|Tue Jun 7, 2011|
First drill results of 2011 Drill Programme confirm extension of mineralisation at Porcupine Target Resource - SMP Gold Project, Tanzania
|Up to 20m at 1.8g/t Au, 9m at 3.4g/t Au and 12m at 2.5g/t Au Second Drill Rig Added to Programme|
Helio Resource Corp (TSX-V: HRC) is pleased to announce the drill results from the first seven drill holes (for a total of 932m of diamond drilling) of this year's 20,000m drill campaign at the SMP gold project, Tanzania.
The drill results confirm a significant extension of the mineralisation around the Porcupine Target resource.
Porcupine was one of the only two targets included in the initial NI 43-101 compliant resource calculation published in November 2010 (see news release dated November 30, 2010). Gold mineralisation has been identified in a total of 30 targets in the SMP project area.
Results as reported come from the Main and Quill Zones, both part of the Porcupine Target (see attached map).
A complete table of drill hole results is presented below.
At the Main zone, two holes, GPD94 and GPD95, were drilled 70m to the SW of the existing resource model, and therefore extend the boundaries of the resource, which remains open along strike to the SW and NE. So far this zone has only been tested to 50m below surface. The zone is still open to the SW and down-dip and additional drilling is planned to commence shortly.
The 5 drill holes reported from the Quill Zone test a 150m section of the mineralised zone, and will also be added to the resource model in due course. The NE-striking NW-dipping Quill Zone has now been traced for over 300m along strike. The Quill Zone, located 200m NW of the Main Zone, is open in both directions.
A second drill rig has been added to the programme to increase the rate of resource expansion and discovery.
About the SMP Gold Project
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 stage and both still have potential to grow significantly. The unrestrained resource calculation as released in November 2010 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.
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
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. Two drill holes were drilled off each pad, one at -48º and a second one at -65º to -75º. Intercepts are reported as drilled widths, true widths are estimated to be approximately 80-95% of the drilled widths. Continuous 1m samples were taken every through the main mineralised zones, and 2m samples were taken outside this. Samples were split with a core saw and one half was retained on site. All 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. Weighted average intercepts are calculated using a 0.5g/t Au cut-off, unless otherwise stated and may include some mineralised waste.
For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to email@example.com or firstname.lastname@example.org.
ON BEHALF OF THE BOARD OF DIRECTORS
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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