Halo Announces North Extension of Lost Deposit, Manitoba
TORONTO, ONTARIO -- (Marketwire) -- 02/23/11 -- Halo Resources Ltd. (TSX VENTURE: HLO)(FRANKFURT: HRLN) ('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)(NYSE: HBM), has reported new results for drilling at the Cold-Lost property, part of Halo's 200 square kilometer Sherridon VMS Property in Manitoba.
Hole HLL003 (To see Figure 1, please go to the following link: http://media3.marketwire.com/docs/hrln223.pdf.) intersected an 11.90 meter mineralized zone that assayed 1.54% copper and 5.42% zinc. This includes an interval with significant precious metal credits of 0.99 g/t gold and 24.06 g/t silver over 7.97 meters which also contains 2.06% copper and 7.74% zinc. All reported intersections (see table below) are within 100 meters of surface.
Lynda Bloom, Halo's President and CEO, stated, 'Although similar exciting grades and widths have been reported before for the Lost deposit, the location of these new mineralized holes expands the known mineralization northwards about 100 meters. This is significant for a mineralized zone that currently is being modeled with a strike length of approximately 400 meters.'
HudBay has advised the Company that the mineralized wireframe used to estimate mineral resources will need to be expanded to the north as a result of this drilling. HudBay is awaiting final metallurgical test results and is preparing a National Instrument 43-101 compliant resource estimate, which is expected by the end of the first quarter of 2011.
Halo is also mid-way through a 1,500 meter drill program testing targets along strike from the Cold-Lost trend on properties held 100% by Halo. Assays are pending for both the Halo and remaining HudBay drill holes and are expected to be released over the next month.
Background
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. HudBay made the required first-anniversary cash payment of $150,000 and completed over $820,000 of expenditures. A total work commitment of $1.35 million and additional $400,000 cash payment are required to be completed by December 21, 2011 in order for HudBay to exercise the option.
Technical Highlights
The objective of the HudBay drill program was to test the horizon between the Lost and Cold deposit and to define the northern extent of the Lost mineral resource. The winter drill program has completed 15 holes for a total of 1,631 meters to date and two holes, approximately 170 meters, remain to be drilled. Assays are pending for the remaining drill holes. Results for four drill holes are reported below.
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From To Width Gold Ag Cu Zn
Hole (m) (m) (m) (g/t) (g/t) (%) (%)
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HLL001 20.30 27.90 7.60 0.17 5.41 0.47 2.10
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Including 20.30 20.65 0.35 0.11 7.00 0.51 27.39
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Including 26.90 27.90 1.00 0.19 13.00 1.06 2.75
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HLL002 38.70 39.25 0.55 0.14 12.00 0.89 1.47
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HLL003 71.00 82.90 11.90 0.70 17.88 1.54 5.42
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Including 74.93 82.90 7.97 0.99 24.06 2.06 7.74
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and 87.22 87.58 0.36 0.14 6.00 0.38 13.10
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HLL006 93.00 97.90 4.90 0.35 13.16 0.85 4.03
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Including 93.00 94.30 1.30 0.45 21.85 1.53 2.35
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Including 97.43 97.90 0.47 0.11 5.00 0.14 32.79
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The Lost deposit has been outlined as a high-grade plunging feature over a strike length of approximately 300 meters. Of particular significance is the fact that this zone extends from near surface in the south to approximately 85 meters below surface in the north and is amenable to exploitation by low cost mining methods. Halo is optimistic that Lost has the potential to be quickly brought into production, with ore from the deposit able to be shipped by truck to HudBay's concentrator in Flin Flon, Manitoba.
HudBay controlled all aspects of the drill program reported here including logging, sampling, assaying and quality control. Sample preparation, assaying and quality control programs are consistent with the disclosure in the press release dated November 12, 2010. Holes were drilled at dips of 45 to 90 degrees at grid azimuth of 270 degrees. True widths are not known but are not expected to vary significantly from the lengths in the following table.
Halo remains committed to mineral resource investigation and evaluation of its 200 square kilometer Sherridon VMS Property in Manitoba.
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 NI 43-101 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 contiguous joint venture properties in West Red Lake covering 26 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
This Company Press Release may contain certain 'forward-looking' statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Halo Resources Ltd.
Michael Joyner
IR
416-619-7539
416-601-9046 (FAX)
ir@halores.com
www.halores.com
First Canadian Capital Corp
416-742-5600
Toll Free: 1-866-580-8891