Halo expands Sherridon holdings (February 17, 2006)

Vancouver-based Halo Resources (HLO-V), already active in northwestern Quebec, has quietly amassed a large property holding in the Sherridon area of northern Manitoba.

With the most recent acquisition of an option on claims covering the Bob Lake and Ake copper-zinc deposits, Halo has interests in about 100 sq. km around Sherridon, including the immediate area around the Sherridon deposit. Sherridon, mined in the early 1930s and then continuously from 1937 to 1951, produced 120,000 tonnes copper and 68,000 tonnes zinc; historical estimates put its size at 7 million tonnes grading 2.75% copper, 3.39% zinc, and 30.9 grams silver per tonne.

The newest option, from veteran Manitoba prospector Bruce Dunlop, includes the Bob Lake deposit west of Sherridon, which was never mined. Historical estimates put the resource at 2.2 million tonnes grading 1.33% copper and 1.18% zinc, with 9.3 grams silver per tonne. Another Dunlop claim block hosts the Ake prospect, which was drilled by Hudson Bay Mining in the 1970s and 1980s.

Halo is paying $15,000 in cash and 25,000 shares for the option, with staged payments over four years amounting to $75,000 cash and 225,000 shares. Dunlop retains a 3% net smelter return and also gets a variable net smelter return on other Halo claims.

Halo moved into the area in October, staking the immediate area of the Sherridon mine and subsequently extending its staked ground to cover the favourable stratigraphic horizon, which is folded into an arcuate shape north and east of Sherridon.