|Mon Jul 21, 2008|
Helio Reports the Best Results to Date From the SMP Gold Project, Tanzania:
|52.2m @ 3.3g/t Au and 49.63m @ 3.3g/t Au|
Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is very pleased to report further diamond drill results from ongoing drill programme at the Porcupine target; part of the 20,000m+ 2008 drill programme at the SMP Gold Project, SW Tanzania (Company press release dated April 30, 2008). Results are now available for all five of the original planned holes mentioned in the Company press release dated June 23, 2008.
The best hole, GPD5, intersected 52.2m grading 3.3g/t Au from 15.8m (including 0.9m grading 21.3g/t Au from 32.3m and 0.8m grading 71.5g/t Au from 49.5m). All other holes intersected thick zones of mineralisation as tabulated below.
* denotes previously reported holesManagement is very encouraged by these results, which indicate the strong potential of the Porcupine target to host a significant open-pittable gold resource. A cross section and a long section depicting these drill results is included below and has been posted on the Company's website at www.helioresource.com.
Four of the five holes were drilled on an offset 50x50m grid pattern on the main target at Porcupine, after which the drill rig moved away to test other targets in the near vicinity. The rig will soon be moved back to test lateral and down-dip continuity of this robust mineralised zone, and another drill rig will be sourced to fast-track the exploration effort at Porcupine.
Porcupine is a new discovery; one of eleven targets at the SMP project where Helio has drilled bedrock gold mineralisation. Mapping at the Porcupine target confirms the presence 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.
Gold mineralisation at Porcupine occurs with disseminated sulphide together with narrow sulphidised quartz veins and is hosted by an altered granitoid. The main zone of mineralisation strikes NE and dips at 45-55º to the SE.
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.
Metallurgical testwork on Kenge is ongoing and should be available within the next few weeks.
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 approximately 270,000 ounces of gold at an average grade of 7.5g/t Au.
Since June 2006, the Company has drill-tested eleven targets, nine of which are hosted by the Saza Shear Zone. All eleven targets have intersected bedrock-hosted gold mineralisation, the most advanced being the Kenge Target, which has returned up to 22.0m grading 6.9g/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 (39.2m @ 2.6g/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. All drill holes were oriented at -48º (except GPD2 which was -70º) and were drilled perpendicular towards the main structural trend. In the light of new data, intercepts are reported as drilled widths, and estimated true widths for the -48º holes are 90-95%+ of drilled width, and 36.5m for GPD-2. Core was halved with a rock saw and sample lengths between 0.3m and 1.5m within the mineralised zone were submitted to the lab (with the duplicate half being retained). QA/QC includes the use of blanks and standards (ave. 1 every 15 samples) and duplicates (ave. 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 using a 0.5g/t cut-off and may include some internal waste.
Helio is a dynamic, technically-driven mineral exploration company, focused on high-quality project generation in southern Africa. Helio's main focus is the development of the SMP gold project in Tanzania. As part of its strategic approach to project development, Helio has optioned 25 of its Namibian licences to two partners [Desert Minerals (UK) Ltd. and TransAfrican Minerals Ltd.]. Helio continues to pursue joint venture partners for its other projects in Namibia 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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