Helix Resources Ltd (ASX:HLX) has an aggressive exploration program planned for FY24 as it seeks to grow the copper bounty at the Canbelego joint venture with Aeris Resources Ltd (ASX:AIS, OTC:ARSRF) in the resource-rich Cobar Basin of central New South Wales.
The program is aimed at testing several promising early-stage targets, further assessing resource growth potential around the 2023 Canbelego mineral resource estimate (MRE) and undertaking preliminary economic assessments and test work of the MRE to gain a preliminary assessment on the economics of mining that resource.
Aim to grow resource
A resource of around 32,000 tonnes of contained copper has been estimated at the project in which Helix holds a 70% JV interest and is manager, with Aeris holding 30%.
READ: Helix Resources’ 77% increase in Canbelego copper welcomed by partner Aeris Resources
Helix managing director Mike Rosenstreich said: “Our team has delineated a robust, high-grade copper resource at Canbelego and gained a tremendous amount of knowledge about the style and signature of the copper mineralisation there.
"Now, we want to apply those unique insights to adjacent prospects such as the Western Lodes and earlier stage targets to find more copper.
"The company is also keen to get a preliminary understanding of the potential mining economics at Canbelego.
"There are several processing plants in the area within conceivable haulage distances and we need to be prepared to respond to inquiries regarding commercialisation opportunities which have started with the release of the new Canbelego resource in June 2023.”
Exploration success
Exploration since early 2021, when the JV resumed exploration following an eight-year hiatus, has significantly expanded the 2010 MRE and identified a range of new targets to increase that copper inventory to the current MRE.
Key outcomes include major drilling campaigns that extended mineralisation about 400 metres vertically and delineated high-grade copper shoots culminating in a new, robust MRE of 1.83 million tonnes grading 1.74% copper for 31,800 tonnes of contained copper.
Opportunities for new discoveries have also been enhanced with the identification of the Western Lodes just hundreds of metres to the west of the Main Lode – these are potential Main Lode look-a-likes.
The work has also generated several new aerial electromagnetic (EM) targets prospective for new copper deposits.
FY24 program
At the advanced Main Lode project, Helix plans to undertake a high-level preliminary economic assessment of the new MRE to gain an understanding of open pit and underground mining opportunities and how this might fit into several local potential processing options.
This work will be supported by preliminary metallurgical test work on the different mineralisation styles identified at Canbelego.
This advanced project work links neatly into the geological assessment of the Western Lodes which, if developed into similar mineralised bodies to the Main Lode, could enhance the economics and development options in the greater Canbelego area.
A detailed geological review including structural and lithogeochemical modelling is well advanced and critical to understanding and better predicting potential extensions and repeat deposit positions, regionally.
Helix will evaluate further potential at the Caballero deposit and advance greenfield exploration, including three priority airborne EM anomalies.
Highly prospective
Exploration Licence EL6105 is considered highly prospective for new copper discoveries with several early-stage targets emerging from recent and ongoing geophysical and geochemical survey work.
Further sampling is required because the historical geochemical sampling data is incomplete and highly variable in its effectiveness.
A significant work program is underway across the Rochford Trend, including EL6105 to close gaps with high-quality, multi-element geochemical surface data.
On EL6105, this provides valuable technical context and support for three priority aerial EM targets which the company plans to follow up with further ground geophysics and, subject to results, drilling.
Helix to sole fund
Aeris has elected not to contribute to the FY24 work program with Helix to sole fund the exploration efforts, diluting Aeris’ equity interest.
Aeris remains supportive of the project and of continuing to advance the Canbelego mineral resource to a preliminary mining study.
Helix is fully funded to implement further exploration programs at Canbelego with around a cash position of around $5.9 million as of June 30, 2023.