Helio Resource reports first phase drilling at Chura target, SMP Gold Project, Tanzania, discovers new gold mineralisation over 1km strike length
TSX-V Trading Symbol: HRC
VANCOUVER, Sept. 22, 2011 /PRNewswire/ - Helio Resource Corp
is pleased to report the discovery of a new zone of bedrock gold mineralisation at the Chura target, SMP Gold Project, in south-western Tanzania. The zone appears to be at least 1km long.Highlights
-- Chura is located 4km west of the Porcupine Resource;
-- Mineralisation and geology similar to Porcupine;
-- 3 N-S fences of drill holes were completed, covering a 1km
strike length;
-- Mineralisation is associated with a 2km long magnetic anomaly;
-- Gold mineralisation outcrops at surface, was intersected in all
three drill fences, and remains open along strike and to depth;
-- Chura represents a completely new zone of gold mineralisation
to add to the resource at SMP;
-- Line 1 - up to 20m grading 0.8g/t Au;
-- Line 2 - up to 5m grading 1.4g/t Au (open);
-- Line 3 - up to 2m grading 5.7g/t Au;
-- It is important to note that similar drill intercepts are found
at Porcupine, and are often located within 50m of much wider
and higher grade mineralised zones.
The Chura Target is located 4km west of the Porcupine target and 7km east of the Kenge target (see Map 1). The target consists of a strong, 2km long, magnetic anomaly associated with reactivated shear zones.
Small scale artisanal mining activity has focussed on narrow high grade veins outcropping at surface. Sampling of these veins by Helio has returned assays up to 150g/t Au.
Gold mineralisation occurs in a zone of disseminated sulphides (principally pyrite) and sheeted quartz veining hosted by a granitic unit close to a geological contact with a dioritic footwall unit. In this respect the mineralisation is analogous to that at Porcupine. On Line 1, the zone dips north-east at -25 .
Twelve drill holes (1,280m) were completed on three north-south drill fences covering a 1km strike length (see Map 2). The best holes on each line were as follows:
-- Line 1: ILD6 20m @ 0.8g/t Au
and ILD12 13m @ 0.9g/t Au
-- Line 2: ILD3 5m @ 1.4g/t Au (open) and 1m @ 2.2g/t Au
-- Line 3: ILD11 2m @ 5.7g/t Au
ILD6 is 580m away, on-strike to the NW, from ILD3, and ILD3 is 360m NW of ILD 11. ILD3 collared in mineralisation, and the intercept is open. ILD12 was drilled 50m north of and parallel to ILD6, intercepting the same mineralisation and demonstrating continuity from surface to 70m depth. The zones are all open along strike to the east and west, and to depth.
It is important to note that the surface footprint of the Porcupine resource area is only 350m long, so the Chura target has the potential to host a similar or larger resource (see Map 2).
More drilling is required in the area to determine the true potential of the zone, but the Company believes the target has the potential to add to the global resource at the SMP project. A full table of the results from the Chura drilling is presented below.
_________________________________________________
|Hole #| Location |Length (m) |Au (ppm)|From (m)|
|______|____________|___________|________|________|
|ILD001|Chura Line 2| | NCV | |
|______|____________|___________|________|________|
|ILD002|Chura Line 2| 10 | 0.2 | 1.9 |
|______|____________|___________|________|________|
|ILD003|Chura Line 2|5.2 (open)| 1.4 | 6.8 |
|______|____________|___________|________|________|
| And |Chura Line 2| 1 | 2.2 | 33 |
|______|____________|___________|________|________|
|ILD004|Chura Line 2| 1 | 1 | 44 |
|______|____________|___________|________|________|
|ILD005|Chura Line 1| | NCV | |
|______|____________|___________|________|________|
|ILD006|Chura Line 1| 20 | 0.8 | 9 |
|______|____________|___________|________|________|
|ILD007|Chura Line 3| | NCV | |
|______|____________|___________|________|________|
|ILD008|Chura Line 3| 1 | 0.3 | 78 |
|______|____________|___________|________|________|
|ILD009|Chura Line 3| 1 | 0.4 | 47 |
|______|____________|___________|________|________|
|ILD010|Chura Line 3| 1 | 0.2 | 30 |
|______|____________|___________|________|________|
|ILD011|Chura Line 3| 2 | 5.7 | 85 |
|______|____________|___________|________|________|
|ILD012|Chura Line 1| 13 | 0.9 | 59 |
|______|____________|___________|________|________|
Drilling Update
The company has recently completed a programme of infill and extension holes at the Porcupine, Quill and Gap Mine targets.
An RC rig has been secured and is currently completing a programme to define the resource potential of the Tumbili target (see Map 1).
Then, the RC rig will be moved to explore the newly-granted Saza East Licence, where the company aims to add to the resource potential of the Kipanga-Konokono-Chura corridor (Map 1).
Results from all the drilling mentioned above will be released as soon as they are available.
About the SMP Gold Project
The SMP Gold Project covers an area of 238km(2). Gold mineralisation has been identified in 30 targets within the project area. Two of these targets, Porcupine and Kenge, have been advanced to the resource stage and both, especially Porcupine, still have potential to grow significantly. The unrestrained resource calculation as released in November 30(th), 2010 reported a Measured and Indicated Resource of 589,497 ounces at 1.51g/t Au plus an Inferred Resource of 353,097 ounces at 1.12g/t Au at a cut off grade of 0.3g/t.
Mineralisation at all 30 targets outcrops at surface, and varies from narrow, high grade gold mineralisation hosted in quartz veins and shear zones, to wide zones (up to 90m in width) of lower grade, bulk mineable / open pittable mineralisation.
Helio owns a 100% interest in four of five licences, subject to a 2% NSR to the vendors (Tanzanian small mining companies), and the Company is in the process of earning a 100% interest in the fifth licence
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, supervises the exploration at the SMP project, including the sampling and quality assurance / quality control programmes, and has reviewed and approved the contents of this news release. Drill holes were drilled at -48 either north- or southwards. Intercepts are reported as drilled widths, more drilling is required to confirm true widths. Continuous 1m samples were taken every through the main mineralised zones, and 2m samples were taken outside this. Samples were split with a core saw and one half was retained on site. All samples were submitted to the lab with internal QA/QC checks including the use of blanks and standards (ave. 1 every 17 samples) and duplicates (ave. 1 every 25 samples). Samples were assayed at the SGS Laboratory in Mwanza, Tanzania by 50g gold fire assay. 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. Weighted average intercepts are calculated using a 0.5g/t Au cut-off, unless otherwise stated and may include some mineralised waste.
ON BEHALF OF THE BOARD OF DIRECTORS
'Richard D. Williams' 'Chris MacKenzie'
Richard D. Williams, P.Geo Christopher J. MacKenzie,
CEO C.Geol.
COO
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
Helio Resource Corp.
CONTACT: Richard Williams or Irene Dorsman at 1 604 638 8007 or by e-mail
to richard@helioresource.com or irene@helioresource.com