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 Tue Nov 24, 2009
SMP Gold Project: Diamond Drilling at Porcupine Continues to Intersect Wide Zones of Gold Mineralisation

 

Reconnaissance RC Drilling Extends Porcupine Main Zone 500m to the NE and Finds Gold Mineralisation over a 3,500m Distance Between the Porcupine and Gap Targets


Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to provide the latest results from diamond drilling at the Porcupine Target, and results from a reconnaissance reverse circulation ("RC") drill programme conducted along the Porcupine-Gap structural corridor at the SMP gold project in the Lupa Goldfields, SW Tanzania.

Porcupine Diamond Drilling

Five diamond drill holes (GPD43, GPD50 and GPD52 to 54) are reported in the table below. These holes were drilled into the Porcupine Main Zone, where recent diamond drilling intersected up to 53m grading 2.9g/t Au and 28m grading 5.1g/t Au (see Company press release dated October 14, 2009).

Hole No. From Width (m) Grade (g/t Au)
GPD43 186.0m 41 0.8
GPD50 187.0m 38 1.5
GPD52 271.0m 70 0.8
GPD53 80.0m 2 8.0
and 206.0m 31 0.8
GPD54 139.0m 2. 7.3
  240.0m 34 0.9

A long section of the Porcupine Main Zone drilling is attached below and is also available on the company's website at www.helioresource.com/i/pdf/2009-11-24_NRM1.pdf

Significantly, GPD52 (70m @ 0.8g/t Au) is the easternmost drill-hole drilled at Porcupine and confirms that wide zones of gold mineralisation continue to the east.

The Porcupine Main Zone has been successfully drill-tested over a 450m strike length, and from surface to a vertical depth of 250m. It remains open along strike to the east and west, and to depth.

Gold mineralisation at Porcupine Main Zone is associated with multiple sheeted quartz veins within a structural zone that ranges up to 90m wide. Metallurgical testwork on mineralised diamond drill core from Porcupine indicates gold recoveries up to 95% through conventional processes (see Company news release dated September 9, 2009).

Reconnaissance RC Drill Programme

Six widely spaced north-south lines (each line spaced 300m -- 500m apart) of RC drill holes were completed, covering a 3.5km section between the Porcupine and Gap Targets (see map below or on the Company's website at www.helioresource.com/i/pdf/2009-11-24_NRM2.pdf ).

The RC drill programme was designed to test whether gold mineralisation occurred between Porcupine and Gap -- an area with very limited outcrop.

The drilling identified multiple zones of gold mineralisation with occasional cores of higher-grade material. The most significant results obtained from each of the lines are reported in the table below.

RC drill-hole GPR35, on Line 2, intersected 18m grading 0.9g/t Au. Management believes this is significant for the following reasons:
  1. It is the first drilling completed to the NE of Porcupine Main Zone.

  2. The intercept in GPR 35 is located approximately 500m on-strike to the NE of the Main Zone therefore potentially doubling the strike length of this zone. The Company plans to carry out follow-up diamond drilling in this area in the near future.

  3. Experience from the Porcupine Main Zone (see long section below or on the Company's website) shows that the type of intercept seen in GPR35 is characteristic of the thinner, lower-grade envelopes that occur proximal to wider and higher-grade zones of mineralisation.
Table of Significant Drill Intercepts

Hole No. Target Intersection
GPR27 Line 1 42m @ 0.2g/t Au from 20m*
GPR29 Line 1 50m @ 0.2g/t Au from 30m*
GPR29 Line 1 incl. 10m @ 0.6g/t Au from 30m
GPR31 Line 1 4m @ 0.8g/t Au from 80m
GPR107 Line 1 10m @ 0.3g/t Au from 60m*
GPR111 Line 1 2m @ 0.6g/t Au from 26m
GPR35 Line 2 18m @ 0.9g/t Au from 26m
GPR51 Line 3 2m @ 1.9g/t Au from 68m
GPR52 Line 3 2m @ 2.1g/t Au from 12m
GPR49 Line 3 18m @ 0.3g/t Au from 18m*
GPR53 Line 4 8m @ 0.3g/t Au from 30m*
GPR54 Line 4 10m @ 0.3g/t Au from 32m*
GPR58 Line 4 8m @ 0.3g/t Au from 36m*
GPR75 Line 5 26m @ 0.3g/t Au from 36m*
GPR85 Line 6 2m @ 6.3g/t Au from 48m
GPR88 Line 6 10m @ 0.6g/t Au from 0m (open)
GPR91 Line 6 8m @ 0.8g/t Au from 24m
GPR93 Line 6 4m @ 4.2g/t Au from 46m
* = 0.2g/t Au cut-off

A map displaying the location of the RC drill fences and the location of the significant drill intercepts in relation to the Porcupine Main Zone is shown below and is also available at www.helioresource.com/i/pdf/2009-11-24_NRM2.pdf.

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 35km strike length of the Saza Shear Zone.

Since June 2006, the Company has drill-tested thirteen targets, nine of which are hosted along the Saza Shear Zone. Twelve of the targets have intersected bedrock-hosted gold mineralisation, the most advanced being the Porcupine and Kenge Targets (see the Corporate Presentation on the Home Page of the Company's website at www.helioresource.com).

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. Diamond drill holes were oriented perpendicular to the main mineralised zone. Intercepts are reported as drilled widths, true width is estimated to be 60-90% of reported width. Diamond drill samples were cut with a rock saw, and sampled at 1m or 2m intervals, with the counterpart half-core being retained for reference. RC drill holes were oriented across the main mapped structural trend. RC samples were riffle split and made up into 2m composites, and split, with a counterpart sample being retained for reference. Samples were submitted to the lab with internal QA/QC checks including the use of blanks and standards (ave. 1 every 17 samples) and duplicates (ave. 1 every 25 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 Au cut-off and may include some internal waste. The highest grade from any individual 2m sample over the whole RC programme was 6.3g/t Au.

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" "Chris MacKenzie"
Richard D. Williams, P.Geo. Christopher J. MacKenzie, C.Geol.
CEO COO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.




 
 

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