|Tue Feb 28, 2006|
Drilling Commences on Two Gold Projects in Namibia
|Helio Resource Corp (TSX-V: HRC) is pleased to announce that drill programmes have commenced on two of the company's licences in Namibia; Vredelus and Otjimakuru. Teck Cominco Namibia Ltd. (Teck Cominco) is funding a 2,800m drill programme at Vredelus, and Yale Resources Ltd (TSX:V - YLL) is funding a 1,000m RAB drill programme on the adjacent Otjimakuru licence.|
The Vredelus project lies within the same belt as AngloGold Ashanti's Navachab Gold Mine (current resource of 137.7Mt grading 1.18g/t Au for 5.2 million ounces: AngloGold Ashanti 2004 Annual Report).
Teck Cominco, our partners on the Vredelus gold project, completed a detailed review of the available data in late 2005. The current drill programme is designed to test multiple large-scale targets located immediately south of a small gold system drilled by RTZ in the early 1990s.
Teck Cominco can earn up to a 75% interest in the project by carrying all costs to the completion of a feasibility study. The first phase of work requires Teck Cominco to spend $4,375,000 on exploration and make cash payments to Helio totalling $1,250,000 before February 3, 2010, to earn an initial 60% interest. Teck Cominco is the operator of the exploration programme at Vredelus.
Yale Resources can earn a 75% interest in this project, located immediately west of the Vredelus project, by spending $1,800,000 over 4 years and issuing 775,000 shares to Helio.
Gradient array IP geophysics and soil sampling indicate the presence of a widespread mineralised system. Soil samples returned results up to 580ppb Au, in an environment where, due to the nature of the regolith, gold values above 50ppb are significant.
A 120 hole, 1000m RAB (rotary air blast) drilling programme has commenced, and will test targets which lie beneath a sand / calcrete cover sequence, which is up to 6m thick. Helio is managing this drill programme.
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 exploring 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 Richard Williams or Irene Dorsman at (604) 668 8356 or by e-mail at firstname.lastname@example.org or email@example.com or visit the Company's website at www.helioresource.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.
You can return to the Top of this page