0.7 1.67 4.11 0.83 19.4
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HMET006(i) 139.9 140.2 0.3 2.54 2.54 0.29 34.0
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HMET007 73.2 78.5 5.3 2.34 7.74 1.23 26.3
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includes 74.8 77.9 3.1 3.71 12.82 1.91 41.0
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HMET008 90.0 95.3 5.3 0.67 3.53 0.35 6.9
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includes 90.0 93.0 3.0 0.97 4.35 0.57 10.2
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HMET009 57.2 61.6 4.4 0.87 1.40 0.39 9.4
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includes 58.5 59.0 0.5 2.16 4.35 1.91 26.0
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HMET010 76.4 86.0 9.6 1.10 5.47 0.71 13.1
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includes 79.6 81.0 1.4 1.39 15.89 1.71 17.3
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includes 83.7 86.0 2.3 1.78 10.57 1.42 23.4
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HMET011 102.0 113.0 11.0 0.65 2.48 0.49 9.2
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includes 102.9 103.3 0.4 0.23 21.95 0.36 5.0
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includes 107.7 111.4 3.7 1.11 3.61 1.13 18.8
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HMET012 119.0 122.8 3.8 0.71 6.35 0.34 11.9
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includes 121.13 122.8 1.7 0.52 12.94 0.08 8.7
---------------------------------------------------------------------------
HMET013 64.4 72.9 8.5 2.70 5.71 1.81 32.9
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includes 65.0 72.9 7.9 2.84 6.15 1.91 34.7
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(i) Holes/intercepts previously reported
The above information has been prepared
under the supervision of Lynda Bloom, P.Geo., who is designated as a "Qualified Person"
with the ability and authority to verify the authenticity and validity of the
data.
ON BEHALF OF THE BOARD OF DIRECTORS
Marc Cernovitch,
Chairman
To view Figure 1, please visit the
following link: http://media3.marketwire.com/docs/halo_12_01_2010_fig_1.pdf.
About Halo Resources Ltd.
Halo is a Canadian-based resource
company focused on the acquisition of near production base and precious base
metal deposits. The Company's focus is the 200 sq. km. Sherridon
VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration
opportunities. A 2008 NI43-101 compliant copper-zinc resource, for four of
the known deposits in the district, was completed in less than 18 months. The
Company has a joint venture interest in the Duport
Property, an advanced gold property near Kenora,
Ontario and is the operator for several contiguous joint venture properties
in West Red Lake covering 45 sq. km. The Company is operated by an
experienced management team with a growth strategy to develop a diversified
portfolio of advanced mining projects.
Forward Looking Statements
This Company Press Release may contain
certain "forward-looking" statements and information relating to
the Company that are based on the beliefs of the Company's management as well
as assumptions made by and information currently available to the Company's
management. Such statements reflect the current risks, uncertainties and assumptions
related to certain factors including, without limitations, competitive
factors, general economic conditions, customer relations, relationships with
vendors and strategic partners, the interest rate environment, governmental
regulation and supervision, seasonality, technological change, changes in
industry practices, and one-time events. Should any one or more of these
risks or uncertainties materialize, or should any underlying assumptions
prove incorrect, actual results may vary materially from those described
herein.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contact:
Michael Joyner
Halo Resources Ltd.
IR
416-619-7539
416-601-9046 (FAX)
ir@halores.com
www.halores.com |