Helix Resources : Drilling commences NSW

ASX Announcement 6 October 2016

Drilling Commences in NSW

• Helix is pleased to announce that it has commenced drilling at the Collerina Copper-Zinc Project and recommenced drilling at the Cobar Gold Project in NSW after recent weather delays.

  Collerina Copper-Zinc Project

• A program of 11 holes of RC and diamond drilling will test new EM Targets to a depth of 420m at the Collerina Copper-Zinc Project.
• Drilling is testing extensions of the main zone, a strong off-hole EM target (4x EM response of main zone) below previous drilling, and a new EM target located 1km North of the Collerina Prospect.

  Cobar Gold Project

• Diamond drilling is targeting structural controls of high-grade gold at the Boundary and Good Friday Prospects.
• Diamond drilling has recommenced after weather delays. Commencement of the proposed aircore drilling at the Battery Tank Prospect will be considered when the prevailing wet ground conditions

improve.

Helix Resources Limited (ASX:HLX) is pleased to advise that the drilling programs the Company is undertaking to test extensions and new EM targets at the Collerina Copper-Zinc Project and high-grade gold at the Cobar Gold Project are underway after delays from rainfall and flooding during August and September in the Central Western region of NSW.

Collerina Copper-Zinc Project

Helix has committed to an 11 hole RC and diamond drilling program to test new EM targets at the Collerina Copper-Zinc Project. Drilling will be testing extensions to the main mineralisation position to a depth of 420m. The zone is coincident with EM anomalism in the latest ground and down-hole surveys and extends the main zone target position well beyond the eastern-most holes drilled to date at Collerina (refer Figure 1).

Figure 1: 3D schematic of Collerina Prospect showing EM targets and planned drilling

Helix Resources Limited A.C.N. 009 138 738 Incorporated in Western Australia 78 Churchill Ave, Subiaco WA 6008

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The second drill target is a sub-parallel strong off-hole EM conductor (4 times the EM response of main zone) which has been modelled beneath the drilling completed to date. Diamond tails on two holes on the current eastern-most line will test this position (refer Figure 1). This new sub-parallel target position is completely untested by drilling along strike and down dip/plunge. A further 3 RC holes are planned to test a new EM target 1km north of the Collerina Prospect.

Cobar Gold Project

Drilling at the Cobar Gold project is targeting the structural controls of high-grade gold at the Boundary and Good Friday Prospects and first-pass aircore drilling at the Battery Tank Prospect.

Diamond drilling has recommenced after rain delays. A review of the geology in the first diamond hole at the Good Friday Prospect (HRDD001) suggests the hole was drilled within an alteration zone, but has not intersected the main high-grade structure within the depth drilled (93.8m). Gold assays have confirmed this with no significant (>1g/t Au) assays returned.

A second hole is currently underway at the Good Friday Prospect (HRDD003) and is being drilled west and up-dip of the first hole, closer to the historic shaft and controlling high-grade structure. If HRDD003 intersects the structure, there is an opportunity to re-enter the initial hole, HRDD001, to target the main structure at depth.

The hole at the Boundary Prospect (HRDD002) has been completed to a depth of 122m, with good correlation of quartz veining and iron-rich veining in altered sediments through the broad target zone. The core from HRDD002 has been dispatched to the laboratory for cutting and assay.

Commencement of aircore drilling at the Battery Tank Prospect will be considered when the prevailing wet ground conditions improve.

Table 1: DDH Collar details - Cobar Gold Project

Project	Site_ID	Easting	Northing	Dip	Azi	Total Depth	HoleType
EL6140	HRDD001	427021	6485903	-60	218	93.8m	DDH
	HRDD002	428940	6485913	-60	060	122.4m	DDH
	HRDD003	427012	6485887	-60	218	TBA	DDH

Table 2: DDH Results to Date - Cobar Gold Project

Hole ID	From	To
HRDD001	No Significant (>1g/t Au) result - Target not intersected in depth drilled (93.8m)
HRDD002	Core dispatched to Laboratory for cutting and assay
HRDD003	Drilling currently underway

- ENDS -

Helix Resources Limited A.C.N. 009 138 738 Incorporated in Western Australia 78 Churchill Ave, Subiaco WA 6008

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Email: [e-mail]

For further information:

Mick Wilson	Pasquale Rombola
Managing Director	Executive Chairman
[e-mail]	[e-mail]
Ph: [phone]	Ph: [phone]

Competent Persons Statement

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on infor mation compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Details of the assumptions underlying any Resource estimations are contained in previous ASX releases or at www.helix.net.au

Helix Resources Limited A.C.N. 009 138 738 Incorporated in Western Australia 78 Churchill Ave, Subiaco WA 6008

P: [phone] F: [phone] www.helix.net.au

Email: [e-mail]

JORC Code - Table 1

Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	The Cobar Gold Project drilling used a commercial contractor for DDH drilling. A total of 3 holes are being drilled (refer Table 1 & 2 in body of announcement). Holes were orientated to Grid SW (218o) or grid NE (060 o), and were drilled at dips of 60°. The drill hole locations were located by handheld GPS. Down hole surveys were conducted during drilling, using an in-rod down-hole system. DDH drilling was used to obtain 1m samples over the entire hole length with 1m half core samples collected (~3kg). The 1m samples were cut and collected at a commercial laboratory, pulverized to produce a representative charge with gold assayed.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	DDH Drilling was the method chosen for all holes drilled. The core diameter was HQ size.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample weight and recoveries are observed during the drilling and any sample under-sized or over-sized was noted the geological logs. Samples were checked by the geologist for volume, moisture content, possible contamination and recoveries. Any issues are discussed with the drilling contractor.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	All core is retained as a half core representation of the metres drilled with the core held at the Companies storage facility.. Logging of Core was recorded lithology, alteration, degree of oxidation, fabric and colour. All holes were/are to be logged in full.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ	The preparation of core samples follows industry practice. This involves oven drying, coarse crushing (core- only), pulverization of total sample using LM5 mills until 85% passes 75 micron. Field QA_QC involved the laboratories standard QA_QC procedures. The sample sizes are considered appropriate to the grain size of the material being sampled. Repeatability of assays was good.