In September 2012, Helio released a NI 43-101 compliant PEA for three targets at the SMP Gold Project. At $1,450/oz gold and a 8% discount rate, the report allows for a base case of 500,000oz production with a NPV of US$85.7 million or an upside outcome of 803,000oz with a NPV of $146.1 million ("Upside Case" requires geotechnical drilling to confirm the viability of a 55 degree pitwall, allowing extraction of ~800,000 ounces).
The PEA was conducted on Measured and Indicated Resources only, and evaluates only 3 of the 30 targets within the SMP Gold Project.
The PEA was conducted by SRK Consulting (Australia) Pty. Ltd., of Perth, Australia ("SRK") and based on the NI 43-101 compliant mineral resource estimate provided by SRK as well in February 2012. 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)(Click here for full details).
Helio will use the PEA as the basis for advancing the SMP Gold Project through pre-feasibility.
Metallurgical testwork on mineralised rock from the Kenge and Porcupine targets shows recoveries of up to 96% through conventional grinding, cyanidation and/or flotation.
Helio has also completed a 10,000m drill programme testing numerous targets at its Damara Gold Project in central Namibia, east of and on strike from AngloGold Ashanti's Navachab gold mine. The discovery of the Gold Kop target (50m @ 2.1g/t Au, 0.8% Cu and 14g/t Ag (June 13, 2011)) was a significant event in 2011, and will be the focus of ongoing drilling, the objective being to outline the resource potential as quickly as possible.