|Mon Jun 26, 2006|
RC Drill Programme Commences At The Saza Gold Project, Tanzania
|Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to announce that it has commenced a 30-hole, 3000m Phase 1 reverse circulation (RC) drill programme at the Saza gold project, located in the Lupa Goldfields, southwest Tanzania.|
The drill programme will test four targets. Two of these cover sections of the New Saza Mine which produced 270,000 ounces of gold at an average grade of 7.5g/t gold between 1939 and 1956.
The targets to be tested are:
1. Cheche -- this 600m x 250m target covers an area due east of the Saza underground mine. Shallow RAB drilling conducted by Anglo American in the late 1990s indicates the presence of multiple mineralised structures across a width of at least 225m within the 10km-long Saza Shear Zone. All the historical RAB drill intersects were within 20m of surface.
2. Kenge -- drilling will focus on the old Razorback mine and adjacent IP chargeability anomalies. Channel sampling across exposed mineralisation within the Razorback mine returned intercepts of 16.4m @ 1.8g/t Au (open) and 6.8m @ 5.69g/t Au (open). The gold-bearing structure extends for over 1.5km, but only 150m of strike was exploited.
3. Snakebite -- located 2km east of Cheche at the intersection of the Saza Shear Zone and the Kenge target. One of the eight Anglo American RAB holes drilled here bottomed in mineralisation, grading 6.74g/t Au over 9m (open).
4. Konokono -- located 3km east of Snakebite along the Saza Shear Zone, covers an area over 1.2km x 300m. One RC / DDH hole drilled by Anglo American intersected 6m @ 2.36g/t Au (87 -- 93m), and 23m @ 1.08g/t Au (103 -- 126m). The target is open in all directions.
For more information, please refer to the Company's Press Release dated May 24, 2006, and the corporate presentation on the Company's website, www.helioresource.com
Helio can earn a 100% interest, subject to a 2% royalty, in the Saza licence by spending C$2,000,000 on exploration over a 4 year period, and by making cash and / or share payments totalling C$450,000 to the licence holder. The royalty can be reduced to 1% by making a cash payment of C$1,000,000 to the licence holder prior to commencement of commercial production.
Chris MacKenzie, M.Sc., C.Geol., Helio's Executive Chairman and a Qualified Person as designated by NI 43-101, will supervise the drilling and quality control programs at Saza and has reviewed the technical content of this news release.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 14 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, and Yale Resources to advance a number of its projects.
For additional information, please contact Richard Williams or Irene Dorsman at (604) 668 8363 or by e-mail to email@example.com or 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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