VANCOUVER, Oct. 5, 2012 /CNW/ - Helio Resource Corp (TSX-V: HRC) reports that as a result of a review by the British Columbia Securities Commission we are issuing the following news release to clarify our disclosure.
SMP Gold Project
- Preliminary Economic Assessment ("PEA") - certain information available from the Company's website (corporate presentation, project overview) required additional disclosure. All such requirements have now been corrected on the Company's website. The PEA results which were announced on September 13, 2012 include a Base Case and Upside Case evaluation. The Company reiterates that the Upside Case requires geotechnical drilling to confirm the viability of a 55 degree pitwall, allowing extraction of ~800,000 ounces.
- Wherever on the website the Company mentions the Upside Case for the SMP PEA the same cautionary disclosure, i.e. pitwall viability, is now used.
- The Company has removed reference to potential resource size for the SMP Gold Project.
- The Company has corrected all references to resource ounces, so that Inferred ounces are disclosed separately to Measured and Indicated ounces.
- The Company has removed from its website an article that referred to gross metal values.
- The Company has removed from its website any other third party references to resource ounces that had combined Measured and Indicated resources with Inferred resources.
About the SMP Gold Project
The SMP Gold Project covers an area of 238km2. Gold mineralisation has been identified in 30 targets within the project area. Four of these targets, Porcupine, Kenge, Konokono and Tumbili have been advanced to the resource stage and all still have potential to grow significantly. In February 2012, SRK Consulting (Australia) Pty. Ltd. produced an independent NI 43-101 compliant Mineral Resource estimate for the SMP Gold Project. The estimate reports 1,020,000 ounces in the Measured and Indicated category (24.1Mt grading 1.32g/t Au), plus 240,000 ounces in the Inferred category (7.2Mt grading 1.05g/t Au).
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 110m+ in width) of lower grade, bulk mineable / open pittable mineralisation.
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.
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, including the sampling and quality assurance / quality control programmes, and has reviewed and approved the contents of this news release.
Forward Looking Statements: The above contains forward-looking statements regarding the Company's disclosure on the SMP Gold Project. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "estimated," "potential," "possible" and similar expressions, or statements that events, conditions or results "will," "may," "could" or "should" occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, metal price volatility, share price volatility, operational risks, uncertainties in estimating mineralization, future expenses and revenues, political and country risk, regulatory risk, production forecast risk, the securities class action recently filed against the Company and those other risks described in the Company's most recent Annual Information Form and Management Discussion and Analysis of the Company filed with Canadian securities regulators and are available at www.sedar.com. In addition, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of regulatory decisions, competitive factors in the industry in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no intention or obligation to update or revise such forward-looking statements whether as result of new information, future events or otherwise, except as required under applicable securities regulation. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS
| "Richard D. Williams"
Richard D. Williams, P.Geo
| "Chris MacKenzie"
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.
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