Halo Resources Ltd.

Halo Resources Ltd.

April 14, 2011 03:00 ET

Halo Update for Sherridon VMS Property, Manitoba

TORONTO, ONTARIO--(Marketwire - April 14, 2011) - Halo Resources Ltd. (TSX VENTURE:HLO)(FRANKFURT:HRLN) ("Halo" or the "Company") announces that it intends to re-evaluate the aggregate mineral resource for the Sherridon VMS Property, Manitoba to incorporate recent drill results provided to Halo by HudBay Minerals Inc. ("HudBay") (TSX:HBM)(NYSE:HBM) (see Halo's press release dated March 30, 2011). The 20,000 hectare Sherridon VMS Property includes the Cold, Lost, Jungle and Bob copper-zinc deposits.

In summary, the recent drilling at the Lost deposit included:

  • The results of 4 holes (HLL001, 002, 003 and 006), reported February 21, 2011, extended the previously identified Lost mineralization northwards approximately 100 meters from the previously identified high grade envelope. These results included an 11.9 m intersection of 1.54% copper and 5.42% zinc in HLL003.
  • Six infill holes (HLL016, 017, 004, 013, 014 and 005), confirmed the continuity of the copper-zinc mineralization within this 100 m strike extension zone. HLL016 reported 1.43% copper and 1.51% zinc over 12.07 m at a depth of approximately 75 m below surface.
  • High grade gold and silver intersections were reported approximately 25 meters north of the copper-zinc mineralized zone including 8.75 g/t gold and 46.39 g/t silver over 5.50 meters in Hole HLL013 that included 24.68 g/t gold and 130.67 g/t silver over 1.35 meters and 3.60 g/t gold and 98.62 g/t silver over 1.30 meters in Hole HLL014.

HudBay had described the Lost deposit as a high-grade plunging feature over a strike length of approximately 390 meters, and mineralization has now been extended an additional 100 meters in strike length based on the recent drill program. HudBay has indicated that a resource estimate was generated for the Lost deposit based on 2010 drilling and an underground mining model that assumes direct shipping to the Flin Flon mill. HudBay stated that it intends to prepare a pre-feasibility study during 2011 to determine how the project fits with HudBay's long term production plans.

The resource estimate, shown in Table 1, was presented by HudBay in its March 31, 2011 news release. It does not include the 2011 results from an additional 1,794 meters of diamond drilling, equivalent to an increase of 30% in project meterage since the end of 2010.

Table 1
CategoryTonnesAu (g/t)Ag (g/t)Cu (%)Zn (%)
  1. CIM definitions were followed for the estimation of mineral resources. Includes drilling up to the end of 2010.
  2. Mineral resources are estimated at a ZNEQ cut-off of 4% (ZNEQ% equals Zn% + Cu% x 2.771 + Au g/t x 1.028 + Ag g/t x 0.015) and a minimum two metre core length.
  3. Long term $US metal prices of $900/oz gold, $15.00/oz silver, $2.50/lb copper and $1.00/lb zinc were used for the estimation of ZNEQ.
  4. Metal recovery assumptions of 65% gold, 57% silver, 92% copper and 83% zinc were used for the estimation of ZNEQ.
  5. Specific gravity measurements were taken on a portion of the samples, where actual measurements were not available average SG values were used.

Mr. David Garofalo, President and CEO of HudBay, is quoted in HudBay's March 31 news release as saying, "The high grade and near surface deposit confirms our belief that the Lost property has the potential to be a future source of feed for our concentrator in Flin Flon."

Halo included the Cold and Lost mineralization plus its 100% owned Jungle and Bob deposits in the Sherridon VMS Property NI 43-101 compliant resource estimate dated November 24, 2010. All the deposits are within a 5-kilomter radius and the Halo mineral resources are estimated using net smelter return (NSR) assumptions and both surface and underground mining methods.

Halo also completed a drill program in March on ground held 100% by Halo and assays are pending. Halo is planning additional exploration work on selected targets within the 20,000 hectare Sherridon VMS Property for the summer field season (see following figure showing relationship of Cold-Lost earn-in area and remaining ground held by Halo).


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 (To see a map of the property, please visit the following link: http://media3.marketwire.com/docs/hlo414.jpg). HudBay made the required first-anniversary cash payment of $150,000 and completed over $820,000 of expenditures as of January 2011. A total work commitment of $1.35 million and additional $400,000 cash payment are required by December 21, 2011 for the option to remain in good standing. HudBay also has exercised its back-in rights for the Jungle deposit and must spend $2.025 million to earn a 51% interest.

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 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 contiguous joint venture properties in WestRedLake 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.

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