VANCOUVER, British Columbia, May 27, 2005 (PRIMEZONE) -- Marc Cernovitch, President and CEO of Halo Resources Ltd. (TSX-V:HLO) (OTCBB:HLOSF) (FSE:HRL) is pleased to announce the first results from its ongoing 12,500m underground drilling program at Bachelor Lake, Quebec. The Bachelor Lake "Main" zone was originally mined underground between surface and the 12th Level. The "B" and "A" zones are new mineralized zones. New significant assay results were returned from the "Main", "B" and "A" mineralized zones. Highlighted results are from below Level 12 and the intercepts are listed below:
Bachelor Lake "Main Zone":
-- Hole 12-38 returned 5.68 g/t Au over 1.82 m contained within
3.89 g/t Au over 3.70m;
-- Hole 12-40 returned 23.83 g/t Au over 2.70m contained within
12.69 g/t Au over 8.50m;
-- Hole 12-42 returned 23.68 g/t Au over 1.53m contained within
9.21 g/t Au over 6.36m;
-- Hole 12-44 returned 24.54 g/t Au over 2.29m contained within
14.94 g/t Au over 5.03m;
-- Hole 12-46 returned 13.72 g/t Au over 1.90m contained within
4.48 g/t Au over 8.78m;
Bachelor Lake "B Zone":
-- Hole 12-38 returned 6.82 g/t Au over 2.75 m contained within
4.81 g/t Au over 5.50m;
-- Hole 12-40 returned 26.26 g/t Au over 2.40m contained within
11.70 g/t Au over 7.10m;
-- Hole 12-42 returned 18.58 g/t Au over 1.26m contained within
4.47 g/t Au over 8.28m;
-- Hole 12-44 returned 14.77 g/t Au over 1.40m contained within
10.37 g/t Au over 2.00m;
-- Hole 12-46 returned 21.06 g/t Au over 1.92m contained within
12.35 g/t Au over 4.25m;
-- Hole 12-46 returned 27.49 g/t Au over 2.78m contained within
17.22 g/t Au over 4.70m;
Bachelor Lake "A Zone":
-- Hole 12-44 returned 6.12 g/t Au over 2.37m contained within
5.19 g/t Au over 3.50m;
Please note that all the intervals are indicated over core lengths, not true vein widths. See Table 1, for detailed assay results.
Drilling Results
Geological and assay results from drill holes 12-42 and 12-46 confirms known indicated resources at Bachelor Lake. The drill holes 12-38 and 12-40 are located within known inferred resources. The drill intercept from hole 12-44 is located outside the known resources and potentially adds resources to the project. Preliminary analysis of this hole suggests that the "Main" zone may now be connected to the east with the Hewfran deposit that was recently acquired by Metanor Resources Ltd (MTO.V), owner of the Bachelor Lake property. The "Main", "B" and "A" mineralized zones remain open laterally and at depth.
Two drill rigs are operating from existing stations located on 12th level. Since drilling commenced on April 6, 2005, a total of 38 holes have been completed for a cumulative amount of more than 6,096m. Initial interpretation of the core from these holes has indicated excellent core intervals (up to 5.66m) and strong mineralization in all 3 vein systems. Drill results will be released on a regular basis as assay results become available over the next 4 months.
Table 1. - Bachelor Lake underground drilling program detailed assay results.
Please note that all the intervals are indicated over core lengths, not true vein widths.
http://www.halores.com/i/pdf/HaloPR-BLDrillResults20050526.pdf
Qualified Person
The above information has been prepared under the supervision of Consulting Geologist Alain Carrier, M.Sc., P.Geo., InnovExplo inc., an independent Qualified Person under National Instrument 43-101("NI 43-101"). Alain Carrier is supervising the field work and has verified the authenticity and validity of the data. Assay results presented here were done under the direct supervision of Consulting Geologist Yves Buro. Mr. Buro is a "Qualified Person", under NI 43-101 and has the ability and authority to verify the authenticity and validity of the exploration data. In addition to over 25 years of experience on exploration and mining projects, Yves has specific prior experience on the Bachelor Lake Property. Messrs. Carrier and Buro have reviewed and approved of the contents of this press release.
Quality Control and Quality Assurance Program
Assay samples are taken from drill core (BQ size) sawed in half with one half sent to a commercial laboratory and other half retained for future reference. A strict QA/QC program is followed which includes mineralized standards, blank and duplicate for each batch of samples. Significant assay results are duplicated at the original laboratory. The gold assaying method uses a 30-gram sample Fire Assays (atomic absorption with gravimetric finish for sample over 10 g/t Au) on splits from an initial 250-gram pulverized sample. Assays were performed by ALS Chemex - Chimitec of Val-d'Or (Quebec), an assay laboratory accredited by the Standards Council of Canada. Metallic screen fire assay are completed on samples with visible gold or where initial multiple duplicates show any variability.
Additional Information
The Bachelor Lake Property is located in the Le Sueur Township, Desmaraisville sector of Quebec and has excellent exploration potential. The mine site includes an office, a shop, a warehouse complex, a compressor room, a head-frame and a 500 ton per day mill with a cyanidation plant and crusher room, and the following NI 43-101 compliant resource estimate (1) in Table 2, previously disclosed in a press release dated April 21st, 2005:
Table 2. Undiluted and in situ resources estimate (1)(2)(3)(4)(5)
-----------------------------------------------------------------
Category Metric Grade Total Gold Total Gold
Tonne(t) (g/t) (Kg) (oz)
---------------- -------- ----- ---------- ----------
Measured
(above 12 level) 185,477 8,81 1,634 52,535
---------------- ------- ----- ----- ------
Indicated
(below 12 level) 196,572 10.80 2,123 68,256
---------------- ------- ----- ----- ------
Inferred
(below 12 level) 232,497 10.42 2,423 77,911
---------------- ------- ----- ----- ------
(1) The effective date of the resource estimate is December 20, 2004.
(2) The Qualified Person for the mineral resource estimates as
defined by National Instrument 43-101 was Alan Carrier, M.Sc.,
P.Geo, Innovexplo Inc.
(3) Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
(4) The resources were compiled using a cut-off grade of 3.43 g/t Au
(0.10 ounces/short ton). A cut-off grade of 0.10 oz/st roughly
represent a value of 55$/t the actual gold price and exchange
rate. This cut-off grade must be re-evaluated in light of the
present market conditions: gold price, exchange rate and mining
cost. A fixed density of 12ft3 per short ton was used. All
diamond drill hole intercepts were calculated at a minimum of
1.5 m (5') horizontal width, using the grade of the adjacent
material when assayed or a value of zero when not assayed.
On the basis of historical work performed by BACHELOR GOLD
MINE's personnel while operating the mine, high grade assays
were cut to 34.3 g/t Au (1.0 ounces/short ton) for the Main
Vein, and to 22.3 g/t Au (0.65 ounces/short ton) for the B Vein.
No statistical studies support this threshold, but since it is
the equivalent of general rule of thumb used in the mining
industry, it was accepted as such, by INNOVEXPLO.
(5) The company is not aware of any known environmental, permitting,
legal, title, taxation, socio-political, marketing, or other
relevant issues that could materially affect the mineral
resource estimate.
Halo has an option to earn a 50% interest of the Bachelor Lake Property in Quebec, Canada, owned by Metanor Resources Inc. (TSX-V:MTO).
For further information on the Bachelor Lake Property, please see the Bachelor Lake Gold Mine Property NI 43-101 - Technical Report dated December 20, 2004 (Revised Version), filed on SEDAR at wwww.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 3 projects: Duport, which is an advanced stage gold project with an ongoing drill program of up to 20,000 meters; Bachelor Lake, which is a gold exploration project with an ongoing 12,500 meter drill program; and a letter of intent regarding Quarter Moon, which is a grass roots gold project with a 2,000 meter drill program scheduled for the near future. 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.
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 and the United States Securities and Exchange Commission. Investors are cautioned that, except as disclosed in the materials to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Halo Resources Ltd. should be considered highly speculative. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.