|Wed Sep 29, 2010|
SMP Gold Project: NI 43-101 Resource Pending for the Porcupine and Kenge Targets
September 29, 2010
Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to provide the following update from the SMP Gold Project in the Lupa Goldfields, SW Tanzania.
The main topics of this update include:
The resource report is expected to be published before the end of October 2010 and will cover the Porcupine and Kenge targets (see map below). These are just two out of thirty known gold-bearing targets within the 238km2 SMP Gold Project area.
The Company has delivered all of the drill hole data from the Porcupine and Kenge targets to Golder Associates (U.K.) for the calculation of an independent resource statement.
The Porcupine Target
The bulk of the Porcupine resource will come from Porcupine Main Zone (PMZ) which has been drilled over a strike length of approximately 500m, and from surface to around 300m down-dip. Mineralised intercepts range between 24m grading 1.1g/t Au and 52m grading 3.7g/t Au. The exact location of the Porcupine Main Zone and associated long section is shown in the maps at the bottom of this news release.
Gold mineralisation is associated with quartz veins and veinlets that occur as sheeted veins and vein stockwork arrays within a granitic host rock. Gold occurs primarily as free gold in association with pyrite. Metallurgical testwork indicates recoveries of up to 95% through conventional processes.
The Kenge Target comprises the NW, Main, SE, Snakebite, Mbenge and Mbenge East zones of mineralisation. The Target area covers approximately 2,000m of strike length, with intersections ranging up to 22m grading 6.9g/t Au at the Kenge Main Zone and 48m grading 2.1g/t Au at Mbenge. The zones average approximately 15-20m in width and have been drilled to around 200m down-dip. All five zones of the Kenge Target are shown on the map at the bottom of this news release.
Metallurgical testwork indicates gold recoveries of up to 96% through conventional processes.
The resource estimate will include drill results from 230 drill holes totalling approximately 31,200m (15% reverse circulation [RC] and the remainder diamond drilling).
New Target Generation
The Company has employed a well-respected consultant structural geologist to determine the timing and controls on gold mineralisation in relation to the main structures in the region. This work has led to new ideas about the localisation of mineralisation at the SMP project, and will form an intrinsic part of the ongoing exploration programme.
Plans for 2010/2011
The Company completed one financing ($6,200,000) in calendar 2010, with the bulk of proceeds used for the advancement of the SMP project in Tanzania.
The financing resulted in IFC, a member of the World Bank, becoming a major shareholder in the Company, owning ~14% of the issued and outstanding share capital.
The Company held its AGM on August 31, 2010 and all resolutions were approved unanimously (see the SEDAR filing of the Information Circular, dated August 6, 2010).
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. For more information regarding previously reported intercepts on the Porcupine and Kenge targets see the table of drill intercepts posted on the Company's website at http://www.helioresource.com/s/Tanzania.asp?ReportID=283995 or for a representation in 3D go to http://www.corebox.net/properties/smp/.
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.
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.
View News Release in PDF Format:
You can return to the Top of this page