Helio reports additional drill results from the Gold Kop target, Damara Gold Project, Namibia

Up to 1m at 32.9g/t Au, 5m at 3.4g/t Au and 3m at 4.1g/t Au.  Mineralisation confirmed over 1.5km strike length (open)

TSX-V Trading Symbol: HRC    Toll Free: +1 888 955 4728
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VANCOUVER, Nov. 15, 2011 /CNW/ - Helio Resource Corp (TSX-V: HRC) is pleased to report new assay results from diamond and reverse circulation drilling at the Gold Kop target, part of the Damara Gold Project in central Namibia.

Highlights

  • Combination of narrow high-grade zones and wider low-grade gold mineralisation indicative of Navachab-style mineralisation.
  • Grades up to 1m at 32.9g/t Au, 5m at 3.4g/t Au and 3m at 4.1g/t Au.
  • Visible gold noted in quartz veins.
  • Numerous styles of gold mineralisation identified.
  • Diamond drilling confirms the controls and orientation on higher grade mineralisation.
  • Gold mineralisation confirmed over a strike length of 1.5km - open along strike.
  • Results indicate that gold mineralisation is associated with IP, magnetic and soil geochemical anomalies - an additional 7 targets have been identified within a 3km x 1km area.

Four main styles of mineralisation have been identified at Gold Kop so far:

  1. Bulk-tonnage disseminated mineralisation hosted by calc-silicate altered dolomite.
  2. High-grade massive sulphide mineralisation (includes Cu+Ag)
  3. Auriferous quartz veining discordant to bedding, and
  4. Mineralised igneous dykes

These drill results, which demonstrate the presence of large volumes of mineralised material, with higher-grade zones occurring within the disseminated material, suggest a large mineralised system is present.  Only a fraction of the available strike length of the folded dolomitic horizon has been tested to date (1.5km of a currently mapped total of 8.5km).

The company has recently completed a geophysical survey programme (ground magnetics and induced polarisation [IP]) over the entire Gold Kop trend (3km x 1km).  The survey identified seven additional anomalous areas for follow up work.  All had similar geophysical responses to the main area drilled by Helio to date, and these remain to be tested.

The drilling results reported herein are from the final 69 holes (3,640m - OJR53 to OJR121) of shallow reconnaissance RC drilling (most holes ended at <50m vertical depth).

Additional results from six diamond drill (DD) holes (OJD2 to OJD7) are also presented.  A further five diamond drill holes (OJD8 to OJD12) have been completed and results are pending (see Company press release dated October 11, 2011).

The exploration target at Gold Kop is for Navachab-style carbonate-hosted gold mineralisation. The Navachab gold mine, operated by AngloGold Ashanti (AGA), is located 50km southwest of Gold Kop, has been in production since 1989, and currently has non-NI43-101 compliant resources of 5.1 million ounces grading 1.15g/t Au.

The Gold Kop target geology is similar to that at Navachab, and comprises a large area of folded dolomitic marble in contact with calcitic marbles.  These marbles are associated with multiple large magnetic and IP anomalies, as well as a 4km+ gold-in-soil anomaly.  The company has previously released results from the first 52 holes of the RC programme and one of the diamond drill holes, with intercepts up to 50m grading 2.1g/t Au, 14m grading 3.1g/t Au and 4m grading 11.6g/t Au (see Company press releases dated June 13, 2011 and August 24, 2011).

The RC drill programme was designed to test a 1,500m strike section over the Gold Kop target.  RC fence lines were oriented E-W across strike every 200m.  Infill drilling is clearly necessitated in order to identify the resource potential of the main zone.

Diamond drill holes OJD2 to OJD7 were spaced over a 700m strike section of the mineralised body and all were twins of previously drilled AGA DD or RC holes, drilled to confirm the style of mineralisation.  Only one DD hole, OJD7, actually cut what has now been identified as the crucial mineralisation focus - the dolomite-calcite marble contact.  All zones intercepted are open to depth and along strike.

The highest grade intercept, 1m @ 32.8g/t Au, is from a quartz vein containing visible gold, and is hosted within a wide, low-grade disseminated mineralised zone.  From initial structural work, it is clear that quartz veins have been undersampled in current and all historical drilling, due to sub-optimal drillhole orientations.  This mirrors the exploration history of Navachab, where the significance of the resources associated with the mineralised quartz vein arrays were not noted until after mining the deposit had commenced.

Highlights from the current drilling include:

Hole No. From (m) Length (m) Au (g/t) Line
OJD2 54 4 1.3  
OJD3 4 18 0.4*  
And 41 2 1.0  
OJD4 16 1 1.2  
And 50 1 1.6  
And 86 2 0.6  
OJD5 8 5 3.4  
OJD6 26 31 0.3*  
And 60 3 4.1  
OJD7 30 1 32.8  
And 80 25 0.3*  
And 136 19 0.8  
OJR063 0 30 (open) 0.3* 4
And 44 2 0.8 4
OJR065 26 8 1.4 4
OJR070 6 10 0.3 4
And 32 2 0.8 4
And 50 10 (open) 0.3 4
OJR080 8 2 0.9 4
OJR082 20 2 4.3 4
OJR083 20 2 3.1 4
And 36 2 0.6 4
OJR091 18 2 1.5 5
And 58 2 (open) 1.8 5
OJR098 16 2 1.1 5
OJR115 2 2 1.5 6
OJR118 8 6 0.5 6

* 0.3g/t Au cut-off

The high-grade Au-Cu-Ag mineralisation reported in OJD1 (see news release dated June 13, 2011), which intersected 50m grading 2.1g/t Au, 0.8% Cu, and 14g/t Ag needs further follow-up.  It is suspected that OJD1 intersected a plunging shoot of semi-massive to massive sulphide mineralisation (similar to the main ore host at Navachab).  Results from the still-pending holes are expected to help confirm the direction of plunge.

A complete list of all the drillholes and intercepts to date is available on the company website at www.helioresource.com and at www.corebox.net

The map at http://www.helioresource.com/i/pdf/2011-11-15_NRM1.pdf, shows the location of the Gold Kop target in relation to AngloGold Ashanti's Navachab mine, the extent of the prospective geology within Helio's licences, and the location of this drilling.  A map depicting the results of the RC drilling is shown at http://www.helioresource.com/i/pdf/2011-11-15_NRM2.pdf below. The approximate size outline of the original Navachab anomaly (<200ppb) is also shown for scale.

The DGP Gold Project

The DGP comprises four licences (covering 318,500ha or 3,185km2), namely Etjo South, Okakango, Wilhelmstal and Otjimbojo.  Helio holds a 100% interest in the project through its wholly-owned Namibian subsidiary, BAFEX Exploration (Pty.) Ltd..

The DGP is located between AGA's Navachab Mine to the southwest and Auryx Gold Corp.'s Otjikoto Project to the northeast.  Auryx is currently the subject of a takeover by B2Gold.

The Navachab mine has been in production since 1989 and, as of December 2009, has produced approximately 1.5 Moz of gold and has a non-NI 43-101 compliant resource of 5.1 Moz grading 1.15g/t Au (source AngloGold Ashanti Resource Report, 30 June, 2011).

Auryx's Otjikoto Gold Project, located approximately 150km northeast of Helio's licences has a NI43-101 indicated resource (February, 2011) of 15.78Mt grading 1.94g/t Au and an inferred resource of 8.37Mt grading 1.94g/t Au for a total of 1.5 Moz at a 0.8g/t cut-off.

About Helio

Helio Resource Corp. is a well-financed gold exploration company focused on increasing the initial NI 43-101 compliant resource at the SMP Gold Project in Tanzania and outlining the resource potential at the Damara Gold Project in Namibia.

In November 2010, Helio released an encouraging initial resource estimate for the SMP: Measured and Indicated Resource of 588,749 ounces (11.82Mt grading 1.54g/t Au) plus an Inferred Resource of 352,354 ounces (9.9Mt grading 1.10g/t Au) at a cut off grade of 0.3g/t Au.

Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, is based in Namibia and supervises the exploration at Helio's projects, including the sampling and quality assurance / quality control (QA-QC) programmes, and has reviewed and approved the contents of this news release. The RC holes were drilled east or west at -50º.  DD holes were drilled westwards or northwestwards at -50º or -60º Intercepts are reported as drilled widths; more drilling is required to determine true width.  RC holes were continuously sampled using 2m composites from a rotary cyclone splitter and reference material has been retained.  DD holes were sampled at 1m to 5m intervals, continuously in the mineralised units, selectively outside these.  All samples were submitted to the lab with internal QA/QC checks including the use of standards, blanks, salted blanks and duplicates (average of 1 QA_QC sample each every 12 samples).  Samples were assayed at the Intertek Genalysis Laboratory in Johannesburg, South Africa by 50g fire assay for gold, and by Atomic Absorption for Copper and Silver.  As well as the Company's internal QA/QC programme, Intertek Genalysis also applied their own internal QA/QC programme, consisting of insertion of standards and duplicates.  Weighted average intercepts are calculated using a 0.5g/t Au cut-off (unless otherwise stated) and may include some mineralised waste.

ON BEHALF OF THE BOARD OF DIRECTORS

"Richard D. Williams"     "Chris MacKenzie"
Richard D. Williams, P.Geo       Christopher J. MacKenzie, C.Geol.
CEO       COO

Neither the 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.

SOURCE Helio Resource Corp.

For further information:

For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to richard@helioresource.com or irene@helioresource.com.


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