|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
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.
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:
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.
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.
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.
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.
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:
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 firstname.lastname@example.org or email@example.com.
HELIO RESOURCE CORP
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