YALLEEN IRON ORE JV - WESTERN AUSTRALIA
Helix 100% Other Minerals, 30% iron ore rights; 

Australian Premium Iron JV (Aquila/AMCI) 70% iron ore rights of E47/1169-1171 

 Introduction

Runge Ltd recently determined an Inferred Resource of 112 Mt @ 55.6% Fe for Kumina Creek and Robe Exit which was released to the ASX 3^rd June 2008. This initial resource estimate provides confidence regarding the overall potential of the Yalleen Project once the other identified prospects have been drilled, assessed and included. The Bonham prospect preliminary assessment from API is 8km² of goethitic type ore which represents an Exploration target alone of +200Mt.

 Project Background

The Yalleen Iron Ore JV Project covers approximately 600km² of the upper reaches of the Robe River drainage system. Pisolitic iron mineralisation in buried palaeodrainage systems developed from erosion of iron rich strata in the northern Hamersley Range create a series of channel deposits under the Quaternary cover within the Robe River and Kumina Creek drainage basins. The Brockman and Marra Mamba Formations, host to many of the major iron ore deposits in the Pilbara region of WA, form the main exposure in the project area.

The Yalleen Joint Venture is managed by the Australian Premium Iron JV (Aquila/AMCI) and forms part of their larger West Pilbara Iron Ore Project which in March 2008 estimated a resource of 493Mt at 57% Fe from deposits in separate joint ventures with Red Hill Iron Ltd and Cullen Resources Limited and their own projects. These projects are approximately 50-70 km southwest of the Yalleen Project area.

Project Review

At Yalleen, API exploration throughout 2005 and 2006 concentrated on assessing the buried channel iron deposits (CID) potential within the ancient Fortescue Valley area, focusing on targets identified from a HoistEM survey that has been useful in identifying palaeochannels. A program of barber and diamond drilling completed at the first target - Kumina Creek - in December 2006 successfully identified a buried CID over 2,700m by 900m and up to 30 metres thick grading up to 60% Fe.

Work in 2007/2008 has concentrated on definition of known channel iron targets at the Kumina Creek and Robe Exit prospects and bedded iron mineralisation at the Bonham prospect.

The resource estimate of Kumina Creek was completed using the following parameters:

• The Kumina Creek resource area extends over a strike length of 2,750m from 476,500E to 479,250E and is up to 1,000m in width from 7,592,500N to 7,593,500N. The vertical extent of the resource is 70m from near surface at 315mRL to 245mRL. 

• The Robe Exit resource area extends over a strike length of 3,200m from 472,200E to 475,400E and is 1,750m in width from 7,585,250N to 7,593,500N. The vertical extent of the resource is 80m from near surface at 310mRL to 230mRL.

• The database contained 340 drill holes including Reverse Circulation (RC), Diamond (DD) and recent Barber drill holes (BDH) drilled late in 2007. A total of 148 drill holes were used to estimate the resources.

• No down hole surveys were recorded and all holes are assumed to remain vertical. The average depth of drill holes in the resource estimates is 35m.

• QAQC data was not reviewed by Runge Limited. However API has a comprehensive QAQC procedure in place for all resource drilling.

• Fe, SiO₂, Al₂O₃, P, S, Loi1000, Mn, MgO were assayed using the X-ray florescence technique (XRF).

• Interpretations were based on logged geology and a nominal 50% Fe cut off with a minimum down hole length of 2m.

• Samples within the Kumina Creek wireframes were composited to even 1m intervals. Samples within the Robe Exit wireframes were composited to even 2m intervals. ·         No high grade cut was applied to Fe or any other elements in the estimates.

•  Inverse Distance Squared was used to estimate grade within each of the deposits. An ‘ellipsoid’ search method was used for both deposits.

• The Kumina Creek estimate used a first pass horizontal search radius of 200m. The vertical search distance was 10m.

• The Kumina Creek block model used block dimensions of 100m NS by 50 EW by 2m vertical with sub cells of 50m by 25m by 1m respectively.

• The Robe Exit estimate used a first pass horizontal search radius of 400m with a vertical search distance of 40m.

•  The Robe Exit block model used block dimensions of 100m NS by 100m NS by 2m vertical with sub cells of 25m by 25m by 1m respectively.

• Bulk density data was not provided for either of the deposits. Review of similar type deposits in the Robe Valley resulted in a density of 2.7t/m³ being applied to the mineralised material.

• The geological model and grade distribution evident at the Yalleen project conform to well understood CID deposits which are exploited in the region.  Drill data is relatively sparse so geological and grade continuity is assumed rather than verified.  Consequently the resources have been classified as an Inferred Mineral Resource for each deposit. Some peripheral mineralisation at the Robe Exit deposit has been estimated but remains unclassified due the sparseness of drilling and grade variability.

Bonham Prospect

At the Bonham Prospect geological mapping was completed to identify the distribution of goethitic cap, laterite and CID developed over the Marra Mamba Formation in that area. A single exploration traverse of 8 RC drill holes in early 2008 confirmed the presence of an enriched hardcap zone estimated to cover an area of 8km², with assays ranging in grade from 45% to 52% Fe and extending to a depth of 10 metres.

A program of RC drilling is scheduled by API to test the prospect.

HELIX ASSESSMENT OF YALLEEN PROJECT FE TARGET POTENTIAL

The Yalleen Project comprises multiple CID and BID targets identified from historical drilling, the HoistEM survey as well as drilling completed by API.

Helix continues to monitor the available technical data, as provided by API, and considers the Yalleen Iron Ore Project to have the potential to host an Exploration Target* in the order of several hundred million tonnes. Helix is encouraged by the initial inferred resource estimate of 112Mt @ 56% Fe from Kumina and Robe Exit Prospects and the exploration results from Bonham. Ongoing resource and exploration drilling of these and numerous untested prospects on the project, suggest this Exploration Target is achievable.

*Note 1: The Exploration Target discussed above should not be misinterpreted as an estimate of Mineral Resources or Ore Reserves. While the company remains optimistic that the joint venture will be in a position to report resources in the future, any discussion in relation to targets, resources, reserves or ‘ore’ is only conceptual in nature as there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.