Halo has an option to earn a 100% interest in the Bob Lake deposit from W. Bruce Dunlop (NPL) Ltd. The deposit was discovered by Sherritt Gordon Mines Ltd. in 1941.

Holes were drilled on the Bob Lake deposit to test down-plunge continuity of a strongly mineralized, shallow-plunging component to the mineralized horizon and to also test the down-dip continuity of the main mineralized horizon. The outcome of this drilling suggests that a continuous strongly mineralized sulphide zone exists plunging between 10° and 20° to the southeast to a vertical depth of 260 m. The deposit appears to exhibit classic “pinch and swell” megascopic texture in the down-plunge direction and an elliptic style of mineralization down dip. There is some evidence that the mineralized horizon may also exhibit “blow-out” thickening similar to that seen in the Sherridon West Mine.

Holes up to DH08-93 are included in the Bob Lake resource estimate and the remaining significant intersections are listed in the table below.

Drilling programs have been successful in confirming Indicated and Inferred Mineral Resources at the Bob Lake deposit. The Indicated Resources total 1.43 million tonnes grading 0.89% Cu, 0.88% Zn, 0.10 g/t Au, and 2.58 g/t Ag and the Inferred Resources total 4.4 million tonnes grading 0.9% Cu, 0.8% Zn, 0.2 g/t Au, and 4.0 g/t Ag. Included within these mineral resources are near-surface Indicated Resources of 1.1 million tonnes grading 0.79% Cu, 0.73% Zn, 0.07 g/t Au, and 1.71 g/t Ag plus 2.3 million tonnes of Inferred Resources grading 0.7% Cu, 0.5% Zn, 0.1 g/t Au, and 1.5 g/t Ag which could potentially be mined by open pit methods.