Drill Program for Metallurgical Testing Commences at Halo's Lost Deposit
TORONTO, ONTARIO -- (Marketwire) -- 09/09/10 -- Halo Resources Ltd. (TSX VENTURE: HLO)(FRANKFURT: HRL) ('Halo' or the 'Company') is pleased to announce that Hudson Bay Mining and Smelting Co., Limited ('HudBay'), an affiliate of HudBay Minerals Inc. (TSX: HBM), has advised that it has commenced a 1,250 meter drill program at the Lost deposit to collect representative samples for metallurgical test work from 12 new drill holes. HudBay has awarded the metallurgical test program to Kamloops-based G & T Metallurgical Services.
An option agreement announced December 21, 2009 allows HudBay to earn up to a 67.5% joint venture interest in a 1.1 square kilometer area of the 200 square kilometer Sherridon VMS Property in Manitoba which hosts the Cold and Lost mineralization. Drill programs in late 2009 and early 2010 generated intersections of up to 2% copper and 6% zinc over 11.8 meters. Preliminary metallurgical sampling by Halo in 2009 returned copper and zinc recoveries in batch cleaner flotation test work in the range of 85 to 88%, copper concentrate grades of 26.5% to 28%, and zinc concentrate grades of 25% to 31%. However, these tests were not optimized for regrinding or reagents. The collection of the new metallurgical samples will enable a complete assessment of the ore to determine if a saleable concentrate can be produced using a flow sheet that is the same or similar to that currently employed at HudBay's Flin Flon concentrator.
Gold and silver assays were not included as part of Halo's 2009 metallurgical testing, but will be included in the 2010 program as the gold and silver content of the Lost deposit ore could significantly enhance the economics of the project.
It is expected that the drill program will be completed during September and preliminary metallurgical results received by the end of October. The additional drill data will be used to refine the Lost resource model and preliminary design concepts and, subject to satisfactory metallurgical test results, will help to guide HudBay's decision to commence pre-feasibility engineering, which HudBay has advised is anticipated by early 2011.
'We are pleased that HudBay continues to fast-track its assessment of the near-term production potential of the Lost and Cold area,' said Lynda Bloom, Halo's President & CEO. 'In addition, Halo will continue its summer field program focused on generating high priority drill targets immediately along strike to the east.'
The above information has been prepared under the supervision of Lynda Bloom, P.Geo., who is designated as a 'Qualified Person' with the ability and authority to verify the authenticity and validity of the data.
ON BEHALF OF THE BOARD OF DIRECTORS
Marc Cernovitch, Chairman
About Halo Resources Ltd.
Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. The Company's focus is the 200 sq. km. Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. A 2008 NI43-101 compliant copper-zinc resource, for four of the known deposits in the district, was completed in less than 18 months. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and is the operator for several contiguous joint venture properties in West Red Lake covering 45 sq. km. The Company is operated by an experienced management team with a growth strategy to develop a diversified portfolio of advanced mining projects.
Forward Looking Statements
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Contacts:
Halo Resources Ltd.
Michael Joyner
IR
416-619-7539
416-601-9046 (FAX)
ir@halores.com
www.halores.com