Helix Resources has entered binding agreements to earn up to 40% of the Gold Basin oxide gold project in Arizona, a significant move supported by a planned resource update incorporating extensive recent drilling.
- Conditional binding agreements to earn 40% interest in Gold Basin project
- Inferred resource of 299,800 ounces gold at 1.12 g/t grade from 2019 JORC report
- Resource update scheduled for June 2025 including 335 new drill holes
- Metallurgical testwork indicates excellent heap-leach recoveries with low costs
- Project located in Tier 1 Walker Lane gold trend with strong growth and near-term production potential
Strategic Entry into a Proven Gold District
Helix Resources Ltd (ASX: HLX) has taken a significant step into the US gold sector by entering conditional binding agreements to earn up to a 40% interest in the Gold Basin oxide gold project located in Arizona. The project lies within the prolific Walker Lane gold trend, a Tier 1 jurisdiction known for hosting world-class oxide gold deposits. This move complements Helix’s existing portfolio, including its nearby White Hills copper-gold project, positioning the company for diversified growth in a favourable mining jurisdiction.
Substantial Inferred Resource and Upcoming Update
The Gold Basin project boasts an inferred resource of approximately 299,800 ounces of gold at an average grade of 1.12 grams per tonne, based on a 2019 JORC 2012-compliant report by Greenvale Energy. This resource covers six advanced gold targets over a contiguous 42 square kilometre tenement area. Since the 2019 resource estimate, an additional 335 drill holes totaling over 35,000 metres have been completed, which Helix plans to incorporate into a resource update scheduled for June 2025. This update is expected to significantly enhance the resource base and provide a clearer picture of the project’s scale and potential.
Encouraging Metallurgical and Development Prospects
Preliminary metallurgical testwork conducted by Gold Basin Resources in 2022 demonstrates excellent gold recoveries via heap leaching, with gold extraction rates reaching up to 86% in bottle roll tests and 80% in column leach tests. The mineralisation is notably free of deleterious elements and exhibits low cyanide consumption, supporting the potential for low capital expenditure (CAPEX) and operating expenditure (OPEX) development scenarios. These characteristics align with Helix’s vision of near-term production opportunities combined with long-term growth potential.
Joint Venture Terms and Strategic Outlook
Under the earn-in agreement, Helix will spend up to AUD 3 million over two years to earn up to 40% of the project, with an initial 20% interest earned after the first AUD 1 million expenditure. The joint venture will be governed by a committee with equal representation, though Gold Basin Resources will remain the operator. Additionally, Helix will receive a 1% net smelter royalty through the issuance of 150 million shares, which will be escrowed in tranches. The agreement includes a right of first refusal for Gold Basin Resources over Helix’s interest for 24 months, ensuring aligned interests as the project advances.
Looking Ahead: Capital Raising and Resource Expansion
Helix plans a capital raising in the second quarter of 2025 to fund exploration and development activities at Gold Basin and White Hills. Following the resource update, the company intends to undertake a Preliminary Economic Assessment (PEA) and prioritize further drilling to expand and upgrade the resource. The project’s location, just 1.5 hours from Las Vegas with excellent infrastructure and year-round access, further enhances its development appeal.
Executive Confidence and Market Implications
Helix’s Executive Chairman, Mike Povey, expressed strong confidence in the project’s potential, highlighting the extensive strike length of mineralised structures and the clean oxide gold mineralisation amenable to heap leaching. The company’s focus on building long-term shareholder value through strategic growth in the US gold sector is clear, with Gold Basin expected to play a pivotal role in this trajectory.
Bottom Line?
Helix’s entry into Gold Basin marks a pivotal growth phase, with the upcoming resource update and economic assessment set to redefine its value proposition.
Questions in the middle?
- How will the June 2025 resource update impact Helix’s valuation and project economics?
- What are the timelines and milestones for advancing Gold Basin towards production?
- How will Helix balance capital allocation between Gold Basin and its White Hills copper-gold project?