|Tue Oct 11, 2011|
First Diamond Drilling Results at the Gap Target, SMP Gold Project, Tanzania, Confirm Gold Mineralisation Over 1.2Km+ Strike Length
Helio Resource Corp (TSX-V: HRC) is pleased to report the discovery of a new zone of bedrock gold mineralisation at the Gap target, SMP Gold Project, in southwestern Tanzania. The zone which is at least 1.2km long, lies along the same structure that hosted the Gap Mine, a small pre-1950's gold mine that reportedly had grades averaging around 15g/t Au (Map 2).
This discovery follows similar success at the Chura Target (see news release dated September 22, 2011). The Gap and Chura targets are located 4km west and 1.7km east of the Porcupine Deposit, respectively. The recent drilling confirms management's belief that this area represents excellent potential for adding new ounces to the existing resource inventory at the SMP Gold Project.
The Gap Target is located approximately 1.7km north-east of the Porcupine target (see Map 1). The target consists of a strong, 2km long, magnetic anomaly associated with reactivated shear zones along the contact between granitic and dioritic intrusive rocks.
Gold mineralisation occurs in an altered zone of disseminated pyrite and quartz veining hosted by granitic units close to a geological contact with a dioritic footwall unit. In this respect the mineralisation is analogous to that at Porcupine. The zone dips steeply south-southeast.
A total of nine diamond drill holes (1,280m) were completed at 100m line spacing across part of the main magnetic target. Results are presented in the table below:
The locations of the holes are shown on Map 2, the footprint of the Porcupine deposit resource area is also shown for scale. Holes were generally spaced 100m apart, other than GPD 128 which is 460m east of GPD 125.
It is noteworthy that the mineralised zone may thicken significantly in places along its strike length -- for example, the 15m @ 2.2g/t Au in GPD118 occurs within a 30m thick zone of mineralisation > 0.1g/t Au. This indicates good potential to define thicker shoots with an increased drill density.
More drilling is required in the area to determine the true potential of the zone, but the Company believes the target has the potential to add significantly to the global resource at the SMP Gold project.
The company recently completed a programme of infill and extension diamond drill holes at the Porcupine and Quill targets.
An RC rig also recently completed a programme to define the resource potential of the Tumbili target (see Map 1). The RC rig is currently drilling on the newly-granted Saza East Licence, where the company aims to add to the resource potential of the Kipanga-Konokono-Chura corridor (Map 1).
Results from all the drilling mentioned above will be released as soon as they are available.
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
The Company would like to provide an update on progress at the Damara Gold Project (DGP) in central Namibia (see Company press release dated August 24, 2011). A bottleneck in reporting of samples has been caused due to a number of lab batches, which relate to drill hole samples from the Gold Kop target, failing Helio's rigorous internal QA/QC programme. As a result, the Company is working closely with the laboratory concerned (Intertek Genalysis in Johannesburg) to ensure that compliance is timeously achieved. It is anticipated that the problematic assays will be reported within two weeks. However, additional batches of samples already at the lab may take another month to report since no work is currently being done on them pending resolution of the current QA/QC issue.
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 and approved the contents of this news release. Drill holes were all drilled at -48º northwards, with the exception of GPD117, which was drilled at -75º northwards from the same collar as GPD116, and which failed to intercept the mineralisation due to the hole being stopped too soon. Intercepts are reported as drilled widths, more drilling is required to confirm true 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. Any individual assays over 15g/t Au are highlighted.
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.
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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