|Thu Sep 13, 2012|
Helio Reports Preliminary Economic Assessment of the Porcupine and Kenge Resource Areas - SMP Gold Project, Tanzania
800,000 Ounce Production Upside - NPV of US $146.1M (IRR of 23%)
Vancouver, September 13, 2012
Helio Resource Corp (TSX-V: HRC) is pleased to report that it has received an independent NI 43-101 compliant Preliminary Economic Assessment ("PEA") for the SMP Gold Project in Tanzania. The PEA was conducted on Measured and Indicated Resources only, with production envisaged from the Porcupine, Kenge and Mbenge targets.
It is also important to note that this PEA evaluates only 3 of the 30 targets within the SMP Gold Project area.
The PEA was conducted by SRK Consulting (Australia) Pty. Ltd., of Perth, Australia ("SRK"). As required, the full NI 43-101 compliant technical report will be published and filed on SEDAR within 45 days of this news release.
SRK has provided two scenarios for the PEA, a Base-Case outcome, and an Upside outcome. The Upside case requires geotechnical work to confirm that a pit wall angle of 55 degrees is viable.
Summary (all monetary values in US$)
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Chris MacKenzie, the Company's COO, states: "We are very pleased with the outcome of the PEA which demonstrates the potential economic viability of the current resource. We will use this as the basis for advancing the project through pre-feasibility. The Upside Case requires confirmation that the enclosing rock can support a 55 degree pit wall. Given that the country rock is competent massive granite we believe this is eminently possible. In addition to the study, we have identified seven areas of high-grade gold mineralisation that are not included in the resource base - these will be the focus for ongoing exploration, with the objective of adding higher-grade ounces to the resource base."
Parameters of the PEA
The PEA concludes that the project is most sensitive to changes in gold price. The following table demonstrates the sensitivity of the PEA to gold price.
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According to NI 43-101 guidelines, mineral resources that are not mineral reserves do not have demonstrated economic viability but may have reasonable potential for economic extraction.
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. Four of these targets, Porcupine, Kenge, Konokono and Tumbili, have been advanced to the resource stage and all still have potential to grow significantly. In February 2012, SRK Consulting (Australia) Pty. Ltd. produced an independent NI 43-101 compliant Mineral Resource estimate for the SMP Gold Project. The estimate reports 1,020,000 ounces in the Measured and Indicated category (24.1Mt grading 1.32g/t Au), plus 240,000 ounces in the Inferred category (7.2Mt grading 1.05g/t Au).
In November 2010, Golder Associates (UK) Ltd. provided an initial NI43-101 compliant Mineral Resource estimate for the SMP. The restrained estimate at a 0.5g/t Au cut-off reports 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 110m+ 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.
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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