TORONTO, ONTARIO--(Marketwire - July 27, 2012) - Halo Resources Ltd. (TSX VENTURE:HLO)(FRANKFURT:HRLN) ("Halo", the "Company") announces drilling results at the West Red Lake Project on the Pancake Bay claims held in a 60:40 joint venture with Red Lake Gold Mines Partnership ("RLGM"), a partnership between Goldcorp Canada Ltd. and Goldcorp Inc. (TSX:G)(NYSE:GG) ("Goldcorp") and the Bridget Lake claim, held in joint venture with RLGM and AurCrest Gold Inc. ("AurCrest") (TSX VENTURE:AGO).
The 2012 winter drilling program at Pancake Bay was cut short due to unseasonably warm weather and only 1,675 m of a planned 2,400 m was completed. A geophysical target was drilled and intersected two low grade gold zones over significant widths of 11 m. Due to the abbreviated drill season the main structural target at Pancake Bay remains untested.
At Bridget Lake, a cross-cutting structure in a banded iron formation ("BIF") was drilled and intersected a 4 m zone grading 0.834 g/t Au. The drill hole is in close proximity to high-grade gold bearing quartz veins exposed at surface. The BIF is extensive with a known strike length of several kilometers. The occurrence of elevated gold values throughout the BIF suggests that the Bridget Lake area is prospective for high-grade gold hosted in cross-cutting structures.
At Pancake Bay, 1.5 km west of Bridget Lake, a sinistral offset of roughly 150 meters is observed between one side of the bay and the other. This offset is likely due to an apparent north-south fault that also appears to be coincident with a geophysical anomaly. Five (5) stratigraphic holes were drilled for a total of 1,295 m to establish the breadth and extent of the alteration suggested by the geophysical anomaly. Additional planned holes were not completed due to unexpected warm weather in March.
A total of sixteen separate intervals of anomalous gold concentrations were intersected in holes PB12-032, PB12-033 and PB12-035. These intervals include two mineralized zones in hole PB12-032 of 11 m with composite gold grades of 0.20 to 0.24 g/t Au respectively. The anomalous gold grades at Pancake Bay are encouraging and additional drilling to test the projected fault zone is planned.
In 2009 Halo intersected 7.1 g/t gold over 5.8 meters drilling from Bridget Lake (Hole RL08-009) The drill collar is flanked by occurrences of visible gold mineralization associated with narrow quartz veins exposed on the south and north shores of Bridget Lake. Previous operators had identified a series of high-grade gold veins west of the lake and Halo reported surface channel samples with up to 161 g/t (4.7 ounces per ton gold) over 1.1 m length along a quartz vein selvedge in the same area.
In February 2012, Halo completed two (2) diamond drill holes totaling 380 m west of Bridget Lake. Hole B12-037 was drilled to intersect off-sets observed in geophysical surveys below Bridget Lake. Mineralization was associated with structures, disseminated pyrite and the one narrow occurrence of banded iron formation ("BIF") within a package of sediments. Five samples, approximately one-meter long, assayed between 0.335 to 0.948 g/t gold with an additional 4 m zone at 117 m down-hole that assayed 0.834 g/t gold.
BL12-038 was halted at 50 m due to an early thaw. The hole was intended to test for additional north-south trending cross-cutting high-grade quartz veins similar to those identified east of the hole at surface. At 27.3 m, an interval of 5.8 m grading 0.404 g/t Au was intersected. The intersection is hosted by sulphide iron formation in contact with dolostone and associated with disseminated pyrite. A second interval of 1.77 m at 42 m down-hole, assayed 0.381 g/t gold.
The two zones of anomalous gold values encountered in BL12-038 warrant further investigation as similar elevated gold values were associated with high-grade gold values in quartz veins that occupy cross-cutting structures in the BIF. Drilling has not proven to be the best method for intersecting these relatively narrow zones of mineralization. Instead, mechanical trenching or stripping of the banded iron formation in this area is recommended, followed by geological mapping and channel sampling. The main objective of the proposed program will be to determine if there are a sufficient density of gold-bearing quartz veins intersecting the BIF to be of economic interest, and if additional veining will return similar gold grades as those encountered from north-south trending quartz veins identified by previous operators. The outcome of this program will determine whether additional drilling, potentially at greater depths, is warranted below Bridget Lake.
Sawn half-drill core samples were submitted to the ALS, Thunder Bay sample preparation facilities and analyses were performed at ALS Vancouver, an internationally recognized and accredited facility. The entire sample was crushed and a 1,000 g split was pulverized. Base metals and a suite of up to 30 trace elements were determined by inductively coupled plasma spectrometry (ICP) after an aqua regia digestion and gold 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 are 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.
ON BEHALF OF THE BOARD OF DIRECTORS
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. (TSX:G)(NYSE:GG) at West Red Lake covering 4,400 hectares. The Company is operated by an experienced management team with a growth strategy to develop a diversified portfolio of advanced mining projects.
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