The Jungle Lake deposit was discovered and drilled by HBED from 1958 to 1967. Halo has the option to earn 100% interest in the Jungle Lake deposit from HBED through a series of cash and share payments and escalating work commitments as detailed in the option agreement.

In 2007, 3,242 metres of drilling in 15 diamond drill holes were completed at the Jungle Lake copper-zinc deposit. They confirm the near surface presence of massive sulphides and the drill program improved the opportunity for open-pit mining of the deposit. These results formed the basis of the NI 43-101 resource estimate prepared by Scott Wilson.

The Jungle Lake deposit contains 830,000 tonnes of Indicated Resources grading 0.99% Cu, 0.73% Zn, 0.39 g/t Au and 6.7 g/t Ag plus 1.3 million tonnes of Inferred Resources grading 0.9% Cu, 0.6% Zn, 0.4 g/t Au and 6.2 g/t Ag (Giroux and Moore, 2007) which could potentially be mined by open pit methods.  The seven 2008 drill holes have not yet been included in the current resource model.

Seven drill holes where drilled at the Jungle Lake deposit in 2008. Six of these holes were designed to verify and test for the up-dip extension of the Jungle Lake deposit in the near-surface environment to increase the size of the potential open pit mineralization as previously recommended. The seventh hole was designed to test the northwestern extent of mineralization.

Drill holes DH08-103, DH08-105, and DH08-110 encountered massive sulphides in the near-surface environment, and have expanded the potential open pit limits approximately 50 m west.  These holes exhibit similar widths and copper grades as previously drilled holes, but have higher than average zinc grade.  Hole DH08-113 intersected values and widths similar to those in previous drilling and improved confidence in the western extent of the resource model and continuity of the mineralized zone.