Helix’s Gold Basin JV: What Risks Lie Ahead in US Gold Expansion?

Formalising a Strategic US Gold Play

Helix Resources Limited (ASX:HLX) has taken a decisive step in expanding its footprint in the US gold sector by executing a formal joint venture agreement to earn up to a 40% interest in the Gold Basin oxide gold project, located in Arizona’s prolific Walker Lane Gold Trend. This agreement follows a conditional binding letter signed in April 2025 and now sets the framework for Helix’s staged earn-in over the coming two years.

The project is operated through Helix’s wholly owned subsidiary, Leichhardt Resources (Queensland) Pty Ltd, which will collaborate with Gold Basin Resources (TSX-V: GXX) under an unincorporated joint venture structure. The JV Committee, comprising equal representation from both companies and chaired by Gold Basin, will oversee operations and strategic decisions.

Earn-In Terms and Project Potential

Helix’s earn-in requires up to AUD 3 million in exploration expenditure over two years, with the first AUD 1 million securing an initial 20% interest, and each subsequent AUD 1 million increasing Helix’s stake by 10%, up to the 40% cap. The company also retains the option to directly pay any outstanding exploration costs, providing flexibility in managing its investment.

The Gold Basin project itself is notable for its substantial inferred resource, reported in 2019 under JORC 2012 standards, of approximately 8.35 million tonnes grading 1.12 grams per tonne gold, equating to nearly 300,000 ounces. This resource is poised for an update in June 2025, incorporating over 35,000 metres of new drilling since the last estimate, with a Mineral Resource Estimate scheduled for June 2026. These milestones are critical for advancing the project towards economic assessment and potential development.

Location and Infrastructure Advantages

Situated just 1.5 hours by road from Las Vegas, the Gold Basin project benefits from excellent year-round access and infrastructure, a significant advantage in the often remote mining sector. The project covers over 42 square kilometres of highly prospective tenure, including federal and private mineral claims, with six advanced gold targets outcropping at surface.

Preliminary metallurgical testwork has demonstrated excellent gold recoveries, supporting Helix’s view that the project could be amenable to low capital and operating cost heap-leach processing. This aligns with broader industry trends favouring oxide gold deposits that offer simpler, more cost-effective extraction methods.

Broader Exploration Context

Helix’s move into the Gold Basin project complements its existing exploration portfolio, which includes copper and gold prospects in Arizona and the prolific Cobar region of New South Wales. The company’s strategy appears focused on leveraging its sizeable landholdings and technical expertise to unlock value across multiple commodities and jurisdictions.

With the formal JV agreement now in place, Helix is positioned to accelerate exploration and resource definition activities, with a clear timeline for reporting and economic evaluation. The partnership with Gold Basin Resources also brings local expertise and operational oversight, which should enhance project execution.