TSX-V Trading Symbol: HRC Tel.: +1 604 638 8007
E-mail: info@helioresource.com Website: www.helioresource.com
VANCOUVER, Sept. 29 /PRNewswire-FirstCall/ - Helio Resource
Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to provide
the following update from the SMP Gold Project in the Lupa
Goldfields, SW Tanzania.
The main topics of this update include:
- Progress towards the first NI 43-101 compliant resource statement for
the Porcupine and Kenge targets;
- New target generation;
- Plans for 2010 /2011.
NI 43-101 Compliant Resource Statement
--------------------------------------
The resource report is expected to be published before the end
of October 2010 and will cover the
Porcupine and Kenge targets. These are just two out of thirty known
gold-bearing targets within the 238km(2) SMP Gold Project area.
The exact location of the targets is presented in the link
below: www.helioresource.com/i/pdf/2010-09-29_NRM1.pdf
The Company has delivered all of the drill hole data from the
Porcupine and Kenge targets to Golder Associates (U.K.) for the
calculation of an independent resource statement.
The Porcupine Target
--------------------
The bulk of the Porcupine resource will come from Porcupine Main
Zone (PMZ) which has been drilled over a strike length of
approximately 500m, and from surface to around 300m down-dip.
Mineralised intercepts range between 24m grading 1.1g/t Au and 52m
grading 3.7g/t Au.
The exact location of the Porcupine Main Zone and associated
long section is shown in the links below:
www.helioresource.com/i/pdf/2010-09-29_NRM2.pdf
www.helioresource.com/i/pdf/2010-09-29_NRM3.pdf
Gold mineralisation is associated with quartz veins and veinlets
that occur as sheeted veins and vein stockwork arrays within a
granitic host rock. Gold occurs primarily as free gold in
association with pyrite. Metallurgical testwork indicates
recoveries of up to 95% through conventional processes.
- 59 drill holes (predominantly diamond drilling) totalling 14,025m have
been completed to date on PMZ (see long section below).
- Every drill hole has intersected gold mineralisation, and has
confirmed continuity of mineralisation from surface to 300m vertical
depth.
- Mineralisation is open to depth and along strike.
- The deepest drill holes in the higher grade core of PMZ, GPD-49, and
-51, intersected 28m grading 5.1g/t and 53m at 2.9g/t gold,
respectively.
- Grades within the higher grade core of PMZ appears to increase with
depth, for example 28m grading 5.1g/t Au in GPD-49, indicating strong
potential to develop underground resources as well open-pit resources.
- Recent drilling has identified several new zones of mineralisation,
the most notable being Quill (14m grading 4.5g/t Au) and the PMZ
Footwall Zone (44m grading 2.0g/t Au and 19m grading 2.6g/t Au) (see
Porcupine plan map below). These zones, together with the NW Zone
remain open along strike and to depth (see Company press release dated
July 26, 2010) and will not be included in the upcoming 43-101.
- Recent structural re-interpretations have highlighted the potential to
develop other zones of mineralisation within the immediate vicinity of
Porcupine, and that these require drill testing with orientations
other than those tested to date.
The Kenge Target
----------------
The Kenge Target comprises the NW, Main, SE, Snakebite, Mbenge
and Mbenge East zones of mineralisation. The Target area covers
approximately 2,000m of strike length, with intersections ranging
up to 22m grading 6.9g/t Au at the Kenge Main Zone and 48m grading
2.1g/t Au at Mbenge. The zones average approximately 15-20m in
width and have been drilled to around 200m down-dip.
All five zones of the Kenge Target are shown in the following
link:
www.helioresource.com/i/pdf/2010-09-29_NRM4.pdf
Metallurgical testwork indicates gold recoveries of up to 96%
through conventional processes.
The resource estimate will include drill results from 230 drill
holes totalling approximately 31,200m (15% reverse circulation (RC)
and the remainder diamond drilling).
New Target Generation
---------------------
The Company has employed a well-respected consultant structural
geologist to determine the timing and controls on gold
mineralisation in relation to the main structures in the region.
This work has led to new ideas about the localisation of
mineralisation at the SMP project, and will form an intrinsic part
of the ongoing exploration programme.
Plans for 2010/2011
-------------------
- Publish NI 43-101 resource report for Porcupine and Kenge Targets.
- Continue to expand on the resource potential of Porcupine, especially
in the vicinity of the PMZ Footwall, NW and Quill Zones.
- Test new targets developed in conjunction with structural geologist /
consultant.
CORPORATE
---------
The Company completed one financing ($6,200,000) in calendar 2010, with the bulk of
proceeds used for the advancement of the SMP project in
Tanzania.
The financing resulted in IFC, a member of the World Bank,
becoming a major shareholder in the Company, owning ~14% of the
issued and outstanding share capital.
The Company held its AGM on August 31,
2010 and all resolutions were approved unanimously (see the
SEDAR filing of the Information Circular, dated August 6, 2010).
At the subsequent Board of Directors meeting the following
resolutions were adopted:
1. Grenville Thomas was re-appointed Chairman of the Board.
2. The Audit Committee, comprising Cliff Davis (Chairman), Stephen
Leahy, and Richard Williams, was appointed.
3. The Compensation Committee, comprising Cliff Davis, Grenville Thomas,
and Stephen Leahy, was re-appointed.
Officers of the Company comprise Chris
MacKenzie (Chief Operating Officer), Richard Williams (Chief Executive Officer),
Andrew MacRitchie (Chief Financial
Officer), and Stewart Lockwood
(Corporate Secretary).
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 the contents of this news release. For more
information regarding previously reported intercepts on the
Porcupine and Kenge targets see the table of drill intercepts
posted on the Company's website at
http://www.helioresource.com/s/Tanzania.asp?ReportID=283995 or for
a representation in 3D go to
http://www.corebox.net/properties/smp/.
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams" "Chris MacKenzie"
Richard D. Williams, P.Geo Christopher J. MacKenzie, C.Geol.
CEO COO
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.
Copyright . 29 PR Newswire
