News
Show printable version of 'Helio Increases Strategic Land Holdings Adjacent t...' in a New Window
News Releases
 Mon Sep 11, 2006
Helio Increases Strategic Land Holdings Adjacent to the Saza Gold Project, Tanzania

 
Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to announce that it has signed a letter of intent ("LOI") with Dhahabu Resources and Mining Co. Ltd ("Dhahabu"), a privately owned Tanzanian company, whereby Helio has the option to earn 100% interests in three contiguous Prospecting Licences ("PLs"), located immediately adjacent to the Saza gold project, SW Tanzania.

The three PLs (the "Makongolosi Gold Project") cover ~153km2 (15,300 hectares) and are located to the north and northeast of Saza. The licences cover approximately 17km of strike length of the Saza Shear Zone ("SSZ"), together with a number of associated structures considered by Helio to be very prospective, based on its' interpretation of the local controls on high-grade gold mineralisation along the SSZ (see Company press release dated 6 September 2006).

To earn a 100% interest in each licence Helio has to meet the following requirements per licence:
------------------------------------------------------------------
        Timing             Exploration $   Cash / Shares   Shares
------------------------------------------------------------------
Successful completion 
  of Due Diligence                          $25,000 cash   50,000
------------------------------------------------------------------
  1st Anniversary             50,000        $50,000*   
------------------------------------------------------------------
  2nd Anniversary            100,000        $50,000*   
------------------------------------------------------------------
  3rd Anniversary            200,000        $50,000*   
------------------------------------------------------------------
  4th Anniversary            650,000       $225,000**    
------------------------------------------------------------------
    GRAND TOTAL            1,000,000       $400,000   
------------------------------------------------------------------
 * 50% of payment to be made in cash, the balance at the election
   of Helio;
** Payable in cash and / or shares at Helio's election
Upon successful completion of the earn-in requirements for each licence, Dhahabu will retain a 2% royalty. Helio has the option to buy 50% of the royalty for $1,000,000 per licence at any time prior to the commencement of commercial production. Helio has the right and option to relinquish any of the PLs at any time during the earn-in period.

The LOI is subject to the successful completion of due diligence, and also the approval of the TSX Venture Exchange. The projects were introduced to Helio by Haynes Capital Corp. For more information on Haynes Capital, visit www.haynescapital.com.

Numerous gold prospects are located along the SSZ within the Makongolosi Gold Project, including the Kwaheri Mine, which operated during pre-independence period and produced an unspecified amount of gold. In common with the Saza Project, very little modern exploration has been conducted in the area.

Helio recently completed a first pass 3,138m RC drill programme at Saza (see Company press release dated 6 September 2006) The programme confirmed the presence of multiple auriferous zones along a 5.5km strike-length of the east-northeast trending SSZ together with the northwest-trending Kenge Shear Zone (KSZ). The Makongolosi Gold Project contains the main strike extension of the SSZ and hosts a number of zones with the same orientation as the KSZ.

Helio Resource Corp., based in Windhoek, Namibia, is one of Southern Africa's leading exploration companies and specializes in 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 richard@helioresource.com or irene@helioresource.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"Richard D. Williams"
Richard D. Williams, P.Geo
CEO

"Chris MacKenzie"
Christopher J. MacKenzie, C.Geol.
COO

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:
File: http://www.helioresource.com/i/pdf/2006-09-11_NR.pdf
 17 KB, approx. 4 seconds at 56.6Kbps
 
 

You can return to the Top of this page