Helio (HRC:TSX-V) Announces Initial Resource Estimate at SMP Gold Project, Tanzania
TSX-V Trading Symbol: HRC Tel.: +1 604 638 8007
E-mail: info@helioresource.com Website: www.helioresource.com
VANCOUVER, Nov. 30 /PRNewswire/ - Helio Resource Corp (TSX-V: HRC) is pleased to report that it has received a NI 43-101 compliant resource estimate for the Porcupine and Kenge Targets at the SMP Gold Project in Tanzania, effective date November 30, 2010.
The estimate was completed by Golder Associates (UK) Ltd. (Golder), and represents the first resource estimate calculated for the SMP Gold Project. Golder has reported both a "restrained" and "unrestrained" resource, where the restrained resource has used spatial restrictions during estimation to limit the influence of certain high grade intercepts. Golder considers that for the purpose of public reporting it is appropriate to use the restrained model and a cut off of 0.5 g/t Au.
Highlights from the Resource Report
- Unrestrained Measured, Indicated Resource of 588,749 ounces at
1.54g/t Au plus an Inferred Resource of 352,354 ounces at 1.10g/t Au
at a cut off grade of 0.3g/t. The restrained estimate at the same
cut-off reports 510,565 ounces grading 1.34g/t Au in the Measured and
Indicated category plus 307,552 ounces at 0.98g/t Au in the Inferred
category.
- Unrestrained Measured, Indicated Resource of 575,154 ounces at
1.65 g/t Au plus an Inferred Resource of 320,669 ounces at 1.32g/t Au
at a cut off grade of 0.5g/t. The restrained estimate at the same
cut-off reports 497,087 ounces grading 1.43g/t Au in the Measured and
Indicated category plus 272,837 ounces at 1.19g/t Au in the Inferred
category.
- 321,872 ounces in the Measured category - all from the Porcupine Main
Zone
- Potential to greatly expand the resource at Porcupine with the recent
discovery of the Footwall and Quill Zones which have potential strike
extensions greater than 1,000m;
- Potential to expand the Mbenge Zone to depth and to the southwest.
The following tables summarize the resource estimate for both unrestrained and restrained calculations, respectively.
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SMP Gold Project Resource Estimate - Unrestrained
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Cut Mean
off Class grade Tonnage Metal oz
-------------------------------------------------------------
0.3 Measured 1.55 6,449,041 321,872
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0.3 Indicated 1.54 5,372,676 266,877
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0.3 Measured+Indicated 1.54 11,821,717 588,749
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0.3 Inferred 1.10 9,914,169 352,354
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0.5 Measured 1.66 5,880,284 314,271
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0.5 Indicated 1.64 4,917,944 260,883
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0.5 Measured+Indicated 1.65 10,798,228 575,154
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0.5 Inferred 1.32 7,525,022 320,669
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0.7 Measured 1.82 5,099,632 299,245
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0.7 Indicated 1.79 4,298,444 248,712
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0.7 Measured+Indicated 1.81 9,398,076 547,956
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0.7 Inferred 1.53 5,826,589 287,631
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0.9 Measured 2.02 4,255,690 277,347
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0.9 Indicated 1.97 3,641,048 231,595
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0.9 Measured+Indicated 2.00 7,896,738 508,942
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0.9 Inferred 1.72 4,624,430 256,489
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SMP Gold Project Resource Estimate - Restrained
-------------------------------------------------------------
Cut Mean
off Class grade Tonnage Metal oz
-------------------------------------------------------------
0.3 Measured 1.35 6,447,866 281,753
-------------------------------------------------------------
0.3 Indicated 1.32 5,374,129 228,812
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0.3 Measured+Indicated 1.34 11,821,995 510,565
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0.3 Inferred 0.98 9,718,830 307,552
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0.5 Measured 1.45 5,881,579 274,401
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0.5 Indicated 1.41 4,903,225 222,685
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0.5 Measured+Indicated 1.43 10,784,804 497,087
--- ------------------ ---- ---------- -------
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0.5 Inferred 1.19 7,104,632 272,837
--- -------- ---- --------- -------
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0.7 Measured 1.58 5,086,309 258,867
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0.7 Indicated 1.52 4,233,169 208,188
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0.7 Measured+Indicated 1.55 9,319,479 467,054
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0.7 Inferred 1.40 5,182,974 234,788
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0.9 Measured 1.73 4,235,403 236,932
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0.9 Indicated 1.67 3,537,322 190,059
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0.9 Measured+Indicated 1.70 7,772,725 426,991
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0.9 Inferred 1.55 4,175,996 208,408
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Note - the above estimates are for resources from Porcupine Main Zone,
Porcupine NW, Quill, Kenge Main Zone, Kenge SE, and Mbenge
The estimate was calculated using the following estimation strategy and assumptions:
- The drilling was conducted between 2006 and 2010 and consists of both
Diamond and Reverse Circulation (RC) drilling completed by Helio;
- The sample preparation and assaying took place at SGS laboratories in
Tanzania;
- The database was reviewed by Golder using statistical and
geostatistical studies. This database was considered acceptable for
the estimate;
- The estimation was carried out in Isatis software using a combination
of ordinary Kriging and inverse Distance Squared; and
- Classification of the Mineral Resource Estimate was based on the
drilling density, estimation quality, confidence in the data and
confidence in the geological model.
On a target by target basis, the resource (rounded to the nearest 1,000t or 1,000 Oz Au) is reported as follows:
Porcupine Main Zone Unrestrained Estimate
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Porcupine Main Zone Resource Estimate at Various Cut-off Grades
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Cut off Mean grade
(g/t) Class g/t Au Tonnage Metal oz
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0.3 Measured 1.55 6,449,000 322,000
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0.3 Indicated 1.40 2,008,000 91,000
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0.3 Meas + Ind 1.51 8,457,000 413,000
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0.3 Inferred 1.24 2,731,000 109,000
-----------------------------------------------------------------
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0.5 Measured 1.66 5,880,000 314,000
-----------------------------------------------------------------
0.5 Indicated 1.51 1,810,000 88,000
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0.5 Meas + Ind 1.62 7,690,000 402,000
-----------------------------------------------------------------
0.5 Inferred 1.39 2,315,000 104,000
-----------------------------------------------------------------
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0.7 Measured 1.82 5,100,000 299,000
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0.7 Indicated 1.67 1,531,000 83,000
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0.7 Meas + Ind 1.79 6,631,000 382,000
-----------------------------------------------------------------
0.7 Inferred 1.57 1,888,000 96,000
-----------------------------------------------------------------
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0.9 Measured 2.02 4,256,000 277,000
-----------------------------------------------------------------
0.9 Indicated 1.95 1,165,000 73,000
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0.9 Meas + Ind 2.00 5,421,000 351,000
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0.9 Inferred 1.70 1,620,000 89,000
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Porcupine Main Zone Restrained Estimate
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Porcupine Main Zone Resource Estimate at Various Cut-off Grades
-----------------------------------------------------------------
Cut off Mean grade
(g/t) Class g/t Au Tonnage Metal oz
-----------------------------------------------------------------
0.3 Measured 1.35 6,448,000 282,000
-----------------------------------------------------------------
0.3 Indicated 1.18 2,008,000 77,000
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0.3 Meas + Ind 1.31 8,456,000 359,000
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0.3 Inferred 1.16 2,730,000 102,000
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0.5 Measured 1.45 5,882,000 274,000
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0.5 Indicated 1.27 1,809,806 74,000
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0.5 Meas + Ind 1.41 7,691,000 348,000
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0.5 Inferred 1.29 2,315,000 96,000
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0.7 Measured 1.58 5,086,000 259,000
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0.7 Indicated 1.39 1,531,000 69,000
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0.7 Meas + Ind 1.53 6,617,000 327,000
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0.7 Inferred 1.45 1,885,000 88,000
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0.9 Measured 1.73 4,235,000 237,000
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0.9 Indicated 1.58 1,160,000 59,000
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0.9 Meas + Ind 1.70 5,396,000 296,000
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0.9 Inferred 1.56 1,612,000 81,000
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A plan view of the Porcupine Target showing the location of the Main Zone in relation to the Quill Zone is presented in the link below:
www.helioresource.com/i/pdf/2010-11-30_NRM1.pdf
The wireframe model for the Porcupine Resource is shown in the following link:
www.helioresource.com/i/pdf/2010-11-30_NRM2.pdf
The wireframe model for the Porcupine Main Zone is presented in the link below:
www.helioresource.com/i/pdf/2010-11-30_NRM3.pdf
Kenge Unrestrained Estimate
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Kenge Resource Estimate at Various Cut-off Grades
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Cut off
(g/t) Deposit Class Mean grade Tonnage Metal oz
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0.3 Main Zone Indicated 1.53 2,427,000 119,000
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0.3 Main Zone Inferred 1.16 2,937,000 109,000
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0.3 South East Indicated 1.50 263,000 13,000
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0.3 South East Inferred 1.48 513,000 24,000
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0.3 Mbenge Indicated 2.02 674,000 44,000
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0.3 Mbenge Inferred 1.38 1,365,000 61,000
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0.5 Main Zone Indicated 1.62 2,237,000 117,000
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0.5 Main Zone Inferred 1.26 2,585,000 105,000
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0.5 South East Indicated 1.78 210,000 12,000
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0.5 South East Inferred 1.64 446,000 24,000
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0.5 Mbenge Indicated 2.05 661,000 44,000
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0.5 Mbenge Inferred 1.53 1,168,000 58,000
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0.7 Main Zone Indicated 1.76 1,960,000 112,000
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0.7 Main Zone Inferred 1.43 2,054,000 94,000
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0.7 South East Indicated 2.02 175,000 11,000
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0.7 South East Inferred 1.86 369,000 22,000
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0.7 Mbenge Indicated 2.11 633,000 43,000
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0.7 Mbenge Inferred 1.66 1,002,000 54,000
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0.9 Main Zone Indicated 1.89 1,736,000 106,000
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0.9 Main Zone Inferred 1.64 1,531,000 81,000
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0.9 South East Indicated 2.24 149,000 11,000
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0.9 South East Inferred 2.07 307,000 21,000
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0.9 Mbenge Indicated 2.20 591,000 42,000
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0.9 Mbenge Inferred 1.78 868,000 50,000
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Kenge Restrained Estimate
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Kenge Resource Estimate at Various Cut-off Grades
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Cut off
(g/t) Deposit Class Mean grade Tonnage Metal oz
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0.3 Main Zone Indicated 1.31 2,427,000 102,000
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0.3 Main Zone Inferred 1.01 2,928,000 95,000
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0.3 South East Indicated 1.39 263,000 12,000
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0.3 South East Inferred 1.35 513,000 22,000
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0.3 Mbenge Indicated 1.75 676,000 38,000
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0.3 Mbenge Inferred 1.21 1,358,000 53,000
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0.5 Main Zone Indicated 1.39 2,22,000 100,000
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0.5 Main Zone Inferred 1.10 2,562000 91,000
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0.5 South East Indicated 1.68 205,000 11,000
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0.5 South East Inferred 1.49 445,000 21,000
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0.5 Mbenge Indicated 1.77 665,000 38,000
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0.5 Mbenge Inferred 1.36 1,124,000 49,000
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0.7 Main Zone Indicated 1.51 1,888,000 92,000
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0.7 Main Zone Inferred 1.29 1,812,000 75,000
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0.7 South East Indicated 1.88 172,000 10,000
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0.7 South East Inferred 1.69 367,000 20,000
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0.7 Mbenge Indicated 1.81 642,000 37,000
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0.7 Mbenge Inferred 1.46 967,000 46,000
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0.9 Main Zone Indicated 1.61 1,641,000 85,000
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0.9 Main Zone Inferred 1.44 1,388,000 64,000
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0.9 South East Indicated 2.05 149,000 10,000
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0.9 South East Inferred 1.87 304,000 18,000
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0.9 Mbenge Indicated 1.89 587,000 36,000
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0.9 Mbenge Inferred 1.58 805,000 41,000
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The Kenge estimate comes from three zones of mineralisation, namely the Kenge Main, Kenge South East, and Mbenge Zones. Kenge Main Zone includes resources from what was previously named Kenge NW - the two zones proved to be one continuous zone of gold mineralisation.
A plan map showing the locations of the Kenge Main, South East and Mbenge Zones is presented in the link below:
www.helioresource.com/i/pdf/2010-11-30_NRM4.pdf
A view of the Kenge wireframes used to calculate the resource block model is presented in the following link:
www.helioresource.com/i/pdf/2010-11-30_NRM5.pdf
The Mineral Resource Estimate for the SMP was completed under the supervision of qualified person Alexandra Harrison (MSc, CSci) of Golder Associates (UK) Ltd. who has provided written permission for the release of this resource estimate in the form and context in which it is provided here. The Company will issue a NI 43-101 compliant technical report for this resource within 45 days of the date of this news release. Helio have informed Golder that there are no known environmental, socio-political, marketing or other relevant issues that may materially affect the mineral resource estimate.
The company is very pleased to receive this maiden resource from the SMP, where metallurgical testwork, not reviewed by Golder, has indicated recoveries of 94% to 96% from Porcupine and Kenge respectively using conventional processes. Initial testwork has also indicated that recoveries of around 70% may be achievable by the heap-leach process.
The plan for 2011 is to drill to expand the resource at Porcupine. The Footwall, Quill and NE Zones are all still open along strike and to depth. The Company believes there is potential for Quill and the NE Zones to be connected, which presents the potential to add at least 800m of strike length in this area, greatly increasing the scale of the resource.
In addition, the Main Zone is open along strike and to depth. The deepest drill hole in the high grade core of the Main Zone intersected 28m grading 5g/t gold and is open to depth.
In addition to that, other areas where the potential to add resource ounces, such as at Konokono and Tumbili, will be drill tested.
ABOUT THE SMP GOLD PROJECT
--------------------------
Helio, through its 100% owned subsidiary BAFEX Tanzania Ltd., has completed the earn-in requirements on 4 out of 5 contiguous licences, which cover a 238km2 area within the Lupa Goldfield, SW Tanzania. The earn-in on the fifth licence is scheduled for completion in January 2013.
The SMP Gold Project covers a 35km of the Saza Shear Zone, the main known gold bearing structure in the region. Gold mineralisation is associated with brittle fracture zones and ductile shear zones that cut through intrusive rocks of Lower Proterozoic age. Mineralisation has been dated at 1.93Ga, making it equivalent in age to the mineralised systems in West Africa.
Since June 2006, the Company has drill-tested twenty five discrete targets. Twenty two of the targets have intersected bedrock-hosted gold mineralisation, the most advanced being the Porcupine and Kenge Targets (see the Corporate Presentation on the Home Page of the Company's website at www.helioresource.com).
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.
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.
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