VANCOUVER, Oct. 28, 2014 /CNW/ - Damara Gold Corp (TSX-V:DMR) and Helio Resource Corp (TSX-V:HRC), (the "Companies") are pleased to report results of soil sampling programmes at the GoldKop Extension and Twin Peaks Targets at the DGP Gold Project in the central Namibian Gold belt. The link DGP Regional Plan Map shows the location of the DGP Gold project and the new soil sampling grids in relation to the Navachab Gold Mine (operated by QKR), and the Companies' GoldKop target.
The DGP Gold Project is part of an option agreement whereby Damara Gold Corp can earn an initial 51% interest by spending $1,500,000 over three years and by issuing 1,500,000 shares to Helio (see Helio news release dated March 26, 2014). Damara has the option to increase its interest to 60% by spending a further $1,500,000 and issuing an additional 500,000 shares to Helio before the end of the fourth year.
- Discovery of the Snake River Target on the GoldKop Extension Grid - a 2.5km long, NNE-SSW trending, Ag ± Au ± Bi ± Cu ± W anomaly, located 1km north of GoldKop.
- The scale of polymetallic geochemical response at the Snake River Target is significantly greater than seen at GoldKop.
- Three new Au anomalies discovered in the Twin Peaks Target – an area with the same geology as the nearby Navachab gold mine.
- To date, only ~10% of the prospective geology within the project area has been covered by soil sampling.
A total of 2,117 samples were analysed - results are described below.
GoldKop Grid Extension – the Snake River Anomaly
A total of 1,007 samples (including QA/QC samples) were collected on a 200 x 25m grid covering 4.7km2 (see: DGP Regional Plan Map). A series of E-W sample lines extended the coverage of the GoldKop grid, where Helio had previously identified the GoldKop Au-Cu anomaly (see Helio press release dated January 23, 2012).
A 2.5km long, NNE-SSW trending Ag ± Au ± Bi ± Cu ± W anomaly has been discovered – the Snake River Anomaly. The scale of this new anomaly, which remains open to the north, is significantly greater than the responses seen from GoldKop grid – as shown here: GoldKop Extended Soil Grid Plan Map.
The Snake River Anomaly, located 1km north of the GoldKop target, overlies a bedded meta-sedimentary sequence of impure carbonates and siltstones, which include the Snake River Skarn.
Peak geochemical responses include gold values to 24ppb (against a mean of 3.4ppb Au), copper values to 294ppm (mean 27ppm Cu) and nine samples with tungsten values over 100ppm (the upper limit of detection for W by this analytical method – mean 3ppm W).
The results are significant given that scheelite and chalcopyrite are associated with auriferous drill intercepts at GoldKop (such as that in hole OJD001, which intersected 7m grading 9ppm Au, 73ppm Ag and 4.4% Cu).
Twin Peaks Target
The Twin Peaks Target is located midway between GoldKop (20km to the NE) and the Navachab gold mine (~30km to the SW) (DGP Regional Plan Map), and covers the exact same stratigraphic sequence and domal structural setting as the Navachab mine.
Two grids, named Puff Adder and Courser, were sampled, each grid designed to cover an area of anomalous Au + Cu values in stream-sediments.
Puff Adder Grid
533 soil samples were taken on a 200m x 25m grid with sample lines oriented N-S. The grid covers an area of 2.25km2.
Two anomalies were discovered; the first is a 900m x 300m NW-SE trending zone in the NW of the grid; the second is a 700m x 300m NE-SW trending zone in the S of the grid. Both zones are open and have Ag-Au-Bi-Cu-Te-W associations.
The peak geochemical responses are 62ppb gold (against a mean value of 2.5ppb Au), 23.5ppm bismuth (mean value 1.1ppm Bi) and 101ppm copper (mean value 29ppm Cu) – as shown here: DGP Twin Peaks Soils Grid Map.
577 samples were taken on a 200m x 25m grid with sample lines oriented N-S. The grid covers an area of 2.56km2.
One main anomaly was located along the northern portion of the grid. It trends WNW-ESE and is 1,300m long and up to 400m wide. Peak geochemical responses are 113.5ppb gold (against a mean of 4.9ppb Au) and 70ppm copper (mean 21.6ppm Cu), see DGP Twin Peaks Soils Grid Map.
These results continue to demonstrate the substantial exploration potential of the DGP project. The Companies intend to conduct more detailed follow up on these new targets and advance them to drill testing as soon as possible.
About the DGP Project
The DGP Project includes two Exclusive Prospecting Licences (EPLs) covering approximately 722km2, located in central Namibia, southern Africa. The licences are located 20-30km east of the Navachab Gold Mine, which was recently acquired from AngloGold Ashanti by QKR, a private equity firm, for US$110M.
The GoldKop target is the most advanced target within DGP. Here, drill results from the 2011 and 2012 RC and diamond drill programmes returned multiple mineralised intercepts, including 7m @ 9g/t Au from 54 meters, 12m @ 6.8g/t Au from 12 meters, 14m @ 3.1g/t Au from 2 meters and 4m @ 11.6g/t Au from 30 meters, over a 1km strike length. In addition some high grade copper and silver values were also identified – best intercept 7m grading 9g/t Au, 73g/t Ag and 4.4% Cu from 54 meters. Intercepts are drilled width; more drilling is required to establish true width. Additional coincident gold-in-soil and IP geophysical targets are ready for drill testing.
Planned exploration on the DGP includes further geophysics (gravity and EM) to confirm the orientation of the high-grade auriferous ore-shoots plus infill drilling at GoldKop to define a maiden resource. Metallurgical testwork will also be conducted. In tandem, other geochemical targets will be advanced to the drill-ready stage. It is also planned that the Old Tin Mine within the DGP will be investigated with drilling to confirm the resource potential for tin.
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. 50-100g soil samples were taken and sent to Bureau Veritas Mineral Laboratories in Swakopmund where they were pulverised and the resultant sample pulps sent to for onward analysis in Vancouver, Canada using the AQ202 ICP-MS method.
About Damara Gold Corp
Damara Gold Corp. is a TSX Venture listed Canadian public company with a Board of Directors seasoned in the mineral exploration industry with extensive and successful international experience with a focus on identifying and acquiring prospective and under-explored gold properties worldwide. Damara is currently focused on identifying and defining Cu-Au-W potential at the DGP project in Namibia. Damara Gold Corp has under its Option Agreement with Helio, appointed BAFEX Exploration (Pty) Ltd (Helio's wholly-owned subsidiary) as operator of the DGP project until Damara has earned its initial 51% interest. Upon Damara exercising its option at 51% or 60% interest as the case may be, Damara and Helio will subsequently form a joint venture and further development costs will be shared proportionately.
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 BOARDS OF DIRECTORS
"Richard D. Williams"
Lawrence ("Larry") Nagy
Richard D. Williams
Christopher J. MacKenzie
CEO, Director - Damara
CEO, Director - Helio
COO, Director - Helio
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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" 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. 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 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: Helio Resource Corp, Irene Dorsman, Corporate Communications, [email protected], T: +1 604 638 8007, www.helioresource.com; Damara Gold Corp, Larry Nagy, CEO, [email protected], T: +1 250 768 1168, www.damaragoldcorp.com