|Thu Jan 13, 2011|
Plans and Objectives for Tanzania and Namibia
Helio Resource Corp (TSX-V: HRC) is pleased to provide this update on the Company's objectives for 2011, including drill programmes planned for both the SMP Gold Project in Tanzania and the Damara Gold Project in Namibia.
Plans and Objectives for 2011
SMP Gold Project - Tanzania
2010 In Review
SMP Gold Project - Tanzania
2010 was a very significant year in the growth of Helio, with the release of the Company's first NI 43-101 compliant resource statement from the SMP Gold Project in Tanzania (for details, see News Release dated November 30, 2010).
The unrestrained resource calculation reported a Measured and Indicated Resource of 589,497 ounces at 1.51g/t Au plus an Inferred Resource of 353,097 ounces at 1.12g/t Au at a cut off grade of 0.3g/t.
The resource comes from only 2 of at least 30 mineralised targets identified on the SMP Project, namely Porcupine and Kenge. Both targets have very strong potential for resource expansion (see Figures 1 and 2 below), which will be the initial focus of the 2011 drill programme.
For instance, at Porcupine (Figure 1), the Quill Zone (up to 14m at 4.5g/t Au) is inferred to link up to the NE Zone, representing a potential addition of an 800m strike length extension of mineralisation. The Porcupine Main Zone (PMZ) is open along strike to the NE and SW, as well as to depth (the four deepest drill intercepts at the PMZ (GPD 48, 49, 51, and 52) intersected 92m at 0.9g/t Au, 28m at 5.1g/t Au, 53m at 2.9g/t Au and 70m at 0.8g/t Au, respectively).
Also in 2010, drilling at the western portion of the PMZ led to the discovery of the Footwall Zone beneath the PMZ (intercepts of 44m at 2.0g/t Au and 19m at 2.6g/t Au) (see Figure 3). The Footwall Zone is open and requires further drilling to determine the size and geometry of this new target.
The SMP Gold Project covers an area of 238km2. Gold mineralisation has been identified in 30 targets within the project area. Two of these targets, Porcupine and Kenge, have been advanced to the resource definition stage, and both still have potential to grow significantly. Mineralisation at all 30 targets outcrops at surface, and varies from narrow, high grade gold mineralisation hosted in quartz veins and shear zones, to wide zones (up to 90m in width) of lower grade, bulk mineable / open pittable mineralisation.
Helio owns a 100% interest in four of five licences, subject to a 2% NSR to the vendors (Tanzanian small mining companies), and the Company is in the process of earning a 100% interest in the fifth licence.
Damara Gold Project (DGP) - Namibia
On October 5, 2010 the Company reported that it had terminated an agreement on its DGP licences in Namibia (see Figure 4), and that these licences had reverted back 100% to Helio's ownership. Helio's four exploration licences, covering 3,960km2, are located between AngloGold Ashanti's Navachab gold mine and Auryx Gold's Otjikoto project.
Between October and the end of 2010, significant resources have been dedicated to reviewing historic exploration data, field sampling, mapping, compiling targets and generating work programmes for 2011. What is clearly evident from this work is that the DGP licences have the same geology and same styles of gold mineralisation as that found at AngloGold Ashanti's Navachab gold mine, located 20km west of the DGP (Figure 5).
The Navachab Gold Mine has been in production since 1989, producing approximately 1.5 million ounces of gold, and has stated remaining reserves / resources in the order of an additional 3.7 million ounces. AngloGold Ashanti's objective over the next 5 years is to add a further 2 million ounces to the resource base (AngloGold Ashanti 2009 reserve / resource report).
Auryx Gold Corp.'s Otjikoto Gold Project, located 150km northeast of the DGP has an indicated + inferred resource in the order of 1.9Moz gold, and has excellent potential to increase upon the resource base (Auryx Gold website).
Systematic exploration for gold deposits in the Damara belt of Namibia has been limited in scope and it is only recently, with the significant growth of the resource base at Navachab, and the recognition of the potential at Otjikoto, that exploration companies and the investment community are beginning to associate Namibia with the opportunity to discover world-class gold deposits. The region is clearly under-explored, and Helio is very well positioned to take advantage of this fact through the DGP ground holdings.
Several areas within the westernmost two licences held by Helio have received a combination of shallow drill testing, rock and soil sampling, and limited channel sampling (see Company press release dated October 5, 2010). Highlights of previous work conducted on Helio's DGP licences include 17m grading 2.8g/t Au; 8m grading 3.0g/t Au; 6m grading 6.4g/t Au (open); 5m grading 11.3g/t Au; 4m grading 8.6g/t Au (open); and 34m grading 0.9g/t Au. Results indicate the potential for both bulk-tonnage and higher-grade mineralised zones.
Figure 6 shows areas drill tested previously and highlights some of the important drill intercepts and channel samples that have never been followed up. Four key areas within the DGP have been identified as drill ready and will form part of 2011's Phase 1 exploration programme.
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 in Tanzania and the DGP Project in Namibia, including the sampling and quality assurance / quality control programmes, and has reviewed the contents of this news release.
For additional information, please contact Richard Williams at +1 604 638 8005 or by e-mail to email@example.com or Chris MacKenzie at +44 789 4237424 or by e-mail to firstname.lastname@example.org.
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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