September 15, 2010
Hellix Releases Clarification Disclosure
HELLIX VENTURES INC. - HEL:TSX.V/HLLXF:OTC - Vancouver, BC - Frank Underhill, President, announces that as a result of a review by the British Columbia Securities Commission (“the BCSC”), Hellix (“the Company”) is issuing this news release to clarify, retract, restate and update certain of its previously issued news release disclosures and on its website www.hellixventures.com.
The Company had quoted on its website a “possible reserve” regarding tailings and dump material at its Athabasca property. This possible reserve estimate was taken from public files – Beaty Geological, 1988; Assessment Report 17,184 (“Beaty Report”). The Company is not treating the tailings presently located on the site as possible reserves or current NI 43-101 defined resources as it has not conducted any of its own resource estimates on the property. Hellix hereby retracts the “possible reserve” statement and has removed all references from its website.
The Company has summarized previous exploration results by reporting highest or best values on its website, October 6, 2009 news release, and recent MD&A. Hellix disclosed the average historical grade for only the No 2 West level of the Athabasca property, which was described as the most prolific. These values were derived from a map drawn in 1934 by Noble Five Mines (a previous owner of the Athabasca property) prior to the implementation of NI 43-101. Our previous reporting was not balanced as the highest values are not representative of the average grade of the mineralization over mineable widths.
The Company is balancing its historical reporting by including all known data reported by referencing the Beaty Geological Ltd. 1987 Compilation Report on the Geology, Geochemistry and Geophysics Surveys on the Athabasca Property written by Gordon A. Addie, B. Sc. (Geol) and Douglas G. Leighton, B. Sc., F.G.A.C.. This report is not 43-101 compliant but the Company has no reason to believe that the professionally written data is not accurate.
The Beaty Report included work done from February, 1987 through December, 1987. Beaty performed grid controlled magnetic and VLF-EM surveys, examined and sampled accessible underground workings, and researched archival and published data. They also upgraded the access road, assessed the condition of the underground, put in a new grid and performed soil geochemical and VLF-EM surveys on the new grid.
VLF-EM Surveys - Feb/Mar 1987 - Readings were taken at 10m (33 ft.) intervals on lines spaced 50 m (164 ft.) apart. Grid lines were oriented perpendicular to the strike of the vein. October 1987 – A new grid with lines 50 m apart trending N-S with VLF-EM run over the area. Data was contoured after being Fraser Filtered.
In both VLF-EM surveys, maximum field strength failed to outline any recognizable structures. In the follow-up survey, the Fraser Filtered dip angle clearly outlines the northwest portion of the graben wall. This is important as it is the location of the “contact” ore shoot.
Magnetometer Survey - A Geotronics M-636 proton magnetometer with 1 gamma precision was used with readings taken at 10 m intervals and plotted on stacked profiles.
The stacked profiles indicate structures oblique to the grid that are parallel to the graben, probably outlining shears within the graben. In this gold camp (Nelson), stacked profiles can identify shears which show up as narrow, strong magnetic lows, displaying distinct signatures that vary from shear to shear. Contouring masks the signature and makes it almost impossible to delineate oblique shears.
Geochemistry - A total of 59 rock samples and 533 soil samples were taken on the Athabasca property. All samples were sent to Acme Analytical Labs in Vancouver. Only 35 of the rock samples were drawn on a location map and are referenced herein.
Rock Sampling - All rocks were analyzed by 30 element ICP after digestion of 0.500g of the sample with 3 ml of 3-1-2 HCL-HNO3-H2O at 95oC for one hour and dilution to 10ml with water. A few were analyzed by mass spectrometer after fire assay pre-concentration. Rocks were crushed and were sieved to -80 mesh or were split into -100 and +100 mesh fractions. Both fractions of those samples that had been split to +100 and -100 were fire assayed to determine the proportion of native gold.
When ventilation was improved underground, geologists twice entered the No 2 level and took a total of 31 chip samples, three dump samples and one massive pyrite specimen sample. These rock sample locations are the only ones plotted on a map of the underground in the report. The average width of the sampled vein was 25.15cm (9.9 inches). It does include one chip sample assaying 25.10 g/tonne (0.732 oz/t) over a width of 75 cm (29.5 inches). The number of samples within the header ranges are summarized below.
|<1 g/tonne Au (<0.035 oz/t)||From 1 – 3 g/tonne Au (.035 -.106 oz/t)||From 3 – 7 g/tonne Au (.106-.247 oz/t)||From 16 – 28 g/tonne Au (.564-.988 oz/t)||68.57 g/tonne Au (2.42 oz/t)||From 114 – 181 g/tonne Au (4.02-6.38 oz/t)|
The Beaty Report acknowledges that these are not valid average grades over mineable widths, as a detailed, systematic sampling and mapping program has yet to be carried out. Results show an erratic range of values within ore-shoots, and assays are complicated by up to 41% coarse gold in individual samples.
Soil Sampling– Soils were prepared by drying and sieving to -80 mesh. All soils were analyzed by AAS from a 10 g sample. A number of samples were re-run as a check. Samples were collected at 20 m intervals on lines spaced 50 m apart. One soil horizon was collected by digging a 15-25 cm deep hole with a mattock.
Sample values vary from trace to 8705 ppb Au. The number of samples within the header ranges are summarized below.
|1 – 9 ppb Au||10 – 49 ppb Au||50 – 99 ppb Au||100 – 999 ppb Au||1000 – 8705 ppb Au|
These soil anomalies are plotted on a hand drawn map included in the Beaty Report. The strongest anomaly outlined the mine workings. An East-West trending anomaly immediately south of the mine is thought to be contamination from the original tramline. The third anomaly is important in that it outlines interesting gold values within the graben and would be an interesting exploration target. The fourth anomaly occurs within the Silver King Porphyry and is coincident with a VLF-EM anomaly. Smaller gold anomalies are found throughout the grid area in each of three host lithologies.
Beaty performed work which confirmed both the structural continuity of the vein described in old reports and the grades documented in historical records, pointing to further the exploration potential of the Athabasca vein. They point to evidence for additional vein/shear potential on the property by referencing nearby properties including the Starlight shear and the California mine, and the finding of faults parallel to the Athabasca vein in the No. 4 mine level. The report did cite the average vein width at 30 cm (11.8 inches) and the fact that the vein is not vertical as negative factors.
The technical portion of this release has been reviewed by Qualified Person Laurence Sookochoff, P. Eng.
To correct and clarify certain disclosures relating to the Board of the Company, the board presently consists of three directors, none of whom are considered independent on the basis that they are either: officers of the Company as well as directors; or are personally related, as Barry Underhill is the son of Frank Underhill and therefore not independent; or both the aforementioned reasons. The Company intends to announce a new director in the near future. It was also noted that Hellix had not previously disclosed the fact that John Jenks was no longer a director of Hellix. Mr. Jenks did not stand for election and was not nominated at the AGM dated March 10, 2009.
In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
HELLIX VENTURES (HEL – TSX.V) is engaged in the identification, acquisition, exploration and development of gold and silver properties in North America. Hellix has no debt (other than short-term trade payables), and has positive cash flow from fossil fuel production in Western Canada. All transactions stated or referred to herein are expressly subject to TSX Venture Exchange approval as well as all other applicable regulatory body approvals.
ON BEHALF OF THE BOARD OF DIRECTORS
HELLIX VENTURES INC.
Toll Free: 1-877-430-3113 Phone: (604) 683-6657 Fax: (604) 684-4407
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. The forgoing is for informational purposes only, and is not to be construed as an offer to buy or sell securities in any jurisdiction. It may contain forward-looking statements. While the data compiled by management is from sources deemed to be reliable, actual future results may vary materially. Hellix Ventures Inc. does not assume the obligation to update any forward-looking statement and will not be responsible for any loss arising from the use of this information. Historically reported results may not be NI 43-101 compliant and therefore caution should be used in relying on such statements.