News
Show printable version of 'Retention Licence Granted at Helio's SMP Gold Proj...' in a New Window
News Releases
 Fri Apr 11, 2014
Retention Licence Granted at Helio's SMP Gold Project, Tanzania

 
Helio Resource Corp. (TSX-V:HRC), ("Helio" or the "Company") is pleased to announce that licence PL2580, which covers the Kenge Resource Area on the SMP Gold Project, has been converted into a Retention Licence (see map below). The Company was notified of the conversion by way of a letter from the Ministry of Energy and Minerals of the United Republic of Tanzania dated March 21, 2014.

A Retention Licence ("RL") is the stepping stone between a Prospecting Licence and a Mining Licence. The RL is valid for a period of 5 years and allows the Company to advance the project to a production decision.

Richard Williams, CEO of Helio, confirmed that this is a major milestone for the Company as it provides security of tenure through the pre-feasibility / feasibility state for the project. "It allows the Company to commit resources to the development of the SMP Project, knowing that the Tanzanian government is fully supportive of our activities to date. Shareholders can feel confident the licence process works", he said.

This is a positive development for the region, which currently has one gold mine in production. Shanta Gold, a UK listed gold miner, commissioned the New Luika Mine in 2012, and produced 64,000 ounces of gold in 2013. Guidance for 2014 is for production of 80,000 ounces of gold at a cash cost of $750 / ounce. The New Luika mine is located 5km west of the Kenge Resource Area (see map below).

Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, has reviewed and approved the contents of this news release.


About the SMP Gold Project

The SMP Gold Project covers a 238km2 area in the Lupa Goldfield, SW Tanzania.

On February 3, 2014 the Company released a new resource calculation from the Kenge and Porcupine Resource Areas, which focused on the higher grade aspect of the project. At a 1g/t cut off, the Resource reported 9.45Mt grading 2.1g/t gold (627,000 ounces) in the Indicated category and a further 3.62Mt grading 1.5g/t gold Inferred (180,000 ounces). The resource work also looked at the potential for higher grade ounces with potential for underground mining -- at a 3g/t cut-off the Indicated Resource reported 2.05Mt grading 5g/t gold (332,000 ounces) and 0.09Mt grading 5.21g/t Au Inferred (16,000 ounces).

Metallurgical testwork indicated recoveries of up to 96% using a gravity and cyanidation process -- see http://www.helioresource.com/s/TechnicalReports.asp for all technical reports.

About Helio Resource Corp.

Helio Resource Corp. is a resource company focused on advancing the 100% owned SMP Gold Project in Tanzania to a production decision, and outlining the resource potential at the DGP Gold and Tin Project in Namibia.

For Additional Information, Please Contact:

Richard Williams
richard@helioresource.com
T: +1 604 638 8005


ON BEHALF OF THE BOARD OF DIRECTORS HELIO

"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.

Statements Regarding Forward-Looking Information
Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.


 
 

You can return to the Top of this page