TSX-V Trading Symbol: HRC
VANCOUVER, May 14, 2014 /CNW/ - Helio Resource Corp. (TSX-V: HRC),
("Helio" or the "Company") is pleased to announce that three more of
its licences within the SMP Gold Project have been converted into
Retention Licences. The Company was notified that PL2963, PL2964 and
PL2965, which cover the Porcupine Resource Area, the colonial period
Gap and Kwaheri mines, and numerous other exploration targets, have
been approved for conversion into Retention Licences. For the exact
location of the licences refer to the link presented here: http://www.helioresource.com.
A Retention Licence ("RL") is the stepping stone between a Prospecting
Licence and a Mining Licence. The RLs are valid for a period of 5 years
and allow the Company to advance the project to a production decision.
On March 25, Helio announced the successful conversion of the Saza
Licence, which covers the Kenge Resource Area, into an RL.
Richard Williams, CEO of Helio stated: "This is another significant step
in the development of the SMP project. As mentioned previously, Helio
now has security of tenure through the pre-feasibility / feasibility
stage for the two Resource Areas on the project, and shareholders /
investors can see that the licence conversion process works. It is very
encouraging to know that the Tanzanian government is fully supportive
of our activities to date."
This is also a positive development for the region, which currently has
one gold mine in production. Shanta Gold, a UK listed gold miner,
commissioned the New Luika Mine in 2012, and produced 64,000 ounces of
gold in 2013. Guidance for 2014 is for production of 80,000 ounces of
gold at a cash cost of $750 / ounce. The New Luika mine is located 5km
west of the Kenge Resource Area (please refer to the map presented
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as
designated by NI 43-101, has reviewed and approved the contents of this
About the SMP Gold Project
The SMP Gold Project covers a 238km2 area in the Lupa Goldfield, SW Tanzania.
On February 3, 2014 the Company released a new resource calculation from
the Kenge and Porcupine Resource Areas focussing on the higher grade
aspect of the project. At a 1g/t cut off, the resource reported 9.44Mt
grading 2.1g/t gold (628,000 ounces) in the Indicated category and a
further 3.62Mt grading 1.5g/t gold Inferred (180,000 ounces). The
resource work also looked at higher grade ounces with the potential for
underground mining - at a 3g/t cut-off the Indicated Resource reported
2.05Mt grading 5g/t gold Indicated (332,000 ounces) and 0.09Mt grading
5.21g/t Au Inferred (16,000 ounces).
Metallurgical testwork indicated recoveries of up to 96% using a gravity
and cyanidation process - see http://www.helioresource.com/s/TechnicalReports.asp for all technical reports.
About Helio Resource Corp.
Helio Resource Corp. is a resource company focused on advancing the 100%
owned SMP Gold Project in Tanzania to a production decision, and
outlining the resource potential at the DGP Gold Project in Namibia.
ON BEHALF OF THE BOARD OF DIRECTORS HELIO
"Richard D. Williams" "Chris MacKenzie"
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.
Statements Regarding Forward-Looking Information
Certain statements contained in this news release may contain
forward-looking information within the meaning of Canadian securities
laws. Such forward-looking information is identified by words such as
"estimates", "intends", "expects", "believes", "may", "will",
"probable", "potential", "indicated", "inferred" and include, without
limitation, statements regarding the company's plan of business
operations (including plans for progressing assets), estimates
regarding mineral resources, projections regarding mineralization and
projected expenditures, and the security of future tenure of licenses
to explore, develop and mine. There can be no assurance that such
statements will prove to be accurate; actual results and future events
could differ materially from such statements. Factors that could cause
actual results to differ materially include, among others, metal
prices, risks inherent in the mining industry, financing risks, labour
risks, uncertainty of mineral resource estimates, equipment and supply
risks, title disputes, regulatory risks and environmental concerns.
Most of these factors are outside the direct control of the company.
Investors are cautioned not to put undue reliance on forward-looking
information. Except as otherwise required by applicable securities
statutes or regulation, the company expressly disclaims any intent or
obligation to update publicly forward-looking information, whether as a
result of new information, future events or otherwise.
SOURCE: Helio Resource Corp.
For further information:
Toll Free: +1 888 955 4728
E-mail: email@example.com Website: www.helioresource.com