HLX – Helix Resources | Aussie Stock Forums

Ok guys have been wanting to post about HLX for awhile but haven’t as its been in a downtrend, well I think its bottoming out and will re-rate soon,

Before I begin I should point out that what I saw with JMS 7c -20c and GOP 9c – 20c (Check the threads and the charts) I see with HLX so if you interested in a 100% + upside stock before considering Fundamentals read on,

HLX has 100m shares and 25m 14c 31/3/07 opeis,

@ current prices mkt cap is $9m

@ 20c (my inital target) mkt cap is $25m (still not demandng)

HLX hax 3 main projects

Tunkillia S.A.

This is the jewel in the crwon, discovered back in the late 90’s this Gold deposit was set to become the next Olympic Dam, promptly rocketing HLX from the few cents to $2+ (like AUM/CDU) however further drilling revealed it wasn’t a multi billion dollar deposit, this combined with lower gold price in 2000 led to project being put on back burner,

JORC stands at 10.5Mt@2.2g/t = 730k oz’s Au

Now whats changed is that HLX farmed Minotaur (MEP) into Tunkillia, MEP is earning 51% by sole funding exploration and HLX is free carried until a decsion to mine, MEP are solid operators, they discovered OXR’s Prominent Hill and are some of the best mining tech’s in the business, Tunkillia is MEP’s main focus as well,

So HLX holds a 49% free carried interest,

49% of 730k oz’s Au @ EV of $25 oz (Avg Mkt cap $ per Ounce) = $9m or HLX’s current mkt cap

Clearly MEP like what they see and have stated that they the hurdle to get the project going is a minimum JORC of 10Mt@3g/t so there trying to find some higher grade offshoots, they would do a 2mtpa operation = 200k oz’s Au for 5yrs

Glenburgh Somewhere in W.A.

100% HLX, JORC 1.1Mt@3.1g/t = 110,000 Oz’s Au, they’re targeting a minimum 500k oz resource for a stand alone project

Lake Everard S.A. part of Tunkillia area

HLX 49% TOE (Toro) 51% Searching for uranium

I’d say that in the next few months MEP will release a new resource estimate for Tunkillia and take steps to get the project going, note that OXR (Oxiana) has an option to buy 24% of HLX’s stake, reducing HLX to a 25% free carried interest.

Very undervalued, has about $2m in cash but not spending much on exploring as main project is free carried exploration up to a decision to mine

I expect it to follow the same path as GOP and JMS,


Be the first to comment

Leave a Reply

Your email address will not be published.