Halo Resources Ltd.
OTC Bulletin Board : HLOSF

Halo Resources Ltd.

October 24, 2007 04:00 ET

Halo Discovers New High Grade VMS Mineralization at Lost Lake

TORONTO, ONTARIO--(Marketwire - Oct. 24, 2007) - Lynda Bloom, President and CEO of Halo Resources Ltd. (TSX:HLO)(OTCBB:HLOSF)(FSE:HRL) is pleased to announce a new discovery at the Sherridon VMS Property, Manitoba. Three drill holes have intersected a strong copper-zinc zone over a strike length of 500 m. All intersections are within 100 m of surface and mineralization remains open at depth and along strike.


- Halo intersects 1.2% copper and 6.3% zinc over 6.5 m in DH07-57 and 1.6% copper and 4.9% zinc over 5.1 m in DH07-55

- The new Lost Lake Zone extends 800 m south of the railroad in a previously untested area

The discovery of the new Lost Lake Zone demonstrates the exploration potential of the Sherridon VMS Property. The 500 m strike length between holes DH07-56 and DH07-57 falls along an EM conductor that can be traced over 800 m from south of the railroad to the shore of Sherlett Lake (to see accompanying figure for hole and infrastructure locations please click on: http://www.ccnmatthews.com/docs/hlo1024map.jpg). This conductor, identified during Halo's 2006 airborne geophysical survey, is a prime target for additional VMS mineralization and is one of the first of 122 targets, many of which are also in areas where there has been no historical geophysics or drilling.

"The intersections in both holes DH07-55 and DH07-57 are rich in copper and zinc," says Lynda Bloom, President & CEO. "This combination of high grade intersections with significant width at shallow depth illustrates that the Lost Lake zone is an important new discovery and proves the effectiveness of Halo's exploration strategy."

The Lost Lake Zone is 100%-owned by Halo Resources and is located within 8 km of six other known deposits, including the past-producing Sherridon Mine where 7.7 million tonnes grading 2.46% copper, 0.80% zinc, 0.41 g/tonne gold and 42.0 g/tonne silver were mined.

A program of down-hole geophysics has commenced to follow up on the drill results and define a second phase of drilling. The mobilization of a second drill rig to allow additional drilling at Lost Lake and other new exploration targets is scheduled for early November. The current phase of drilling continues in the Bob Lake area and assays are pending.

Technical Highlights

Results from three drill holes, for a total of 486 m, defining the Lost Lake zone are summarized in the following table. While there has been no previous drilling reported in the area, historical geological mapping has identified dips of approximately 55 degrees to the northeast.

Azimuth/ Interval Copper Zinc
Hole Dip From (m) To (m) (m)(i) (%) (%)
DH07-55 222/45 87.0 92.1 5.1 1.6 4.9
including 87.9 89.9 2.0 3.7 11.7
and 99.8 102.1 2.3 0.7 2.8
DH07-56 215/45 66.0 70.0 4.0 0.5 0.1
and 75.0 77.0 2.0 1.4 0.8
and 106.0 108.0 2.0 0.9 0.6
DH07-57 222/45 76.3 82.8 6.5 1.2 6.3
including 77.3 80.8 3.5 2.0 11.6
(i) Widths may be overstated by up to 10%. Geometry of this new
mineralized zone has not been determined so that true widths
cannot be determined at this time.

Sampling, assaying and quality control procedures are consistent with those reported in the Technical Background of the press release issued February 15, 2007. The above information has been prepared under the supervision of Eckart Buhlmann, who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data.

About the Sherridon VMS Property

The Sherridon VMS Property covers an area of over 20,876 hectares and hosts the past-producing Sherridon Mine that was operated by Sherritt Gordon Mines from 1933 to 1950 and produced 7.7 million tonnes of ore grading 2.46% copper and 0.8% zinc. Results from an airborne geophysical survey completed in the summer of 2006 identified an additional 122 targets. The property is located only 70 km northeast of the mining and metallurgical complex in Flin Flon operated by HudBay Minerals Inc (TSX:HBM). Future development of the property is facilitated by the presence of an all-weather road and railroad access as well as a power line and communications tower.

About Halo Resources Ltd.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in 3 projects: Duport, which is an advanced stage gold project; Red Lake, which is a gold exploration project, and the Sherridon project that is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. The Company is operated by an experienced management team and backed by a strong network of mining financiers. The Company's growth strategy is to develop a diversified portfolio of advanced mining projects.

This news release presents "forward looking information" within the meaning of the applicable Canadian securities laws that involve inherent risks and uncertainties. Forward-looking information includes, but is not limited to, information with respect to the proposed private placement. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Halo to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to financings; risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Halo Resources Ltd. believe that the expectations reflected in such forward-looking information are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Halo does not undertake to update any forward-looking information referenced herein, except in accordance with applicable securities laws. Trading in the securities of Halo Resources Ltd. should be considered highly speculative.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Halo Resources Ltd.
    Lynda Bloom
    President & CEO
    (416) 368-7045 or Toll Free: 1-866-841-0068
    Email: lbloom@halores.com
    Halo Resources Ltd.
    Marc Cernovitch
    (416) 368-7045 or Toll Free: 1-866-841-0068
    (416) 368-9805 (FAX)
    Website: www.halores.com