News
Show printable version of 'Five Diamond Drill Rigs Now Working at the SMP Gol...' in a New Window
News Releases
 Wed Sep 3, 2008
Five Diamond Drill Rigs Now Working at the SMP Gold Project, Tanzania; Desert Minerals to Commence 10,000m Drill Programme in Namibia; Report on AGM

 SHAREHOLDER UPDATE


Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to provide an update on its corporate and exploration activities. Current news is displayed in bold text.

TANZANIA

The Company's primary focus going forward is the advancement of the SMP Gold Project in Tanzania, through Helio's 100% owned subsidiary BAFEX Tanzania Ltd. Highlights for the project to date are:

  • The Company has recently added two additional diamond drill rigs to the SMP drill programme, bringing the total to five.

  • Currently, there are three drill rigs working at the Kenge Target (one rig at the NW Zone, one at the Main Zone, and one at Mbenge), and there are two drill rigs working at the Porcupine Target. An RC drill rig has also been contracted and is expected to begin work within the next month.

  • 102 diamond drill holes (15,451m) have been completed to date on the Kenge Target, comprising the NW (up to 18m at 2.7g/t Au), Main (up to 22m at 7g/t Au), SE (up to 21.5m at 3.6g/t Au), Snakebite (up to 8m at 20.8g/t Au), and Mbenge (up to 39m at 2.6g/t Au) Zones. The five zones have an aggregate strike length of approximately 2,000m. The target has only been tested to a depth of approximately 200m.

  • Metallurgical results from the Kenge Target are very positive - up to 96% recovery from conventional gravity and cyanidation processes.

  • Results from diamond drilling at the Porcupine Target (5 holes for 850m) have returned up to 53m grading 3.3g/t Au.

  • Golder Associates (UK) Ltd has been retained by the Company to provide an initial resource estimate for the Kenge Target (and possibly the Porcupine Target if there is sufficient data), which is expected to be completed before the year-end.

  • The renewal of licence PL 2580 and the issuance of a new licence to BAFEX Tanzania Ltd. went smoothly, providing the Company with a high degree of confidence in the title tenure process in Tanzania.

  • The plan for the balance of 2008 is to continue to demonstrate the significant resource potential at SMP with our current aggressive drill programme.
The results generated from the SMP Gold Project clearly support the Company's belief that the project has the potential to realise a significant open pittable gold resource. All eleven of the targets drilled to date, which occur over a 20km strike length of the Saza Shear Zone and associated cross-structures, have intersected bedrock gold mineralisation. Only two of those targets (Kenge and Porcupine) have been subject to systematic drill testing, and in both cases have yielded very positive results.

It is the Company's intention over the next 12 months to conduct systematic drilling at all eleven targets, plus test some new gold-in-soil anomalies which have evidence of artisanal bedrock mining on them.

NAMIBIA

The Company continues to pursue Joint Venture partners to advance its exploration projects in Namibia.

Currently, we have one active JV with Desert Minerals (UK) Ltd., a privately funded company. Desert has informed the Company that it plans to commence a 10,000m combined diamond and RC drill programme at the Otjimbojo (8,600m) and Kunjas licences, located in central and southern Namibia, respectively. Please refer to the Company's news release dated September 24, 2007 for the terms of the agreement with Desert.

The Company has decided to abandon the Fransfontein, and Borwa licences, all of which were very early-stage projects.

The Joint Venture agreement with TransAfrican Minerals was terminated in July 2008. The licences that were included in the TransAfrican JV host several drill-ready gold, polymetallic and zinc targets, and management will continue to work to find partners to advance these projects.

BOTSWANA

The Company has converted its interest in the Lokgwabe diamond project to a 1% diamond royalty, and has no plans to undertake any work in Botswana in the near future.

MOZAMBIQUE

The Company has decided to relinquish its interest in the early-stage Balama project in order to focus its efforts on Tanzania and finding partners for the Namibian projects.

CORPORATE

The Company has completed two financings, totalling $10,350,000, in calendar 2008, with the bulk of proceeds earmarked for the advancement of the SMP project in Tanzania.

As of the latest quarterly financial report, the Company had $9.4 million in working capital, of which $8.6 million was cash. The Company is well funded for its current work programmes, and expects to continue to generate constant news flow of drilling results from its SMP drill programme.

There was a warrant expiry on August 19, 2008. As a result of this the Company now has 50,114,550 shares issued, and 7,040,000 warrants (priced at $0.85 - $1.25) outstanding, all of which expire in 2010.

The Company held its AGM on August 27, 2008 and all resolutions were approved unanimously (see the SEDAR filing of the Information Circular, dated July 25, 2008).

At the subsequent Board of Directors meeting the following resolutions were adopted:
  1. Grenville Thomas was re-appointed Chairman of the Board.
  2. The Audit Committee, comprising Cliff Davis (Chairman), Stephen Leahy, and Richard Williams, was appointed.
  3. The Compensation Committee, comprising Cliff Davis, Grenville Thomas, and Stephen Leahy, was re-appointed.
Officers of the Company comprise Chris MacKenzie (Chief Operating Officer), Richard Williams (Chief Executive Officer), Andrew MacRitchie (Chief Financial Officer), and Stewart Lockwood (Corporate Secretary).

Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, supervises the exploration at the SMP project, including the sampling and quality assurance / quality control programmes, and has reviewed the contents of this news release. Data relating to drill hole intercepts and metallurgical results referred to in this shareholder update were previously reported in a series of press releases available on the Company's website at www.helioresource.com.

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 9 of its Namibian licences to Desert Minerals (UK) Ltd. and continues to pursue joint venture partners for its other projects in Namibia.

For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to richard@helioresource.com or irene@helioresource.com.

ON BEHALF OF THE BOARD OF DIRECTORS
HELIO RESOURCE CORP

"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.
 
 

You can return to the Top of this page