Halo Resources Ltd.

Halo Resources Ltd.

November 09, 2011 07:30 ET

Halo Resources Ltd.: New Gold Focus at Sherridon Property

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2011) - Halo Resources Ltd. (TSX VENTURE:HLO)(FRANKFURT:HRLN) ("Halo" or the "Company") is pleased to report that the Company has identified a potential prospective 1,600 meter gold "corridor" on claims held 100% by Halo on the Sherridon East Property.

Summer field work focused on the Quarter Moon Lake area located approximately 10 kilometers east of the four VMS deposits where Halo has reported NI 43-101 compliant copper and zinc mineral resources. Samples collected from three closely-spaced exploration pits reported, on average, values greater than 10 g/t gold and up to 16.4 g/t gold.

The samples were collected along a north-south striking feature that is prominent on airborne magnetic surveys (see Figure 1: http://media3.marketwire.com/docs/hlo-1109-map-1.pdf). The magnetic feature shows continuity of more than 1,600 meters to the south and has historically been mapped as a layered amphibolite. Gold mineralization is found in ferro-gabbro and tonalite lithologies that are both associated with the amphibolite unit. Outcrops located 1,600 meters to the south of the three above-mentioned pits were sampled and returned values up to 3.5 g/t gold. Although overburden cover prevented systematic sampling of the prospective horizon along the projected 1,600 meter strike length, the number of anomalous samples and distribution of elevated gold values is encouraging.

Two Manitoba gold deposits, associated with similar rock types, are the historic Puffy Lake gold mine and the Nokomis gold deposit. The Nokomis gold deposit is located approximately one kilometer south of the Halo Sherridon East property boundary.

"With the new regional interest in gold and strong gold prices, Halo chose to evaluate the gold potential of the Sherridon East Property this summer," stated Lynda Bloom, President and CEO. "We are pleased with the preliminary results and plan to follow up with a 2012 work program."

Technical Highlights

The 2011 Quartermoon Lake field program focused on geological and structural mapping based on previous success in expanding mineralized zones with an advanced understanding of the structural complexity of the area. The 2011 field work confirmed the presence of an intersection lineation that within the Sherridon structure is parallel to the major axis of all known mineral occurrences and deposits. It is speculated that the observed intersection lineation in the 2011 mapping area could also be aligned with the major axis of the sampled gold occurrence. In total 66 grab samples were collected with 28 samples taken from the prospective ferro-gabbro and tonalite lithologies. The remaining 38 samples were collected from the metasedimentary Burntwood group and amphibolite unit where the prospective lithologies did not out crop.

The pits sampled in 2011 are in the vicinity of the 1,215 meter drill program in 2005 that identified narrow gold bearing zones but did not explain the surface high grade mineralization. A field program is planned for the summer of 2012 to expose more outcrop along the potential 1,600 meter prospective horizon. This field program will focus on gathering information and data needed to determine the geological controls of the high grade surface mineralization and to generate drill targets.

Figure 1 (http://media3.marketwire.com/docs/hlo-1109-map-1.pdf) shows a shaded relief view of Total Magnetic Field (illumination direction 315° to 45°), with gold values in grams per metric ton for 2011 field sampling. The potential gold bearing "corridor" can be seen as a prominent magnetic feature and is outlined by an ellipsoid for clarity.

Samples are submitted to the ALS-Chemex, Thunder Bay sample preparation facilities with analyses performed at ALS-Chemex Vancouver, an internationally recognized, accredited facility. The entire sample is crushed and a 1,000 g split is pulverized. Base metals and a suite of up to 30 trace elements are determined by inductively coupled plasma spectrometry (ICP) after an aqua regia digestion, with over-range copper, zinc and silver determined by multi-acid digest and atomic absorption spectrometry (AAS) analyses. Gold is determined by standard fire assay with an ICP instrumental finish on a 30 g charge. A quality control program consisting of blanks and analytical control standards has been implemented to monitor laboratory performance and no significant discrepancies were 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.


Marc Cernovitch, Chairman

About Halo Resources Ltd.

Halo is a Canadian-based resource company with base metal and gold assets. The Sherridon VMS Property is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities covering over 20 square kilometers. A 2010 NI43-101 compliant copper-zinc resource, for four of the known deposits in the district, included Indicated Resources of 6.5 million tonnes grading 0.85% copper and 1.22% zinc and Inferred Resources of 15.9 million tonnes grading 0.68% copper and 0.84 % zinc. HudBay holds options on half of the Sherridon VMS Property to earn 51% and controls 19% of the Company's shares. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and a 60:40 joint venture partnership with Red Lake Gold Mines Partnership (RLGMP), a partnership between Goldcorp Canada Ltd. and Goldcorp Inc. at West Red Lake covering 3,500 hectares. 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.

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