Provides Update on Resource Re-Modelling
VANCOUVER, Nov. 29, 2013 /CNW/ - Helio Resource Corp (TSX-V: HRC), ("Helio" or the "Company") is pleased to report results from its recently completed diamond drill programme on the Kenge Resource Area at the Company's 100%-owned SMP Gold Project in Tanzania.
The four hole drill programme was designed to test the down-plunge extensions of three high-grade zones identified in previous drilling within the Kenge Resource Area. The Kenge Resource Area is located 6 km east of Shanta Gold's high-grade, producing New Luika gold mine with a recently announced JORC-compliant probable reserve of 2.46Mt grading 6.1g/t Au for 479,000 ounces (Shanta news release dated Oct 31, 2013). Shanta has indicated that it is on target to produce 63,000 ounces of gold this year. A map showing the location of the Kenge Resource Area and its proximity to Shanta Gold's Bauhinia Creek Pit, New Luika gold mine is provided here http://www.helioresource.com.map.
A total of four holes (782m) were drilled, testing the extensions of high-grade shoots identified at Mbenge (one hole), Kenge SE (two holes), and Kenge Main (one hole). Results are summarized in Table 1.
Richard Williams, CEO of Helio, commented, "The goal of the drill program was to test a new interpretation of the orientation of higher-grade mineralised shoots intersected in previous drilling campaigns. That interpretation was successfully confirmed for Kenge SE zone by the intercept in SZD201 (7m at 4.9g/t Au). We also intersected a strong zone of quartz veining, shearing, and sulphide mineralisation down-plunge at Kenge Main (SZD202), with assays returning 5m at 1.5 g/t Au, warranting further testing. The hole testing the down-plunge projection at Mbenge (SZD199) intercepted a new style of mineralisation which has been previously unknown on the property and which we will continue to investigate going forward. The new geological interpretation and drill results will be compiled into a revised resource estimate which we intend to complete by the end of 2013."
The best result came from hole SZD201, intersecting 7m grading 4.9g/t Au from a down-hole depth of 149m. This intercept included 1m grading 15.1g/t Au from 149m. SZD201 was drilled 65m down-plunge of SZD9 (which intersected 7.5m grading 4.0g/t Au), which was previously considered the limit to high-grade mineralisation in the area. The high-grade shoot identified at Kenge SE is now at least 200m long and is still open at depth, warranting further testing. See http://www.helioresource.com.longsection for a long section of the Kenge SE Zone Resource Area showing the high-grade shoot open to depth below the recent drilling (SZD201).
A second hole, SZD200, was drilled 40m up-plunge of hole SZD56 (intercept of 21.5m grading 3.6g/t Au); within a discontinuous wide zone of low grade mineralisation it intersected 2m grading 1.1g/t Au.
The results confirm that the high-grade shoot at Kenge SE Zone is open at depth and that it terminates before outcropping at surface. This suggests that there could be additional blind high-grade targets along the favourable structures within the SMP project area, and that mineralisation extends deeper than originally understood.
Kenge Main Zone
One hole was drilled on Kenge Main Zone (SZD202), and was planned to intercept the down-plunge extension of another high-grade shoot. The hole intersected the mineralised shear zone, returning 5m grading 1.5g/t Au from 230m down-hole depth. It is suspected that the high-grade core of the shear zone lies beneath this intercept, and further drilling is required to confirm this.
One drill hole (SZD199) was completed on the Mbenge Zone and intercepted a new style of mineralisation for the SMP project area; intrusion-hosted iron oxide veins and stockworks associated with low levels of copper (chalcopyrite) mineralisation. The hole was only selectively sampled due to the paucity of pyrite mineralisation and the highest gold grade recorded was 0.4g/t Au. The hole will be more completely sampled and assayed for copper and other elements in the near future.
A table of the significant results is shown below.
|Hole #||From (m)||Length (m)||Au (g/t)|
Table 1 - Drill Results from Mbenge, Kenge SE, and Kenge Main Zones
Resource Re-modelling Update
The Company has retained the services of CCIC MinRes (Pty) Ltd. of Johannesburg, South Africa to compile a revised NI 43-101 compliant resource statement for the SMP Gold Project. In light of the current decline in the gold price, the Company has undertaken a detailed study of the existing resource and re-logged numerous drill holes, which led to the identification of numerous relatively high-grade shoots at both the Kenge and Porcupine resource areas. This new shoot orientation and the new drill results will form the basis for the updated resource calculation. The Company anticipates releasing the revised resource statement before year-end.
About Helio Resource Corp.
Helio Resource Corp. is an exploration company focused on increasing the size of the NI 43-101 compliant resource at its 100% owned SMP Gold Project in Tanzania and outlining the resource potential at the DGP Gold Project in Namibia.
In February 2012, SRK Consulting (Australia) Pty. Ltd. provided an updated NI 43-101 compliant resource estimate for the SMP. The estimate at a 0.5g/t Au cut-off reports 1,020,000 ounces (24.1MT grading 1.32g/t Au) in the Measured and Indicated category, plus 240,000 ounces (7.3MT grading 1.05g/t Au) in the Inferred category.
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, is based in Africa 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.
QA / QC
285 samples comprising one metre of half-core plus internal QA / QC samples were submitted to the SGS laboratory in Mwanza, Tanzania for analysis by 50g Fire Assay. Selected samples were checked using 500g Screen Fire Assay techniques. Helio QA / QC samples included duplicates (at a rate of 1 in 25 samples) and blanks & standards (at a rate of 2 in 25 samples), SGS applied their own internal QA / QC checks as industry standard. Intercepts are reported with a greater than 0.5g/t Au cut-off grade and may contain some internal waste. Any samples grading over 15g/t Au are reported individually. Lengths are reported as drilled lengths, and are thought to correspond to greater than 85% of true widths.
|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.
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.
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