TSX-V Trading Symbol: HRC
VANCOUVER, Jan. 13 /CNW/ - Helio Resource Corp (TSX-V: HRC) is pleased
to provide this update on the Company's objectives for 2011, including
drill programmes planned for both the SMP Gold Project in Tanzania and
the Damara Gold Project in Namibia.
Plans and Objectives for 2011
SMP Gold Project - Tanzania
Objective - increase SMP Gold Project resource by 50%
Diamond drill programme scheduled to commence in February
The initial focus of the drill programme will be to increase the
existing resource at the Porcupine and Kenge targets
Additional drill testing of the Konokono, Tumbili and Kasuku targets to
advance the pipeline of targets and to continually add to the resource
Damara Gold Project - Namibia
Objective - outline of resource potential by year-end
Initial 10,000m RC drill programme on 4 drill ready targets
Regional stream sediment and follow-up soil sampling programmes
Ground and airborne geophysical surveys to identify additional drill
In summary, 2011 is shaping up to be a very good year for Helio. Two
ongoing drill programmes, adding to the resource base in Tanzania, and
drill testing bedrock-gold mineralisation in an emerging gold belt in
Namibia has management very excited about the year ahead.
2010 In Review
SMP Gold Project - Tanzania
2010 was a very significant year in the growth of Helio, with the
release of the Company's first NI 43-101 compliant resource statement
from the SMP Gold Project in Tanzania (for details, see News Release
dated November 30, 2010).
The unrestrained resource calculation reported a Measured and Indicated
Resource of 589,497 ounces at 1.51g/t Au plus an Inferred Resource of
353,097 ounces at 1.12g/t Au at a cut off grade of 0.3g/t, for a total
of approximately 940,000 ounces.
The resource comes from only 2 of at least 30 mineralised targets
identified on the SMP Project, namely Porcupine and Kenge. Both
targets have very strong potential for resource expansion (see Figures
1 and 2 below), which will be the initial focus of the 2011 drill
Zones for resource expansion at the Porcupine target (fig. 1) are
presented in the link below:
Zones for resource expansion at the Kenge target (fig. 2) are presented
in the link below:
For instance, at Porcupine (Figure 1), the Quill Zone (up to 14m at
4.5g/t Au) is inferred to link up to the NE Zone, representing a
potential addition of an 800m strike length extension of
mineralisation. The Porcupine Main Zone (PMZ) is open along strike to
the NE and SW, as well as to depth (the four deepest drill intercepts
at the PMZ (GPD 48, 49, 51, and 52) intersected 92m at 0.9g/t Au, 28m
at 5.1g/t Au, 53m at 2.9g/t Au and 70m at 0.8g/t Au, respectively).
Also in 2010, drilling at the western portion of the PMZ led to the
discovery of the Footwall Zone beneath the PMZ (intercepts of 44m at
2.0g/t Au and 19m at 2.6g/t Au) (see Figure 3). The Footwall Zone is
open and requires further drilling to determine the size and geometry
of this new target.
Wireframe model of Porcupine Main Zone, showing Footwall Zone (open in
all directions) (fig. 3) is presented in the link below:
The SMP Gold Project covers an area of 238km2. Gold mineralisation has been identified in 30 targets within the
project area. Two of these targets, Porcupine and Kenge, have been
advanced to the resource definition stage, and both still have
potential to grow significantly. Mineralisation at all 30 targets
outcrops at surface, and varies from narrow, high grade gold
mineralisation hosted in quartz veins and shear zones, to wide zones
(up to 90m in width) of lower grade, bulk mineable / open pittable
Helio owns a 100% interest in four of five licences, subject to a 2% NSR
to the vendors (Tanzanian small mining companies), and the Company is
in the process of earning a 100% interest in the fifth licence.
Damara Gold Project (DGP) - Namibia
On October 5, 2010 the Company reported that it had terminated an
agreement on its DGP licences in Namibia (see Figure 4), and that these
licences had reverted back 100% to Helio's ownership. Helio's four
exploration licences, covering 3,960km2, are located between AngloGold Ashanti's Navachab gold mine and Auryx
Gold's Otjikoto project.
A licence map of the DGP (fig. 4) is presented in the link below:
Between October and the end of 2010, significant resources have been
dedicated to reviewing historic exploration data, field sampling,
mapping, compiling targets and generating work programmes for 2011.
What is clearly evident from this work is that the DGP licences have
the same geology and same styles of gold mineralisation as that found
at AngloGold Ashanti's Navachab gold mine, located 20km west of the DGP
A map of Otjimbojo and Wilhelmstal licence areas showing prospective
geology (fig. 5) is presented in the following link:
The Navachab Gold Mine has been in production since 1989, producing
approximately 1.5 million ounces of gold, and has stated remaining
reserves / resources in the order of an additional 3.7 million ounces.
AngloGold Ashanti's objective over the next 5 years is to add a further
2 million ounces to the resource base (AngloGold Ashanti 2009 reserve /
Auryx Gold Corp.'s Otjikoto Gold Project, located 150km northeast of the
DGP has an indicated + inferred resource in the order of 1.9Moz gold,
and has excellent potential to increase upon the resource base (Auryx
Systematic exploration for gold deposits in the Damara belt of Namibia
has been limited in scope and it is only recently, with the significant
growth of the resource base at Navachab, and the recognition of the
potential at Otjikoto, that exploration companies and the investment
community are beginning to associate Namibia with the opportunity to
discover world-class gold deposits. The region is clearly
under-explored, and Helio is very well positioned to take advantage of
this fact through the DGP ground holdings.
Several areas within the westernmost two licences held by Helio have
received a combination of shallow drill testing, rock and soil
sampling, and limited channel sampling (see Company press release dated
October 5, 2010). Highlights of previous work conducted on Helio's DGP
licences include 17m grading 2.8g/t Au; 8m grading 3.0g/t Au; 6m
grading 6.4g/t Au (open); 5m grading 11.3g/t Au; 4m grading 8.6g/t Au
(open); and 34m grading 0.9g/t Au. Results indicate the potential for
both bulk-tonnage and higher-grade mineralised zones.
Figure 6 shows areas drill tested previously and highlights some of the
important drill intercepts and channel samples that have never been
followed up. Four key areas within the DGP have been identified as
drill ready and will form part of 2011's Phase 1 exploration programme.
A map showing historical exploration results, Wilhelmstal licence, DGP
(fig. 6) is presented in the link below:
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as
designated by NI 43-101, supervises the exploration at the SMP Project
in Tanzania and the DGP Project in Namibia, including the sampling and
quality assurance / quality control programmes, and has reviewed the
contents of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
Christopher J. MacKenzie, C.Geol.
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:
please contact Richard Williams at +1 604 638 8005 or by e-mail to email@example.com or Chris MacKenzie at +44 789 4237424 or by e-mail to firstname.lastname@example.org