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 Tue Jul 12, 2011
Latest drilling discovers multiple zones of gold mineralisation at Porcupine Target - SMP Gold Project, Tanzania

 
Helio Resource Corp (TSX-V: HRC) is pleased to announce the drill results from the second batch of drill holes (15 holes, including extensions of previous holes, for a total of 1,604m of diamond drilling) of this year's 20,000m drill campaign at the SMP Gold Project, Tanzania.

The drill results come from exploration of the footwall to the Porcupine Main Zone, and the area northeast of the Quill Zone.

Highlights

  • Multiple zones of gold mineralisation in the footwall of Porcupine Main Zone discovered:
    • GPD 40 - 5m grading 2.1g/t Au and 24m grading 1.1g/t Au
    • GPD 41 - 27m at 1.0g/t Au and 1m at 11.2g/t Au and 30m at 0.8g/t Au
    • GPD 94 - 19m at 1.1g/t Au
    • GPD 111 - 16.3m at 1.1g/t Au
    • GPD 112 - 34m at 0.7g/t Au
  • The footwall zones open up a large area to the west of the resource for further expansion
  • Multiple zones of mineralisation found to the NE of the Quill Target, including;
    • GPD 103 - 1m at 4.2g/t Au
    • GPD 108 - 3m at 2.6g/t Au
  • The intercepts at Quill are 250m NE of any previous drilling and remain open to the northeast.

A complete table of drill hole results is presented below.

PORCUPINE MAIN ZONE DRILLING

The drill results confirm the presence of multiple zones of mineralisation in the footwall of the main Porcupine Target. The footwall zones are open along strike to the NE and SW, and to depth.


Drill hole GPD94, which already had a reported intercept of 12m grading 2.5g/t Au (see Company press release dated June 7, 2011) was extended and intersected a second mineralised zone at depth - 19m grading 1.1g/t Au from 162m.

Subsequently, holes GPD40 and GPD41 (originally drilled in 2009) were extended and also intercepted additional zones of mineralisation (see table below).

Two additional drill holes, GPD111 (16.3m at 1.0g/t Au) and GPD112 were drilled to test the footwall zones at a shallower depth. Notably, GPD112 intercepted another zone of footwall mineralization, returning 34m grading 0.7g/t Au from 97m downhole depth - see table below.

All the updated data will be available to view as a 3D model on http://www.corebox.net/properties/smp.

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.

QUILL ZONE DRILLING

On the Quill zone, a N-S fence of drill holes was drilled across a 400m-wide shear zone 250m NE of all previous drilling. The drill fence intersected 5 discrete mineralised zones, of which GPD108 contained the best intercept; 3m grading 2.6g/t Au.

Table of Significant Drill Intercepts

Drill hole #

Zone

From (m)

Width (m)

Grade (g/t Au)

GPD40

Main

94*

5

2.1

And

 

112*

24

1.1

And

 

150

16

0.6

And

 

195

16

0.3

GPD41

Main

116*

27

1.0

And

 

160

1

11.2

And

 

210

30

0.8

GPD94

Main

67*

12

2.5

And

 

162

19

1.1

GPD101

Quill

52

1

1.0

GPD102

Quill

33

1

0.8

GPD103

Quill

59

1

4.23

GPD105

Quill

95

1

0.9

GPD106

Quill

93

2

1.1

GPD107

Quill

97

1

0.6

GPD108

Quill

29

3

2.6

GPD109

Quill

41

1

1.4

GPD111

Main

6.7

16.3

1.0

And

 

196

1

3.1

GPD112

Main

97

34

0.7

And

 

184

1

2.2

* = Previously reported intercept


Drilling Update

The Company has two diamond drill rigs working on the SMP Gold Project at present. One is currently drilling the Chura Target, located 5km west of Porcupine. Chura is a coincident gold-in-soil and magnetic anomaly that extends over a 1km distance from NW to SE. Rock samples taken from artisanal pits within the Chura Target area returned assays up to 159.0g/t Au.

The second drill rig is currently drilling 100m-spaced holes at the Gap target. Gap is a historical mine, located 2km from Porcupine, and lies on a 700m long NE-SW trending magnetic anomaly. One RC drill hole (GPR3) has been drilled into the main anomaly and this intercepted 8m grading 1.2g/t Au.

Helio is looking to add a third drill rig to the SMP programme to further explore the Konokono and Kipanga Targets. The 6.5km section running from Kipanga through Konokono to Chura covers a section of the Saza Shear Zone that is considered (along with the Porcupine -- Gap section) to be the most prospective within the SMP. The last drill hole at the Konokono Target intersected 13.1m grading 3.7g/t Au (see news release dated February 23, 2009).

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, especially Porcupine, 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. Holes were drilled at between -48º -75º. Intercepts are reported as drilled widths, true widths are estimated to be approximately 70-95% 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 richard@helioresource.com or irene@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


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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