VANCOUVER, Oct. 30, 2012 /CNW/ - Helio Resource Corp (TSX-V: HRC) is pleased to report that, following its news release dated September 13, 2012, it has filed with SEDAR the independent NI 43-101 compliant Preliminary Economic Assessment ("PEA") report for the SMP Gold Project in Tanzania.
A full copy of the report can be found at: http://www.helioresource.com/i/pdf/NI43101_PEA_SMP.Sept.2012.pdf.
The PEA was authored by SRK Consulting (Australia) Pty. Ltd. and was conducted on Measured and Indicated Resources only, with production envisaged from the Porcupine, Kenge and Mbenge targets.
It is also important to note that the PEA evaluates only 3 of the 30 targets within the SMP Gold Project area (Porcupine, Kenge, and Mbenge).
SRK provided two scenarios for the PEA, a Base-Case outcome, and an Upside outcome. The Upside case requires geotechnical work to confirm that a pit wall angle of 55 degrees is viable.
Summary (all monetary values in US$)
|Base Case||Upside Case|
|Gold Price (per ounce)||$1,450||$1,450|
|Total Gold Produced (ounces)||510,000||803,000|
|Life of Mine (years)||9||10|
|Processing Capacity (ore / year)||1.6Mt||2.4Mt|
|Cash Operating Cost1,2 (US$/t processed)||$34.64||$31.47|
|Total Cash Cost (inc 5% Royalty and 15% contingency)||$807.00||$799.00|
|1 including 15% contingency 2 including royalty|
Chris MacKenzie, the Company's COO, commented: "We are very pleased with the outcome of the PEA which demonstrates the potential economic viability of the current resource. We will use this as the basis for advancing the project through pre-feasibility. The Upside Case requires confirmation that the enclosing rock can support a 55 degree pit wall. Given that the country rock is competent massive granite we believe this is eminently possible. In addition to the study, we have identified seven areas of high-grade gold mineralisation that are not included in the resource base - these will be the focus for ongoing exploration, with the objective of adding higher-grade ounces to the resource base." The exact location of the targets is presented in the map at http://www.helioresource.com/i/maps/2012-10-30_NRM1.pdf.
Parameters of the PEA
- The PEA was conducted on the Measured and Indicated Resource only (Inferred ounces were not considered) - see NI 43-101 compliant report dated February 10, 2012 at http://www.helioresource.com/i/pdf/SMP-43101-10feb2012.pdf;
- The PEA uses a gold price of USD 1,450 per ounce, an 8% discount rate and is on a pre-tax basis;
- Sustaining capital is 5% of the initial capital requirements;
- Capital cost contingencies are 15% of the total capital requirements;
- Operating cost contingencies are 5% of the total mining, processing, tailings and environmental and social operating costs;
- The PEA was authored by Qualified Person Duncan Pratt, BEng (Mining), MAusIMM, using the Mineral Resource Estimate completed by Qualified Person Robin Simpson (MSc, MAIG), both of SRK Consulting (Australia) Pty. Ltd. Duncan Pratt has provided written permission for the release of this PEA summary in the form and context in which it is provided here. Helio has informed SRK that there are no known environmental, socio-political, marketing or other relevant issues that may materially affect the potential development of the mineral resources.
According to NI 43-101 guidelines, mineral resources that are not mineral reserves do not have demonstrated economic viability but may have reasonable potential for economic extraction.
About the SMP Gold Project
The SMP Gold Project covers an area of 238km2. Gold mineralisaton has been identified in 30 targets within the project area, and the resource comes from only five of those targets, namely Porcupine, Kenge, Mbenge, Konokono and Tumbili, all of which have potential for resource expansion. 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.
|ON BEHALF OF THE BOARD OF DIRECTORS|
|"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
SOURCE: Helio Resource Corp.
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