|Mon Jun 23, 2008|
Helio Reports The Best Result To Date From The SMP Gold Project, Tanzania:
|42.3m @ 4.0g/t Au - PORCUPINE TARGET|
Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to report the first diamond drill results from the 11 hole (1,800m+) programme at the Porcupine target; part of the ongoing 20,000m+ drill programme at the SMP Gold Project, SW Tanzania (Company press release dated April 30, 2008). Results have been received for two of the first five of the planned holes drilled to date.
The best hole, GPD-1, intersected 42.3m grading 4.0g/t Au from 16.6m (including 0.9m grading 43.6g/t Au from 53.4m and 0.45m grading 105g/t Au from 57.7m). Hole GPD-2 intersected 49.8m grading 1.7g/t Au from 23.1m.
GPD-1 twinned the only hole previously drilled at Porcupine, namely GPR-4 (a reverse circulation (RC) drill hole) which intersected 42m grading 2.05g/t Au (Company press release dated November 19, 2007). GPD-2 was drilled underneath GPD-1. A section showing the drill hole intercepts is included below and has been posted on the Company's web site at www.helioresource.com. As with all previously twinned RC drill holes, the diamond drilling results show a significant increase in gold content, in this case a 95% increase.
Porcupine is a new discovery; one of thirteen targets at the SMP project where Helio has drilled bedrock gold mineralisation. Mapping at the Porcupine target confirms the presence of robust zones of gold mineralisation over a 1km+ strike extent. The mineralised zone drilled outcrops on surface and remains open to depth and along strike in both directions.
The Company is also drilling concurrently at the Kenge Target (comprising the NW, Main, SE, Mbenge and Snakebite Zones) where a resource statement should be published before the end of 2008. Further drill results from the Kenge target are expected within the next week. The Company has recently completed a bought-deal financing and remains well-funded.
Additionally, two more drill rigs have been mobilised to the SMP project to speed up the aggressive exploration programme.
ABOUT THE SMP GOLD PROJECT
Helio, through its 100% owned subsidiary BAFEX Tanzania Ltd., can earn a 100% interest in four contiguous licences, which cover a 27km strike length of the Saza Shear Zone (see news releases dated December 19, 2005 and September 11, 2006). The project covers the eastern part of the New Saza Gold Mine, which operated between 1939 - 1956, producing ~270,000 ounces of gold at an average grade of 7.5g/t Au.
Since June 2006, the Company has drill-tested thirteen targets, eleven of which are hosted by the Saza Shear Zone. All thirteen targets have intersected bedrock-hosted gold mineralisation, the most advanced being the Kenge Target, which has returned up to 21.95m grading 6.92g/t gold (Company press release dated May 23, 2007). Prior to the recent drilling at Porcupine, the previous thickest mineralised intercept was drilled at the Mbenge Zone of the Kenge target (39.17m @ 2.56g/t Au - Company press release dated March 25, 2008).
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, supervises the sampling and quality assurance / quality control programmes at the SMP Programme, and has reviewed the contents of this news release. Drill holes were oriented at -48º and -70º and were drilled perpendicular towards the main structural trend. Intercepts are reported as drilled widths, estimated true widths are 39.5m for GPD-1 and 36.5m for GPD-2. Core was halved with a rock saw and sample lengths between 0.3m and 1.1m within the mineralised zone were submitted to the lab (with the duplicate half being retained). QA/QC includes the use of blanks and standards (1 every 15 samples) and duplicates (1 every 24 samples). Samples were assayed at the SGS Laboratory in Mwanza, Tanzania by 50g gold fire assay. As well as the Company's internal QA/QC programme, SGS also applied their own internal QA/QC programme, consisting of insertion of standards and duplicates. Weighted average intercepts are calculated between the uppermost and lowermost samples within the main mineralised zone over a 0.5g/t cut-off and may include some internal waste.
Helio Resource Corp. is a dynamic, technically-driven mineral exploration company, focused on high-quality project generation in southern Africa. The main focus for the Company is the development of the SMP gold project in Tanzania. As part of its strategic approach to project development, Helio has optioned 17 of its Namibian licences to Desert Minerals (UK) Ltd. (nine licences) and TransAfrican Minerals Limited (eight licences). Helio continues to pursue joint venture partners for its other projects in Namibia, Botswana and Mozambique.
For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to firstname.lastname@example.org or email@example.com.
HELIO RESOURCE CORP
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