Helix Resources Ltd (ASX:HLX) has started field exploration activities with joint venture (JV) partner JOGMEC at its Samuel Copper Project in Chile.
The program is fully-funded by JOGMEC and aims to identify large copper systems through a drone-based aeromagnetic survey, detailed geological mapping and rock chip sampling.
Exposure to copper market
Helix managing director Mick Wilson said the company was excited to start the field campaign at the Samuel JV project.
He said: “Our JV partner, the highly regarded Japanese organisation JOGMEC, is fully-funding the programs, including the use of cutting-edge unmanned aerial vehicle (UAV) drone technology for the aeromagnetic survey.
“It provides our shareholders with yet another organically derived exposure to the copper market, and another opportunity to retain material interests in potentially large copper assets in this world-class copper jurisdiction.
“With third-party funding covering costs in Chile over the next few years, it allows Helix to retain exposure while the projects are de-risked and allows Helix to continue to focus our main efforts on the advancement of our flagship copper assets in NSW.”
Maiden drilling next year
Data collected from the exploration work will be combined with satellite-based advanced spaceborne thermal emission and reflection radiometer (ASTER) alteration data to define zones of interest and refine target areas for follow-up work.
Induced polarisation surveys are expected to be used in the next phase of geophysics on prioritised target areas.
Maiden drilling at the Samuel project is expected in the first half of 2019.
Three-phase exploration program
The Samuel JV agreement requires JOGMEC to fund exploration up to $3.3 million in three phases over 2.5 years.
This will allow JOGMEC to earn a 60% interest in the project.
Helix’s Chilean team is managing the project until completion of phase III and the company will receive a management fee for these services.
The Samuel project is prospective for both porphyry and manto-style copper mineralisation.
The main target area is defined by a zone of about 19 square kilometres of mixed intrusives, volcanics, stockworks and breccias with porphyry-related alteration defining the extent of the system.