|Mon Dec 19, 2005|
Helio Acquires Option on Former Gold Mines in Tanzania
Helio Resource Corp. (TSX-V: HRC) ("Helio") is pleased to announce that it has signed a Letter of Intent with Thorn Tree Minerals Limited ("Thorntree"), a private Tanzanian mining company, whereby Helio can earn a 100% interest, subject to a 2% Royalty, in the 51km2 Saza licence, located in the Lupa Goldfields. The licence includes the eastern section of the Saza Mine and all of the Razorback Mine.
Records show that the mines produced 260,000 ounces of gold from high grade shear zones, between 1939 and 1959, at an average grade of 7.5g/t gold. Exploited veins varied from 2m to 20m in width, extending to a maximum depth of 220m. Drilling from the same period intersected mineralization 330m below surface, indicating that mineralization is open to depth and along strike. Operations ceased in 1959 due to low gold prices.
Helio is very excited by this opportunity. The combination of historic gold production from the licence, coupled with recent impressive drill intercepts, indicate very strong potential to develop an economic resource at Saza.
To vest its interest, Helio must spend C$2,000,000 on exploration over 4 years, and issue 50,000 common shares and make cash / share payments totaling C$400,000 to Thorntree over the earn-in period. Helio also has the option to reduce the royalty from 2% to 1% by paying Thorntree C$1,000,000 in cash prior to commencement of production. A finders fee of 100,000 common shares is payable in connection with the acquisition.
Initial work will involve further compilation of all existing data, mapping and sampling of all mineralized outcrops, and geophysical surveys (IP and magnetics) over the entire property, followed by drilling.
AngloGoldAshanti ("Anglo") conducted exploration in the area between 1997 and 2000, including soil sampling (940 samples), 910m of trenching, 515 Rotary Air Blast ("RAB") holes (total of 3,891 metres; average 7.5m per hole) and 7 RC-Diamond drill holes (total of 1,590m). Helio's analysis of all the available data indicates the presence of over 20km of prospective structures within the Saza licence.
Significant exploration targets within the licence include:
Helio Resource Corp., based in Windhoek, Namibia, is one of Southern Africa's leading exploration companies and specializes in innovative new-project generation. Helio is actively developing 11 prospective gold, copper and diamond properties in Namibia, Botswana and Tanzania. As part of its strategic approach to project development, Helio has forged partnerships with firms such as Teck Cominco, Indicator Minerals, Yale Resources, Boulder Mining and Springbok Resources to advance a number of its projects.
For additional information, please contact either Richard Williams at email@example.com or Irene Dorsman 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.
View News Release in PDF Format:
You can return to the Top of this page