|Tue Jan 10, 2012|
Helio Reports Drill Results from the Tumbili Target, SMP Gold Project, Tanzania
The 2011 drilling was intended to infill and extend the known mineralisation at Tumbili. A total of 36 holes (SSR17-SSR52 - 3,210m) were drilled on five drill fence lines 200-400m apart. Drilling at Tumbili now covers 1,400m of strike at 200m-300m spacings, as shown on Map 2 below. The drilled bedrock mineralisation is open along strike to the E and W, and to depth.
The Company estimates that a further 3,000m of infill drilling is required to convert this mineralisation into a NI 43-101 compliant resource estimate.
Gold mineralisation at Tumbili is associated with sheeted quartz veins, and disseminated pyrite within a sericite-altered granitic host rock. The nature of the mineralisation is consistent with mineralisation observed at the Kenge and Porcupine targets where metallurgical test-work shows gold recoveries of up to 96%, through conventional processing techniques.
Mineralised intercepts are tabulated below:
The results of the drilling are available on the Company's website www.helioresource.com and at www.corebox.net.
Reverse Circulation (RC) drilling was also completed at the Konokono target (29 RC drill holes: 2,670m) during November 2011 - the results will be reported in due course.
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. In November 2010, Golder Associates (UK) Ltd. provided an initial NI 43-101 compliant resource estimate for the SMP. The restrained estimate at a 0.5g/t Au cut-off reported 498,075 ounces (10.94MT grading 1.41g/t Au) in the Measured and Indicated category, plus 273,847 ounces (7.06MT grading 1.2g/t Au) in the Inferred category.
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 and approved the contents of this news release. Intercepts are reported as drilled widths, more drilling is required to confirm true widths. Continuous 1m and 2m samples were taken through the main mineralised zones, with variable sampling 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 20g/t Au are highlighted.
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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