Review of 2011
Plans and Objective for Tanzania and Namibia in 2012
TSX-V Trading Symbol: HRC Toll Free: +1 888 955 4728
E-mail: [email protected] Website: www.helioresource.com
VANCOUVER, March 5, 2012 /CNW/ - Helio Resource Corp. (TSX-V:HRC) is pleased to provide this shareholder update on the Company's projects, our achievements through 2011, and our plans and objectives for 2012 at both the SMP Gold Project in Tanzania and the Damara Gold Project in Namibia.
Review of 2011
SMP Gold Project - Tanzania
Helio's principle objective as stated in the Shareholder Update released on January 13, 2011 was to increase the resource at SMP Gold Project by 50%.
On February 13, 2012 the Company announced the results of an updated NI 43-101 compliant resource estimate, compiled by SRK Consulting (Australia) Pty. Ltd. The new resource, calculated at a 0.5g/t Au cut-off grade, reported:
- A 104% increase in the Measured and Indicated Mineral Resources to 1,020,000 ounces at 1.32g/t Au;
- an Inferred Mineral Resource of 240,000 ounces at 1.05g/t Au;
- All resource areas are open along strike and to depth.
Passing the 1Moz Measured and Indicated Resource level marks a very significant milestone in the company's development, and continues to demonstrate the potential for the resource at SMP to continue to grow significantly.
Additionally, Helio drill tested several other targets, to assess the potential for additional ounces from areas outside of the resource. The best results came from the Gap, Tumbili, and Konokono targets (see map at http://www.helioresource.com/i/maps/2012-03-05_NRM1.pdf).
Gap Target (see map at http://www.helioresource.com/i/maps/2012-03-05_NRM2.pdf)
In December 2011, we released the results from a series of drill holes covering a 1.2km strike length over the Gap Target. Mineralised intercepts were found over the full 1.2km distance on drill holes spaced 100-400m apart. Highlights included 15m at 2.2g/t Au, 4m at 4.2g/t Au, 8m at 1.5g/t Au, 1m at 8.2g/t Au and 3m at 7.2g/t Au. The latter three intercepts are located adjacent to the northwest-trending Dubwana Shear Zone. The nearest drilling to the northwest (4km away) along the same structure intersected up to 1m grading 67g/t Au.
Tumbili Target (see map at http://www.helioresource.com/i/maps/2012-03-05_NRM3.pdf)
On January 10, 2012, the Company released the results from the 2011 drill programme at the Tumbili Target. Tumbili is a 1.4km long east-west gold-in-soil anomaly cut by NW-SE trending structures that also have a gold-in-soil response. Drill testing on 200m to 300m spaced drill fences indicated that gold mineralisation is continuous over the full 1.4km strike length and remains open to the east, west, and to depth.
All drilling to date has focussed on mineralisation from surface to 80m depth.
Highlights from the 2011 drill programme was the discovery of high grade mineralisation along a NW trending structure that intersected 2m grading 17.8g/t Au. This intercept lies along a 600m long gold-in-soil anomaly. The only other drill hole along this structure, located 250m to the south east intersected 16m at 1.9g/t Au.
Konokono Target (see map at http://www.helioresource.com/i/maps/2012-03-05_NRM4.pdf)
On January 17, 2012 we released the results from the Konokono Target. Konokono is located along the Saza Shear Zone, and exhibits many similarities to the Porcupine Target, which makes up 60% of the published resource. Drill fences spaced at 200-300m, covering a 1.2km strike length show mineralisation related to both ENE and NW trending structures.
Highlights from the 2011 drill programme include the discovery of both high-grade gold mineralisation (e.g. 4m grading 11.2g/t Au) and very wide zones of bulk tonnage, lower-grade mineralisation (e.g. 110m grading 0.5g/t Au).
Detailed Soil Sampling Programme (see map at http://www.helioresource.com/i/maps/2012-03-05_NRM5.pdf)
In late 2011, we completed a detailed soil sampling survey in the area covering a 6.2km x 3.8km area between the Kenge and Porcupine resource area which covers the Kipanga, Konokono and Chura areas where drilling has shown very encouraging results. Samples were taken at 25m x 200m spacing and analysed using multi-element ICP.
The results highlight a number of new targets that have either never been drill tested or are extensions to already drilled high-grade gold mineralisation, e.g. the 4m at 11.2g/t Au drill intercept at Konokono lies along a very prominent, 500m long, gold-in-soil anomaly.
Additionally, the main Konokono target is underlain by a large gold-in-soil anomaly that is open to the NE and is then continuous with the untested Mfuasi target - the total strike of this gold anomaly is over 4km. Testing of these anomalies will form part of the drill programme planned for 2012.
Damara Gold Project - Namibia
The main aim for 2011 at the Damara Gold Project (DGP) was to test as many targets as possible with a 10,000m reconnaissance drill programme to determine the potential for the Damara Gold Project to host a Navachab-style gold project.
Navachab is an open pit gold mine located 25km west of the DGP, and operated by AngloGold Ashanti (AGA). It has produced more than 1.5M ounces, and has a non-NI 43-101 compliant resource of 5.1 Moz grading 1.15g/t Au (source: AGA Resource Report 30th June, 2011).
The results of the 2011 drill programme were the discovery of Navachab-style gold mineralisation at the Gold Kop Target. Drill testing over a 1.3km strike length (see map at http://www.helioresource.com/i/maps/2012-03-05_NRM6.pdf) intersected the following:
- Massive sulphide zones up to 7m grading 9.0g/t Au, 4.4% Cu and 75g/t Ag;
- Narrow high-grade quartz veins up to 1m grading 33g/t Au;
- High-grade metasomatic replacements up to 2m grading 15g/t Au and 60g/t Ag.
- Broad zones of low-grade bulk tonnage gold mineralisation hosted in dolomitic marbles (e.g. 50m grading 0.6g/t Au and 38m grading 0.8g/t Au);
Mineralisation outcrops at surface, has been drilled to a downhole depth of 150m, and is open to depth and along strike.
On January 23, 2012, the Company announced the results of a detailed soil sampling programme over the northeast and southwest extensions of the Gold Kop Target. The soil sampling results outline six new gold anomalies, all associated with the same dolomitic marble horizon, covering a strike length over 7km (see map at http://www.helioresource.com/i/maps/2012-03-05_NRM7.pdf), with soil results up to 7.6g/t Au - exceptionally high for this region.
Plans for 2012
SMP Gold Project - Tanzania
- 12,000m of focussed infill drilling planned for the Gap, Tumbili and Konokono areas to convert current drilling into NI 43-101 resource ounces.
- Continued drilling around recent high-grade drill intercepts at Porcupine (7m at 6.1g/t Au [open]) that are not included in the updated resource estimate.
- Drill testing for high-grade gold mineralisation beneath the old Saza Mine, which produced 270,000 ounces of gold at 7.5g/t Au pre-1956. This has never been tested before.
- Scoping study (PEA) on the updated resource by end of June, 2012.
Damara Gold Project - Namibia
- 6,000m RC programme to test all new targets to determine potential for Navachab-size (i.e. >3Moz resource) gold deposit at Gold Kop
- 4,000m infill drill programme around the 2011 drilling to outline initial resource estimate.
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. Soil samples were submitted to the Acme Analytical Laboratories Ltd. facility in Vancouver, Canada. Samples were assayed by the 30g 1DX ICP-MS method. As well as the Company's internal QA/QC programme (standards blanks and duplicates), Acme also applied their own internal QA/QC programme, consisting of standards, blanks and replicates.
ON BEHALF OF THE BOARD OF DIRECTORS
| "Richard D. Williams" Richard D. Williams, P.Geo CEO |
"Chris MacKenzie" Christopher J. MacKenzie, C.Geol. 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.
For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to [email protected] or [email protected].
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