Helix Resources : Collerina Project Update - Priority Targets Identified

ASX Announcement 4 May 2017

COLLERINA PROJECT UPDATE Priority targets derived from geophysics and structural review

• Priority targets derived from geophysics and structural review ‐ Collerina Copper Project, NSW.

  Multiple potential Collerina‐style copper repeats identified within the Project area:

  • Three VTEM targets, at Tindalls, Yathella and Max's Folly with associated historic copper workings to be subject to initial drill testing.
  • Six regional VTEM anomalies prioritised for follow‐up ground EM surveys and geochemical sampling.
  • Identification of localised fault off‐sets and kink folding augmented into a revised geological model.
  • Un‐tested areas, including potential extensions and faulted repeats of the massive sulphide zone at the Collerina Deposit have been interpreted under the revised geological model.

• An RC drill program at the Collerina Project is expected to commence within the next two weeks.
• This drill program will be in parallel to continued exploration at the nearby Cobar Gold Project.

Helix Resources (ASX:HLX) is pleased to advise that modelling of the airborne VTEM geophysical data and a detailed review of the structural framework for the Collerina Copper Project has been completed.

Several regional exploration targets have been identified and prioritised for an upcoming RC drilling program. Also the structural review has identified an exploration target at the Collerina Prospect supported by geochemistry and geophysics, this will also be tested with RC drilling.

Collerina Copper Project Background

The Collerina Copper Project is located in a regionally significant VMS belt in central NSW. The Project is located between the Tritton‐Girilambone mining camp situated to the north and the historic Tottenham mining camp to the south. The trend is prospective for copper, with associated zinc, silver and gold mineralisation hosted in a mixed sedimentary and vocanoclastic sequence within the Girilambone Basin.

At the Collerina Deposit, drilling to date has confirmed the presence of copper mineralisation from surface to a vertical depth of 350m along the main mineralised zone. Both the strike and plunge of the system remain open.

The Collerina tenement covers a 25km long portion of the copper prospective trend, which extends into Helix's regional tenement holdings, covering an additional 80kms of copper prospective strike.

The project is close to infrastructure, including the nearby Aeris operated Tritton Mine and associated deposits to the north.

Figure 1: Collerina Project location map within prospective regional copper trend

Figure 2: Collerina Copper Deposit location and priority prospective regional trends

EM Geophysics:

Final levelled data for the 600 line kilometre airborne VTEM survey was received in mid‐March. The survey identified numerous prospective anomalies for follow‐up. The data was reviewed and targets have been prioritised in consultation with the Company's geophysical consultant.

Figure 3: Multiple EM anomalies identified along the 25km Collerina trend, priority is Yathella to Max's Folly Corridor.

From the review and assessment, two conductive anomalies were considered to have sufficient detail and strength in areas of regional geological interest to be modelled directly from the levelled VTEM airborne data.