|Mon Jan 26, 2009|
Helio Reports Drill Results from the Porcupine Target, SMP Gold Project, Tanzania
44.1m @ 2.1g/t Au
37.0m @ 1.6g/t Au
31.7m @ 1.2g/t Au
27.5m @ 1.0g/t Au
16.8m @ 1.0g/t Au
January 26, 2009
Porcupine Target Drilling Update
Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to report the latest drill results from eleven diamond drill holes from the Porcupine Target at the SMP Gold Project, Lupa Goldfields, SW Tanzania. The results confirm management's view that Porcupine has the potential to host a significant open-pittable gold resource, in addition to the potential significant gold resource the company is testing at the Kenge Target (Company Press Release dated January 15, 2009).
2008 Reverse Circulation Drilling Programme Summary
As mentioned previously (Company Press Release November 10, 2008) a limited RC drill programme was initiated to test the Porcupine Target over a 1.5km strike length. Due to mechanical issues, drill rig breakdowns, and the onset of the rainy season, the programme has been suspended, and is planned to resume in April.
Original sampling of hole GPD2 returned an intersection of 49.8m @ 1.7g/t Au (Company Press Release dated July 21, 2008). The Company recently re-sampled the remaining half-core from this mineralised intercept as it comprised extensively fractured and broken core. This exercise was undertaken to give an indication of the potential grade variation. The re-sampled intersection value is 49.8m @ 2.0g/t Au, an increase in gold content of 18%.
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 (see news releases dated December 19, 2005, September 11, 2006, and October 16, 2008). 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 May 23, 2007). The thickest mineralised intercept at Kenge is from the Mbenge Zone (48.7m @ 2.1g/t Au - Company press release 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 July 21, 2008). A plan map of the project area, showing the respective locations of all of the targets generated to date is attached. The Company is awaiting further drill results from the Porcupine Target (10 drill holes), the Kenge Target (43 drill holes) and the Konokono Target (5 drill holes). All three of these targets are highlighted on the attached map.
Recently, the Company announced 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 August 11, 2008).
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. Unless otherwise stated all drill holes were oriented at -48º or -60º and were drilled perpendicular towards the main structural trend. Intercepts are reported as drilled widths, and estimated true widths vary from 65-98%+ of drilled width. Core was halved with a rock saw and sample lengths between 0.3m and 2.0m 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. Unless otherwise stated 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'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 .
ON BEHALF OF THE BOARD OF DIRECTORS
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Table of Drill Intercepts* Not 0.5g/t cut-off
Plan Map of the SMP Gold Project showing the Locations of the Porcupine, Kenge and Konokono Targets.
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