HELIO RESOURCE CORP. : http://www.helioresource.com/ : QwikReport

In Tanzania

SMP GOLD PROJECT


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PROJECT SUMMARY

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PROJECT SIZE:  23,800 Hectares (238km2)
TARGET STYLE: Orogenic and/or Intrusion-related Gold.
DRILL TARGETS:   Numerous.
TARGETS:   Multiple gold-in-soil and bedrock anomalies over a 35km length of the Saza Shear Zone (SSZ) and related structures. Six old gold mines within the project area, including the New Saza Mine which was Tanzania's second largest goldmine, producing 270,000 ounces of gold at an average grade of 7.5g/t Au between 1939 and 1956.
OWNERSHIP: 100% owned, subject to royalty.
OPERATOR: On July 23, 2014, Plinian became the operator.
LOCATION:    Lupa Goldfield, southwestern Tanzania.
GEOLOGY:    Early Proterozoic Lupa Block - mineralisation is dated at around 1.94Ga.

JULY 2018 UPDATE

Helio's SMP project comprises 8 Prospecting Licenses (PLs), 4 Retention Licences (RLs), and one licence under application. The four Retention Licences are RL 0009 (Saza), RL 0010 (Gap), RL 0011 (Kwaheri), and RL 0012 (Illunga). Under the Tanzanian Mining Act, 2010, Retention Licences were issued to projects at which a mineral resource had been identified, but the projects could not be developed to mine status by reason of technical constraints, or other economic factors which are temporary in nature.

Changes to the Mining Act 2010 were announced by the Tanzanian government in June 2017, and have resulted in the Retention Licence classification being abolished and ownership transferred to the government. The Company has been assured verbally by government officials that the Tanzanian government will not expropriate the ground covered by the Retention Licences and wants to work with the Retention Licence holders to ensure that projects are advanced to the point where a mining licence can be applied for.

The Tanzanian government has formed a Mining Commission which will make recommendations for the way forward with regards to the ground covered by Retention Licences. After consultation with ministers from the Ministry of Minerals, Helio has applied for the ground covered by the Retention Licences to be re-issued as Prospecting licences to allow the project to be advanced. However, the Commission has yet to make any recommendations or any commitment as to a date by which its recommendations will be made.

HIGHLIGHTS


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SMP Gold Project - Resource Potential

NI 43-101 RESOURCE ESTIMATE

On March 26, 2015, Helio released a new NI 43-101 compliant resource calculation for the SMP Gold Project. The purpose of the resource was to estimate new Mineral Resources at the Konokono and Gap deposits and update previous estimates for the Kenge, Mbenge, Porcupine and Snakebite deposits, where additional drilling and/or updated resource estimation methodologies have been applied (for exact location, see map above).

click here for the full report.

Metallurgical tests indicate recoveries of 94%-96% using conventional processing methods.

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SMP Gold Project Resource Estimate
Resource Classification
Average Grade (g/t Au)
Tonnes
Contained Gold (oz)
Indicated
2.4
7,539,000
590,000
Inferred
2.5
561,000
45,000
  • Mineral Resources estimated as of 28 February, 2015
  • Canadian Institute of Mining ("CIM") standards were followed for estimating Mineral Resources.
  • Totals may appear different from the sum of their components due to rounding.
  • Mineral Resources are estimated using an average gold price of $1,400 per ounce.
  • Average bulk density is 2.70 t/m3.
  • Interpolation was by Ordinary Kriging utilizing diamond drill and reverse circulation samples
  • Pit envelope constrained Mineral Resources are estimated at a cut-off grade of 0.5 g/t Au, constrained by the $1,400 Au pit shell.
  • Potentially underground mineable Mineral Resources are estimated at a cut-off grade of 2.5 g/t Au.
  • A minimum mining width of approximately 1 m was used to interpret veins using diamond drill and reverse circulation sampling.
Mineralized Area Resource Classification Pit Envelope Constrained   Potential Underground Total
Average grade (g/t Au) Tonnes (kt) Contained Gold (koz) Average grade (g/t Au) Tonnes (kt) Contained Gold (koz) Average grade (g/t Au) Tonnes (kt) Contained Gold (koz)
Porcupine Indicated 1.8 2,856 163 5.0 940 152 2.6 3,795 315
  Inferred 0.6 23 0 4.3 99 14 3.6 122 14
                   
Kenge Indicated 1.6 1,951 100 5.1 516 84 2.3 2,467 185
  Inferred - - - 4.2 4 1 4.2 4 1
                   
Mbenge Indicated 2.0 796 51 3.8 120 15 2.2 916 66
  Inferred 1.2 37 1 3.2 8 1 1.6 46 2
                     
Konokono Indicated 1.8 299 17 3.3 9 1 1.8 308 18
  Inferred 1.2 105 4 3.4 58 6 2.0 163 10
                     
Gap Indicated 1.0 3 0 3.6 49 6 3.5 52 6
  Inferred 1.5 56 3 2.9 14 1 1.7 70 4
                     
Snakebite Indicated - - - - - - - - -
  Inferred 2.4 112 9 3.3 44 5 2.7 156 13
                     
Subtotal Indicated 1.8 5,905 332 4.9 1,634 258 2.4 7,539 590
  Inferred 1.6 333 17 3.8 228 27 2.5 561 45
** refer to the full NI 43-101 Resource Report - click here




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SMP Gold Project - Target Location Map
DRILL RESULTS
METALLURGICAL REPORTS

SMP WORK PROGRAMME