Helix Resources (ASX: HLX) has reported exciting results from its latest exploration at the historic Muriel Tank gold project in central New South Wales, revealing high-grade gold extensions in several quartz veins. The highest rock chip assays came in at an impressive 17.92 grams per tonne (g/t) gold (Au), providing a strong signal of untapped potential.
The Muriel Tank site, located around 60km west of Nyngan, has long been recognised for its historical gold production from shallow workings. Helix's recent sampling efforts suggest that the area’s rich history might just be the beginning, with plenty left to discover in deeper, underexplored veins.
A Rich Haul of Results
The standout assay results from the recent rock chip sampling include:
- Mitchells vein: 17.92 g/t Au in blue quartz, located 170 metres north of the Mitchells gold mine.
- Golden Horseshoe: A sparkling 12.97 g/t Au in blue quartz with visible gold, along with other samples grading 6.09 g/t Au.
- Russel’s vein: 4.75 g/t Au from gossanous quartz and wallrock.
- Additional assays from Brown’s Hope and Roach Vein turned up notable results of 4.02 g/t and 3.51 g/t Au, respectively.
These high-grade results were found across multiple veins in an area stretching 5km by 1.5km. The new discoveries are particularly significant because many of these quartz veins were previously unsampled and unexplored. Historically, mining focused on outcropping veins, leaving a wealth of potential along strike and at depth still to be uncovered.
Untapped Potential
Muriel Tank has long been known for its historical production, with gold mined at an average grade of 15 g/t Au from workings up to 30 metres deep. Yet, much of the area has remained underexplored, especially below the shallow workings that defined early production.
Helix’s Managing Director, Kylie Prendergast, is optimistic about the potential for new discoveries:
“Many of these excellent gold results are from new vein areas not previously explored, demonstrating the upside potential of Muriel Tank,” Prendergast said.
“The historical goldfield is a sizable 5.5km by 1.5km area and previous drilling was very patchy. We believe there’s a lot more to uncover, especially at depth and under cover.”
Helix’s recent results provide a glimpse of this hidden potential. The quartz veins that dominate the area—particularly the blue quartz often associated with high-grade gold—suggest there could be significant gold mineralisation yet to be unearthed. The company’s mapping and sampling efforts are targeting these areas to define drill targets for more extensive exploration.
A Strategic Location
One of the major advantages of Muriel Tank is its proximity to existing gold processing infrastructure. Manuka Resources is currently constructing a gold processing plant just 20km away at its Mt Boppy Gold Mine, a site with a history of producing high-grade gold (417,000 ounces). Additionally, other processing facilities, such as Aurelia’s Peak plant and Kingston’s Mineral Hill plant, are also nearby.
This proximity to established facilities could significantly lower the costs of any future gold production. Helix could potentially truck any mined ore to these plants for processing, saving on the expense of building its own infrastructure. As Prendergast noted, “Muriel Tank is well located close to current processing infrastructure suitable for gold recovery.”
What’s Next?
Helix has already begun mechanical auger drilling in areas covered by alluvial sediments to test for gold beneath the surface. Results from this phase of exploration are expected by November, which could further expand the scale of potential resources at Muriel Tank. In parallel, the company is preparing for a follow-up reverse circulation (RC) drilling campaign to target high-priority veins identified through the rock chip sampling.
Helix’s exploration doesn’t end at Muriel Tank. The company is also advancing several other copper and gold targets in its broader Cobar region portfolio. This area, known for its prolific copper and gold production, offers a promising pipeline of exploration opportunities for Helix.
Timing is Everything
Helix’s renewed focus on gold exploration comes at an opportune time. With global gold prices at record highs, driven by economic uncertainty and inflationary pressures, the market is increasingly favouring gold as a safe haven. This macroeconomic backdrop adds a layer of appeal to projects like Muriel Tank, which could offer high-grade gold in a region ripe for development.
In the words of Prendergast: “International gold prices are high, and Muriel Tank is well located close to current processing infrastructure. We look forward to rolling out the drill rig to commence the first steps of a systematic exploration program for new gold mineralisation.”
Bright Prospects Ahead
With a combination of high-grade assay results, an underexplored goldfield, and nearby processing infrastructure, Helix Resources is well positioned to deliver further upside at Muriel Tank. The next phase of drilling will be critical in determining just how much potential remains untapped at this historic site. Investors can look forward to results from the ongoing exploration work, particularly as the global gold market continues to offer strong support for projects like this.
