Helix Resources Limited (ASX: HLX) has announced its strategic move to enhance its copper portfolio through the acquisition of a 51% interest, with a pathway to 90%, in several high-potential copper projects within the esteemed Bryah Basin in Western Australia. This region is renowned for its rich deposits and was historically spotlighted by the Tier 1, high-grade Sandfire Resources' DeGrussa copper mine.
Strategic Importance of the Bryah Basin Acquisitions
The acquired portfolio, including the Doolgunna and DeGrussa West tenements, features significant geological potential. These sites are noted for a 1km surface stretch of copper-bearing gossan and several copper drill intercepts, positioning them 18km along strike from the previously prolific DeGrussa mine. With around 320 km² of tenements mirroring the geological sequence of DeGrussa, Helix Resources plans to apply a multidisciplinary exploration approach aimed at uncovering Volcanogenic Massive Sulphide (VMS) copper and gold deposits.
Acquisition Details and Exploration Outlook
The acquisitions, carried out through Helix’s wholly-owned subsidiary Leichhardt Resources (QLD) Pty Ltd, involve agreements with OD4 Tom Price Pty Ltd and Omni GeoX Pty Ltd. These agreements not only enhance Helix's existing Cobar copper assets but also align with its early 2024 strategy for copper diversification. The Company is set to leverage its seasoned exploration team to develop cost-effective exploration programs focused on this new cluster of projects.
Comments from Helix's Management
Helix’s Managing Director, Kylie Prendergast, expressed enthusiasm about the acquisitions: "We are thrilled to consolidate key landholdings in one of Australia's most prospective copper regions. This move represents a strategic expansion of our exploration footprint into the Bryah Basin and aligns with our long-term growth strategy." She emphasized the already identified copper and zinc mineralization in surface samples and geophysical surveys as promising indicators of the region's potential.
Corporate Strategy and Shareholder Engagement
The completion of these strategic acquisitions is pending shareholder approval at the upcoming Annual General Meeting scheduled for 19 November 2024. The management encourages shareholder support to maintain the current board and endorse the company’s growth trajectory, highlighting the acquisition's critical role in Helix’s continued development.
Market and Investor Considerations
This development comes amidst challenges posed by Acta's conditional offer, which has created uncertainty impacting Helix’s operational effectiveness. Despite these hurdles, the board and management remain focused on building long-term shareholder value and advancing their robust copper-gold exploration endeavors.
Final Thoughts
Helix Resources is poised for significant exploration upside with these acquisitions, aiming to unlock the full potential of its expanded copper portfolio. The strategic location and proven geological continuity with the DeGrussa mine enhance the prospects of these projects, setting a promising stage for Helix's exploration success in the Bryah Basin.
