|Thu Jun 2, 2005|
Helio Options the Vredelus Gold Project to Teck Cominco Ltd
|Helio Resource Corp. (TSX-V: HRC) ("Helio" or the "Company") is pleased to announce that its Namibian operating subsidiary, BAFEX Exploration (Pty) Ltd, has signed a Letter Agreement dated effective May 27, 2005 (the "Agreement") with Teck Cominco Namibia Ltd ("Teck Cominco") whereby Teck Cominco has the option to earn up to a 75% interest in the Vredelus gold project (the "project").|
The three-stage agreement is structured as follows:
Stage 1 to earn a 60% interest:
Teck Cominco has to spend CDN$ 4,375,000 over four years and make cash payments to Helio totalling CDN$ 1,250,000. The Year 1 expenditure is a commitment to spend CDN$ 250,000 on exploration and make an initial cash payment of CDN$ 45,000.
Stage 2 to earn an additional 5% interest:
After completing Stage 1, Teck Cominco can elect to earn a further 5% interest for a total 65% interest by spending a further CDN$ 4,375,000 on exploration over 2 years on the project.
Stage 3 to earn a further 10% interest for a total 75% interest:
Upon completing Stage 2 of the earn-in, Teck Cominco can earn an additional 10% interest by electing to complete a Feasibility Study at its cost within 4 years of completing Stage 2 of the Agreement. Upon electing to proceed to a Feasibility Study, Teck Cominco will make a cash payment of CDN$ 625,000 to Helio.
Upon completion by Teck Cominco of its earn-in under Stage 1, Stage 2, or Stage 3 as the case may be, the parties will enter into a joint venture agreement and will participate in further work on the property on a pro-rated basis.
The Vredelus project is a gold target located within the same geological belt that hosts AnglogoldAshanti's Navachab mine (current resource of 137.7Mt grading 1.18g/t Au for 5.2 million ounces: AngloGoldAshanti 2004 Annual Report), and African Rainbow Mining's (ARM) Otjikoto project (25.8Mt grading 1.14g.t Au for 950,000 ounces: ARM 2004 Annual Report).
RC drilling (39 holes totalling 3,371m) and diamond drilling (11 holes totalling 1,229m) conducted in the early 1990s by Rössing Uranium Limited, a subsidiary of RTZ, returned significant intersections, including:
The foregoing report and supporting logs, assays and drill maps were reviewed by the Company but predate the guidelines for such data as set out in NI 43-101 and current CIM guidelines and Helio has not yet done the work necessary to verify this data. These historical results should not be relied upon although the Company is of the opinion that these results are relevant to an understanding of the potential for the property.
Geophysical surveys (airborne electromagnetics and ground IP) conducted by Helio indicate the presence of significant targets immediately south of historic drilling which have never been drill tested. Chris MacKenzie, Chartered Geologist and Helio's Executive Chairman, the Qualified Person as designated by NI 43-101, has reviewed and approved the contents of this news release.
Helio now has five of its nine projects under option to joint venture partners. In addition to work being conducted by Helio on its wholly owned projects, Helio's partners will be spending a minimum of CDN$ 1,400,000 on Helio's projects in the next 12 months.
For additional information, please contact Richard Williams at (604) 668 8356 or by e-mail at email@example.com
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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