|Fri Mar 2, 2007|
|Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to provide the following update on our activities in Southern Africa.|
Highlights & Outlook
2006 proved to be a very productive year for Helio, with new projects acquired in Tanzania (gold) and Mozambique (base metals), as well as expanding our presence in Namibia.
There is increasing recognition in the investment community that Africa offers tremendous exploration potential, and that many parts of Africa have stable political environments in which foreign companies can successfully operate.
The Saza / Makongolosi Project ("SMP") in Tanzania has provided the Company with an advanced exploration asset, which clearly has the potential to host a significant resource. Following the success of the 3,138m RC drill programme completed in July 2006, a 5,000m diamond drilling programme has commenced on the Saza licence and we are close to identifying numerous new drill targets on the other three licences comprising the SMP.
In Namibia, the company completed drill programmes at Vredelus (funded by Teck Cominco), Makuru (funded by Yale Resources), two programmes at Leicester (funded by Yale Resources), and Honib. In addition, we have completed reconnaissance sampling on the Otjitombo South and Tevrede North licences, and results from both properties define large targets for follow-up work. Also, we have been granted two new licences, Oasis and Huab, both of which have very compelling exploration targets.
The objectives for 2007 are to continue to add value to the company through the development of the SMP project in Tanzania, as well as continuing to attract joint venture partners for our other projects in Namibia, Botswana and Mozambique. In addition, the company continues to look for new acquisition opportunities.
The recently announced closing of a $4,900,000 private placement will allow the Company to add at least one additional drill rig to the SMP project in Tanzania.
Saza Makongolosi Project (SMP)
The Saza licence, located in the Lupa Goldfields, SW Tanzania, contains part of the colonial era Saza #2 Shaft Mine and the Razorback Mine. The Saza Mine produced approximately 270,000 ounces of gold between 1939 - 1956 at an average grade of 7.5 g/t gold.
Through 2006, the company completed property-wide IP geophysics on the Saza licence, and tested four different targets with a 3,138m RC drill programme (news release dated September 6, 2006). Gold mineralization was intersected at all four targets, as summarized below:
In November 2006, a 5,000m diamond drill programme commenced on the Saza licence, with the initial focus on the Snakebite and Kenge targets. The results of the first three holes were announced on January 8, 2007. The best intercept returned 20.26m grading 3.08g/t gold from the Kenge target. To date, the Kenge target has been tested by 6 drill holes over a strike length of 1,500m, and all holes have intersected gold mineralization. Drilling will continue along the Kenge target.
Recent channel sampling from the Mbenge target, a Kenge-parallel structure located 800m east of the Kenge and Snakebite targets has returned 4m grading 4.37g/t Au, 5m grading 2.37g/t Au, and 6.2m grading 3.64g/t Au. All of the mineralised zones are open across and along strike.
Ilunga, Gap and Kwaheri Licences
On September 11, 2006 the Company announced the acquisition of three licences, covering over 150km2, contiguous to the north and north east of the Saza licence. Helio now controls over 27km of the strike length of the Saza Shear Zone. Two colonial-era gold mines are located within the licences, namely the Gap and Kwaheri mines.
Selected areas will be covered by IP geophysics, which has been very successful in defining areas of gold mineralisation elsewhere in the SMP.
Numerous targets have already been identified through mapping and sampling of current artisanal mine workings. Channel sampling from the Gap and Kwaheri licences has returned the following intersections:
The Company has the option to earn 100% interests, subject to a 2% NSR, in all four licences in Tanzania.
Helio has the option to earn a 90% interest in the 49,000 Ha Tevrede North licence by spending C$250,000 over three years. The property is prospective for precious and base metal mineralisation, including IOCG, and intrusion-related gold deposits.
In late 2006 the company completed property-wide stream sediment sampling over the licence. A number of polymetallic anomalies have been defined (see map on the Company's website at www.helioresource.com), with highlights including 15 samples returning over 100ppb gold and a peak value of 3,635ppb Au.
Follow-up prospecting work resulted in the discovery of copper-bearing float that has returned the following results:
A total of four widely-spaced diamond drill holes (total of 1,573m) were drilled over the Grensvoet polymetallic anomaly (see Company press release dated December 11, 2006). The drilling intersected multiple zones of Zn ± Cu ± Pb ± Ag ± Au mineralisation over a strike length of 3km.
Drillhole HBD-02 returned 10.2m grading 0.78% Zn (including 3.41m grading 1.44% Zn and 0.14g/t Au) and another zone of 21.75m grading 0.27% Zn. HBD-01 returned 21.4m grading 16.4g/t Ag and 0.1% Cu.
The drill programme focused on polymetallic soil / rock anomalies, which are peripheral to a strong zinc-in-soil anomaly measuring ~1.8km x 400m. The zinc target has not yet been drill tested. The belt of rocks that host the Honib targets is the same sequence of rocks that host the anomalies found at Tevrede North (referred to above). Helio controls the entire 50km long volcano-sedimentary belt, which has never been explored previously.
The Company is seeking a joint venture partner for this project.
Helio has the option to earn a 90% interest in the 94,000 Ha Otjitombo South licence by spending C$250,000 over three years. The property is prospective for Copperbelt style copper mineralisation.
In late 2006 the company completed property-wide stream sediment sampling over the licence. A number of copper-lead-zinc ± gold anomalies have been defined including a major, 20km long copper-gold-lead-zinc anomaly hosted by the same stratigraphy as that on Helio's Otjitombo licence (see map on the Company's website at www.helioresource.com).
Helio has been granted an Exclusive Prospecting Licence, named Oasis, located in the Kamanjab area of northwestern Namibia. The project is prospective for base metals, and has been previously explored by Rössing Uranium Limited (Rössing) a subsidiary of Rio Tinto. Rössing conducted 1,600m+ of percussion drilling in 24 holes and 780m of diamond drilling (8 holes) over a portion of a large Pb-in-soil anomaly: the VG target.
Although the data are not 43-101 compliant, Helio has no reason to doubt the quality of the data. Maxima from individual 1m drill samples include 11.4% Pb, 0.94% Cu, 23% Ba and 108g/t Ag. The average value of all the drill samples is 0.3% Pb and 2% Ba. Selected drill hole data are tabulated below.
More information can be found on the Company's website.
The Huab licence is also located in the Kamanjab area and includes a layered basic-ultrabasic intrusive complex associated with a 5km x 4km magnetic anomaly. A soil sampling programme has been completed over the target, and results are expected in the coming weeks.
More information can be found on the Company's website.
The Company's partner, Yale Resources, funded a two-hole diamond drill programme in August 2006. The programme was designed to test for sediment hosted Copperbelt style mineralisation adjacent to a regional fault that hosts multiple copper showings. The drill holes encountered strong pyrite mineralisation, but did not encounter any significant copper values.
There are several other targets to be tested, including the Belvoir IOCG target located over 10km further east along the same regional fault.
Yale is currently evaluating what work to do next.
Yale Resources funded a 13-hole, 1,170m reverse circulation drill programme in June, 2006. Although most holes intersected favourable geology, including quartz veining and concentrations of magnetite, pyrite, and locally, pyrrhotite, no significant gold-bearing (> 0.5 g/t Au) intervals were intersected.
Yale has met its earn-in commitments for the year, and is currently evaluating what work to do next.
Teck Cominco completed a 20-hole, 3,043m reverse circulation drill programme in April 2006. Teck has informed the Company that it has withdrawn from the agreement and the licence has reverted to Helio.
Helio has only just received a report and data relating to Teck Cominco's activities on Vredelus, and is in the process of reviewing the data. However it is apparent that Teck Cominco elected not to drill within 300 - 500m of three airborne EM anomalies that were found by Helio to be associated with gold bearing gossanous rock fragments, and Teck Cominco further elected not to drill within 300m of known bedrock gold mineralisation encountered in a drill programme conducted by Rössing in the late 1990's. These were the only known gold occurrences on the licence.
The Company intends to seek a joint venture partner for this project.
The Company has issued a total of 200,000 incentive stock options to its CFO (100,000 options) and a geological consultant (100,000 options). The options are subject to a 12 month vesting period and are priced at $0.75. The option period expires in February 2012.
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, oversees all Helio's sampling and quality assurance / quality control programmes and has reviewed the contents of this news release.
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 19 prospective gold, copper and diamond properties in Namibia, Botswana, Mozambique and Tanzania. As part of its strategic approach to project development, Helio has worked in partnership 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
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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