June Quarterly 2008 Draft v5 - Helix · PDF fileHelix Resources Limited Quarterly Report June...

Helix Resources Limited Quarterly Report June 2008

1

PROJECT HIGHLIGHTS

IRON ORE • Inferred Resource for Yalleen Iron Ore JV (drill results to Dec 2007) estimated

by independent consultants Runge Ltd on behalf of Helix.

• Yalleen JV managers API (AMCI/Aquila) continue drilling at Kumina Creek, and ground preparation for drilling at Kumina (western extensions), Bonham and Robe Exit prospects. Diamond drilling completed at the Kumina Creek prospect this quarter intersected broad zones of CID mineralisation. Better intercepts returned include: ▪ 27.55 metres at 58.67% Fe from 17.25 metres in YATX206; ▪ 20.05 metres at 58.52% Fe from 18.35 metres in YATX207, and ▪ 20.3 metres at 58.38% Fe from 35.2 metres in YABA055.

• The Yalleen JV partners have agreed on a $4.1M budget through to Q2 2009 for drilling and assessing extensions to Kumina Prospect, Robe Exit Prospect and 200m x 400m drill coverage of the 8km² Bonham Prospect.

• Managers API have advised that they expect to undertake resource modeling and estimations (incl. 2008 drilling) in the December quarter of 2008.

GOLD

• Glenburgh Gold Project – 5,300m RC drilling program has been completed, with results received to date including [email protected]/t Au at Icon Prospect, [email protected]/t Au at Hurricane Prospect, [email protected]/t Au at Mustang Prospect, [email protected]/t Au at Zone 102. Upon receipt of all outstanding results, the data will be incorporated into the resource model to update the project’s resource estimation.

BASE METALS

• West Pilbara Nickel JV – Anglo American to spend $5M over 5 years to earn 80%. Anglo American will carry out a Low Temperature SQUID EM survey to target sulphide accumulations under cover.

• Parachilna Project SA- Detailed aeromagnetic survey recently completed. - Mapping and geochem sampling undertaken on a new target area, Mafic Alley 3km SW of the Blinman mine, showing early encouragement with visible copper in numerous lithologies including Mine-type dolomite.

QUARTERLY REPORT June 2008


2

REVIEW OF OPERATIONS

YALLEEN IRON ORE JOINT VENTURE – WESTERN AUSTRALIA Helix Resource Limited (30%), API (AMCI/Aquila) (70%) iron ore rights Helix Resources Limited 100% other minerals Summary Helix independently commissioned Runge Limited [“Runge”] to prepare a resource estimate which was based on drilling carried out by managers API through to December 2007. Runge determined an Inferred Resource of 112 Mt @ 55.6% Fe for Kumina Creek and Robe Exit which was released to the ASX 3rd June 2008. This initial resource estimate provides confidence regarding the overall potential of the Yalleen Project once the other identified prospects have been drilled, assessed and included.

Infill drilling continued through the June quarter with 44 Pre-collars and 27 diamond drill tails completed at Kumina Creek by API. Recent drilling continues to intersect broad zones of CID mineralisation. Better intercepts returned include:

o 27.55 metres at 58.67% Fe from 17.25 metres in YATX206;

o 20.05 metres at 58.52% Fe from 18.35 metres in YATX207 and ,

o 20.3 metres at 58.38% Fe from 35.2 metres in YABA055.

The Yalleen JV partners have agreed on a $4.1M budget through to Q2 2009 for drilling and assessing extensions to Kumina, Robe Exit Prospects and 200m x 400m drill coverage of the 8km² Bonham Prospect.

Yalleen Project Background

The Yalleen Iron Ore JV Project covers approximately 600km² of the upper reaches of the Robe River drainage system. Pisolitic iron mineralisation in buried palaeodrainage systems developed from erosion of iron rich strata in the Hamersley Range create a series of channel deposits under the Quaternary cover within the Robe River and Kumina Creek drainage basins. The Brockman and Marra Mamba Formations, host to many of the major iron ore deposits in the Pilbara region of WA, form the main exposure in the project area.

API’s exploration throughout 2005 and 2006 concentrated on assessing the buried channel iron deposits (CID) potential within the ancient Fortescue Valley area, focusing on targets identified from a HoistEM survey that has been useful in identifying palaeochannels. A program of barber and diamond drilling completed at the first target - Kumina Creek - in December 2006 successfully identified a buried CID over 2,700m by 900m and up to 30 metres thick grading up to 60% Fe.

Work in 2007/2008 has concentrated on definition of known channel iron targets at the Kumina Creek and Robe Exit prospects and bedded iron mineralisation at the Bonham prospect.

The Yalleen Joint Venture is managed by the Australian Premium Iron JV (Aquila/AMCI) and forms part of their larger West Pilbara Iron Ore Project (WPIOP) which in March 2008 estimated a total (measured, indicated and inferred) resource of 493Mt at 57% Fe from deposits in separate joint ventures with Red Hill Iron Ltd and Cullen Resources Limited and their own projects (AQA ASX release 7 March 2008). These projects are approximately 50-70 km southwest of the Yalleen Project area.


3

Figure 1 – Yalleen Iron Ore JV location plan


4

Resource Estimate

The Runge Mineral Resource Estimates for the Kumina Creek and the Robe Exit Iron Ore deposits are summarised in Table A.

Table A: Yalleen Project May 2008 Inferred Mineral Resource at 50% Fe Cut off

Tonnes Fe SiO2 Al2O3 P S LOI Mn MgO Deposit

MT % % % % % % % %

Kumina Creek 68.7 56.16 6.60 4.20 0.058 0.02 8.23 0.06 0.14

Robe Exit 43.5 54.65 6.84 4.58 0.065 0.01 9.97 0.08 0.16

Grand Total 112.1 55.57 6.69 4.35 0.060 0.02 8.91 0.07 0.15

The Mineral Resource estimate complies with recommendations in the Australian Code for Reporting of Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Therefore it is suitable for public reporting.

The estimate is based on data from surface Reverse Circulation (RC) and Diamond (DD) drill holes, all of which all were completed by API to December 2007.

Drilling at the Kumina Creek deposit has been carried out at 100m hole spacings on 200m section spacings. Drilling at the Robe Exit deposit is more broadly spaced and is typically at 200m hole spacings on 400m line spacings.

Mineralised envelopes were created using the logged channel geology and a 50% Fe cut-off grade. The deposits were estimated using a standard Surpac block model with inverse distance squared grade interpolation for all elements.

The geological model and grade distribution evident at the Yalleen project conform to well understood CID deposits which are exploited in the region. Drill data is relatively sparse so geological and grade continuity is assumed rather than verified. Consequently the resources have been classified as an Inferred Mineral Resource for each deposit.

A resource estimate with a higher grade cut of 55% Fe was also calculated to assess the tonnes and grade on tighter parameters, the estimates are summarised in Table B:

Table B: Yalleen Project May 2008 Inferred Mineral Resource at 55% Fe Cut off

Tonnes Fe SiO2 Al2O3 P S LOI Mn MgO Deposit

MT % % % % % % % %

Kumina Creek 51.7 56.97 5.91 3.98 0.059 0.02 8.08 0.05 0.13

Robe Exit 18.1 56.22 5.34 4.16 0.065 0.01 9.81 0.08 0.14

Grand Total 69.8 56.78 5.76 4.02 0.061 0.02 8.53 0.06 0.13

No Al2O3 cut-off has been applied to this resource estimation.

Full details on the resource estimate parameters can be viewed in the 3 June 2008 ASX release on the Company’s website: www.helix.net.au The information in this announcement that relates to Mineral Resources at the Yalleen Iron Ore Project is based on information compiled by Mr P Payne who is a member of the Australian Institute of Mining and Metallurgy and employee of Runge Limited. Mr Payne has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Payne consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.


5

Exploration Update

Exploration completed by API this quarter continued to assess the buried Channel Iron Deposit (“CID”) at Kumina Creek. The in-fill diamond drill program commenced in January and is near completion with 19 holes remaining to be drilled in the next quarter. The western extension to known mineralisation at Kumina has been gridded and a heritage survey undertaken in order to conduct further drilling on the possible extensions to known mineralisation.

Elsewhere heritage surveys have been completed at the Bonham and Robe Exit to extend and in-fill the current RC drilling at these respective prospects.

Kumina Creek Prospect

A total of 44 diamond pre-collars for 505 metres and 27 diamond tails for 624.5 metres were completed during the June quarter.

Assay results continue to highlight the presence of significant thicknesses of CID mineralisation within the central zone of the identified channel. The CID lies below 10-20 metres of recent unconsolidated gravels.

The thickness of the mineralised CID varies from <5 to >30 metres over the 2.5 kilometres of channel drilled to date. Drilling within the central zone, from which the most recent intercepts are reported, continues to return consistently broad zones of mineralised CID. Drill hole YABA055 returned two intercepts with a cumulative thickness of 30.7 metres greater than 57% Fe. Additional intercepts returned during the period from diamond drilling are tabled below.

Table 1: Significant drill intercepts from Q2 2008 diamond drilling Hole ID East North From Intercept Al2O3 % SiO2 % P % S % LOI %Kumina Creek ProspectYA225 477906 7593204 22.00 12.25 m @ 54.01 % Fe 4.37 7.09 0.270 0.013 10.05YABA042 478397 7593003 14.00 14.20 m @ 57.47 % Fe 3.76 5.89 0.044 0.021 7.71YABA051 479005 7592779 10.00 9.25 m @ 55.49 % Fe 4.08 7.68 0.049 0.022 8.27

479005 7592779 19.80 12.00 m @ 59.06 % Fe 3.50 3.98 0.045 0.015 7.66YABA055 478404 7593207 19.80 10.40 m @ 57.19 % Fe 4.34 4.49 0.066 0.019 8.83

478404 7593207 35.20 20.30 m @ 58.38 % Fe 3.87 4.09 0.089 0.014 7.94YABA068 479005 7593202 52.50 13.80 m @ 58.16 % Fe 3.25 5.45 0.071 0.015 7.59YABA086 472796 7584393 34.80 13.70 m @ 60.09 % Fe 3.04 3.36 0.068 0.007 6.82YATX206 478489 7592996 17.25 27.55 m @ 58.67 % Fe 3.31 4.76 0.049 0.005 7.58YATX207 478305 7593026 18.35 20.05 m @ 58.52 % Fe 3.12 4.53 0.055 0.016 8.18YATX208 478100 7592982 13.50 10.00 m @ 56.38 % Fe 3.75 7.66 0.043 0.019 7.39YATX211 478697 7593199 27.50 12.50 m @ 59.52 % Fe 3.20 3.52 0.058 0.004 7.69YATX212 478505 7593231 28.60 10.40 m @ 56.05 % Fe 4.43 5.27 0.049 0.005 9.69YATX213 478301 7593212 29.50 11.75 m @ 57.09 % Fe 4.38 4.90 0.057 0.020 8.51

478301 7593212 43.00 9.10 m @ 57.42 % Fe 4.05 4.25 0.083 0.014 9.03YATX215 479085 7592792 15.00 17.30 m @ 56.02 % Fe 4.24 7.12 0.045 0.016 8.06YATX218 478500 7592826 13.00 13.05 m @ 56.89 % Fe 4.20 5.85 0.052 0.024 7.98YATX219 478302 7592801 19.00 14.45 m @ 58.84 % Fe 3.60 4.43 0.054 0.017 7.24YATX220 478100 7592795 28.90 13.75 m @ 59.70 % Fe 3.11 3.74 0.052 0.017 7.40YATX221 477902 7592792 25.60 18.00 m @ 60.19 % Fe 2.92 3.01 0.058 0.016 7.55

Results >54% Fe, min 1m intercept and max 2m internal waste; Assays via XRF, LOI’s via Thermogravimetric Analyser (TGA). NB Small gaps in reported intercepts are attributable to core loss.

The current diamond drill program, planned to increase the drill hole density to 200 x 100 metre centres, will be completed in the next quarter and following receipt of all assays resource modelling by API will commence.

Ongoing Exploration

In-fill diamond drilling at Kumina Creek is scheduled for completion during the coming quarter. Resource estimates are scheduled to be completed in the December quarter.

RC drill programs have been planned for the Robe Exit CID and Bonham BID prospects.


6

Figure 2: API Significant intercept drill collar location map from Q2 2008 drilling


7

GLENBURGH GOLD PROJECT – WESTERN AUSTRALIA Helix Resources Limited 100% EL 09/1325, 09/1079, 09/1278-1289, P09/424 427

Background The Glenburgh Gold Project is situated in the Southern Gascoyne Province of WA ~250km east of Carnarvon. The project consists of a gold mineralised shear system hosted in remnants of Archaean terrane in a Proterozoic mobile belt. Glenburgh was a grass roots discovery by Helix from regional stream sampling in the 1990’s. Helix holds tenure to 1500 km² in the region. Exploration Update Reverse Circulation (RC) drilling was completed at the Glenburgh Gold Project in late May. A total of 59 holes for 5,324 metres of drilling were completed on the Icon, Mustang, Hurricane, NE3, NE4, NE5, NE6, Zone 102, Zone 126 and Zone 120 Prospects. This drilling provided first-pass, infill and extensional drilling on several known prospects and areas of significant soil geochemistry generated in the past 12 months on the Victoria Bore Grid. The drill holes were initially sampled using 4 metre composite spear sampling to identify the mineralised zones, 1 metre riffle-split samples were then collected over intervals of >0.1g/t Au and sent to UltraTrace Laboratories for Fire Assay. Approximately 90% of the 1m results have been returned. The drilling program has successfully identified additional zones of mineralisation at several prospects which are yet to be incorporated into the resource model. Drilling at the eastern end of the Icon Prospect was particularly encouraging with wide zones of mineralisation remaining open along strike to the east. On receipt of all results, the data will be compiled into the project drill database and will be used to develop an updated wire-frame model that will form the basis for an independent review to establish a new resource estimation for the project. An internal scoping study examining potential development and mining scenarios for the Glenburgh Project will follow this process. The critical project milestone is to increase the current inferred resource estimation of 1.1Mt @ 3.1g/t for 108,000oz Au to a resource level that can support a stand alone operation. Table 2: Significant Glenburgh RC drilling intercepts received to date

Hole ID Prospect East North From (m) Intercept (Au)

VRC340 Icon 10750 10040 2 2m @ 1.1g/t

VRC341 Icon 10750 10070 1 5m @ 1.0g/t

VRC342 Icon 10750 10095 0 2m @ 2.2g/t

VRC342 16 2m @ 1.2g/t

VRC342 27 14m @ 2.0g/t VRC342 50 3m @ 1.8g/t

VRC342 80 2m @ 1.9g/t

VRC342 92 6m @ 1.2g/t

VRC343 Icon 10750 10130 33 4m @ 1.1g/t


8

Hole ID Prospect East North From (m) Intercept (Au)

VRC345 Icon 10850 10075 3 2m @ 1.0g/t

VRC346 Icon 10850 10105 4 4m @ 1.0g/t

VRC347 Icon 10850 10135 48 3m @ 1.4g/t

VRC347 60 25m @ 2.1g/t VRC347 117 3m @ 2.2g/t (EOH)

VRC348 Icon 10850 10165 98 18m @ 2.2g/t VRC349 Icon 10950 10075 33 6m @ 1.1g/t

VRC349 46 3m @ 3.8g/t VRC350 Icon 10950 10100 47 3m @ 1.4g/t

VRC350 81 6m @ 1.1g/t

VRC350 98 3m @ 2.5g/t

VRC351 Icon 10950 10140 18 2m @ 1.3g/t

VRC351 23 3m @ 1.3g/t

VRC351 30 2m @ 1.9g/t

VRC351 113 25m @ 3.1g/t VRC352 Icon 10950 10180 71 3m @ 5.2g/t VRC352 88 14m @ 1.1g/t

VRC353 Mustang 12450 9950 40 3m @ 1.3g/t

VRC357 Mustang 14545 9990 46 8m @ 2.3g/t VRC374 Hurricane 15050 10180 41 2m @ 2.7g/t

VRC378 Hurricane 15150 10190 2 5m @ 1.0g/t

VRC379 Hurricane 15150 10220 41 13m @ 2.0g/t VRC381 Hurricane 15235 10200 108 2m @ 3g/t

VRC382 NE 6 14940 9650 2 2m @ 1.4g/t

VRC389 Zone 102 15850 9990 9 4m @ 2.7g/t VRC389 24 2m @ 3.2g/t

VRC390 Zone 102 15850 10030 64 12m @ 3g/t VRC391 Zone 102 15850 10070 84 2m @ 2.2g/t

VRC391 115 4m @ 20g/t VRC392 Zone 126 16390 10000 77 1m @ 3g/t

VRC393 Zone 126 16350 10000 18 2m @ 3g/t

VRC393 74 2m @ 1.7g/t

VRC394 NE 4 17050 9890 2 1m @ 5g/t VRC395 NE 4 17050 9930 75 2m @ 1.2g/t

VRC396 NE 4 17000 9918 36 2m @ 1.1g/t

All holes drill to local grid south at 60 inclination Significant Intercepts >2 gram x metres for 2008 Glenburgh RC Drilling received to date. (NB all intercepts have been calculated using a 0.5g/t lower cut, minimum 1m interval and max 2m internal dilution)


9

Figure 3: Location plan of recent RC drill collars on Victoria Bore Grid


10

LAKE EVERARD (INCL. TUNKILLIA) PROJECT – SOUTH AUSTRALIA

Helix Resources Limited 100%, Minotaur Exploration Limited earning 51% Toro Energy Limited earning 51% of Uranium Rights EL 3403, EL 2854 and EL 3335

GOLD JV Partner and manager Minotaur Exploration advise they have evaluated the Tunkillia resource model during the quarter and are planning additional drilling. Minotaur are required to complete their expenditure of $5 million before 31 March 2009 to earn their 51% interest in the JV and are Managers of the exploration program. Minotaur have spent $4.3 million to date. TORO URANIUM JV JV Partner Toro Energy have advised they remain in negotiations regarding environmental approvals and heritage clearances prior to drill testing the extensive palaeochannel targets on the Gawler Uranium JV ground. Toro are required to expend a minimum of $400,000 prior to withdrawal from the JV, and expend $2 million by 24 March 2009 to earn 51% interest in the JV, with approximately $231,000 spent to date.


11

PARACHILNA PROJECT - SOUTH AUSTRALIA Helix Resources Limited 100% EL3814

Background The Parachilna Project was identified by Helix for the series of large diapiric domes present in Adelaidean Stratigraphy in the area. Historic copper mines and occurrences are hosted in these structures including the Blinman Copper Mine, where approximately 200,000 tonnes of copper ore grading 5% Cu was mined from workings to a depth of 165m from surface in the late 1800’s and early 1900’s. Exploration Update Field work during the quarter consisted of a 7,500 line kilometre detailed aeromagnetic survey covering the central portion of the tenement including coverage over the Blinman and Nuccaleena domal structures. Preliminary imagery suggests a series magnetic bodies within the domal structures and correlates well with the limited field mapping to date. Levelling, modelling and interpretation of this data will now be carried out to assist in defining lithological and structural targets for drill testing. Mapping and sampling was also carried out on a new prospect Mafic Alley, situated approximately 3km south west of the Blinman Mine. Helix is targeting this area where rockchips from the contact of a mafic pod returned up to 11% Cu, 0.6g/t Au and 0.9% As (collected by Helix in 2007) and is coincident with an area of elevated copper in stream anomalism (+100ppm) identified from 1960’s historical sampling that was never followed up. The 4.5km² Mafic Alley target area was sampled on a 25m x 100m soil grid covering a mixed lithological package of mafic intrusives, tuffs and clastic sediments (results are pending). The detailed mapping has identified a mineralised dolomitic package similar to the Blinman Mine-type dolomite as well as numerous other altered sediments with iron enrichment and copper sulphides visible in rock samples through this zone (results also pending). The mapping suggests the units in this area are more continuous and better preserved than the broad regional mapping implies with only localised brecciation (1-10m scale) rather than kilometre scale brecciation. The area is affected by variable colluvium and carbonate-rich deflated soils cover which may account for the historical “large diapir” interpretation. Helix’s exploration model considers the domes in this region to be dynamic fluid conduits. The possibility of intrusives in or below the domes controlling metal rich alteration fluids in the reactive host sediments is evidenced by the presence of hydrothermal alteration, contact skarn style mineralogy, remobilised high-grade hematite and exotic metal suites (incl. elevated As, Mo, Bi, Sb, Hg, V and Co).


12

Figure 4: Parachilna Prospect location plan in the Blinman Dome


13

WEST PILBARA NICKEL JV – WESTERN AUSTRALIA E47/1090 and ELA47/1089 (Anglo American earning 80%)

The Company recently announced a Joint Venture Agreement with Anglo American Exploration (Australia) Pty Ltd [“Anglo American”] covering tenements E 47/1090 and ELA 47/1089, located approximately 50 km south west of Karratha in the West Pilbara region. The terms of the JV are as follows:- • Anglo American to complete a Low Temperature (LT) SQUID EM geophysics

survey within 9 months; • On completion of LT SQUID EM survey, Anglo American has an option to earn an

80% interest in each of the tenements by incurring expenditure of $5 million (inclusive of cost of the LT SQUID EM survey) within 5 years;

• The option would lapse if Anglo American does not expend $2 million within the first 3 years.

West Pilbara Nickel Project Background The Project is considered prospective for sulphide nickel accumulations in buried mafic/ultramafic intrusives under Fortescue Formation cover.

A detailed aeromagnetic survey was recently completed over the granted temnement in the target area by Helix, as part of the Company’s broader base metal exploration strategy for its West Pilbara projects. The survey has confirmed and defined several discrete magnetic bodies associated with a regional NE structural corridor. Anglo American will target these anomalies using its LT SQUID EM technology to identify buried metal accumulations for drill testing. This JV reflects Helix’s ongoing strategy of identifying and securing large tenement holdings in frontier exploration regions. Attracting resource major JV partners such as Anglo American provides Helix shareholders with access to cutting-edge technologies and expertise whilst mitigating discovery risks.


14

Figure 5: West Pilbara Nickel JV location map


15

WEST PILBARA PROJECT – WESTERN AUSTRALIA Helix Resources Limited 100% E47/1075, 1169-1171(All minerals other than Fe - subject to Yalleen JV), 1144-1145 ELA’s 47/1146 &1176

Background

Helix holds approximately 800 km² of greenfields tenements targeting precious and base metals in a corridor spanning from the Proterozoic Fortescue formation into the Hamersley basin to the South. The projects are prospective for VMS/VHMS style copper-lead-zinc in the mixed volcanic/volcano-sedimentary lithologies of the Fortescue Group and manganese ± base metals in the basal sequences of the Hamersley Group.

Exploration Update

The detailed aeromagnetic survey completed last quarter has assisted in defining target areas for the follow up stream sampling this quarter (Results Pending).

• Area 1 – covering E47/1144 & E47/1145 –VMS/VHMS prospective lithologies over 20km of strike with coincident base metal geochemical anomalism and along strike from Fox Resources’ VTEM anomalies on their neighbouring tenements.

• Area 2 – E47/1075 has a continuation of the Area 1 style targets as well as an untested +4km long greater than three times background nickel in a surface geochemistry anomaly

• Area 3 – E47/1169-1170 Covers a series of sulphur-rich sediments and possibly manganese-rich sequences in the top of the Fortescue Formation and the base of the Hamersley Range sequence.

Field crews will continue to systematically sample the target areas in a series of field campaigns over the coming months.


16

Figure 6: West Pilbara Base Metal Project targets on aeromagnetic images


17

PROJECT LOCATION MAP The information in this announcement that relates to exploration results in respect of the Yalleen JV is based on information compiled by Mr Stuart H Tuckey who is a member of the Australian Institute of Mining and Metallurgy. Mr Tuckey is full-time employee of Australian Premium Iron Mr Tuckey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Tuckey consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves on other Helix projects is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.


18

About Helix Resources Limited Helix Resources Limited (ASX Code:HLX) was listed on the Australian Stock Exchange [ASX] in 1986 and is focused on acquiring and developing assets within the bulk commodities, base metals and precious metals sectors. The Helix strategy is:-

acquire large tenement holdings in the frontier exploration regions of Australia

use of leading edge exploration methodologies and techniques under the

guidance of a skilled Board and Management team

create shareholder wealth whilst managing risks The Company’s most significant development asset is the Yalleen Iron Ore Project joint ventured with API Management Pty Ltd (50% Aquila Resources, 50% AMCI) situated in the Robe Valley in the West Pilbara region of Western Australia. The project has an inferred resource estimate of 112Mt @ 56% Fe with several hundred million tonnes of iron ore exploration upside. Helix is contributing 30% of funding and recognises the benefits of a partnership with a focused, well funded project manager and JV partner to advance this project. Helix also has two advanced gold projects with combined resources of over 900,000oz of gold, a nickel joint venture with Anglo American and is carrying out greenfields exploration on several of its Western Australian and South Australian gold and base metal projects. With $7.48M in cash, Helix has sufficient funds to carry out its exploration and development programs, whilst maintaining a watching brief on acquisition opportunities that may arise in 2008/2009. For further information please contact: Greg J Wheeler Michael H Wilson Executive Chairman Technical Director Helix Resources Helix Resources Ph +61 8 9321 2644 Ph +61 8 9321 2644

QUARTERLY REPORT

June 2008 Corporate Directory Directors Greg J Wheeler Executive Chairman Michael Wilson Technical Director John denDryver Non-executive Director Gordon Dunbar Non-executive Director Company Secretaries Greg J Wheeler Joneen McNamara Australian Business Number 27 009 138 738 Head and Registered Office 9 Richardson Street West Perth Western Australia 6005 P O Box 825 West Perth Western Australia 6872 Telephone +61 8 9321 2644 Facsimile +61 8 9321 3909 Email [email protected] Website http://helix.net.au Share Registry Advanced Share Registry 150 Stirling Highway Nedlands WA 6009 PO Box 1156 Nedlands Western Australia 6909 Telephone +61 8 9389 8033 Facsimile +61 8 9389 7871


1

http://www.helix.net.au/

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

HELIX RESOURCES LIMITED

ABN Quarter ended (“current quarter”)

27 009 138 738 30 June 2008

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter $A’000

Year to date 12 months $A’000

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration

(1,474)

(220)

(3,248)

(1,021) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 169 457 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) 2 86

Net Operating Cash Flows (1,523) (3,726)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets (59) (77)

1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets

480

1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other

Net investing cash flows (59) 403 1.13 Total operating and investing cash flows (carried

forward) (1,582) (3,323)


2

1.13 Total operating and investing cash flows

(brought forward) (1,582) (3,323)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 8,301 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (Share issue costs) (320) Net financing cash flows - 7,981

Net increase (decrease) in cash held

(1,582) 4,658

1.20 Cash at beginning of quarter/year to date 9,062 2,822 1.21 Exchange rate adjustments to item 1.20

1.22 Cash at end of quarter 7,480 7,480 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000

1.23

Aggregate amount of payments to the parties included in item 1.2

151

1.24

Aggregate amount of loans to the parties included in item 1.10

1.25

Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the

reporting entity has an interest

Financing facilities available Add notes as necessary for an understanding of the position.


3

Amount available $A’000

Amount used $A’000

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

$A’000 4.1 Exploration and evaluation

1,200

4.2 Development

Total

1,200

Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 21 17

5.2 Deposits at call 7,459 9,045

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 7,480 9,062


4

Changes in interests in mining tenements Tenement

reference Nature of interest (note (2))

Interest at beginning of quarter

Interest at end of quarter

6.1 Interests in mining

tenements relinquished, reduced or lapsed

E09/1280 Surrendered 100% 0%

6.2 Interests in mining

tenements acquired or increased


5

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities 131,299,798 131,299,798

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

7.5 +Convertible debt securities (description)

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

7.7 Options (description and conversion factor)

330,000 5,400,000 14,028,013 275,000

Nil Nil

14,028,013 Nil

Exercise price

Various $0.26 $0.30 $0.44

Expiry date 29 March 2009 30 November 2008 30 June 2009 30 June 2009

7.8

Issued during quarter

7.9 Exercised during quarter

7.10 Expired during quarter

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)


6


Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 24 July 2008 Company secretary Print name: Joneen McNamara. Notes 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

7

June Quarterly 2008 Draft v5 - Helix · PDF fileHelix Resources Limited Quarterly Report June...

Documents

Transcript of June Quarterly 2008 Draft v5 - Helix · PDF fileHelix Resources Limited Quarterly Report June...