|Thu Oct 16, 2008|
Helio Acquires Strategic Licence Adjacent to the SMP Gold Project, Tanzania
Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to report that it has signed a binding Letter of Intent with Thorntree Minerals Limited, a private Tanzanian mining company, whereby Helio can earn a 100% interest, subject to a 2% Royalty, in the 34km2 Saza West licence, located immediately west of Helio's SMP Gold Project in the Lupa Goldfields, SW Tanzania.
Highlights of the transaction include the following:
To vest its interest, Helio must make optional share and cash payments to Thorntree totalling C$25,000 and 1,025,000 shares over a 4 year period, as follows:
* - The due diligence period expires November 10, 2008.
ABOUT THE SMP GOLD PROJECT
Helio, through its 100% owned subsidiary BAFEX Tanzania Ltd., can earn a 100% interest in five contiguous licences, which cover a 34km strike length of the Saza Shear Zone and numerous prospective cross-cutting structures (see news releases dated dated December 19, 2005 and dated September 11, 2006). The project covers 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 in the Main Zone (Company press release dated dated May 23, 2007).The thickest mineralised intercept at Kenge is from the Mbenge Zone (48.7m @ 2.1g/t Au - Company press release dated dated September 8, 2008). The thickest mineralised intercept to date at the SMP was drilled at the Porcupine target (52.2m grading 3.3g/t Au - Company press release dated dated July 21, 2008).
The Company has also received excellent metallurgical results from the SMP project, where recoveries of up to 96% were achieved by conventional processes at the Kenge target (Company press release dated August 11, 2008).
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 or .
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