|Mon Mar 21, 2005|
Helio Options the Leicester and Otjimakuru Properties to Yale Resources Ltd
|March 21, 2005 Helio Resource Corp. (TSX-V: HRC) ("Helio") is pleased to announce that it has signed two Letters of Intent with Yale Resources Ltd (TSX-V: YLL) on the Leicester and Otjimakuru properties in Namibia. Both Letters of Intent allow Yale the right option to earn up to a 75% interest in the properties.|
The 60,000 hectare (600 km2) Leicester Property is located approximately 350 km northwest of Namibia's capital city - Windhoek. To earn an initial 51% interest Yale must spend CDN$2,900,000 on exploration and issue 850,000 common shares of Yale to Helio over 4 years. The Year 1 exploration expenditure commitment is CDN$300,000. Upon vesting a 51% interest Yale has the right to increase its interest to 75% by issuing 1,000,000 additional common shares to Helio and producing a bankable feasibility study within an additional 3 years.
The property was explored for copper mineralization by Falconbridge in the late 1960s. Falconbridge performed soil sampling over the entire 30 km of the Rehderstal Fault that runs through the centre of the property and identified two high priority copper (+/- gold and silver) targets. The Main Target is highlighted as follows:
Confirmatory chip channel sampling of copper oxide mineralization by Helio in 2003 at three zones up to 8km apart within the Main Target returned 4 metres averaging 6.47% Cu, 6 metres averaging 2.48% Cu, and 10 metres averaging 3.72% Cu.
The second high priority target is located some 8 km to the east of the Main Target and is marked by a coincident copper-in-soil and a moderate airborne magnetic-radiometric anomaly that is approximately 3 km in length. Initial grab sampling of this early stage target by Helio returned values that ranged from 19 ppm to 2,119 ppm Cu and from 12 ppb to 798 ppb Au.
The Leicester Property is underlain by 2.0 billion year old basement rocks that are intruded by mineralised mid-Proterozoic (1.7 Ga) granitoids having a Au-Cu-Fe-Bi-Ba-P-K geochemical signature. A number of sedimentary basins of lower Damaran age (700 - 550 Ma) also occur along the fault, and these also host copper mineralisation. The presence of hematite alteration and local magnetite veining suggests that the mineralisation may have affinities with Iron Oxide Copper Gold (IOCG) deposits. However, it is also possible that the copper-silver mineralization tested by Falconbridge may represent copper mineralisation of the 'Zambian Copper Belt'-type.
Forthcoming exploration at Leicester will include induced polarisation (IP) geophysical and geochemical surveys followed by drilling of priority targets.
The Otjimakuru Property covers 17,000 hectares (170 km2) and is located approximately 150 km northwest of Windhoek. To earn a 75% interest, Yale must spend CDN$1,800,000 on exploration and issue 775,000 common shares to Helio over a 4 year period. The first year work commitment is CDN$150,000.
The Otjimakuru Property is an earlier stage exploration target. The exploration model at Otjimakuru is for a skarn-hosted sheeted-vein gold deposit similar to the +5 million oz Navachab open pit gold mine situated 90 km to the southwest, and the Otjikoto deposit located 110km to the northeast. Navachab was placed into production in 1989 by AngloGoldAshanti and is Namibia's first and only gold mine. Otjikoto is an advanced exploration project with a 1 million ounce resource estimate at the pre-feasibility stage that is being explored by AngloVaal (now ARM). The mine life at Navachab was recently extended to 2013.
Otjimakuru is located immediately adjacent to Helio's Vredelus property, where previous drilling of a magnetic anomaly intersected skarn-hosted gold mineralisation with the following best grades:
Chris MacKenzie, Chartered Geologist and Helio's Executive Chairman, is the Qualified Person as designated by NI43-101 and has reviewed and approved the content of this news release.
For additional information, please contact Richard Williams at (604) 668 8356 or by e-mail at firstname.lastname@example.org
ON BEHALF OF THE BOARD OF DIRECTORS,
"Richard D. Williams"
Richard D. Williams, P.Geo
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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