SMP Gold Project

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PROJECT SUMMARY

HIGHLIGHTS

• Initial NI 43-101 compliant resource calculation published in November 2010: unrestrained Measured and Indicated Resource of 588,749 ounces (11.82Mt grading 1.54g/t Au) plus an Inferred Resource of 352,354 ounces (9.9Mt grading 1.10g/t Au) at a cut off grade of 0.3g/t Au.
• The resource comes from only 2 of at least 30 mineralised targets identified on the SMP Project, namely Porcupine and Kenge. Both targets have very strong potential for resource expansion which will be the initial focus of the 2011 20,000m drill programme started early March.
• Multiple targets along ~35km section of the Saza Shear Zone and associated cross structures.
• Metallurgical testwork on mineralised rock from the Kenge and Porcupine Targets shows recoveries of up to 96% through conventional grinding, cyanidation and / or flotation, and the possibility of 70% recoveries (at the Kenge Target) demonstrated through heap-leach amenability tests.
• Significant potential to develop a multi-million ounce, open pittable gold resource.

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SMP Gold Project - Target Location Map

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SMP plan map showing targets for drilling in 2010

• Table I - Significant SMP Drill Hole Intersections
• Table II - Significant SMP Drill Hole Locations

• SGS Heap-leach Amenability Report on SMP - May 2009
• SGS Metallurgical Report on SMP - August 2008

PORCUPINE TARGET

The bulk of the Porcupine resource will come from Porcupine Main Zone (PMZ) which has been drilled over a strike length of approximately 500m, and from surface to around 300m down-dip. Mineralised intercepts range between 24m grading 1.1g/t Au and 52m grading 3.7g/t Au. The exact location of the Porcupine Main Zone and associated long section is shown in the maps at the bottom of this paragraph.

Gold mineralisation is associated with quartz veins and veinlets that occur as sheeted veins and vein stockwork arrays within a granitic host rock. Gold occurs primarily as free gold in association with pyrite. Metallurgical testwork indicates recoveries of up to 95% through conventional processes.

• 59 drill holes (predominantly diamond drilling) totalling 14,025m have been completed to date on PMZ (see long section below).
• Every drill hole has intersected gold mineralisation, and has confirmed continuity of mineralisation from surface to 300m vertical depth.
Mineralisation is open to depth and along strike.
• The deepest drill holes in the higher grade core of PMZ, GPD-49, and -51, intersected 28m grading 5.1g/t and 53m at 2.9g/t gold, respectively.
• Grades within the higher grade core of PMZ appears to increase with depth, for example 28m grading 5.1g/t Au in GPD-49, indicating strong potential to develop underground resources as well open-pit resources.
• Recent drilling has identified several new zones of mineralisation, the most notable being Quill (14m grading 4.5g/t Au) and the PMZ Footwall Zone (44m grading 2.0g/t Au and 19m grading 2.6g/t Au) (see Porcupine plan map below). These zones, together with the NW Zone remain open along strike and to depth (see Company press release dated July 26, 2010) and will not be included in the upcoming 43-101.
• Recent structural re-interpretations have highlighted the potential to develop other zones of mineralisation within the immediate vicinity of Porcupine, and that these require drill testing with orientations other than those tested to date.
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Porcupine Target Drill Hole Section
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Porcupine Target - Main Zone Long Section
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Porcupine Target Anomaly Map
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Porcupine Zones Wireframe
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Porcupine Main Zone Wireframe





KENGE TARGET

The Kenge Target comprises five mineralised zones, namely NW (up to 18m at 2.7g/t Au), Main (up to 22m at 6.9g/t Au), SE (up to 21.5m at 3.6g/t Au), Snakebite (up to 8m at 20.8g/t Au), and Mbenge (up to 48m at 2.1g/t Au). To date, a total of 180 diamond drill holes have been completed at the Kenge Target.

The five zones have an aggregate strike length of at least 2,000m. The target has been tested to a depth of approximately 260m, and remains open to depth, and to the east of the Mbenge Zone.

Metallurgical results from the Kenge Target are very positive -- recoveries of up to 96% from conventional gravity and cyanidation processes.

Maps and Sections

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Kenge Target - Drilling coverage and mineralized zones
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Kenge Target Wireframe

TUMBILI ZONE

RC drilling was recently completed at the Tumbili prospect, located approximately 6km southeast of the Kenge Target. The programme consisted of 16 holes (for 1,531m) drilled on two 400m long, N-S oriented lines of scissor holes. The lines were spaced 1,000m apart and crossed the main geochemical-geophysical anomaly identified by Helio. A number of zones of mineralisation were intersected on each of the lines. Results have been returned for the first 12 holes, SSR1 to SSR12 inclusive).

The best hole on the western line was SSR11, which intersected 16m @ 1.9g/t Au from 36m. The zone is open, since it is truncated at the footwall by a post-mineralisation dyke.
On the eastern line, the best hole was SSR7, which intersected 12m @ 1.4g/t Au from 10m.
These two holes are located over 1,000m apart. Mineralisation at Tumbili is similar to that at Porcupine where drilling has intersected over 52m grading 3.3g/t Au.
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Tumbili Prospect Drill Plan

NEW TARGETS

Twenty-two of the twenty-five targets drilled to date have intersected bedrock gold mineralisation over significant widths. Only two of those targets (Kenge and Porcupine) have been subject to systematic drill testing, and in both cases have yielded very positive results. Helio is presently planning a work programme with specific emphasis on expanding the resource at Porcupine and testing new targets identified during a structural study conducted in June/July 2010.