second run coming?, page-2

Went up 23% on this news today

MEDIA RELEASE TUEDAY, 18 JANUARY 2005 W. PILBARA DIAMOND DISCOVERY HERALDS NEW EXPLORATION SUCCESS FOR HELIX MICRODIAMONDS RECOVERED FROM NEW POSTULATED KIMBERLITE DYKES Diversified explorer Helix Resources Limited (ASX: HLX) has made an upbeat start to the new year with the announcement of a new diamond discovery at its West Pilbara Diamond Joint Venture with De Beers, encouraging results from its Mt Venn nickel-PGM project and a potential nickel exploration joint venture with Inco Limited. The Perth-based Company said today it had received some of the results of De Beers’ 2004 exploration activities at the West Pilbara Project, highlighted by the discovery of two new postulated kimberlite dykes and three micro-diamonds and numerous kimberlitic indicator minerals from a limited sampling program. Both postulated kimberlites probably represent dyke-like bodies and lie within elongate kimberlitic chrome spinel anomalies. One postulated kimberlite exceeds 1.5km long. They are located some 25-30km south of Helix’s Munni Munni PGM Project, south of Karratha. Helix’s Executive Chairman, Mr Rob Mosig said “The results are significant and represent a very important step forward for diamond exploration in the Pilbara Craton, where exploration has had to overcome the challenges of a heavily calcretised, ferruginous and weathered geological environment,”. Processing of a small, (105kg) sample from one of the postulated kimberlites heavily diluted with country rock produced 3 micro-diamonds (+75, +106 and +150 microns). No specific analysis for macro-diamonds (+0.5mm) has been carried out to date. De Beers is currently conducting further analysis of rock samples from both anomalies to confirm their kimberlitic origin. Mr Mosig said the recovery of micro-diamonds at such an early stage of exploration and from very limited sampling, together with the widespread occurrence of kimberlitic spinel (chromite) indicator minerals, made the West Pilbara Project a very attractive diamond exploration play. “We are very encouraged by the progress to date and believe that the West Pilbara Project has the potential to develop as a significant new Australian diamond exploration project,” he added. “We will be discussing the proposed exploration program for 2005 with De Beers over the coming weeks.” Under Helix’s Joint Venture with De Beers, the international diamond major can earn 51% equity in the project, which covers an area of 1,750 square kilometres surrounding the Munni Munni PGM complex, by spending $3.0 million before June 2006. Expenditure to date is approximately $1.5 million. The success at the West Pilbara Project is one of several promising new developments for Helix, with the Company also announcing today excellent early-stage results from its 80%-owned Mt Venn Nickel-PGM Project near Laverton in WA’s Eastern Goldfields. Outcrop sampling at the project, which has remained unexplored for the past 30 years, delivered excellent assays from gossans showing over 8% copper, 0.14 g/t PGM (platinum and palladium) and 0.34% nickel.
2 “The discovery of anomalous geochemistry has provided significant impetus to accelerate exploration activities at this Project, with plans now in place to complete a low-level, ultra-detailed aeromagnetic survey for the entire Mt Venn area before the end of January 2005,” Mr Mosig said. “This will be followed by a ground-borne electromagnetic survey together with further field work and sampling, leading to a drilling program in March this year.” “We are very encouraged by the recent results, which were generated by a program to follow up and extend some of the original targets at this project by Tasminex in the early 1970s,” he added. The Mt Venn Project will be a key focus for Helix in its 2005 exploration program, together with the Isolated Hill Gold Project also located in the Yamarna region to the south. Two significant geochemical gold anomalies above the 10ppb level were previously discovered at this project, and Helix is planning to utilize modern techniques including a detailed aeromagnetic survey to generate drill targets. Elsewhere, Helix announced that it had entered into an option agreement with nickel major Inco Limited over its Loongana Nickel-PGM Project in the Nullarbor region of WA. Inco has commenced a deep IP survey to test portions of the intrusion for nickel potential. “If this survey is successful in highlighting basement anomalism, Inco will enter into a joint venture where it can earn 60% project equity by spending $1 million on exploration by the end of 2006,” Mr Mosig said. “Results of the survey are expected during the next quarter.” Helix is well funded for its 2005 exploration activities, with cash reserves of approximately $3.0 million at the start of 2005 following a Share Purchase Plan and Placement last year to clients of Patersons Securities and other sophisticated investors. Approximately 13 million shares were issued at 15 cents to new and existing shareholders. The Company is highly leveraged to exploration success with 77 million shares currently on issue. Despite its stated exploration focus, Helix retains a substantial resource base at its 100%-owned, 730,000 ounce Tunkillia Gold Project in South Australia, and at the 2 million oz Munni Munni PGM Project in WA. - ENDS - Released by: On behalf of: Jan Hope / Nicholas Read Mr Rob Mosig Jan Hope & Partners Executive Chairman Telephone: (+61-8) 9388-1474 Helix Resources Limited Mobile: (0419) 929 046 Telephone: (+61-8) 9321-2644 Web: www.helix.net.au