- Porcupine extended 150m down dip to a vertical depth of 450m
- Konokono drilling confirms mineralisation over a 550m strike length
Vancouver, February 10, 2015
Helio Resource Corp (TSX-V: HRC), (“Helio” or the “Company”) is pleased to report results from the balance of the 2014 Diamond (DD) and Reverse Circulation (RC) drill program at the SMP Gold Project, Tanzania.
The results reported herein come from the Porcupine and Konokono Targets, which are located 11km and 2.5km east, respectively, of the Company’s Kenge-Mbenge Resource area. Kenge-Mbenge is located approximately 5km east of Shanta Gold’s New Luika Mine (see attached map).
Highlights from Porcupine
- All 6 Diamond drill holes intersected broad zones of mineralisation (up to 50m wide) containing narrower zones of high-grade gold mineralisation (e.g. GPD136 intersected 15m at 2.2g/t Au, including 1m grading 14.5g/t Au).
- Mineralisation crops out at surface and is continuous for 550m down-plunge.
- Mineralisation remains open to depth.
Highlights from Konokono
- 5 drill holes intersected multiple shallow zones of mineralization along 550 meters of strike length, e.g. SER044 intersected 3m @ 9g/t from 68 meters, SER047 intersected two separate 2m zones assaying 7.7g/t and 7.8g/t at approximately 100 meters depth, and SER052 intersected 5m @ 2.7g/t from 7m depth.
- Mineralisation is continuous from surface to a depth of more than 100m.
- All of the higher-grade intercepts are open at depth.
Stated Richard Williams, Helio CEO: “The results from the Porcupine and Konokono drillholes reinforces our view that the SMP Project resource base will continue to grow. This drilling, along with the high-grade mineralisation identified at the Gap Target (news release dated January 29, 2015), demonstrates the potential to add near-surface and higher-grade underground resources.”
In Q4, 2014, Helio drill-tested three targets at the SMP Gold Project - Gap, Konokono and Porcupine - with a 7,000m+ combined Reverse Circulation and diamond drill program. The objectives of the program were to add near surface, potentially open pittable resources, in the Gap and Konokono Targets, and to add underground resource ounces in the down-plunge section of the higher-grade core of the Porcupine Target.
The objective of the drilling at Porcupine was to identify down-plunge higher-grade zones of mineralisation to add to potentially mineable underground resources (see long section attached). The Porcupine Target currently has a NI 43-101 compliant Indicated Resource of 5.85 MT grading 1.96g/t Au (368,646 ounces) and an Inferred Resource of 4.18 MT grading 1.23g/t (165,595 ounces). Please refer to news released dated February 3, 2014.
Six diamond drill holes (3,165m) were drilled below the existing Porcupine Mineral Resource, adding a 150m down-plunge extension of mineralisation. Holes were drilled at -75° towards 340°, perpendicular to the strike of the mineralisation. All holes intersected 10m - 50m wide zones of lower grade mineralisation, containing higher-grade intervals, which are presented in the table below.
A long section showing the location of the drill hole pierce points is attached. Mineralisation in all holes is hosted by the same altered granite that hosts the Porcupine resource.
|Hole||Length (m)||Grade (Au g/t)||From (m)||To (m)|
Table 1 - significant drill results from the Porcupine Target
Reconnaissance drilling conducted at the Konokono Target in 2008 and 2011 tested more than a 1,500m strike length with widely spaced (300m) holes. Results from this drilling indicated the potential for near-surface, high-grade mineralisation.
During 2014, new structural models for the location and orientation of the higher-grade zones within the SMP project area were developed. Konokono was identified as a high priority target. The 2014 RC drilling at Konokono covered a 550m strike length of that main target.
Twenty four holes (2,178m) of RC drilling, four of which were extended using diamond drilling (287m), were drilled at Konokono, which has potential to add materially to the existing resource at SMP, both through near surface resources and underground higher-grade resources. Six holes did not reach target depth.
All holes were drilled southwards off drill pads spaced 50m apart, with one or two holes (inclined at -50° and/or -70°) drilled from each pad. The drilling tested a total strike length of over 550m. The mineralisation coincides with a strong geophysical anomaly (coincident magnetics and induced polarisation [IP]). A plan map showing the drilling and intercepts is attached below. Mineralisation remains open along strike, down-plunge and to depth.
|Hole||Length (m)||Grade (Au g/t)||From (m)||To (m)|
Table 2 - significant drill results from the Konokono Target
A full table of all results from the Porcupine and Konokono Targets can be found here: Drill Results Konokono/Porcupine.
Chris MacKenzie, M.Sc., C.Geol., Helio’s COO and a Qualified Person as designated by NI 43-101, is based in Africa and supervises the exploration at Helio’s projects, including the sampling and quality assurance / quality control (QA/QC) programmes, and has reviewed and approved the contents of this news release. Intercepts are reported as drilled widths, more drilling is required to confirm true widths. Continuous 1m samples were taken from all holes. A reference sample was retained on site. All samples were submitted to the lab with internal QA/QC checks including the use of blanks, standards and duplicates (at an average rate of 1 every 20 samples each.) Samples were assayed at the SGS Laboratory in Mwanza, Tanzania by 50g gold fire assay with an AA finish. As well as the Company’s internal QA/QC programme, SGS also applied their own internal QA/QC programme, consisting of insertion of standards and duplicates. Reported weighted-average intercepts for the Konokono and Porcupine drilling are calculated using a 1.0g/t Au cut-off. Any individual assays over 15g/t Au are highlighted.
About the SMP Gold Project
On February 3, 2014 the Company released a new resource calculation from the Kenge and Porcupine Resource Areas which focussed on the higher grade resources of the project. At a 1g/t Au 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 test work indicated recoveries of up to 96% using a gravity and cyanidation process - see http://www.helioresource.com/s/TechnicalReports.asp for all technical reports.
The SMP Gold Project is located in the Lupa Goldfield of SW Tanzania, and is adjacent to the New Luika Gold Mine, operated by Shanta Gold Limited, an AIM-listed company. The New Luika Gold Mine has a JORC compliant Probable Reserve of 4.95Mt grading 4.33g/t Au (690,000 ounces) - see Shanta news release dated October 20, 2014. The QP has been unable to verify the information and the information is not necessarily indicative of the mineralization on the Company’s property.
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 on outlining the resource potential at the DGP Gold Project in Namibia.
For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to firstname.lastname@example.org or email@example.com
ON BEHALF OF THE BOARD OF DIRECTORS OF HELIO
|“Richard D. Williams”
Richard D. Williams, P.Geo
Christopher J. MacKenzie, C.Geol.
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.
Map showing the location of the Kenge and Porcupine Resource areas, the Gap and Konokono Targets, and Shanta Gold’s New Luika Mine.
Porcupine Long Section Showing Recent Drilling
Konokono Target, Plan Map of Drilling