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News Releases
 Wed Apr 22, 2009
Kenge Target Diamond Drill Results, SMP Gold Project: up to 6.5m @ 9.9g/t Au and 19.2m @ 3.1 g/t Au

 
Plans for 2009

Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to provide an update on its corporate and exploration activities, and its exploration plans for 2009.

2008 Drilling Results - Kenge Target

A total of 34 diamond drill holes are reported, representing all remaining drill results from the 2008 diamond drill programme. Holes were drilled into the Kenge Main Zone, primarily as infill drill holes. Drilling extended gold mineralisation to a depth of over 260m, and mineralisation remains open to depth.

Highlight from this batch of drill holes includes:

Hole #

From (m)

Width (m)

Grade - g/t Au

Comment

SZD158

9.2

6.5

9.9

 

Incl.

12.5

0.6

73.4

 

SZD144

15.1

19.2

3.1

 

SZD114

162.3

11.7

1.3

 

SZD115

190.4

9.5

1.4

 

SZD116

216.9

12.6

1.3

 

SZD117

137.3

15.1

2.2

 

SZD119

163.9

11

2.0

 

SZD120

169.5

13.5

1.5

 

SZD121

187.3

4.7

3.6

 

SZD140

227.3

9.8

2.4

 

SZD145

11.53

25.9

1.2

Open

SZD148

16.7

14.3

1.7

 

SZD153

73.8

24.5

0.9

 

SZD157

3.0

12.5

2.2

Open

* non-sequential hole numbers were already released

A complete list of all significant drill results and hole locations from all drilling completed at the SMP Gold Project by the Company to date has been posted on the Company's website at http://www.helioresource.com/i/pdf/2009-04-22_SMP_DHIT.pdf and http://www.helioresource.com/i/pdf/2009-04-22_SMP_DHLT.pdf.

SHAREHOLDER UPDATE & PLANS FOR 2009


CORPORATE

Having completed the recently announced financing (see news dated April 8, 2009), the Company now has $6.8M cash in the treasury.

Management believes that the Company's ability to secure these funds in a difficult market environment for junior exploration companies is a reflection of the quality of the SMP Gold Project. The Company intends to spend the majority of these funds advancing the SMP Gold Project in Tanzania.

As a result of the funding the company now has 65,438,792 shares issued and outstanding. In addition to Dundee Resources Limited (17% shareholder), the Company also welcomes Macquarie Bank Limited as a new significant shareholder (10.7% shareholder).

TANZANIA

SMP Gold Project Lupa Goldfields

Since starting exploration at the SMP Gold Project in early 2006, the Company has assembled a land package totalling 238km2, which covers a 35km strike length of the main known gold-bearing structure in the Lupa Goldfields, the Saza Shear Zone.

To date, the Company has diamond drill tested three widely-spaced targets, Porcupine, Kenge and Konokono, along 13km of the structure. In addition the Company has tested eight other targets with reconnaissance RC (reverse circulation) drilling -- see attached map showing the location of the targets drilled to date.

In total, the Company has completed 37,103m of diamond drilling (comprising 8,387m in 41 drill holes at Porcupine, 27,796m in 180 drill holes at Kenge, and 920m in 5 drill holes at Konokono), and 11,556m of reconnaissance and infill RC drilling. The bulk of the ongoing resource drilling will utilise RC drill rigs which are now more readily available.

In addition, the Company has identified numerous other targets, through a combination of geological mapping, geochemical soil sampling, and geophysics, which warrant drill testing. Many of these high priority targets have not yet been drill-tested, primarily due to more difficult access. Drilling of these new targets is planned during 2009.

Porcupine Target Overview
  • Geological, geochemical, and geophysical information indicates that the Porcupine Target has an east-west strike length of at least 1,000m.
  • Geophysical evidence from the Gap, Reefski, and Panya targets (see Target Location Map attached), which extend a further 7km east of Porcupine, indicates that the target has the potential to be several kilometres long.
  • Gold mineralisation is associated with sheeted quartz veins hosted within a shear zone cutting granitic host rocks.
  • The target has been drill tested from surface to a down dip depth of 230m, and mineralisation remains open to depth.
  • To date 41 diamond drill holes have been completed, and have tested a strike length of 700m.
  • Mineralisation remains open to the east and to the west.
  • The mineralised zones vary in thickness, reaching up to 60m in width. The best intercepts recorded to date include 52.2m @ 3.3g/t Au, 49.6m @ 3.3g/t Au, and 42.3m @ 4.0g/t Au.
Porcupine Target - Plans for 2009
  • An initial 1,000m diamond drilling programme is planned to commence in May 2009. This initial programme will focus on infill drilling in and around the areas of existing diamond drilling.
  • 5,000m of RC drilling is planned to commence in May or June, 2009. The RC drill programme is designed to extend mineralisation along strike to the east and west of the Porcupine Target and to test targets located between Porcupine and Gap.
  • A metallurgical sample from diamond drill core will be submitted for testwork as soon as possible.
Kenge Target Overview
  • The Kenge Target comprises 5 zones of outcropping mineralisation, which together have an aggregate strike length of over 2,000m (see attached plan map of the Kenge Target).
  • Gold mineralisation is hosted within a southwest-dipping shear zone located along the contact between granitic and dioritic wall rocks.
  • The gold, associated with quartz veins, sericite and pyrite, occurs principally as free gold, which accounts for the high recovery rates -- up to 96% -- recorded from the metallurgical testwork (see news releases dated August 8, 2008, and full metallurgical report at http://www.helioresource.com/i/pdf/SGS-Metallurgical-Aug2008.pdf).
  • The mineralised zones, namely Kenge NW, Kenge Main, Kenge SE, Snakebite, and Mbenge, have been drilled tested from surface down to a depth of ~260m below surface.
  • Drilling has recently shown that the NW and Main zones are one continuous zone of mineralisation.
  • Gold mineralisation is open to depth in all zones.
  • The mineralised zones vary in thickness from 1m up to almost 50m wide, they all outcrop and are all potentially open-pittable.
  • To date, 180 diamond drill holes have been completed on the five zones.
  • The best mineralised intercepts for each of the zones are:
    • 18m at 2.7g/t Au -- NW Zone
    • 22m at 6.9g/t Au -- Main Zone
    • 21.5m at 3.6g/t Au -- SE Zone
    • 8m at 20.8g/t Au -- Snakebite
    • 48m at 2.1g/t Au -- Mbenge
  • Metallurgical results from the Kenge Target are very positive -- up to 96% recovery of gold from conventional gravity and cyanidation processes.
Kenge Target - Plans for 2009
  • Approximately 3,000m of RC drilling is required to determine the strike extent of the Mbenge zone mineralisation, which remains open to the east. Reconnaissance RC drilling from 2006 intersected gold mineralisation 500m east of the most recent diamond drilling, suggesting that the strike length of the Kenge Target could increase to at least 2,500m.
  • Further metallurgical testwork will be undertaken to determine if the process can be optimised, whilst maintaining the high gold recoveries.
SMP Project - Other Activities for 2009
  • Soil samples from the Saza West licence have been collected and submitted to the lab for analysis. Results will guide future work on this licence, which was the Company's most recent addition to the SMP Project landholdings (see news release dated October 16, 2008).
  • Initial reconnaissance RC drill testing of other high-priority targets (5,000m) will be conducted upon completion of the Porcupine RC drill programme.
  • Complete an initial resource estimate by the end of 2009.
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. Most drill holes were oriented at -48º and were drilled perpendicular towards the main structural trend. Intercepts are reported as drilled widths, and estimated true widths vary from 70-90% 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 11 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 +1 604 638 8005 or by e-mail to richard@helioresource.com.

ON BEHALF OF THE BOARD OF DIRECTORS
"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.

 
 

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