TORONTO, ONTARIO--(Marketwire - Feb. 23, 2011) -Halo Resources Ltd. (TSX VENTURE:HLO)(FRANKFURT:HRLN) ("Halo" or the"Company") is pleased to announce that Hudson Bay Mining and SmeltingCo., Limited ("HudBay"), an affiliate of HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM),has reported new results for drilling at the Cold-Lost property, partof Halo's 200 square kilometer Sherridon VMS Property in Manitoba.
Hole HLL003 (To see Figure 1, please go to the following link: https://media3.marketwire.com/docs/hrln223.pdf.)intersected an 11.90 meter mineralized zone that assayed 1.54% copperand 5.42% zinc. This includes an interval with significant preciousmetal credits of 0.99 g/t gold and 24.06 g/t silver over 7.97 meterswhich also contains 2.06% copper and 7.74% zinc. All reportedintersections (see table below) are within 100 meters of surface.
Lynda Bloom, Halo's President and CEO, stated, "Althoughsimilar exciting grades and widths have been reported before for theLost deposit, the location of these new mineralized holes expands theknown mineralization northwards about 100 meters. This is significantfor a mineralized zone that currently is being modeled with a strikelength of approximately 400 meters."
HudBay has advised the Company that the mineralized wireframeused to estimate mineral resources will need to be expanded to thenorth as a result of this drilling. HudBay is awaiting finalmetallurgical test results and is preparing a National Instrument 43-101compliant resource estimate, which is expected by the end of the firstquarter of 2011.
Halo is also mid-way through a 1,500 meter drill programtesting targets along strike from the Cold-Lost trend on properties held100% by Halo. Assays are pending for both the Halo and remaining HudBaydrill holes and are expected to be released over the next month.
Background
An option agreement announced December 21, 2009 allows HudBayto earn up to a 67.5% joint venture interest in a 1.1 square kilometerarea of the 200 square kilometer Sherridon VMS Property in Manitobawhich hosts the Cold and Lost mineralization. HudBay made the requiredfirst-anniversary cash payment of $150,000 and completed over $820,000of expenditures. A total work commitment of $1.35 million and additional$400,000 cash payment are required to be completed by December 21, 2011in order for HudBay to exercise the option.
Technical Highlights
The objective of the HudBay drill program was to testthe horizon between the Lost and Cold deposit and to define the northernextent of the Lost mineral resource. The winter drill program hascompleted 15 holes for a total of 1,631 meters to date and two holes,approximately 170 meters, remain to be drilled. Assays are pending forthe remaining drill holes. Results for four drill holes are reportedbelow.
The Lost deposit has been outlined as a high-grade plungingfeature over a strike length of approximately 300 meters. Of particularsignificance is the fact that this zone extends from near surface in thesouth to approximately 85 meters below surface in the north and isamenable to exploitation by low cost mining methods. Halo is optimisticthat Lost has the potential to be quickly brought into production, withore from the deposit able to be shipped by truck to HudBay'sconcentrator in Flin Flon, Manitoba.
HudBay controlled all aspects of the drill program reportedhere including logging, sampling, assaying and quality control. Samplepreparation, assaying and quality control programs are consistent withthe disclosure in the press release dated November 12, 2010. Holes weredrilled at dips of 45 to 90º at grid azimuth of 270º. True widths arenot known but are not expected to vary significantly from the lengths inthe following table.
Halo remains committed to mineral resource investigation andevaluation of its 200 square kilometer Sherridon VMS Property inManitoba.
The above information has been prepared under the supervisionof Lynda Bloom, P.Geo., who is designated as a "Qualified Person" withthe ability and authority to verify the authenticity and validity of thedata.
ON BEHALF OF THE BOARD OF DIRECTORS
Marc Cernovitch, Chairman
About Halo Resources Ltd.
Halo is a Canadian-based resource company focused on theacquisition of near production base and precious base metaldeposits. The Company's focus is the 200 sq. km. Sherridon VMS Property,a combination of mature and grassroots volcanogenic massive sulphide(VMS) copper, zinc and gold exploration opportunities. A 2008 NI 43-101compliant copper-zinc resource, for four of the known deposits in thedistrict, was completed in less than 18 months. The Company has a jointventure interest in the Duport Property, an advanced gold property nearKenora, Ontario and is the operator for contiguous joint ventureproperties in West Red Lake covering 26 sq. km. The Company is operatedby an experienced management team with a growth strategy to develop adiversified portfolio of advanced mining projects.
Forward Looking Statements
This Company Press Release may contain certain"forward-looking" statements and information relating to the Companythat are based on the beliefs of the Company's management as well asassumptions made by and information currently available to the Company'smanagement. Such statements reflect the current risks, uncertaintiesand assumptions related to certain factors including, withoutlimitations, competitive factors, general economic conditions, customerrelations, relationships with vendors and strategic partners, theinterest rate environment, governmental regulation and supervision,seasonality, technological change, changes in industry practices, andone-time events. Should any one or more of these risks or uncertaintiesmaterialize, or should any underlying assumptions prove incorrect,actual results may vary materially from those described herein.
Neither TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.