Halo Resources Ltd.
TSX VENTURE : HLO
FRANKFURT : HRLN

Halo Resources Ltd.

December 01, 2010 03:00 ET

Halo Reports HudBay Drill Results at Lost Deposit 2.3% Copper and 7.5% Zinc Over 6.8 Meters

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2010) - 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 advised that it has completed the previously announced drill program at the Lost copper-zinc deposit. Assays for an additional 10 holes have been reported, including one intersection of 6.8 meters that averages 2.29% copper and 7.5% zinc with precious metal credits (see table below). All holes were shallow with a maximum depth of 154 meters.

Lynda Bloom, Halo's President& CEO, stated "The HudBay drill program confirms the presence of a thick, high grade plunging feature that now shows remarkable continuity over a strike length of more than 300 meters. Of particular significance is the fact that this zone is flat-lying, 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 deposit has the potential to provide mill feed to HudBay's facilities in Flin Flon. The deposit remains open to the north and will be tested this winter by further drilling in an area between the Cold and Lost deposits, (see Figure 1), where surface chip samples assayed up to 5% zinc and 0.4% copper".

Halo remains committed to mineral resource investigation and evaluation of its 200 square kilometer Sherridon VMS Property in Manitoba. Halo has already spent in excess of $13 million in exploration at the Sherridon property and continues to evaluate high potential areas for additional copper-zinc deposits through an effective systematic, and geoscientific approach to mineral deposit exploration; the same approach that led Halo to its copper-zinc discovery at Lost Lake. The Halo – HudBay agreement at Lost and Cold positively reinforces Halo's exploration approach in the Sherridon property area. Halo intends to implement an aggressive plan to ramp up exploration activity based on its success to date and is also initiating strategic studies to evaluate possible local production of base metal concentrate from the four defined copper-zinc deposits. These contemplated production scenarios will take full advantage of the existing hydroelectric and transportation infrastructure.

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. The January and September 2010 drill programs will contribute to the minimum $350,000 work commitment to be completed by December 21, 2011. A cash payment of $150,000 is due on or before the same date and a total work commitment of $1.35 million is required by December 21, 2011 for the option to remain in good standing.

Technical Information

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. Assays for holes HMET002, HMET004 and HMET006 were included in the previous press release of November 12, 2010.

The Lost deposit is best described as a horizontal to sub-horizontal plunging zone of higher grades and thickness contained within a mineralized envelope dipping 55˚ to the northeast. The plunging feature is characteristic of a VMS deposit and contains the bulk of the metal within the known resource. The shallow depth of this plunging feature that extends from surface for a length of at least 300 meters, offers the opportunity for extraction by low cost mining methods. The high copper and zinc grades also provide an opportunity for transportation to nearby processing facilities in Flin Flon.

A total of 1,450 meters were drilled in 13 holes over a small area of approximately 290 meters by 65 meters (see figure) at dips of 45 to 65º at grid azimuth of 270º. Approximately 60% of the drilling penetrated the high grade core zone. Samples will be sent to G & T Metallurgical in Kamloops for metallurgical test work to confirm that the existing Flin Flon mill circuits are capable of producing saleable concentrates from the Lost ore. The remaining holes pierced the mineralized envelope down dip, providing valuable geological data and improving delineation of the lower limits of the plunging high grade zone.

Significant assays and intercepts are reported in the following Table 1. While the true widths are not known, they are not expected to vary significantly from the reported lengths.

HOLE From (m) To (m) Length (m) Copper (%) Zinc (%) Gold (g/t) Silver (g/t)
               
HMET001 74.7 81.8 7.1 1.23 1.72 0.51 11.9
  includes 79.0 81.8 2.8 1.76 3.23 0.67 18.0
HMET002* 100.3 104.2 3.9 0.35 1.86 0.86 4.6
  includes 100.3 100.9 0.6 0.70 3.66 0.25 7.0
  includes 103.7 104.2 0.5 1.49 8.98 5.67 25.0
HMET003 61.7 68.5 6.8 2.29 7.51 0.58 21.6
HMET004* 105.2 112.5 7.3 3.27 8.60 1.67 33.7
HMET005 128.2 128.9 0.7 1.67 4.11 0.83 19.4
HMET006* 139.9 140.2 0.3 2.54 2.54 0.29 34.0
HMET007 73.2 78.5 5.3 2.34 7.74 1.23 26.3
  includes 74.8 77.9 3.1 3.71 12.82 1.91 41.0
HMET008 90.0 95.3 5.3 0.67 3.53 0.35 6.9
  includes 90.0 93.0 3.0 0.97 4.35 0.57 10.2
HMET009 57.2 61.6 4.4 0.87 1.40 0.39 9.4
  includes 58.5 59.0 0.5 2.16 4.35 1.91 26.0
HMET010 76.4 86.0 9.6 1.10 5.47 0.71 13.1
  includes 79.6 81.0 1.4 1.39 15.89 1.71 17.3
  includes 83.7 86.0 2.3 1.78 10.57 1.42 23.4
HMET011 102.0 113.0 11.0 0.65 2.48 0.49 9.2
  includes 102.9 103.3 0.4 0.23 21.95 0.36 5.0
  includes 107.7 111.4 3.7 1.11 3.61 1.13 18.8
HMET012 119.0 122.8 3.8 0.71 6.35 0.34 11.9
  includes 121.13 122.8 1.7 0.52 12.94 0.08 8.7
HMET013 64.4 72.9 8.5 2.70 5.71 1.81 32.9
  includes 65.0 72.9 7.9 2.84 6.15 1.91 34.7

* Holes/intercepts previously reported

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

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/halo_12_01_2010_fig_1.pdf

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

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.

Contact Information

  • Halo Resources Ltd.
    Michael Joyner
    IR
    416-619-7539
    416-601-9046 (FAX)
    ir@halores.com
    www.halores.com
    or
    First Canadian Capital Corp
    416-742-5600 or Toll Free: 1-866-580-8891