Halo Resources Ltd.
OTC Bulletin Board : HLOSF

Halo Resources Ltd.

November 22, 2007 04:30 ET

Halo Reports NI 43-101 Compliant Resources Estimate for Jungle Lake Deposit, Sherridon, Manitoba

TORONTO, ONTARIO--(Marketwire - Nov. 22, 2007) - Lynda Bloom, President and CEO of Halo Resources Ltd. (TSX:HLO)(OTCBB:HLOSF)(FRANKFURT:HRL) is pleased to announce the results of a preliminary National Instrument 43-101 compliant resource estimate of the Jungle Lake copper-zinc deposit at its Sherridon project in Manitoba. The Technical Report was coauthored by Scott Wilson Roscoe Postle (Scott Wilson RPA) and Giroux Consultants Ltd. (GCL) for Halo to substantiate the historical resource reported for the deposit. The resources estimated by GCL at Jungle Lake have been classified as Indicated and Inferred.

It is assumed that the Jungle Lake Deposit would probably be mined by a combination of both open pit and underground methods. The results of the resource estimate are as follows:

Potential Resource Tonnage Grade
Mining Method Class (t) Cu (%) Zn (%) Au (g/t) Ag (g/t)

Open Pit Indicated 830,000 0.99 0.73 0.39 6.70

Underground Indicated 495,000 1.46 1.06 0.52 11.43

Total 1,325,000 1.17 0.85 0.44 8.47

Open Pit Inferred 1,347,000 0.85 0.60 0.41 6.24

Underground Inferred 830,000 1.28 0.78 0.36 10.78

Total 2,177,000 1.01 0.67 0.39 7.97

Potential Resource Contained Metal
Mining Method Class Cu (lb) Zn (lb) Au (oz) Ag (oz)

Open Pit Indicated 18,115,000 13,358,000 10,000 179,000

Underground Indicated 15,933,000 11,568,000 8,000 182,000

Total 34,048,000 24,925,000 19,000 361,000

Open Pit Inferred 25,242,000 17,818,000 18,000 270,000

Underground Inferred 23,422,000 14,273,000 10,000 288,000

Total 48,664,000 32,090,000 27,000 558,000

(1) Open pit Cut-off NSRUS$20 above the 218 m level.
(2) Underground Cut-off NSR US$40 below the 218 m level.
All quantities rounded to the nearest 1000.

The total tonnage of 1,325,000 tonnes in the Indicated resource category has an overall grade of 1.17% copper, 0.85% zinc and precious metal credits. The cut-off grades were calculated on the basis of all four commodities based on the Net Smelter Return ("NSR") assumptions included under Technical Highlights. In addition, there are 2,177,000 tonnes in the Inferred resource category with an overall grade of 1.10% copper, 0.67% zinc and precious metal credits.

Tom Healy, Senior Vice-President & COO of Halo says: "We consider the results of the resource as a major milestone in the future development of the Sherridon copper-zinc project. The resource estimate reinforces our confidence in historical estimates that were carried out almost 50 years ago and highlights the potential for open pit mining operations at Jungle Lake and the other known deposits."

Halo owns or controls five known deposits (Jungle, Bob, Cold/Lost, Fidelity and Park) within a 4 km by 4 km area. The Jungle report is the first of several planned NI 43-101 compliant resource calculations which will be used to define sufficient Measured and Indicated resources to justify pre-feasibility studies.

The fact that potential open pit resources have been defined at Jungle Lake indicates that the other near-surface deposits drilled by Halo in 2007, such as Bob Lake and Cold Lake, are also important potential contributors to the total required tonnage. More importantly, the grades being reported for drill hole intersections at the Bob Lake North extension (1.5% copper and 3% zinc) and for Cold/Lost Lake (2% copper and 6% zinc) are higher than at Jungle Lake, offering further encouragement.

Lynda Bloom, President & CEO, states, "We are confident that the planned winter drill program will further upgrade the quality of the near-surface resources at several deposits. There are now two diamond drill rigs operating 24 hours, 7 days a week with the current drilling focused on the next two potential production sources at the Bob Lake and Cold/Lost Lake deposits in preparation for NI 43-101 resource estimates."

Technical Highlights

To view Figure 1 please click on the following link: http://www.ccnmatthews.com/docs/HLO_Fig1.jpg

The data base used in the estimate consisted of 54 diamond drill holes containing 532 down hole surveys and 1,563 samples. The mineralized massive sulphide lens was plotted on cross sections and a three dimensional geologic model produced based on drill hole intersects. The grade distributions for each metal were examined and appropriate capping levels were established. Uniform 1.5 m composites were produced that honoured the massive sulphide lens boundaries. A block model with blocks 5.0 x 5.0 x 2.0 m in dimension was superimposed on the geologic 3D solid and the proportion of each block within the mineralized solid recorded. An estimation of grade was made by ordinary kriging on all blocks with some percentage within the mineralized solid. Specific gravities used in the resource estimate utilized measurements made from 96 specific gravity measurements from samples taken from Halo's 2007 drill holes within the mineralized solid.

Copper, zinc silver and gold contribute to the economics of the deposit so that a Net Smelter Return value (NSR) was calculated for each block based on the estimated grades of copper, zinc, silver and gold, reasonable metal prices, the estimated recoveries for each metal and common industry values for smelter terms. The parameters used were as follows:

Metal Price (US$) Recovery (%)
Copper $2.00/lb 85 %
Zinc $0.75/lb 85 %
Gold $ 600/oz 47 %
Silver $8.50/oz 54 %

The Jungle deposit is located approximately 7 kilometers north-east of the Town of Sherridon. Halo has the option to earn 100 percent interest in the Jungle Lake deposit from Hudson Bay through a series of cash and share payments and escalating work commitments as detailed in the option agreement.

The resource estimate reported in this press release was produced by Gary Giroux, P.Eng. MASc. a Qualified Person as defined by NI 43-101 who is responsible for the technical material contained in this news release. As required by NI 43-101 regulations, the resource estimate report will be filed on SEDAR in its entirety within 45 days following the date of this press release.

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)