Helix Resources Limited provided an update on its drilling activities at the Canbelego Copper Project located southeast of Cobar in central NSW, Australia. RC Drilling: A RC drilling program which commenced on 17 January 2023 to test for extensions of shallow high-grade copper mineralisation at the Canbelego Main Lode is now complete. A total 906m was drilled in 7 holes.

Significant copper mineralisation was observed in 5 drill holes following up extensions of a high-grade interval (16m at 3.21% Cu from 117m in CBLRC057) reported in October 2022. Visual logs indicate weak, medium and strong copper mineralisation extending 60m up dip from CBLRC057 over downhole widths of 12m to 51m. This zone extends approximately 120m along strike to the south of the historic workings, with mineralisation open towards the workings.

Assays are pending, but these observations are very encouraging for important extensions of shallow high-grade copper mineralisation which could add to the tonnes and grade of the existing 2010 Inferred Mineral Resource estimate of 1.5 million tonnes at 1.2% Cu. Diamond Core Drilling: The deeper diamond drilling program resumed on 13 January to test highly conductive geophysical targets interpreted as high-grade copper shoots, reported in December 2022. Drillhole CANDD016C is underway at approximately 550m depth approaching the target zone.

Hole CANDD016A deviated away from the target point significantly despite several `Navi-cuts' and other directional interventions to steer the hole back online. It did intersect significant zones of copper sulphide mineralisation at the Main Lode shear position, but the observed mineralisation does not explain the intense downhole electromagnetic (DHEM) conductive response that defines the target. A subsequent attempt to `run-off' a daughter hole (CANDD016B) from 396m downhole was unable to achieve sufficient divergence from the parent hole (CANDD016) to attain the target trajectory and was abandoned.

CAND016C has been successfully wedged off from 280m downhole and is currently on track to hit the central position of the high-conductance target. The following section provides an update of the drilling at the Canbelego Main Lode, in particular observed copper mineralisation in the shallow RC drilling program just completed and in diamond hole CANDD016A. The Canbelego Copper Project lies along the regional scale Rochford Copper Trend.

The Project falls within the 70:30 `contributing' joint venture (JV) with Aeris Resources Ltd. (Helix 70% and Manager, Aeris 30%). The Rochford Trend has the potential to host `Cobar-style' copper deposits analogous to the large-scale, high-grade mineralisation found at the nearby CSA Copper Mine, under offer from Metals Acquisition Corp. In 2021, the JV drilled five diamond drillholes for nearly 2,000 metres around and beneath the Canbelego Mineral Resource at Main Lode, after an 8-year exploration hiatus.

Positive results led to further RC and diamond drilling highlighting high-grade shoot extensions on the Canbelego `Main Lode' and identifying new, multiple, parallel lode positions, the `Western Lodes' to the west of the Main Lode. A total of 906m of RC drilling was completed in 7 holes over 8 days commencing 17 January 2023. The objective was to follow-up a high-grade intercept of 16m at 3.2% Cu (CBLRC057) reported in October 2022 which highlighted the potential of extensions up dip and along strike to the north towards the historical underground workings.

Historical drilling in the vicinity from the 1990's is not suitable for use in an updated Mineral Resource estimate due to uncertainties with the hole locations - a further reason for undertaking this RC program. Significant copper mineralisation was observed 6 and logged in five of the seven RC holes including: 51m of weak to strong chalcopyrite veins from 84m including 2m of semi-massive chalcopyrite from 104m (CBLRC062); 25m of medium to strong chalcopyrite veins from 108m downhole (CBLRC059); 27m of weak to strong chalcopyrite veins from 80m downhole including 2m of semi-massive chalcopyrite from 103m (CBLRC060); 12m of weak to strong chalcopyrite veins from 65m including 1m of massive chalcopyrite from 72m (CBLRC063); Malachite, azurite and chalcocite was also noted in several holes, indicating potential for shallow oxide copper resources. The copper mineralisation has drill widths of 12m to 51m within a steep west-dipping zone, which also hosts the high-grade copper intercept in CBLRC057.

Significantly, the CBLRC057 intercept is down-dip of the visual intercepts in CBLRC062 and CBLRC063, indicating this zone extends down-dip for at least 60m from CBLRC063 and remains open for approximately 60m up-dip towards the surface. In December 2022 two deep "step-out" diamond drill holes were completed to test the continuity of high-grade copper mineralisation 200m down plunge from known drill intercepts and to create a platform for DHEM surveys to test for the continuity of high-grade shoots. These were the `Parent' holes CANDD015 and CANDD016.

Both holes intersected the Canbelego Main Lode shear and visible copper sulphides were logged. The DHEM surveying of both holes identified highly significant conductive anomalies of a scale and intensity never recorded on the project before. The central position of the modelled conductive plates effectively occurs equidistant from both the Parent drill holes collars.

This further exacerbates the directional drilling challenges of the daughter holes to test the conductive plates in difficult ground conditions. Hence, several attempts were required for a successful test ­ with hole CANDD016C in progress, at 550m and on track. Leading up to the current drill test - hole CANDD016A had to be suspended in mid-December due to a mechanical failure on the rig.

On resumption of drilling on 13 January it deviated away from the target point despite several `Navi-cuts' and other directional interventions to steer the hole back to its target trajectory. Despite this, it did intersect significant zones of copper sulphide mineralisation at the Main Lode shear position, however the observed mineralisation does not explain the intense DHEM conductive response that defines the target. A subsequent attempt to `run-off' a daughter hole (CANDD016B) from 396m downhole was unable to achieve sufficient divergence from the parent hole (CANDD016) to attain the target trajectory and was abandoned.

CAND016C has been successfully wedged off from 280m downhole and is currently at 550m and is on track to hit the central position of the high-conductance target. Geological logging of the first daughter hole from CANDD016, CANDD016A has been completed. The Main Canbelego Lode Shear Zone was intersected at 560m, which included a 25m downhole interval of weak to strong chalcopyrite veins with associated strong black chlorite alteration.