Halo Resources Ltd.

Halo Resources Ltd.

January 28, 2010 07:00 ET

High-Grade Results Continue At Halo Lost Zone

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2010) - Lynda Bloom, President and CEO of Halo Resources Ltd. (TSX VENTURE:HLO)(FRANKFURT:HRL) is pleased to announce that the remaining assays from the pre-Christmas drill program at the Lost deposit continue to show encouraging intersections with grades and widths of up to 2% copper and 6% zinc over 11.8 m. Halo and Hudson Bay Mining and Smelting Co., Limited ("HudBay"), a subsidiary of HudBay Minerals Inc. (TSX:HBM) signed an option agreement on December 22, 2009 that allows HudBay to earn up to a 67.5% joint venture interest in a 1.1 sq. km. area that hosts the Cold and Lost mineralization. 

"The recent results for the Lost deposit demonstrate that significant copper and zinc grades show continuity over a 400m strike length, and that the mineralization extends to surface", says Lynda Bloom, President and CEO. "The impressive results for the holes on sections 49+15N and 47+50N, suggest that the deposit remains open at depth and also to the north. Halo is preparing a drill proposal for its' partner, HudBay, to immediately extend the Lost drill program by 500 m to test for additional shallow copper-zinc rich mineralization in an interpreted footwall limb of the deposit." 

An additional 1,200 m of drilling is currently underway to test high priority drill targets at E16 and Target Area 5 at the 200 sq. km. Sherridon VMS Property. Upon completion of the exploration program, it is anticipated that drilling will recommence at Lost and a drill program at the West Red Lake gold project is also planned for mid-February.

Technical Highlights

A total of 853 m of drilling was completed in 9 holes in December 2009; the significant assays are reported for all nine holes in the table below with the most recent results highlighted and the results reported January 15, 2010 in italics. The December 2009 infill drill program included holes between 100 m–spaced drill fences and near-surface holes to confirm the up-dip extension of the mineralization, as shown on the following map.

The holes were drilled over a 400 m strike length and all of the mineralization is within 100 m of surface. The 2009 drilling confirms the continuity of the mineralization discovered by Halo in 2007 but the mineralized zones are sometimes thicker than previously encountered. Significant grades were reported from the 2007 drill program, such as drill holes DH07-57 and 69 that are located halfway between drill holes DH09-130 and 132 of the recently completed drill program. The 2007 drill holes reported 2.1% copper and 12.2% zinc over 3.5 m (DH07-57) and 1.7% copper and 7.2% zinc over 1.1 m (DH07-69), also at depths less than 100 m from surface.

Hole ID Dip Section From (m) To (m) Width (m)** Copper (%) Zinc (%) Silver (g/t)
DH09-137 -90 4915 57.7 69.5 11.8 2.0 5.9 22.8
DH09-130 -75 4870 52.9 64.4 11.5 2.2 4.8 26.4
    incl 60.4 64.4 4.0 3.8 12.6 45.7
DH09-131 -45 4860 52.8 54.2 1.4 3.0 12.9 33.7
DH09-132 -90 4750 82.5 85.0 2.5 1.4 10.7 14.8
    and 97.2 101.5 4.3 0.3 8.0 5.0
DH09-138 -62 4740 63.8 66.0 2.2 5.1 5.8 59.3
DH09-136 -90 4685 96.7 106.4 9.7 0.4 2.5 4.0
DH09-133 -45 4625 123.4 125.4 2.0 0.3 1.1 15.5
DH09-134 -45 4625 73.8 76.3 2.5 1.2 4.7 9.0
    and 79.6 89.2 9.6 0.8 6.4* 7.9
DH09-135 -45 4565 28.5 31.5 3.0 0.7 0.9 8.5
* Final assays of 33%Zn reported for 0.3m interval
** Mineralized lenses are expected to dip approximately 40 degrees northeast and widths may be overstated by up to 15%.

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/HLO0128S.jpg.

Gold assays are pending.

A 750m drill hole at Jungle was completed in January to test a projected down plunge extension of the mineralized zone. No significant sulphide mineralization was intersected. Downhole geophysical surveys are planned to test for sulphides at depth at a later date. The Jungle deposit is located approximately 7 kilometers north-east of the Town of Sherridon. Halo has the option to earn a 100 percent interest in the Jungle Lake deposit from Hudson Bay Exploration and Development Company Limited, a subsidiary of HudBay Minerals Inc. (TSX:HBM), through a series of cash/share payments and work commitments as detailed in the option agreement.

Sample preparation, assaying and assay quality control are consistent with procedures outlined in the January 15, 2010 press release.

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 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.

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