announcement: first nickel joint venture program a

FIRST NICKEL JOINT VENTURE PROGRAM APPROVED

The Directors of Halcyon Group Ltd (ASX:HCY) are pleased to announce that the
Minara Resources Limited (ASX:MRE)/HCY Joint Venture Committee has approved the
proposed budget for the next 3 months of nickel sulphide exploration at Bardoc. The
approved work program follows the recently announced joint venture, where by Minara
can earn up to 70% of the nickel rights at Halcyon’s Bardoc Project through the
expenditure of $2.7 million.
The initial work program has allocated in excess of $400,000 to the following exploration
stages:
• A systematic ground transient electromagnetic (TEM) survey over the entire
13kms of the basal contact. The program will include recently developed “BField”
probe technology which can better distinguish nickel sulphide
mineralisation.
• In addition to ground based geophysics the program will also include down hole
surveys, again utilizing “B-Field” probe technology, on all existing basal contact
drill holes to further define, and identify additional, off-hole conductors.
• Continuation of the current drill program targeting existing off-hole conductors.
Halcyon will manage the program.
This approach will comprehensively test the entire 13km basal contact to define more
precise sulphide nickel targets. Halcyon anticipates the completion of the EM program in
January with new targets scheduled for drilling soon there after.
Current Drill Program
Initial results from the Company’s drilling program at the Bardoc Project have confirmed
the presence of anomalous nickel associated with the highly prospective komatiitic basal
contact with values of up to 0.13%. The on-going drill program is targeting a number of
EM anomalies situated within the same ultramafic unit that hosts the Scotia Nickel
Deposit (~35,000 tonnes of Nickel Metal) some 10 kilometres to the north of Halcyon’s
tenement boundary.
In addition to intersecting anomalous nickel values the recent drilling has also identified
additional drilling targets, with two strong off-hole conductors generated by DHEM
(Down Hole Electro Magnetic) surveys. The conductors are considered priority targets
as they could potentially represent nickel-rich sulphide bodies.
The primary focus for the current drilling program is nickel exploration, however many of
the targets are also prospective for gold mineralization. Assays from the recent drilling
have returned gold values of up to 9.67g/t, re-affirming the potential for Bardoc to host
significant gold mineralization for which Halcyon still has 100% control.
The results from the remainder of the current drill program and the planned geophysical
survey will be made available at the earliest opportunity.