VANCOUVER, British Columbia, Aug. 9, 2005 (PRIMEZONE) -- Marc Cernovitch, President & CEO of Halo Resources Ltd. (TSX-V:HLO) (OTCBB:HLOSF) (FSE:HRL) is pleased to announce that the recently completed study by Roscoe Postle Associates, Inc. (RPA) concluded that further work is required at the company's Duport Gold Property.
A key element of the study is an updated resource estimate incorporating historical drilling information converted to digital format for the first time. The resource estimation was largely based on 74,227 m of historical diamond drilling from 1951 to 1988, as well as 7,054 m drilled by the Company in 2005. The resource was estimated using the contour method. The resource estimate by RPA, which conforms to Canadian NI 43-101 standards, was as follows:
Tonnes (1,000) Au (g/t) Au (oz)
Indicated 424,000 13.4 (183,000)
Inferred 387,000 10.7 (133,000)
1. The effective date of the resource estimate is June 1, 2005.
2. The resources were estimated using a cut-off grade of
6.86 g/t Au, a minimum thickness of 1.5 m, a gold price
of US$400 per oz, a gold recovery of 91 percent, and all
assays were capped at 68.56 g/t.
3. Mineral resources which are not mineral reserves do not
have a demonstrated economic viability.
The principal conclusions of the RPA study were as follows:
1. A larger, higher-grade resource is required to generate
positive economic results at current prices.
2. To source additional potential mill-feed a regional
exploration program should include:
-- Exploration focused on determining which rock
characteristics or structures may host thicker or
higher-grade ore intersections, i.e. relating the
morphology of Duport grade, thickness, and grade-thickness
to the morphology of host shear zones.
-- Compilation of regional assessment data.
-- Conduct satellite imagery studies to facilitate
structural interpretation.
-- Conduct and interpret airborne geophysical surveys.
-- Relate airborne survey results to structural geology
studies.
-- Follow-up most favourable targets with ground geophysics.
-- Test the most favourable targets with diamond drilling.
RPA estimates that the direct cost of such a program will be $500,000 to $700,000, depending upon the amount of diamond drilling, excluding any off-site costs.
Qualified Person
Graham G. Clow, a principal of RPA and a Qualified Person as defined in NI 43-101, has reviewed this news release and has verified the technical information provided herein.
Additional Information
For additional information on the Duport Property, please see the Technical Report on the Duport property, Northwestern Ontario, Canada, dated November 8, 2004, filed on SEDAR at www.sedar.com.
Halo Resources Ltd. (TSX-V:HLO) (OTCBB:HLOSF) (FSE:HRL) is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in three projects: Duport, which is an advanced stage gold project; Bachelor Lake, which is a gold exploration project; and a letter of intent regarding Quarter Moon, which is a grass roots gold project. The Company is operated by an experienced management team and backed by a strong network of mining financiers. The Company's growth strategy is to develop a diversified portfolio of advanced mining projects.
Web site: www.halores.com
ON BEHALF OF THE BOARD "Marc Cernovitch" President & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Except for the historical statements contained herein, this news release presents forward-looking statements that involve inherent risks and uncertainties. Although the management and officers of Halo Resources Ltd. believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, they give no assurance that their expectations will be achieved. Certain risks and uncertainties inherent in the Company's operations include political, economic, environmental and geological issues, including but not limited to, the continued need for additional capital, the competition within the mining industry, and other risks detailed from time to time in the Company's periodic reports filed with the British Columbia Securities Commission.