Helix Resources : Collerina Copper-Zinc Project | Exploration Program

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ASX Announcement 21 April 2016

Collerina Copper-Zinc Project - Exploration Program

• Detailed airborne geophysical survey completed over 20km of the highly prospective regional trend at the Collerina Project.
• A 2,500m 17 hole RC drilling program to test the eastern and western extensions of the Collerina Prospect will begin next week with the drill rig expected onsite on 26th April.
• Additional geochemical soil sampling has extended the "footprint" of the Collerina Prospect to 600m x 300m, which is significant by regional comparisons.

Helix Resources is pleased to advise that the exploration program at the Collerina Project in Central NSW is progressing well with the airborne geophysical survey and prospect-scale soil geochemical program now completed. Drilling is scheduled to commence on 27th April with a 17 hole 2,500m RC drilling program planned.

Drilling to date has been highly encouraging with 17 of the 21 holes drilled by Helix returning assays of greater 1% Copper. Significant high grades are present at Collerina with results including, 12m @ 5% Cu and 14m@ 4% Cu and 11.6m @ 6.6% Cu¹ (Refer figure 1). Mineralisation begins at surface and remains open along strike and down dip and plunge.

Figure 1: Collerina Prospect drilling to date on late time MLEM image

Airborne Geophysical Survey

An airborne geophysical survey covering the Collerina Prospect and the 20km long prospective regional trend has recently been completed. The detailed 50m line spaced geophysical survey flown by Thompson Aviation has collected detailed magnetics (refer Figure 2), digital terrain data and radiometric data. The survey will allow for a detailed interpretation of basement geology, defining structures and lithology under the variable shallow cover at both the prospect and tenement scale.

The 50m lined spaced survey is eight times more detailed than the previously available regional data (400m line spaced). A preliminary assessment of the raw data shows the magnetics is highlighting the Collerina trend in much greater detail and several second-order, sub-parallel bedrock features are also being revealed in the detailed survey.

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Figure 2: Preliminary TMI image from recently completed Collerina airborne survey

Drilling

The next phase of drilling, a 17 hole (2,500m) RC drilling program is designed to test new targets on the eastern and western extensions of the main Collerina Prospect area (refer figure 3). Drilling is expected to commence next week.

Figure 3: Proposed holes (Red) on late-time MLEM image and

Geochemical Soil Program

A detailed geochemical soil program has been recently been completed. The program has expanded the soils coverage over the main Collerina Prospect trend. This additional sampling extended the overall geochemical footprint of the Collerina copper system and identified new targets nearby.

The soil geochemical results have provided better definition of the existing anomaly, with anomalous copper in the main zone identified for a further 100m to the northwest and boosted the evidence for potential strike extensions to the southeast. Copper anomalism to the north of the main Collerina anomaly appears to be associated with hanging wall "bleed". As the system dips away to the northeast, the mineralisation is further from surface so the geochemical response is expected to weaken in that direction. However, several zones of higher tenor soils in this zone are coincident with MLEM anomalies and warrant further assessment for possible sub- parallel lenses of mineralisation in the host lithologies(Figure 4).

The geochemical "footprint" of the main Collerina Prospect is regionally significant at approximately 600m x 300m at greater than 80ppm Cu. The system appears to be showing potential for repeats nearby in several directions. Further soil programs will concentrate on expanding coverage to the east and to the north where moderate to strong copper in soil anomalism is still present on the edge of the current soil grid.

Soil geochemical sampling is expected to continue over the coming months, expanding the coverage near to Collerina and testing regional targets along the 25km long highly prospective Collerina Trend. The copper systems in this region generally form in clusters, so it is anticipated that these programs will lead to the definition of several copper targets that will be prioritised and assessed with geophysics (EM) and followed by drill testing. The

Company is already aware of four historic workings along the Collerina Trend, these areas will be examined and targeted in the first phase of regional sampling (Figure 5).

Figure 4: Additional soil geochemistry undertaken to define full extent of the Collerina Prospect

Figure 5: Location of Collerina and other historic prospects on the untested regionally prospective trend.