|Wed May 14, 2014|
Three Additional Retention Licences Granted at Helio's SMP Gold Project, Tanzania
Helio Resource Corp. (TSX-V: HRC), ("Helio" or the "Company") is pleased to announce that three more of its licences within the SMP Gold Project have been converted into Retention Licences. The Company was notified that PL2963, PL2964 and PL2965, which cover the Porcupine Resource Area (see map below), the colonial period Gap and Kwaheri mines, and numerous other exploration targets, have been approved for conversion into Retention Licences.
A Retention Licence ("RL") is the stepping stone between a Prospecting Licence and a Mining Licence. The RLs are valid for a period of 5 years and allow the Company to advance the project to a production decision. On March 25, Helio announced the successful conversion of the Saza Licence, which covers the Kenge Resource Area, into an RL.
Richard Williams, CEO of Helio stated: "This is another significant step in the development of the SMP project. As mentioned previously, Helio now has security of tenure through the pre-feasibility / feasibility stage for the two Resource Areas on the project, and shareholders / investors can see that the licence conversion process works. It is very encouraging to know that the Tanzanian government is fully supportive of our activities to date."
This is also 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 focussing on the higher grade aspect of the project. At a 1g/t cut off, the resource reported 9.44Mt grading 2.1g/t gold (628,000 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 higher grade ounces with the potential for underground mining -- at a 3g/t cut-off the Indicated Resource reported 2.05Mt grading 5g/t gold Indicated (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 Project in Namibia.
ON BEHALF OF THE BOARD OF DIRECTORS HELIO
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", "probable", "potential", "indicated", "inferred" 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, and the security of future tenure of licenses to explore, develop and mine. 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 direct 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.
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