VANCOUVER, Oct. 18, 2013 /PRNewswire/ - Helio Resource Corp (TSX-V: HRC), ("Helio" or the "Company") is pleased announce that it has commenced a diamond drill programme to test the down plunge extensions of three high-grade zones identified within the Kenge resource at the Company's 100%-owned SMP Gold Project in Tanzania. The Kenge resource area is located 6 km east of Shanta Gold's high-grade New Luika mine.
The Company intends to drill four holes to confirm and expand the new geological model, and identify potential to rapidly increase the size and overall grade of the deposit. Holes will test the Main, SE and Mbenge Zones of the Kenge resource area. Results of the programme are anticipated within the next 4-6 weeks.
SMP Gold Project
On February 14, 2012 the Company announced an updated NI 43-101 compliant resource statement for the SMP project, as follows:
- The Resource statement was prepared by SRK Consulting (Australia) Pty. Ltd., of Perth, Australia (http://www.helioresource.com/i/pdf/SMP-43101-10feb2012.pdf);
- SRK was tasked with assessing the open pit resource and recommended using a 0.5 g/t Au cut-off grade.
- SRK calculated a Measured and Indicated Mineral Resource of 1,020,000 ounces (24.1Mt grading 1.32g/t Au) plus an Inferred Mineral Resource of 240,000 ounces (7.2Mt grading 1.05g/t Au).
As a result of the ongoing relative weakness in the gold price and difficult market conditions, the Company has focused on the high-grade drill intercepts within the resource to determine if:
- High-grade shoots exist within the resource blocks;
- There is good continuity to the high-grade shoots;
- There is sufficient tonnage within the high-grade shoots to assess the potential for underground mining
The assessment has identified 5 high-grade shoots within the Kenge resource area - see long section above. Some very encouraging features have been identified:
- All five high-grade shoots have the same orientation - i.e. plunging at a shallow angle to the northwest;
- Three of the high-grade shoots are open to depth;
- The grades and widths of the intercepts within the shoots indicate promising potential for underground resource ounces.
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.
|ON BEHALF OF THE BOARD OF DIRECTORS|
"Richard D. Williams"
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.
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.
Image with caption: "Long section of the Kenge resource area showing the 5 high-grade shoots. Section looking northeast (CNW Group/Helio Resource Corp.)". Image available at: http://photos.newswire.ca/images/download/20131018_C4895_PHOTO_EN_32204.jpg