Helix Resources : High-Grade Results at New Gold Discovery

ASX Announcement 24 January 2017

HIGH‐GRADE RESULTS AT NEW GOLD DISCOVERY

• First‐pass aircore drilling at the previously un‐tested Battery Tank Gold Prospect, has returned spectacular initial results:
  • 43m @ 2.3 g/t Au from surface to end of hole.
  • Including: 11m @ 5.1g/t Au to EOH, finishing in high‐grade gold mineralisation.
• This project is part of the Company's Cobar Gold Project in NSW and is completely open in all directions.
• The Battery Tank Prospect is now the fourth prospect in the historic goldfield to return a wide, high‐grade gold intercept and confirms potential for the area to host a significant gold deposit or deposits.
• Diamond drilling in late 2016 at nearby prospects had returned excellent gold results including 45m @ 3.4g/t Au at the Boundary Prospect and 28m @ 3g/t Au to EOH at the Good Friday Prospect¹.
• The Company is planning follow‐up drill programs to advance these exciting high‐grade gold discoveries.

Helix Resources Limited (ASX:HLX) is pleased to announce that first‐pass aircore drilling at the Battery Tank Prospect near Cobar in NSW has returned spectacular initial results.

HRAC018 returned 43m @ 2.3g/t Au from surface to end of hole with the bottom of the intercept returning 11m @ 5.1 g/t Au from 32m finishing in high‐grade gold mineralisation.

The discovery hole at the Battery Tank Prospect was drilled to blade refusal, with significant quartz and siliceous alteration noted throughout the hole, increasing in abundance at the bottom of the hole.

The 20 hole aircore program was testing a large 500m x 500m gold‐in‐soil anomaly, that remains open in several directions. The Battery Tank Prospect is an area which is scattered with historic (early 1900's) pits and trenches.

Several other holes have returned highly encouraging thick zones of lower‐order gold mineralisation in the wide‐ spaced aircore drilling to blade refusal (hard rock) , refer to Table 1 for significant results. It should be expected that additional gold mineralisation will be intersected at depth at many of these locations, given the strong relationship between the presence of hard quartz veins and high‐grade gold.

Recent diamond drilling had returned excellent high‐grade gold results, including 45m @ 3.4g/t Au at the Boundary Prospect and 28m @ 3g/t Au to EOH at the Good Friday Prospect¹. Importantly the diamond drilling at the Boundary Prospect had provided invaluable information about the the controls of high‐grade gold and the distribution of quartz vein/silica alteration that appears consistent through the goldfield.

Four prospects Battery Tank, Boundary, Good Friday and Sunrise have now all returned wide high‐grade gold results, suggesting a significant gold system is present in the goldfield. The Cobar region is a multi‐million ounce gold producer, typically from high‐grade deposits such as The Peak, New Cobar and the nearby Mt Boppy mine, which has produced circa 500,000 ounces of gold at an average grade of 10g/t Au from a 300m long deposit.

Figure 1: Location of advancing gold prospects in the historic goldfield at the Cobar Gold Project

Table 1: Significant Air Core and Slim‐Line RC Gold Results - Cobar Gold Project

Hole ID	From	Intercept
HRAC002	24m	8m @ 0.3g/t Au
HRAC008	Surface	16m @ 0.2g/t Au
HRAC009	20m	20m @ 0.5g/t Au to EOH
Incl.	28m	4m @ 1.1g/t Au to EOH
HRAC010	16m	4m @0.5g/t Au
HRAC011	32m	4m @ 0.5g/t Au to EOH
HRAC018 Incl.	Surface	43m @ 2.3g/t Au to EOH
	32m	11m @ 5.1g/t Au to EOH
HRAC019	Surface	28m @ 0.2g/t Au to EOH
HRRC101 And And Incl.	Surface	36m @ 0.2g/t Au
	52m	12m @ 0.3g/t Au
	72m	19m @ 1.0g/t Au to EOH
	92m	3m @ 3.2g/t Au to EOH
HRRC102	16m	32m @ 0.3 g/t Au
HRRC103	Surface	48m @ 0.6g/t Au
Incl.	12m	20m @ 1.2g/t Au
And	88m	12m @ 0.2g/t Au to EOH

Intervals reported are based on a 0.1g/t Au Cut‐off grade with a maximum of 4m of internal dilutionAircore and Slim‐line RC was sampled using the spear method, collected at 4m composite intervals where possible. Samples were dried pulverised and assayed for gold using a lead collection fire assay method.

Also at the Boundary Prospect, a small three hole slim‐line RC program was conducted to assist in defining the geometry of the gold mineralisation present.

Drilling has confirmed an approximate E‐W strike and a sub‐vertical dip to the gold mineralisation. Hole HRRC101 returned 20m @ 1g/t from 72m to EOH, including 4m @ 3.2g/t Au from 92m to EOH and Hole HRRC103 returning 48m @ 0.6g/t from surface including 20m @ 1.2g/t Au, refer to figure 2 and table 1. Note: All sampling was 4m composite spear sampling, with more accurate riffle split 1m samples to be collected.

The information from this small program will now allow for more comprehensive drill testing, with RC and diamond drilling targeting the full extent of gold mineralisation at Boundary. The Boundary Prospect remains an open, gold in soil anomaly with at least 300m of strike to be tested.

Figure 2: Long section of interpreted gold structure at the Boundary Prospect

Drilling programs are currently being designed and prepared for the Cobar Gold Project as part of a broader exploration program for the 2017 field season. These gold results are a welcome addition to the ongoing focus on both copper and gold in this highly prospective district.

Figure 3: The Cobar Gold Project is located in a regionally productive mining district with several nearby long‐life operations and significant new discoveries including Helix's Collerina Copper Project.

Table 2: Drill Collar Details - Cobar Gold Project

Project	Site_ID	Northing	Easting	Dip	Azi	TotalDepth	HoleType
EL6140	HRAC001	6486500	426450	‐60	225	50	AC
EL6140	HRAC002	6486500	426500	‐60	225	50	AC
EL6140	HRAC003	6486400	426550	‐60	45	50	AC
EL6140	HRAC004	6486400	426500	‐60	45	50	AC
EL6140	HRAC005	6486400	426450	‐60	45	50	AC
EL6140	HRAC006	6486400	426250	‐60	225	49	AC
EL6140	HRAC007	6486400	426150	‐60	225	50	AC
EL6140	HRAC008	6486400	426200	‐60	225	50	AC
EL6140	HRAC009	6486300	426250	‐60	225	37	AC
EL6140	HRAC010	6486300	426300	‐60	45	50	AC
EL6140	HRAC011	6486300	426250	‐60	225	36	AC
EL6140	HRAC012	6486300	426200	‐60	45	47	AC
EL6140	HRAC013	6486200	426250	‐60	225	43	AC
EL6140	HRAC014	6486200	426300	‐60	225	41	AC
EL6140	HRAC015	6486200	426350	‐60	225	50	AC
EL6140	HRAC016	6486100	426325	‐60	45	42	AC
EL6140	HRAC017	6486100	426275	‐60	45	38	AC
EL6140	HRAC018	6486125	426050	‐60	270	43	AC
EL6140	HRAC019	6486285	426020	‐60	45	26	AC
EL6140	HRAC020	6486330	426180	‐60	45	39	AC
EL8433	HRRC101	6485920	428955	‐60	70	95	SLRC
EL8433	HRRC102	6485925	428910	‐60	70	100	SLRC
EL8433	HRRC103	6485905	428970	‐60	70	100	SLRC